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Housing benefit 'savings considered by ministers' | Housing benefit 'savings considered by ministers' |
(about 2 hours later) | |
Ministers are considering forcing all housing benefit recipients to contribute towards their rent as part of efforts to save £12bn from the welfare bill, government sources say. | Ministers are considering forcing all housing benefit recipients to contribute towards their rent as part of efforts to save £12bn from the welfare bill, government sources say. |
Housing benefit currently can cover the full cost of rent. | |
The chancellor is also understood to be pushing for the cap on all benefits to be lowered from £26,000 to £20,000 outside London and south-east England. | The chancellor is also understood to be pushing for the cap on all benefits to be lowered from £26,000 to £20,000 outside London and south-east England. |
It was previously announced the cap would be cut to £23,000 across the UK. | It was previously announced the cap would be cut to £23,000 across the UK. |
It is understood that other proposals to abolish or severely restrict the carer's allowance have been dropped after opposition from the prime minister. | It is understood that other proposals to abolish or severely restrict the carer's allowance have been dropped after opposition from the prime minister. |
A government spokesman said it would not comment on speculation about next Wednesday's Budget. | A government spokesman said it would not comment on speculation about next Wednesday's Budget. |
Manifesto commitment | Manifesto commitment |
Since winning the election, officials and ministers have struggled to find £12bn in savings - a key Conservative manifesto commitment. | Since winning the election, officials and ministers have struggled to find £12bn in savings - a key Conservative manifesto commitment. |
Details of how all the savings will be made are likely to be spread between the Budget and the Autumn Statement. | Details of how all the savings will be made are likely to be spread between the Budget and the Autumn Statement. |
Housing benefit is thought to be an obvious target as costs have been rising in recent years, to £25bn last year. | Housing benefit is thought to be an obvious target as costs have been rising in recent years, to £25bn last year. |
The average weekly housing benefit payment is £93. | The average weekly housing benefit payment is £93. |
If, for instance, ministers made claimants pay 10%, they would have to find about £9.30 a week to ensure their rent is paid in full. | If, for instance, ministers made claimants pay 10%, they would have to find about £9.30 a week to ensure their rent is paid in full. |
The Institute for Fiscal Studies (IFS) has calculated that this would save £2.5bn if applied to both the social and private rental sector. | The Institute for Fiscal Studies (IFS) has calculated that this would save £2.5bn if applied to both the social and private rental sector. |
'Very scared' | 'Very scared' |
Samantha Ashby is a single mother of three - two teenage boys and girl of five - from south-east London, who currently gets all her rent paid by housing benefit. | Samantha Ashby is a single mother of three - two teenage boys and girl of five - from south-east London, who currently gets all her rent paid by housing benefit. |
"I've been unemployed since I was pregnant with my daughter. I used to work somewhere but I've had my daughter since then and I'm unable to work. | "I've been unemployed since I was pregnant with my daughter. I used to work somewhere but I've had my daughter since then and I'm unable to work. |
"The relationship with their father has broken down so he moved out and I've basically been on my own. She started full-time school last September. I have been looking for work but just haven't been able to find anything that fits in with family-friendly hours. | "The relationship with their father has broken down so he moved out and I've basically been on my own. She started full-time school last September. I have been looking for work but just haven't been able to find anything that fits in with family-friendly hours. |
"I would probably have to drop her off at a breakfast club or childminder's or after-school club. I would need somewhere close, with decent hours. | "I would probably have to drop her off at a breakfast club or childminder's or after-school club. I would need somewhere close, with decent hours. |
"There's shift work out there but it starts at 7am and goes on to 11pm. It's just not practical. The hours are very limited. | "There's shift work out there but it starts at 7am and goes on to 11pm. It's just not practical. The hours are very limited. |
"I can't afford to pay any rent at the moment. I've got literally just enough money to get by, to pay the bills, clothe the kids, put food on the table. I don't have any spare money, I've got no reserves, no savings, nothing to tide me over to get me through any benefit cuts. | "I can't afford to pay any rent at the moment. I've got literally just enough money to get by, to pay the bills, clothe the kids, put food on the table. I don't have any spare money, I've got no reserves, no savings, nothing to tide me over to get me through any benefit cuts. |
"Debt would be eviction again and if I was evicted there's always the fear that they would say I'd made myself intentionally homeless by not paying the rent. Obviously I'm very scared." | "Debt would be eviction again and if I was evicted there's always the fear that they would say I'd made myself intentionally homeless by not paying the rent. Obviously I'm very scared." |
The measure to reduce the benefits cap to £20,000 outside the South East would save tens of millions - a relatively small amount of money, according to the IFS. | The measure to reduce the benefits cap to £20,000 outside the South East would save tens of millions - a relatively small amount of money, according to the IFS. |
However, Chancellor George Osborne is said to see it as a key political message, showing that the government is tough on welfare costs. | However, Chancellor George Osborne is said to see it as a key political message, showing that the government is tough on welfare costs. |
'Passive' benefit | 'Passive' benefit |
Another measure believed to be under consideration is the scrapping of part of the Employment and Support Allowance, the UK's main sickness benefit. | Another measure believed to be under consideration is the scrapping of part of the Employment and Support Allowance, the UK's main sickness benefit. |
A leaked government paper seen by BBC News describes the Employment and Support Allowance as a "passive" benefit which does not "incentivise" people to find a job and proposes abolishing the Work Related Activity Group (WRAG) category. | A leaked government paper seen by BBC News describes the Employment and Support Allowance as a "passive" benefit which does not "incentivise" people to find a job and proposes abolishing the Work Related Activity Group (WRAG) category. |
It is unclear whether any of these options will appear in next week's Budget, but ministers have already announced plans to: | It is unclear whether any of these options will appear in next week's Budget, but ministers have already announced plans to: |
The IFS has estimated these measures would save about £1.5bn. | The IFS has estimated these measures would save about £1.5bn. |
Last month, Newsnight reported that tax credits were also likely to be cut, potentially saving up to £5bn. | Last month, Newsnight reported that tax credits were also likely to be cut, potentially saving up to £5bn. |
The welfare budget in brief | The welfare budget in brief |
Source: Institute for Fiscal Studies | Source: Institute for Fiscal Studies |
Read more about where the welfare budget is spent | Read more about where the welfare budget is spent |
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