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Government Welfare Reforms Stumble

Government Welfare Reforms Stumble

The UK Coalition Government plans to cap benefits will still be fully implemented despite the parliamentary defeat in the House of Lords on Monday this week.
A defeat that saw 26 Lib-Dem peers rebel against the Government’s wishes.

Although, the Government have admitted that whilst disappointed by the result, they still intend to push through the plans for welfare reform in full.

The plans have caused deep unease in the Lords and prompted a number of Church of England bishops to launch a bid for the reforms to be curbed, backed by a majority of 15.

Bishop of Ripon and Leeds, the Right Reverend John Packer introduced the amendment and following its success, said: “It cannot be right for the cap to be the same for a childless couple as for a couple with children. Child benefit is the most appropriate way to right this unfairness.”

Work and Pensions Secretary Iain Duncan Smith led the Government’s call for all benefit payments limited to a maximum £26,000 a year per household, claiming that it will save approximately £600 Million (GBP) towards the UK’s multi Billion pound economic deficit.

Lord Paddy Ashdown joined 25 other Lib Dem peers voting for child benefit to be excluded from the cap calculations. The former party leader, previously a loyal supporter of the Government, said that as president of the United Nations children’s agency UNICEF, he was not prepared to back the Government’s plans in their current form, denouncing them as “completely unacceptable”.

Deputy Prime Minister Nick Clegg has stated that he fully supports the Governments changes to the welfare benefit system, despite the rebellious divisions from within the Lib-Dem ranks.

A Department for Work and Pensions (DWP) spokesman said: “There has to be a limit on the amount of money benefit claimants can receive. We think that limit is set at a fair rate of £26k – the equivalent to someone earning £35,000 before tax, a salary that many working families would be happy to receive.”

Around 67,000 families will lose £83 a week under the cap, which is due to be brought in from 2013 in England, Scotland and Wales.

It is expected that the welfare reforms will result in many families currently claiming housing benefit facing mounting financial pressures and even eviction from their homes, if they are unable to pay the rent.

If UK landlords do find themselves in the unenviable position of chasing bad debts or rent recovery, or if the worst happens, having to evict defaulting tenants then they should use the services of a reputable eviction specialist such as Legal 4 Landlords, to save effort, money, time and stress.

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UK Government to argue the case for Welfare Reform in the House of Lords

Government to argue the case for Welfare Reform in the House of Lords

The coalition Government face another battle over welfare reforms, this time in the House of Lords.
The outcome will affect individuals and families in receipt of local housing allowance (LHA) or housing benefit, who are in private rented sector (PRS) properties.

The Welfare Reform Bill, currently going through the House of Lords, is set to cap total benefits for working age households at £26,000 a year.

The total payment would include the present Local Housing Allowance, paid to housing benefit tenants in private rented sector accommodation.

However, a number of peers fear this would disproportionately hit larger families with children in temporary and private rented sector housing.

The Bishop of Ripon and Leeds, the Right Reverend John Richard Packer, has tabled an amendment which would exclude child benefit for the purposes of the benefit cap.

Lord Richard Best who is also supporting the amendment said: “I don’t think it’s conceivable for families with children to be evicted and become destitute because a benefit cap means there’s nowhere they can afford to live.”

The amendment is expected to go before the Lords next week (January 23rd 2012), and is likely to gain support from many areas, including Liberal Democrat peers who have previously rebelled against the Government.

The UK government’s welfare reforms are bad news for both tenants and landlords. Struggling tenants already face mounting debts and real financial problems including the threat of eviction if they are unable to keep up with the rental payments and slip to more than 8 weeks in arrears.

This results in a double blow for landlords, not only do landlords have to suffer loss of income because the tenants have not paid the rent but also the further expense of court action to have the tenants evicted.

Tenant Evictions can be cost effectively handled by Legal 4 Landlords, who are the UK’s fastest growing eviction specialists who also offer a wide range of additional services for landlords including Rent Guarantee Insurance

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