Plans to reclaim up to ?15 a week in housing benefit from around 300,000 families have been put on hold by the Government. The reason being is that the measure is actually seen as a system that is effective, according to a story from BBC News.
Under the current system, if a person finds a house at a lower rent than the level of housing allowance set by their local authority, they can keep up to ?15.
It was believed by ministers that the system was not beneficial to most claimants and had planned to scrap it by April, saving ?150 million. However, a consultation showed that the measure did push down rates and so the move has been delayed until 2011.
The Government will announce the decision later as part of a wider reform of housing benefit.
The move was contained in a barely-noted paragraph which referred to ?disadvantages? in last week?s pre-Budget report, according to BBC political correspondent Reeta Chakrabarti. Ms Chakrabarti reported that the delay from next April to 2011 will be viewed in a positive manner by Labour backbenchers, who were angry at the proposed cuts.
August saw ministers warned about a backbench rebellion over the plans, with the move being described as ?crazy? by Labour MP Frank Field.
Since 2008, new housing benefit claimants have been entitled to get up to ?15 a week back ? ?780 over a year. This system was a vital part of the Government?s reform of housing benefit, designed to encourage those on low incomes to look for the beat deal in rented accommodation.
