Changes To Benefit Entitlements From April 2017

·         Employment and Support Allowance work-related activity group - Work Related Activity component is being abolished so those in this group will receive the same rate of benefit as those claiming Jobseeker’s Allowance

·         Families with children - support provided through Child Tax Credit will be limited to two children; Universal Credit will be limited to two children

·         New taper rate - a reduction in the taper rate to 63%, from 65%

·         Universal Credit and the benefit cap - From 1 April 2017 if a claimant is in work they will be exempt from the Benefit Cap if weekly earnings are equal to or greater than the equivalent of 16 times National Minimum/Living Wage rate, rather than a flat rate of £430 per month/£100 per week.

Read more on the NHF website.

Call For Affordable Housing In London

The high cost of renting a house in London has fuelled a huge increase in the number of people in the capital who do not have enough income for a decent standard of living, a study shows. Research for the Trust for London charity found 3.5 million Londoners have less money to meet their basic needs and have a minimum level of living, an increase of 400,000 since 2010. The increased cost of private renting was singled out which has risen four times as much as in the rest of the UK, said the report. Although single adults in the rest of the country have benefited from the National Living Wage, those in London are less able to afford a decent standard of living than before the rate came in last year. Read more on Yahoo Finance.

Chancellor Urged To Build 80,000 Affordable Homes A Year

The Chancellor should invest in a scheme that could deliver 80,000 affordable homes a year for ‘just managing’ families in the Autumn Statement. As the UK prepares to leave the EU, JRF is also calling on the Chancellor to end the freeze on working-age benefits to help households cope with the rising cost of goods and services. The Government has said its priority will be supporting families on low incomes. JRF’s submission looks at four ways they could support that goal on November 23. A Housing White Paper is expected to be published at the same time. JRF recommends the Government invest £1.1 billion extra a year in affordable housing through a scheme called Living Rents, which links housing association and local authority rents to local wages, making them affordable to people earning the National Living Wage. Read more on the Joseph Rowntree Foundation website.

Cameron's £10,000 Mortgage Deposit Claim Put To The Test

In Prime Minister’s Questions Jeremy Corbyn asked: “Will families earning the Prime Minister’s so-called national living wage be able to afford one of his discount starter homes?”  Cameron said in response: “When I became Prime Minister, people needed £30,000 for a deposit on a typical home. Because of the schemes we have introduced, that is now down to £10,000.” This answer is likely to grate a little with hopeful first time buyers around the UK, many of whom are having to save significantly more than £10,000. The Daily Telegraph examines the Prime Minister’s claims, using a housing calculator which will show whether you are able to afford a mortgage in your chosen area.

CLG Issue Impact Assessment On Housing And Planning Bill

The CLG has issued their assessment of the impact of policies and proposals set out in the Housing and Planning Bill 2015. Stock retained councils will be particularly interested in the government's assessment of the impact of the proposals in the Bill to force the sale of high value council housing and introduce a mandatory 'pay to stay' scheme for higher earning tenants. The estimates are that:

·         There are currently 350,000 council and housing association tenants with household earnings above £30,000 who would be required to pay a market or near market rent

·         The number of tenants affected is expected to rise further by April 2017 (the date of the planned introduction) because of rises in the National Minimum Wage/National Living Wage and wage rises generally.

The caseload (number of tenants affected) by 2017/18 is estimated to be:

·         200,000 council tenants; and

·         240,000 housing association tenants

Read more on the ARCH website.

Welfare Cuts Will Destroy Benefit Of New Living Wage

A record 6.5 million people – almost a quarter of UK workers – will remain trapped on poverty pay next year, despite George Osborne’s 50p-an-hour increase in the national minimum wage. The chancellor announced the introduction of a “national living wage” in his July budget. But the new national minimum will still fall short of an actual “living wage”, calculated on the basis of the cost of basic essentials, including housing, food and transport, that has been the centrepiece of a long-running public campaign. Despite Osborne’s announcement, forecasts are that the number of people struggling to survive on less than the living wage will continue to rise, hitting 6.5 million people, or 24.4% of employees, in 2016 – up from 5 million, or less than 20% of workers, in 2012. Read more on the Guardian website.