Cameron takes aim at non-dependant deductions

Published by 24publishing for 24dash.com in Housing and also in Central Government, Communities, Local Government

The Prime Minister has taken aim at an element of housing benefit his Government has helped to reform revealing that he had a "heartrending" letter from a constituent fearing her family may have to split up as a result of it.

During his well-trailed welfare reform speech today in Kent - and on the subject of who should receive welfare - David Cameron indicated the system of non-dependant deductions (NDD) was unfair, despite his Government gradually increasing the amount which is deducted during the spending review period.

A NDD is the amount councils reduce housing benefit by if a non-dependant lives with the claimant, usually a child, daughter or elderly relative over 18.

He said: "If a family living on benefits wants their adult child to stay living at home they are actually penalised – as soon as that child does the right thing and goes out to work.

"You get what’s called a non-dependent deduction, removing up to £74 off your housing benefit each week.

"I had a heartrending letter from a lady in my constituency a few weeks ago who said that when her son leaves college next month, her housing benefit will drop significantly, meaning her family may have to split up.

"This doesn’t seem right."

Under Labour, non-dependant deduction rates were frozen. However, as part of the Government's welfare reform agenda, it is increasing them in stages so that by 2014, they will catch up to the levels they would have reached if they had not been frozen.

The Government said it "intends to provide a fairer deal for taxpayers and provide an expectation that adults make a reasonable contribution towards their housing costs".

However, under the draft regulations for Universal Credit, published on the 15 June, it says no deduction will apply if any member of the renter's "extended benefit unit" is under 21 years old. In the accompanying explanatory memorandum, it says such deductions, where applicable, will be at a flat rate.

The Social Security Advisory Committee (SSAC) will be asking stakeholders to express their views on the changes to the regulations with the final set to be laid in Parliament in autumn this year.

Many of Mr Cameron's ideas for change outlined today are for the next Conservative manifesto not the coalition Government.

Earlier this year one West Midlands housing association said the changes to the NDD rates - which came in last April - had cost tenants £100,000.

Simon Brooke, head of tenancy support at 23,500-home WM Housing Group, said: “The changes to non-dependant deductions have already cost our tenants £100,000 a year in reduced housing benefit. It will be another £100,000 next year.”