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Corkers
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U-turns

Housing Benefit

  • Osborne announces policy to cut housing benefit for those unemployed for a year – The Guardian22 Jun 2010
  • Clegg blocks housing benefit cut for jobless – The Guardian, 17 Feb 2011

In the June 2010 emergency budget, George Osborne announced housing benefit would be cut by 10% for people who have been on Jobseeker’s Allowance for 12 months or more.

The government, however, have u-turned on this, as The Guardian reports:

The government has dropped plans to impose a 10% cut in housing benefit on anyone unemployed for more than a year after a last-minute intervention by Nick Clegg.

The cut was proposed in the June emergency budget, but will now not feature in the welfare reform bill published by Iain Duncan Smith.

Last week the work and pensions secretary maintained that the 10% cut would be kept to give unemployed people an incentive to find work. But the measure was seen by many Liberal Democrats as punishing the poor twice.

Clegg also feared that private sector landlords in areas of high unemployment would be reluctant to rent to jobseeker’s allowance claimants if their housing benefit income was at risk of being reduced.

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