Legal News

Chancellor George Osborne has pledged to reduce welfare payments further to help cut the UK economic deficit.

Both the Conservatives and Labour are squaring up for the election in 2015 and commentators are now saying the Conservatives will place welfare and immigration at the centre of their election campaign.

Mr Osborne said yesterday (06/01/14) at a meeting of businessmen in Birmingham that welfare benefits cannot be protected – and signalled that those under 25 would most likely face reductions in out-of-work benefits such as housing benefit.

This could affect young families struggling to find work and affordable housing in a jobs and housing market which is becoming increasingly competitive.

Mr Osborne has said, however, that those earning more than £60,000 who live in council houses should be forced to find homes in the private sector.

Last year, RMT union leader Bob Crow caused controversy when it was revealed that he and his family still live in Local Authority housing, despite his £145,000 salary as a union leader.

If the Tories win the next election, Mr Osborne says that half the £25 billion cuts needed to rebalance the UK’s books would come from welfare cuts. Treasury forecasts estimate that £12bn worth of cuts will be needed in the first two years of the next Parliament to tackle the deficit. Mr Osborne said that making cuts to welfare would save having to make further cuts to government departments:

“Government is going to have to be permanently smaller – and so, too, is the welfare system,” said Mr Osborne.

He said that the UK was borrowing £100bn a year and paying £50bn in interest every year.

“We’ve got to make more cuts – £17bn this coming year, £20bn next year,” said the Chancellor.

“And over £25bn further across the two years after that – that’s more than £60bn in total.”

Mr Osborne said that making cuts to the welfare budget would help prevent tax rises and cuts to departments such as the police.

The government is also currently piloting a benefits fraud scheme to help save more than £1.2bn annually in benefit fraud and £1.6bn in benefit overpayments every year. The scheme is being trialled across the country in Hounslow and Southwark in London, Blackburn and Darwen in Lancashire, Blackpool, Cardiff and Epping Forest.

The Liberal Democrat leader Nick Clegg has already said that his party would not support stringent welfare cuts – and the LibDems have come out in favour of a mansion tax on expensive properties.

LibDem leader Nick Clegg said:

“I imagine that the Liberal Democrats will want to get a greater share from the wealthiest – while the Conservatives seem to want to target the poorest in society.”

Labour Shadow Chief Secretary to the Treasury Chris Leslie MP said that the Chancellor “should admit his policies have failed”:

“While millions of ordinary people are worse off under the Tories, he and David Cameron are paving the way or yet another top rate tax cut for millionaires.”

Mr Leslie said that Conservative policies had led to a “cost-of-living crisis” in the UK.

Duncan Lewis Housing Solicitors

Duncan Lewis housing solicitors can advise on housing matters, including housing benefits, Local Authority housing, debt and mortgage repossession, as well as Landlord & Tenant issues, disrepair of rented property and unlawful eviction.

Duncan Lewis is also one of the UK’s leading Legal Aid firms.

For expert legal advice on housing – including housing benefit – contact Duncan Lewis housing solicitors on 020 7923 4020.