The Government’s decision to reduce the amount of housing benefit has been strongly criticised by housing associations and charities. The Chancellor, George Osborne, will cut housing benefit by £1.8 billion a year by 2014/15 claiming that the housing benefit system was in “dire need of reform.”
He said that housing benefit payments would be restricted for those living in a rental property that was larger than the occupants needed and that local housing allowance would be limited to between £280 and £400 per week depending on size of the property to rent. Those who have claimed Jobseekers Allowance for 12 months will see their housing benefit reduced by 10%.
However, Campbell Robb, chief executive of Shelter, said: ‘Nearly half of housing benefit claimants are making up a shortfall of £100 to meet their rent.
‘If this support is ripped out suddenly from under their feet it will push many households over the edge, triggering a spiral of debt, eviction and homelessness.’
It is clear that the risk for landlords with properties to rent experiencing tenants in rental arrears across the sector is greatly increased with these cuts. People will be forced to move out of the more expensive regions into cheaper areas leading to what has been described as ‘benefit ghettos’ by delegates at the Chartered Institute of Housing conference.
Liz Peace, chief executive of the British Property Foundation, said that it was vital that those living in the more expensive areas of the country are not forced out of their homes by the housing benefit limits.
She said: ‘This would create more problems than it would solve, as it is vital that we do not end up creating more ghettos or forcing people to travel miles to work.’
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they wouldnt get evicted if they bothered to pass the rent on which Housing Benefit pay to them
It’s certainly true that some tenants are pocketing their HB money.
However this article is about a reduction in HB to a very large number of tenants – which could greatly impact private landlords even further.
Worrying indeed.
Apparently if you offer a discount on the rent then you will get the rent paid directly to you (The Landlord) but only if it is deemed reasonable !!! How did the pilot scheme of paying the tenants get passed I would love to see the figs it’s the biggest disaster on record