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UK government tackles housing benefit problem

The UK government yesterday attacked housing benefits which have grown by 50% over the last decade to a staggering £21 billion a year. Indeed it was revealed that some families are receiving over £100,000 year in housing benefit which is a figure completely unsustainable in the future. So how has George Osborne tackled the problem?

Housing benefit in future will be limited to £280 a week for a flat and £400 a week for a house. It is unclear how historic housing benefit agreements will be tackled or whether the new figures will only relate to future housing benefit arrangements. Either way this is one part of a multi pronged attack on the UK benefits system which has grown completely out of control over the last 20 or 30 years.

While housing benefit payments will be reduced significantly in the future the government also announced an increase in discretionary housing payments for hardship cases with an additional £40 million to be made available. It would appear, on the surface at least, that George Osborne is looking to protect those on the lowest incomes in the UK while at the same time looking to limit payments to those on middle range to higher incomes.

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