Prepare now for welfare benefit cuts

If you claim benefits you need to plan for the biggest cuts in the welfare system for a generation.

Under new rules being introduced by the Government in April 2013, anyone receiving benefits could be affected by the cuts, especially those receiving housing benefits.

The new rules will include changes to the number of bedrooms people are entitled to and for the first time ever, payments of housing benefit will be linked to this entitlement.

Under the current system, if residents have more bedrooms than they need, they can still receive housing benefit for their home. Under the new system this will change. In future, the Government is reducing the number of rooms people are entitled to and linking housing benefit to this so residents will have to make up the difference from other income or benefits they receive.

There will also be a reduction or ‘cap’ in the amount of benefits that people are entitled to receive.

mhs homes is advising its residents to find out straight away if they will be affected.

There are some groups who will be exempt from the changes but the advice from mhs homes to residents is to find out exactly how they might be affected well before April next year.

Michele Crombie, Income Manager at mhs homes said: "The cuts that the Government is introducing could affect anyone who is claiming benefits. We want to help residents as much as we can and our message is not to wait until next year to see the outcome, act now! Putting things off will make it harder to manage. People who find that their benefit is affected by the new occupancy rules may be able to avoid their benefit being cut by downsizing but they could find that if they wait until April 2013 to talk to us about this, they are likely to join a long waiting list."

Additional changes the Government is making to the benefits system from October 2013 will see benefits consolidated into a single payment (Universal Credit) and all money including housing benefit being paid directly to claimants (Direct Payments) who will then be responsible for making their own rent payments and managing their own finances entirely.

Patricia Hewett, Head of Housing said:  "We have been working very hard to identify those of our customers who will be affected by the changes to the benefits system to make sure that they are prepared for the changes when they come in next year.
"We are concerned about the effects that the bedroom tax and the direct payments will have on our customers so we have written to them all to make sure that they take action now, so that they are prepared for the massive changes ahead."

August 2012