By: Madalena Penny<\/p>\n
Speculation is surrounding reports this week that the government\u2019s housing benefit caps will be put on hold by a further 9 months for existing claimants.<\/p>\n
The cuts, which were due to be introduced next April and October are said to only apply to new applicants, while existing applicants will not be affected until January 2012.<\/p>\n
Tenants in London, which would be the most affected by the cuts will now have more time to find alternative housing, which would fall within the new budget resulting from the blanket cuts.\u00a0 The government\u2019s aim to reduce the \u00a321bn housing benefit bill by slashing the current maximum housing allowance claim from \u00a3103,000 per annum to \u00a320,800 has come under opposition fearing it will lead to a mass exodus of low- income households being driven from the capital.<\/p>\n
The new limits set by the government consisting of \u00a3400 per week for a 4 bed-roomed property; \u00a3340 for a 3 bed-roomed; \u00a3290 for a 2 bed-roomed and \u00a3250 for a 1 bed-roomed property would only affect new claimants as from April next year.<\/p>\n
A spokesman for the Department of Work and Pensions said:
\n\u201cThis is speculation.\u00a0 The truth is the housing benefit system is unfair to those who receive it and the taxpayer that funds it, and we have to put fairness back at the heart of the system.\u201d<\/p>\n
Further housing benefit rate changes, which were planned to be based on the lowest third of rents rather than average local rents would also be deferred from it\u2019s introduction in October 2011 to January 2012 for existing claimants.<\/p>\n