Flexible New Deal | New Deal Scandal: Leading Welfare Reform Concerns

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The Social Security Advisory Committee (SSAC) has been asked by the Secretary of State for Work and Pensions to consider proposals for the above named regulations.
Currently, if the Local Housing Allowance (LHA) rate is higher than their contractual rent, customers are able to keep the excess benefit up to a maximum of £15 per week. The main change that these proposals would introduce is to limit the amount of Housing Benefit a person can be entitled to, to the level of their rent liability.

These changes would mean that:

• all those claiming housing benefit in the deregulated private sector on or after 5 April 2010 would not be entitled to any excess benefit over their contractual rent; and
• existing claimants who are currently entitled to an excess payment of up to £15, would see a reduction in their benefit when their claims are reviewed, usually on the anniversary date of their claim,

Before the Committee considers and reports on these proposals, it would like to hear from organisations and individuals who have views, in particular on the following aspects of the proposed changes:

• The potential impact of a reduction in income on the customers who will lose out;
• The potential effects of the amendments on child poverty;
• Equality issues, including the potential effect of the proposed changes on minority groups;
• The results of removing such an incentive for the customer to take more responsibility for their housing costs
• The possible unforseen repercussions, such as the behavioural responses of landlords and tenants.

The Committee would also like to hear from welfare rights advisers, landlords and others who may be able to supply information about the customer groups affected by the proposed change.

Those wishing to make representations to the Committee may obtain a copy of the Department’s explanatory memorandum and a copy of the draft regulations from the Secretary to the Committee, Gill Saunders (0207 412 1506) or from the SSAC website: www.ssac.org.uk.

Representations should be sent to the Committee at New Court, 48 Carey Street, London, WC2A 2LS, or by email to ssac@dwp.gsi.gov.uk, or via the consultation response facility on the website, to arrive no later than 03/08/2009

Comments welcome. From DWP News.