Section: Housing Benefit & Council Tax

Minister Rules Out Direct HB Payments to Landlords

At a Conservative Party conference fringe event organised by housing association Moat, Welfare Reform Minister Lord Freud appears to have closed the door on any hopes that social housing tenants would be given the choice of having their Housing Benefit paid direct to their landlord.

Responding to questions on the issue, he said that the introduction of the 'universal credit' was intended to prepare people for managing their finances when in a job and that direct payment of Housing Benefit formed a key part of this.

He further added - "I am slightly cynical around this argument. There currently is a choice for tenants, but not a real choice due to the imbalance of power in favour of landlords."

Lord Freud also faced a call from the think tank The Centre for Social Justice, to increase the proposed £500 a week benefit cap for the 50,000 families who will be worst affected.

The Minister responded by saying - "We are looking at the cap pretty hard and there will be transitional arrangements. We are looking at a range of issues here, including those people who are most vulnerable."

Lord Freud also admitted he was 'worried' about the IT requirements involved in the implementation of the introduction of the universal credit, but said that he wanted to ensure that demonstration projects on Housing Benefit changes were not 'tame little projects' and would 'really test the reforms'.


Council Tax to be Frozen for a Second Year

The Chancellor of the Exchequer, George Osborne announced new support for local authorities to help them freeze Council Tax next year. This is the second year Council Tax will be frozen.

A 'freeze' means no increase in the amount of Council Tax individual taxpayers have to pay, as measured by the Band D Council Tax in an area. Taxpayers living in an average Band D home in England could save up to £72 when compared to a 5% rise in Council Tax.

The scheme will be voluntary, but last year every council signed up to it. Councils that freeze or reduce their 2012-13 basic Council Tax level (Band D) will receive an additional grant equivalent to a 2.5% increase on their Council Tax for this year. Police and fire authorities will receive a grant equivalent to a 3% increase. Further details will be announced in due course.

The Government has set aside a total of £805 million for this measure. Of this £675 million will go to help local authorities in England freeze their Council Tax next year on top of this year's freeze.

Scotland will receive £67.5 million, Wales £38.9 million and Northern Ireland £22.6 million. However, as devolved administrations, they make their own decisions on Council Tax.

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Reporting on October 2011

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