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Thread: SummerBudget-Cutting social housing rents by 1% a year for four years!

  1. #1
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    SummerBudget-Cutting social housing rents by 1% a year for four years!

    Hi, Having read what I have been able and my understandings of most of todays contents-there are 2 matters with which my brain is having problems!

    On the point in post title 'Cutting social housing rents by 1% a year for four years', I can't get my head around this. How does this affect housing benefit tenants in social housing? Will it be case of social landlords seeking any loss from their tenants, whether they receive full HB or part?

    And 2ndly, 'new claimants' placed in WRAG group-this appears to be straight forward, but when re-assessments come around, will those currently in receipt of ESA be classed as 'new claimants'?

    Surely I am no the only one concerned at these points :-(

    Many thanks for any information.

  2. #2
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    Quote Originally Posted by spencer69 View Post
    Hi, Having read what I have been able and my understandings of most of todays contents-there are 2 matters with which my brain is having problems!

    On the point in post title 'Cutting social housing rents by 1% a year for four years', I can't get my head around this. How does this affect housing benefit tenants in social housing? Will it be case of social landlords seeking any loss from their tenants, whether they receive full HB or part?

    And 2ndly, 'new claimants' placed in WRAG group-this appears to be straight forward, but when re-assessments come around, will those currently in receipt of ESA be classed as 'new claimants'?

    Surely I am no the only one concerned at these points :-(

    Many thanks for any information.
    rent will drop by 1% over the next 4 years, i don't think it will affect housing benefit tenants? ( but i could be wrong!!)

    ESA is only for new claims, if you get ESA now it does not affect you,

    will those currently in receipt of ESA be classed as 'new claimants'? NO!

    How can you be classed as new claimant if you are in receipt of ESA!!
    Last edited by marcus6; 08-07-15 at 14:37.

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    I'm a council tenant on full HB and don't understand what they hope to achieve by reducing social rents by 1% a year. In our case, that equates to about a pound a week, so I wonder if that means we'll have to pay that quid a week, which for us is no big deal if that's the case, or whether it just means councils will have a fall in rent revenue and therefore have less to invest in their properties. Our council seems to provide a decent repairs and maintenance service at the moment, so if they have less to spend on keeping their properties in good order, what is that supposed to achieve - doesn't help anyone in the long run so I'm a bit confused.

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    Senior Member deebee's Avatar
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    I claimed ESA at the beginning of the year and have my assessment on Friday.
    If I get put in the wrag group,am I classed as a "new claiment"

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    Quote Originally Posted by Caley View Post
    I'm a council tenant on full HB and don't understand what they hope to achieve by reducing social rents by 1% a year. In our case, that equates to about a pound a week, so I wonder if that means we'll have to pay that quid a week, which for us is no big deal if that's the case, or whether it just means councils will have a fall in rent revenue and therefore have less to invest in their properties. Our council seems to provide a decent repairs and maintenance service at the moment, so if they have less to spend on keeping their properties in good order, what is that supposed to achieve - doesn't help anyone in the long run so I'm a bit confused.
    A 1% cut over the next four years seems small, however, in real terms it equates to a substantial decrease in social rents compared to what rents would have been if they had kept increasing in line with inflation. I've read somewhere today it will work out to be a real terms cut of about 9%. This will result in significant savings in Housing Benefit payments. I think what it means, tenants won't be affected, central government will save a few billion and councils will loose out compared to what they would have taken under existing arrangements.

    It begs the question. why don't the government apply a similar policy to private landlord rents - a kind rent cap - dare I say it. A step too far I think for a Conservative government who won't intervene in the markets.

    Buster

  6. #6
    I do not think you would be classed as a new claimant as you have already claimed and it is only down to the backlog in WCAs that has delayed the decision as to what group, if any, you should be placed in

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    If the rents are dropping by 1 per cent over the next 4 years I'm hoping that this means we wont have the usual 20 pound rise a year in January.

    So a £400 monthly rent will be £384 in 2020 instead of £480 it would have cost with the usual yearly rise am I on the right track.

  8. #8
    Senior Member deebee's Avatar
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    thats what I am hoping sweeny,well actually I am hoping to be put in the support group but only time will tell

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    Quote Originally Posted by suebear View Post
    If the rents are dropping by 1 per cent over the next 4 years I'm hoping that this means we wont have the usual 20 pound rise a year in January.

    So a £400 monthly rent will be £384 in 2020 instead of £480 it would have cost with the usual yearly rise am I on the right track.
    A £400 rent will be a £396 rent after reducing by 1%. The next year it will drop by another 1% and so on.

    Buster

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    thx Buster thats how I understood it in theory we should be paying the same as we are now in 4years if they they are allowed to put an increase on in January 2016 .

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