Tuesday, June 22, 2010

Some people are actually getting more than this in HB??

Osborne to limit [housing] benefit payments

Maximum limits on housing benefits have been announced by chancellor George Osborne during his first Budget speech. Housing benefit will be limited to £400 a week for a four bedroom house and £280 a week for a one bedroom house. [That's £1730pcm and £1210pcm respectively!] Mr Osborne said the move would save £1.8 billion by the end of the parliament. He said spending on housing benefit, which increased by £7 billion over the last four years, was ‘completely out of control’ and the system in ‘dire need of reform’.

Posted by drewster @ 02:48 PM (2569 views)
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23 thoughts on “Some people are actually getting more than this in HB??

  • well this is BIG news! Especially in the South East… isnt it?!?!?

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  • Here is one of the comments:

    “This will have a huge inpact on Central London households in the private rented sector.What will happen to them? Is this applicable for current tenancies or only new tenancies? Problem is there will be no new tenancies. Current Central London is LHA is £1000 per week for a 4 bed! Now it is £400. Don’t think many landlords will take a £600 per week rent reduction!! Central London LA have spent many years building good rapport with private landlords and letting agents. Regardless of whether these landlords or greedy or not, they have provided much needed accommodation. If this supply is cut off Homeless applications will simply increase. Talk about a vicious circle!!”

    Yes the rents will have to come down to reflect ACTUAL demand!

    recaptcha : to shirks!!

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  • I’m staggered

    £1.8 Billion can be saved by limiting housing benefit to £50,000 per annum per household !! Fifty Grand a year for a single family in housing benefit !! …… £280 a week for a one bed flat !!!!

    The whole housing system, from land costs, to planning, building, renting, mortgage, housing benefit, taxation . the whole f*ing house of cards is rotten to the core

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  • mark wadsworth says:

    Oh dear. Two thirds of HB is paid to local councils, so it is not really an expense, as it counts as an equal and opposite amount of income in local councils’ books.

    The other £6 billion is paid to ‘private landlords’, about half of whom own ex-council houses that the Tories started flogging off twenty years ago (and Nulab were just as complicit in this). It’s a complete and utter waste of money and a straight subsidy to rents and property values. Far better to take that £6 billion quid and use it to build 100,000 new council homes every year for the next twenty years. Or for ever.

    Vote MW – the value for money candidate!

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  • techie,

    Not sure if you’re being sarcastic? It’s big news to me! Most people I know who rent in London pay £500-£600pcm for a room in a flatshare. Those who live alone (higher earners) rarely pay above £1000pcm. Osbourne’s new limit of £1210pcm would get you a very very nice one-bedroom flat!

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  • sibley's love child says:

    Does anyone know when this will come into effect? At a cursory glance it still doesn’t look it’s been scaled back far enough. I’m also presuming that the figures are the absolute maximum nationwide (in other words the most exclusive areas)?

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  • Drewster – your mates probably earn too much to claim HB. You need to be on the dole to afford a swanky appartment these days!

    greats tax !

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  • drewster – but thats the maximum… as i read it. That means that it will be lower in areas, since HB is contingent on need (i.e. you cant have a 3 bedder if you live alone) and location. If the scale back is proportionate then no – i am not being sarcastic.

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  • Tudorian should be our Housing Minister if you ask me.

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  • If I understand this correctly, there are a relatively small number of HB recipients (many of them in London) who have been getting immense sums shelled out on their behalf, so they can continue to live in very expensive neighbourhoods.

    This cap simply means that people seeking assistance from the state will sometimes be required to move to a cheaper district.

    The caps indicated today still allow people to live in areas that are very expensive, relative to national averages; so I’m wondering if this is just a first step..

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  • Uncle Tom – let’s hope so… If you choose to live in a very expensive area and you pay for it yourself, then that’s your choice. If you don’t work and need to claim housing benefit, then MOVE SOMEWHERE F***ING CHEAPER!!

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  • £1730 pcm is £20,760 . Thats almost £25K before tax .

    Can you continue to claim housing allowance throughout your working life and into retirement ?

    Straight into the BTLers pockets .

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  • No supprise to me! I have a friend who rents his flats in up market Maida Vale to single parents because he gets a premium on his rent. Westminster council pays him £450 a month. I think it is a total disgrace. I have a first class degree and a PhD and earn £50 000 a year but would struggle to afford a flat in Maida Vale. Why would any one be motivated to pay to go to college, best thing to do would be to get pregnant, get a free expenses paid flat and then go to college for free.

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  • Uncle Tom / Timmy T,

    Yes it’s definitely a first step. The article clearly states:

    “He said spending on housing benefit, which increased by £7 billion over the last four years, was ‘completely out of control’ and the system in ‘dire need of reform’.”

    That suggests he’ll be looking into it more closely in the near future. Ozzy is already scheduled to report back in the autumn for a budget review. I’d expect more reforms to the benefits system after the summer break.

    @tudorian,
    Back to school for you. £400/wk over 52 weeks is around £20,000 not £50,000.

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  • Yes, if you need housing benefit in London, then you haven’t got a job, so you don’t need to be in London do you ?

    If you can’t get a job in London, you’re probably not really trying that hard are you.

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  • @str 2007
    What about if your a pensioner in London in rented accommadation with family that live and work in London
    you might need housing benefit then !

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  • tenant super says:

    Council house tenants would only be entitled to “appropriately sized homes”. That means elderly people whose kids have moved out will have to downsize if they’re on HB!

    So some of the people who are living in large private houses on HB can move into these vacated properties. Sounds sensible to me.

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  • tenant super says:

    I take that back…

    * Full housing benefit will be time-limited for ‘ciaimants who can be expected to look for work’.
    * Social tenants of working age will have their housing benefit restricted where they ‘are occupying a larger property than their household size warrants’.
    * The maximum local housing allowance will be capped for each property size
    * the percentile of market rents used to calculate local housing allowance rates will be changed.

    only those of working age. Since most underoccupiers are retired this is a bit daft.

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  • tenant super,
    The Tories rely on the elderly vote. They daren’t risk being labelled as pensionner-bashing, which is why we saw higher inflation-linked pensions in the budget and no scrapping of any of their entitlements (free bus pass, tv licence, winter fuel payment). The NHS is also disproportionately used by the elderly therefore its budget has been ring-fenced for now.

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  • mark wadsworth says:

    TS, very brave of you, referring to certain people as “underoccupiers”, that’s a dark and dangerous road 🙂

    As long was you waffle blithely about “optimal use of resouces” and “efficient taxes” everybody’s happy, but when you explain how Land Value Tax would encourage optimal use of land and buildings you get no end of grief from the Home-Owner-ists.

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  • @ drewster

    Ahem ….. thanks for the maths help

    (scuttles off to the corner)

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  • orcusmaximus says:

    @MW – you’d get my vote!
    @Uncle Tom / @Timmy T – Here here!

    @tenant super –
    “Social tenants of working age will have their housing benefit restricted … Since most underoccupiers are retired this is a bit daft.”

    Not so. When you take into account that retirement age is going to be steadily raised from here on, this is a fine example of a ‘stealth’ benefit cut. Is Ozzy the AntiBrown ?

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  • tenant super says:

    Drewster @ 19.. I was aware of pandering to pensioners. My friend who lives in a multi million pound home in St John’s Wood and has a Freedom Pass because she is over 60. But for one moment of childlike foolishness, I thought that the housing crisis and budget crisis might make them put sensible policies above political expediency but oh dear silly old me!

    Orcus @ 22… Social Housing is calculated at a standard charge and then a very small addition per room. Around £15 where I live. Under -occupiers of working age will be more likely to be in their fifties and sixties and working so an extra £ 15-£30 per week isn’t a big deal for a spare bedroom or two even if you’re on a fairly modest wage. I would also guess that a couple on for example, incapacity benefit and carer allowance may chose to sacrifice £15 per week from their money (or indeed pension for the retired) to keep the extra space, especially if it is in a nice area. Under-occupiers in my borough are bribed with several thousand pounds to downsize. That’s a real waste of cash. Why not make it compulsorary and set compensation at removal and redecorating costs?

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