Ministers are considering forcing all social housing tenants on Housing Benefit to make a contribution towards paying their rent.
BBC News reports that the move is part of measures being considered to slash a further £12 billion from the welfare budget.
Housing Benefit can currently cover the full cost of rent.
Chancellor George Osborne is reported to be aiming to cap welfare benefits outside London to £20,000 per year per household.
The cap was set at £26,000 under the coalition government and it was previously thought the Conservative government would reduce the welfare cap to £23,000 across the UK.
It now appears cuts to welfare benefits will be even more swingeing, with Housing Benefit claimants targeted under the welfare reforms. Housing Benefit costs have risen to £25bn annually – the average weekly payment for Housing Benefit is £93.
The weekly £500 cap on welfare benefits saw some families having to move house because they were unable to afford rent on properties as a result of having their benefits capped.
An interim Budget is due to be unveiled by the Chancellor on 8 July – a spokesman for the government said that it was not possible to comment on speculation about welfare cuts ahead of the Budget on Wednesday, however.
BBC News reports that any cuts to the welfare budget are likely to be spread across July’s interim Budget and the Chancellor’s Autumn Statement.
Duncan Lewis Housing Solicitors
Duncan Lewis housing solicitors can advise social housing tenants on a wide range of housing matters, including Housing Benefit, Local Authority housing, disrepair of rented property, housing possession and Landlord and Tenant disputes.
Duncan Lewis has offices nationwide and is a leading provider of Legal Aid housing advice.
For expert advice on social housing matters, call Duncan Lewis housing solicitors on 020 7923 4020.