Plans to cut housing benefit from households if a young adult member of the family is seeking work could increase homelessness, charities have warned.
Government proposals being voted on today could result in an £800 annual cut from housing benefit paid to parents or guardians with a young person aged under 25 who is living at home and seeking work. Current rules make a deduction only if the young person is in employment.
The Department for Work and Pensions has insisted its plans for universal credit are on track - flying in the face of criticism from MPs.
The DWP on Tuesday published its response to a report from the Work and Pensions select committee published in November. The committee warned the government’s timetable for universal credit was ‘ambitious’ and more needs to be done to ensure vulnerable people’s needs are met.
The number of people rough sleeping has gone up by 31 per cent in the past two years, according to government statistics released today.
Communities and Local Government department figures show the number of rough sleepers in a single-night snapshot in autumn 2012 was 2,309 up from 1,768 in autumn 2010. This year’s figure was a rise of 6 per cent from autumn 2011’s count of 2,181.
The four boroughs forced to trial a £500-a-week benefit cap will spend their whole share of an emergency hardship fund within five months unless they move people to cheaper areas or obtain more funding.
Research by London Councils for Inside Housing reveals the four London boroughs unexpectedly having to trial the government’s £26,000-a-year benefit cap could spend their share of the pot before their peers are affected at all.
A million people living in social housing could struggle with their rent and end up in debt as a result of the Government’s welfare shakeup, the National Housing Federation (NHF) has warned.
A NHF-commissioned report by Ipsos MORI and the University of Cambridge found that most housing associations fear a significant rise in rent arrears and believe their residents have little or no idea how the welfare changes - which are being rolled-out later this year – will affect them.
Housing associations expect their rent arrears to increase by more than half as a result of the government’s welfare reforms.
A survey of 232 housing associations conducted by Ipsos Mori for the National Housing Federation has found on average registered providers expect arrears to rise by 51 per cent. If this is extrapolated across the sector it will mean an increase of £245 million.
There is some concern that no announcement was made on housing benefit for the under 25's in the Autumn Statement, but we all know that the government is looking at a plethora of ways to reduce the massive deficit we inherited from the previous Labour government in a way that is fair and responsible to everyone.
The cost of housing benefit in our country almost doubled under the last government from £11 billion in 1999 to £21 billion in 2010, and in tough economic times it is not fair that those striving to make ends meet, also pay for the housing of those who can live at home. In some cases, housing benefit has trapped people in poverty and created a culture of entitlement.
Nearly 1m people who are in work and claim benefits may be required to work longer, increase their earnings or face losing access to the new universal credit, two welfare ministers, Lord Freud and Mark Hoban, said on Monday.
The state's capacity to ask more of those in work and those that are self-employed is likely to be transformed by the introduction of universal credit in April, the ministers said at a Policy Exchange event.
Councils being hit first by the benefits cap plan to lobby the government over fears they will be disadvantaged by the surprise move.
The government announced on 20 December that the £26,000 total household benefits cap will only apply to four councils, Haringey, Croydon, Enfield and Bromley, from 1 April and not to everywhere at the same time as widely expected. At least one, Croydon, is considering legal action to prevent the move.
Barnsley is heading for a benefits crisis which could see thousands fall into debt and rent arrears across the borough reach record levels.
That grim warning comes from Jackie Walker, senior official at the Barnsley branch of the South Yorkshire Credit Union.