Housing Solicitors

Figures from the government’s Office for Budget Responsibility have revealed that housing benefit is to cost taxpayers £1 billion more in the financial years to 2019, despite cuts introduced by Work and Pensions Secretary Iain Duncan Smith.

The cuts to benefits made by the Department of Work and Pensions (DWP) included a £500 per week cap on the total amount of benefits claimants could receive, as well as cuts to housing benefit for 660,000 social housing welfare claimants who had a spare bedroom.

The so-called bedroom tax provoked a backlash among critics of the welfare cuts, and some claimants – including disabled claimants of housing benefit – took legal action over the cuts.

However, an Appeal Court ruled that the government’s welfare cuts are lawful.

The bill for housing benefit in the UK costs £24bn annually and the DWP aims to make a saving of £490m through its welfare cuts. However, the most recent figures show a projected £1bn increase in the annual figure for housing benefit.

The Mirror reports that figures for housing benefit for the next three years suggest increases in housing benefit of £100m in 2014-2015, £300m in 2015-2016, £300m in £2016-2017, £200m in 2017-2018 and £100m in 2018-2019.

The DWP claims, however, that the bedroom tax is so far saving taxpayers £1.3m every day in housing benefit, with 498,000 claimants now being charged the bedroom tax, which is deducted from housing benefit.

Some tenants have had to move to smaller properties as a result of having their housing benefit reduced. However, many local authorities have sold off smaller one- and two-bedroom council homes, leading to a shortage in housing stock for social housing tenants who need to move as a result of the bedroom tax

The government has also had to provide £190m in additional funding to councils to ease the transition to the new welfare cap and bedroom tax. Research by BBC News has found, however, that 28% of tenants subject to the bedroom tax are now in rent arrears – and a survey by the National Housing Federation has estimated that the figure may be as high as 66%, The Mirror reports.

Labour leader Ed Miliband said:

“The housing benefit bill is going up not down. Those forced out of their homes have to get more help to pay rent to private landlords, instead of councils or housing associations.”

Duncan Lewis Housing Solicitors

Duncan Lewis is a leading firm of housing solicitors and can advise on housing law, including:

• Debt
• Disrepair of rental property
• Housing benefit
• Housing possession
• Landlord & Tenant
• Local Authority housing
• Mortgage repossession
• Unlawful eviction.

Duncan Lewis is also a leading Legal Aid solicitors.

For expert help with housing law, contact Duncan Lewis housing solicitors on 020 7923 4020.