ROOF Blog

Crisis, the charity for homeless people, is launching a campaign to resist unpopular plans by the government to ask housing benefit claimants to pay back up to £15 a week they are allowed to keep if they negotiate cheap housing deals.

The Department for Work and Pensions had planned to end this after calculations showed it could bring in £160m.

For some of the least well-off, the change could amount to £15 a week, reducing by a fifth the cash in hand of someone receiving jobseeker’s allowance of £69 and leave some of the poorest families across the country some £780 worse off over the year.

Leslie Morphy, Crisis chief executive, called on the government to reconsider, saying: ‘This proposal would have a grave impact on some of the poorest households.

‘It’s not even likely to make the savings the government hopes, because claimants will no longer have an incentive to seek cheaper properties and landlords may simply raise rents to meet the maximum local authority level.

‘For people who are already struggling to make ends meet, losing a huge chunk of their income will make it even harder to get by and we are worried that this could lead to an increase in debt, rent arrears and homelessness.’

A student denied her degree because of alleged rent arrears has won her fight to be allowed to graduate. In an out-of-court settlement, the university has agreed that she can graduate and waived the £3,540 fees in back rent they said she owed. Maria Lavelle joined the University of Winchester as a 25-year-old mature student in 2008. She moved into student accommodation but asked if, as a mature student, she could not be housed with freshers as she thought the atmosphere would be too noisy. When she found she had been, she gave notice that she would be moving out and into private lodgings. However, the university said she had signed a contract to stay the whole year in student accommodation and argued she should pay back £3,540 in arrears. The National Union of Students described her case as an ‘extremely significant test case’, adding: ‘This is common practice among universities and it’s something we’ve been concerned about for a while.’