Financial Reform

Housing Benefits Cut to Devastate Nearly 1 Million Customers

The government is continuing with welfare reform cuts, which are creating a number of problems for many citizens. According to the Chartered Institute of Housing, many cuts are expected to force a number of families to decide between paying their rent or eating. About 800,000 families are going to have to make that decision within the next few months.

According to the ACIH, there will actually be many more families living off of benefits than there will be houses that they can afford with the state benefits. Unfortunately, they are going to have even more trouble in the coming months. As a result, many of the people living in these areas are going to be forced to move to more affordable areas. This doesn’t leave many options for them except the impoverished areas near the coast and northern England.

Beginning in January, the government has decided not to pay more than £250 a week for families living in two-bedroom homes. That act of reform would be painful for many families in and of itself. However, the government has gone beyond simply capping the weekly housing allowance. They have also decided to force families to live in housing with the cheapest third of rent in any borough that they live in.

This significantly reduces the options many families have and forces them to live in places that may not be appropriate for their family size. More concerning is that this may make it impossible for some families to find housing. There may not be enough housing options in many areas for these families to find anywhere to live at all.

Even if they relocate, many families will be unable to find housing. For example, if they moved to one community, they would find that there were already 17,000 people applying for housing in 10,000 units. They may need to be on a waiting list for a couple of years like many families in the United States.

There were slightly more low income houses than benefits claimants before this year. However, many families are seriously concerned about their futures as they try to find places to live in the coming year.

Category: House Prices