Almost 800,000 Homeowners At Risk Of Repossession

Almost 800,000 households could be vulnerable to repossession if they suffered a loss of income, according to a new think-tank report. Think tank, the Social Market Foundation, analysed official data and found that of the 770,000 at risk of repossession, just over a quarter – 26% – worked in retail or manufacturing, sectors badly hit by the pandemic. An independent SMF report funded by the Building Societies Association (BSA) shows that the pandemic has reduced the savings of many mortgage-holders, with around 14% of owner-occupiers not having sufficient savings to cover a single month’s mortgage payment. Read more on the Property Industry Eye website.

https://propertyindustryeye.com/almost-800000-homeowners-at-risk-of-repossession-new-report/

Online Decision Tool Could Help Save Universal Credit

Families should be able to ‘opt in’ to an online budgeting tool under the new Universal Credit, which allows them to determine the direction and frequency of benefit payments, according to a think tank.   The Social Market Foundation (SMF) report ‘Sink or Swim’ warns Universal Credit is at risk of “backfiring” and shows that the changes - including monthly payments and housing benefit paid to claimants in the social rented sector will leave many households struggling to cope.  Research it commissioned earlier this year, involving interviews with 30 low-income families, revealed that most opposed greater frequency payments and having their housing benefit paid directly.  In addition, it warned recently unemployed people could go for a month with no income at all under the move to fixed monthly assessments, and this could be even longer if employers struggle to meet the new reporting requirements. This, it warns, increases their chance of going into debt and could act as a deterrent for people to take temporary work.  Download a copy of the report from the SMF website.

Welfare Reform Should Be Delayed For a Year, Says Labour

Labour has called on the government to postpone the introduction of its flagship welfare reform, universal credit, by a year, arguing that there are too many unresolved problems with the scheme and not enough time to iron them out before the launch in October 2013.  Iain Duncan Smith is said to be angry at reports that the country's most senior civil servant, the cabinet secretary, Sir Jeremy Heywood, has expressed scepticism about the policy, giving rise to a fear in Whitehall that the entire initiative could be dumped.  Meanwhile, new research from an independent thinktank, the Social Market Foundation warns that universal credit will push significant numbers of households into debt and suggests that instead of boosting individuals' financial resilience, it will worsen their financial circumstances.  MPs have voiced concerns over the number of areas where details remain unresolved, while charities continue to highlight elements of the reform that will adversely affect the people they support.  There are also persistent concerns over whether a complex new computing system, which needs to knit together detailed records from HMRC and DWP, will be ready in time and, politically, suggestions that the Treasury is no longer in harmony with the Department for Work and Pensions over the initiative.  Read more on the Guardian website.