New proposals could affect Shropshire’s 25,000 on Housing Benefit.

The Coalition government has announced a series of proposed changes to the way support is given to those in need housing support. The key features likely to affect Shropshire are:

• a reduction in the maximum Local Housing Allowance level (the level of rent housing benefit will pay for) from the current 50% of average housing costs in the area to 30%.

• a further reduction of Local Housing Allowance after one year of unemployment

• a rise in rents charged by housing associations. Currently this is limited to 50% of the average local rents , and it may rise to 80%.of open market rents.

• an increase in the maximum housing benefit that can be paid to disabled people who need a carer.

• an increase in the maximum housing benefit that can be paid if there is an extra adult in the house.

• the removal of guaranteed tenancy for life for new tenants.

• much less grant funding to build more houses.

Commenting, Dr Charles West from Shrewsbury Liberal Democrats said,

"I welcome the additional benefits for the disabled, but it would seem perverse to increase housing association rents at the same time as reducing the amount claimable in Local Housing Allowance. I have concerns that people on low incomes will be forced to live in poorer quality homes which may be less well insulated and actually cost more to heat."

Heather Kidd from Ludlow Liberal Democrats said,

"Many of the principles behind this are fine but I am still worried that many ordinary people may be penalised when they are in work. I am also concerned that the Coalition makes sure that if a parent in Shropshire is out of work for more than a year that the children are not plunged into poverty."

If local residents wish to comment on any of the proposals for housing support they should write to the Department for Communities and Local Government (address below).

Frances Walker

Department for Communities and Local Government

Eland House, Zone 1/G9, Bressenden Place

London

SW1E 5DU