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John's picture
Joined: 09/03/2008

You should read the "Red Book" from HM Treasury here. I will refer to to it throughout.< References to the Red Book will be preceeded by "RB".

Benefit Cap of £20,000 per annum, or £23,000 per annum in London, is to be introduced. (RB 1.152)

Support for Mortgage Interest (SMI) is changing (RB 2.114). From 1st April 2015 the waiting period will be extended to 39 weeks. From April 2018 the form of payment will change from a "benefit" to a loan. This loan will be repaid either on sale of property or return to work. Such loans will accrue interest at a rate tied to the Office for Budget Resposibility (OBR<) forecast of gilts.

Housing Benefit (HB) , applicable amounts and Local Housing Allowance (LHA) for working age claiments are to be frozen for 4 years (RB 1.137-1.140)(RB 2.115). Disabled claimants are exempt from the freeze with benefits uprated by the Consumers Prices Index (CPI).

Changes to Tax Credits (RB 1.141-1.150)(RB 2.116) may also impact on entitlement level for HB & LHA. 

Provision for £800million in Discretionary Housing Payments over next 5 years to help local authorities (RB 1.153).

If you have a household income over £30,000 per year, or £40,000 in London, and live in social housing.  You will be expected to pay on or near the market rent in your area. The additional monies raised will if it is a council property - be returned to the Treasury or for Housing Associations to contribute to reinvestment in housing (RB 1.154).

A review of lifetime tenancies for those in Social Housing (RB 1.155)(RB 2.46).

Those in Council provided social housing will have a 1% reduction a year, for 4 years, from 2016 (RB 2.44). For Housing Associations the government will use the money given to them  (£13billion yearly) to leverage a similar decrease in rents (RB 1.140).