900,000 families set to lose £600 a year in housing benefit

Along with an analysis of June’s Emergency Budget, by the TUC, 936,960 households across the UK will lose around £12 a week or £624 a year in consequence to changes in housing benefit.

Cuts to local housing allowance will hit almost everyone in private rented accommodation receiving housing benefit.This may also affect the housing jobs industry as are going to be less demand for those in a job inside the housing industry.

Analysis of figures from the provided with the Department for Work and Pensions reveals that regionally, the most important cuts will likely be in London where 159,370 families will see housing benefit cut by £22 a week. A total of £1,144 a year of lost housing benefit.

An extra 123,000 home around the South East of England will lose £12 weekly (£624 per year), while 58,680 families documented in East Midlands, 70,970 families within your East of England, 130,900 in your North West of England and £83,180 families in your South West of England will lose £10 per week (£520 per year).

The proposed cuts, due to come into effect in April 2011 include:

* The restriction of beginning a bedroom entitlement to four bedroom rates
* Capping the balance that can be claimed from local housing allowance to between £250 - £400 per week
* Removing a £15 per week excess payment for tenants who find ample amounts on rents.

Further to this from October 2011, local housing allowance rents will also be discovered by the 30th percentile of public sector rents in lieu of the median.

TUC General Secretary Brendan Barber said “This cut in housing benefit can make a genuine difference to a number of our poorest and most vulnerable families, all of which will affect nearly one thousand thousand households. Families in London will find themselves from pocket to the tune of £1,144 a year, and households all around the UK might be left much worse off.

The Chancellor promised not to hide and hard choices belonging to the British people or bury them in the little print of budget documents, but furthermore this is another reminder that we are very definitely not all with this together.
While the rich are let off, families are being left pick up the money necessary the recession.”

Article Source: http://www.onlinearticlessite.com

Jeff is a long serving member of the housing jobs association with 20 years experience in the sector.

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