Cap set on welfare bill could make many homes ‘unaffordable'

  • Yesterday George Osborne announced a £119 billion cap on welfare spending.

    In his budget yesterday, Mr Osborne said the £119bn cap for 2015/16 would rise in line with inflation to £127bn in 2018/19, reports Inside Housing.

    The only items excluded from this cap are state pensions and cyclical unemployment benefits. Housing Crisis

    With this plan the total welfare spending would be set by the chancellor at the beginning of each parliament with MPs voting on it.

    Mr Osborne told MPs: "In future, any government that wants to spend more on benefits will have to be honest with the public about the costs, need the approval of parliament, and will be held to account by this permanent cap on welfare."

    The head of one of the UK's largest housing providers has said that this welfare cap being outlined could see housing association homes becoming unaffordable to people on low incomes, reports 24dash.

    Mark Henderson, who is Home Group chief executive, has claimed that the welfare cap could see increasing numbers of people struggle to sustain their homes as housing benefit could fail to keep up with minimum increases in housing costs.

    "Many people who rely on affordable housing could see an increasing gap year on year between their housing benefit and the cost of their homes. The danger is that affordable housing will no longer be affordable to a significant number."

    What do you think of this? Tweet us your comments @suppsolutions

    Image source: http://www.sxc.hu/photo/1020195

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