Devo questions

The devolution of new powers over the housing costs elements of universal credit raises questions not just for Scotland but for the whole of the UK.

The report of the Smith Commission published this morning only proposes two major changes to the existing arrangements for universal credit:

  • The Scottish Government will be given the administrative power to change the frequency of UC payments, vary the existing plans for single household payments, and pay landlords direct for housing costs in Scotland
  • The Scottish Parliament will have the power to vary the housing cost elements of UC, including varying the under-occupancy charge and local housing allowance rates, eligible rent, and deductions for non-dependents.

All other elements of universal credit, including the earnings taper, conditionality and sanctions will remain reserved to Westminster. Some other benefits outside universal credit, including discretionary housing payments, will be devolved. National media coverage was dominated by the proposals on income tax but other taxes that affect housing, including capital gains tax and VAT, will be reserved.

-> Read the rest of this post on Inside Edge, my blog for Inside Housing


Housing 2040

Where are we heading on housing over the next 25 years? That’s the question posed by a new study – and the answer may make you may want to look away now.

The study for the Joseph Rowntree Foundation (JRF) takes existing trends in the relationship between housing and poverty between 1991 and 2008 and projects how it will change up to 2040.

-> Read the rest of this post on Inside Edge, my blog for Inside Housing


Mirror image

Nobody pretends that reform of housing benefit will be easy but a report out today underlines the scale of the task.

The report by the Chartered Institute of Housing (CIH) does a great job of making the links between policies on housing, welfare and the labour market. The sobering conclusion for the government is that everything it has done so far has only succeeded in reducing the rate of growth of the housing benefit bill rather than reducing it.

So as fast as the government introduces cuts like the bedroom tax the bill keeps rising faster because of inflationary factors built into the system. Between 1997/98 and 2012/13 the total bill rose by 48 per cent in real terms.

-> Read the rest of this post on Inside Edge, my blog for Inside Housing


The long goodbye to the bedroom tax

Three images spring to mind in the aftermath of Friday’s momentous vote to amend the bedroom tax.

The first is of a bunker deep in the bowels of DWP headquarters Caxton House. Iain Duncan Smith sits at a desk surrounded by a dwindling band of loyalists who still believe in the policy: his ministers Mark Harper and Lord Freud plus a loyal special adviser and perhaps a press officer.

AS IDS raves that nothing has changed (and that the universal credit is on time and on budget) I imagine the others exchanging nervous looks between themselves as they assure him that the removal of the spare room subsidy really is saving £1 million a day and making housing fairer.

-> Read the rest of this post on Inside Edge, my blog for Inside Housing


Beyond belief

So is it time to celebrate the rise in housing benefit claims by people in work as a reflection of the government’s success in getting people off benefits?

That was the claim made by Iain Duncan Smith at work and pensions questions yesterday as he answered Labour jibes about the soaring numbers of working households now dependent on state help with their rent.

The work and pensions secretary told Labour’s Emma Lewell-Buck:

‘The figure the hon. Lady did not give is that out-of-work housing benefit claims are falling, and that is because people who were claiming it are now going into work. That means that they are earning more money, which means that the likelihood of their being in poverty is far less. I wonder whether the hon. Lady would like to get up sometime and congratulate us on getting more people back to work and spending less on housing benefit as a result.’

-> Read the rest of this post on Inside Edge, my blog for Inside Housing

 


Hard sell

As sales pass 20,000, what’s been the impact of England’s ‘reinviograted’ right to buy so far?

Figures released by the DCLG last week show 20,027 sales since April 2012, when the maximum discount was increased to £75,000. This followed David Cameron’s Conservative Party conference speech in October 2011, when he said the proceeds would be reinvested in new affordable homes.

The government continues to introduce extra sales incentives. These include a new maximum discount for London of £100,000 from April 2013, £100 million to improve access to mortgage finance plus right to buy sales agents, annual inflation uprating of discounts and an increase in the maximum percentage discount on a house. Finally, the Deregulation Bill will reduce the qualifying period from five years as a tenant to three once it completes remaining stages in the Lords and gets Royal Assent.

That’s the context. But what are the numbers? And what about the wider impacts warned about by critics? Here’s an assessment so far:

-> Read the rest of this post on Inside Edge, my blog for Inside Housing


Feeling the pinch

Mark Simmonds is not getting much sympathy after claiming that MPs’ expenses make it ‘intolerable’ to live in London but has he also revealed a deeper truth about our housing system?

The MP for Boston and Skegness resigned as a minister on Monday and will leave parliament at the next election after claiming that he can’t find anywhere to rent in the capital on his £35,000 a year housing allowance.

Simmonds and his family do not exactly sound like they are among the ‘housing pinched’. These are the 1.6 million households identified in a report by the Resolution Foundation as spending more than 50 per cent of their net household income (after tax and benefits) on their rent or mortgage.

-> Read the rest of this post on Inside Edge, my blog for Inside Housing


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