Drop in families claiming housing benefit over £30,000

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

Nearly 1,400 families received in excess of £30,000 in housing benefit as of March 2012, official figures show.

However, the figures – which were obtained by Conservative MP Priti Patel (pictured) last month – reveal it was a fall from 2,170 families compared to this time last year.  

The benefit, which is claimed by over 5 million people, has been sharply targeted by the Government which saw it cap levels in the private rented sector last April.

Capitalising on public support, the Government is also set to introduce a total benefits cap for households from next April which will be capped at £26,000 a year - i.e. so claimants don't receive more in benefit than the average weekly wage.

The cap – which will affect some 67,000 households – will initially be administered by councils through housing benefit payments – i.e. when a household’s total benefit entitlement exceeds the cap the council will reduce the level of housing benefit by the excess amount.

There are currently 3.4 million social rented sector housing benefit recipients, compared to 1.6 million in the private rented sector.

From October 2013 the cap will be applied through Universal Credit.

The figures also revealed that of March 2012, 360 families were in receipt in excess of £40,000 in housing benefit, while 110 were seeing payments of more than £50,000. However, these levels dropped from 450 and 160 families respectively.

Last month the Government claimed that the fear of the cap had pushed 1,700 claimants who may have been affected into work with a further 5,000 requesting back-to-work support.

However, critics noted the figure was consistent with normal flows of employment.

Robert Joyce, senior researcher at the Institute for Fiscal Studies, said: “Over any period, some fraction of an unemployed group will probably move into work, regardless of whether a benefits cap is about to be implemented.”

A YouGov poll shows public support for the £26,000 a year cap (after tax). According to the poll, 76% are in favour of placing a cap on the amount of benefits that people can claim with 56% thinking the cap should be £26,000 or below.

The cap is expected to deliver £290million savings in 2013/14 and £330million in 2014/15.