Benefit tenants to come out of the cold

The Government has confirmed the freeze on benefit payments which came into force in April 2016 will end next year.

The freeze on increasing benefit payments inline with inflation has been controversial from the beginning, this combined with the introduction of Universal Credit has been blamed with the increase of both  rent arrears and homelessness for many people on low incomes.

So will the freeze open the housing market up to people who have been trapped in poor quality accommodation because they have been unable to afford to move to improve their circumstances.

The change in benefit payments is set to increase the money claimants receive by 1.7% meaning the average single person with no dependants will be entitled to £322pm rather than the £317pm they currently revive as either Job Seekers Allowance (JSA) our Standard Element of Universal Credit (UC).

Housing benefit or Housing element rates are expected to rise by the rate of inflation which is predicted to be 2% and will see local housing allowance rates for a 1 bed property in Central London rise from £276.51p/w to £282.04p/w but with average monthly rental price for a 1 bed property currently at £1555pm even this increase will leave many people struggling to pay rent.

Overall since the benefit freeze was introduced the average family has lost £560pa year on year, driving many people into poverty and the increase in the use of food banks has risen steadily making this temporary assistance a normal part of life for many including those in employment.