As you may well be aware central government is introducing various changes to the financial and housing systems currently in place. These systems are there primarily to help those most in need. Soon council tenants and housing association tenants will have their benefits reduced if they are assessed as having extra bedrooms.
One extra bedroom will see a 14% reduction in housing benefit and two extra bedrooms will see a 25% reduction. This could prove very challenging. or even impossible, if the tenant has no additional income.
Tenants who want to carry on living in their home have a choice of either accepting this extra cost themselves out of their already meagre income, or will maybe have to get a lodger to help cover the cost. Obviously the idea behind this is to create more housing for those with families, and to stop those who live on their own whom are in receipt of housing benefits, occupying two or three bedroom houses.
Statistics demonstrate that 1.4 million Brits are behind with their rent or mortgage; surely this new so called ‘bedroom tax’ is going to make things worse. Recent figures have shown the number of homeless families with children living in bed & breakfast’s has risen by 51% in the last year alone.
Additionally, people currently in receipt of incapacity benefits or income support will be reassessed in March 2014 or before and be moved on to what is called Employment and Support Allowance. You still get the same amount of money as you did with the incapacity benefits however it will be under this different name. Your eligibility for this will be reviewed if you claim one of the following:
• Incapacity Benefit
• Income Support due to illness or disability
• Severe Disablement Allowance
The benefits outlined above are being phased out and will no longer be in use.
Also anyone who is in receipt of disability living allowance will find that it is to be replaced by a new benefit called Personal Independence Payment (P.I.P). This is to be introduced for new claims in April 2013, but is intended that by October 2013 all current DLA claimers will have been assessed for P.I.P instead.
A new benefit cap is to be introduced from 15th April 2013 in London and is to be rolled out country wide by the end of September 2013. Most benefits will be continued, including housing benefit. The limit for all benefits collectively will be as follows: - £350 per week for individuals and £500 per week for families with children.
A new ‘Universal Credit system’; (a new single payment for people who are looking for work or on a low income); will be introduced this year. It will replace all existing out of work benefits. People with substance addictions may have to commit to a contract stating that they will enter treatment or face losing their out of work benefits and actively look for work. This may encourage people to get treatment and the help that they need which could eventually lead to recovery and work. For some though the opposite may happen, they may lose their benefits, not engage in treatment, and crime and homelessness may increase. This new system has been brought in to stop those who claim benefits whilst still carrying on with their habit, not using their benefits to try and build a better life.
Graham Gordon (D2DI Student)
For more information about any topic that was raised in this article you can visit the following websites:
www.dwp.gov.uk
www.turn2us.org.uk
Government Benefits:
Bedroom Tax and others