Flexible New Deal Scandal:
Flexible New Deal

Unfair charges

We have all heard about the Jobseekers Allowance Scandal, how LHA rates in most areas have fell dramatically while the rent prices have not decreased by so much and now today, we at New Deal Scandal expose the unfair charges that estate agents such as JSM Property (who were lucky to be featured, a nice link back above) imposed on people trying to get a roof over their heads. View the rest on Flexible New Deal Scandal

People are increasingly loosing jobs, forced to sign on to receive Jobseekers Allowance to scrape by, hundreds of people are now applying for the same jobs and if that wasn’t bad enough, in a bid to save £234 million a year, the Government has decided to pull the £15 per week excess from Local Housing Allowance which is to affect over 300,000 claimants including families.

New Deal Scandal believes that with the surge in new claims, that £234 million a year figure could rise to £250 million within a few months after coming in to effect next year.

At this time of widespread need, the public should be able to rely on the Government giving them extra support – after all collectively we have been paying taxes and their wages for the last few decades. View the rest on Flexible New Deal Scandal

The Social Security Advisory Committee (SSAC) has been asked by the Secretary of State for Work and Pensions to consider proposals for the above named regulations.
Currently, if the Local Housing Allowance (LHA) rate is higher than their contractual rent, customers are able to keep the excess benefit up to a maximum of £15 per week. The main change that these proposals would introduce is to limit the amount of Housing Benefit a person can be entitled to, to the level of their rent liability.

These changes would mean that:

• all those claiming housing benefit in the deregulated private sector on or after 5 April 2010 would not be entitled to any excess benefit over their contractual rent; and
• existing claimants who are currently entitled to an excess payment of up to £15, would see a reduction in their benefit when their claims are reviewed, usually on the anniversary date of their claim,

Before the Committee considers and reports on these proposals, it would like to hear from organisations and individuals who have views, in particular on the following aspects of the proposed changes:

• The potential impact of a reduction in income on the customers who will lose out;
• The potential effects of the amendments on child poverty;
• Equality issues, including the potential effect of the proposed changes on minority groups;
• The results of removing such an incentive for the customer to take more responsibility for their housing costs
• The possible unforseen repercussions, such as the behavioural responses of landlords and tenants.

The Committee would also like to hear from welfare rights advisers, landlords and others who may be able to supply information about the customer groups affected by the proposed change.

Those wishing to make representations to the Committee may obtain a copy of the Department’s explanatory memorandum and a copy of the draft regulations from the Secretary to the Committee, Gill Saunders (0207 412 1506) or from the SSAC website: www.ssac.org.uk.

Representations should be sent to the Committee at New Court, 48 Carey Street, London, WC2A 2LS, or by email to ssac@dwp.gsi.gov.uk, or via the consultation response facility on the website, to arrive no later than 03/08/2009

Comments welcome. From DWP News.