Wednesday, September 1, 2010

This is just for London – multiply across the country….

Housing benefit cutbacks will cost thousands of Londoners £22 a week

More than 150,000 Londoners will each lose £22 a week in the Coalition's housing benefit cutbacks. Government figures show all claimants in London's private rented sector will be worse off, including some disabled people and pensioners. The full impact of the four-year housing benefit shake-up, starting next year, is likely to be far greater — figures released so far do not include the bigger social housing sector. The July Budget imposed a £400-a-week cap on [housing benefit] claims plus strict maximums for every local area. Detailed tables from the Department for Work and Pensions now show about 159,370 tenants in London will lose an average of £22 a week, while eight out of 10 will lose more than £10 a week.

Posted by drewster @ 09:03 PM (1572 views)
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10 thoughts on “This is just for London – multiply across the country….

  • general congreve says:

    Edit @1: If we cut the welfare bill to 30 billion we wipe out the deficit in one hit.

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  • This is just a cynical attempt to restore inflated housing rents demanded by social housing landlords to underpin the private rental market.

    Tough! Take the pain on your buy to let portfolio, Mr Murphy, Political Editor.

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  • Unemployed Youth says:

    Housing is way overpriced and that has to be factored into the budget, increased costs for renting property etc.

    However the welfare bill is enormous.

    Just under £52 is the minimum a person needs per week to live off (so the government say).

    If everyone got that (including 1 week old children, workers and billionaires), then the welfare bill would be about £170 billion, and less than it is currently. (And bare in mind a minority claim benefits, bar WTC,CTC,CB).

    As it stands, the lions share of my benefits go on council tax and social housing (yet it would be cheaper for me to get a mortgage than rent!).

    A lot of the benefit bill is direct taxation and the cost of overpriced social housing, and private sector housing.

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  • general,

    159,370 tenants x £22 x 52 weeks = £182m per year. Or to put it in spin-figures, that’s enough for several thousand teachers, nurses, police officers, etc. It’s hardly small change.

    That’s just the average. We’ve discussed on here previously the small group (think it was around 5,000) of people who receive between £20,000 and £100,000 a year in housing benefit. Even a conservative estimate of the potential savings frees up enough cash for several thousand more nurses / teachers / police officers / . Or just more money to service our debts (thanks, Gordon & Blair).

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  • The whole gist of this article, in fact the whole thing smells fishy. The Standard has traditionally been a Conservative leaning paper and still is as far as I can tell, yet it’s criticising their own team as it were. Definitely some home-ownerist influence at work behind the writing of the piece. Perhaps an attempt at a gentle nudge against the government’s intended cuts by hinting the press could turn on them? Hope the Con-Dems have the courage to ignore it. That sh1t worked every time with New Labour, don’t fall for it.

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  • This is only the start to the reining in of HB.

    In the budget speech, our George made it perfectly clear what he thought about HB, and the way it has got out of control.

    But the actual measures he announced will only trim away the most extreme cases, and will reduce the overall cost of HB by very little. Indeed, it might not reduce it at all, given the previous rate of cost expansion for this benefit.

    My guess is that he wants to tread carefully on this one, and has started with an exercise in changing the mindset over HB. It is not an unlimited pot, and the pot has to contract. That, I think, is the opening message.

    So expect further measures in his following budgets; measures that will oblige claimants from wealthy postcodes to move to cheaper ones; and measures to ensure that HB is not paid to support excessive living space.

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  • mark wadsworth says:

    I for one completely agree with the Tories on this. The people who will lose most from this will be
    a) ‘Private’ landlords
    b) People in the suburbs who don’t want those horrible poor people moving out of town to find somewhere cheaper

    The people who win the most from this will be
    a) People looking for somewhere to rent privately without housing benefit
    b) the taxpayer generally.

    PS, £400 a week is still way too generous – that’s more than I pay in rent and we live in a nice big 4-bed house in a nice suburb of London.

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  • The state hand outs have been sucked up by the banking sector therefore poor people will have to have their state hand out reduced to pay for it, expect sales of speed boats, Rolexes & security services to increase and cheap fags and booze to decrease.

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  • The comments added at the bottom of the article are reassuring.

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  • “PS, £400 a week is still way too generous – that’s more than I pay in rent and we live in a nice big 4-bed house in a nice suburb of London”

    Totally agree – but expect that ceiling to be cut and cut again..

    ..there’s plenty of places in the UK where you can rent a family house for little more than £100/week – but not in London.

    Is it unreasonable to ask people to move away from London, – if they have to go begging to the state?

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