Join us today!
Printable version
Link to this page: https://secure.socialistparty.org.uk/issue/863/21049
From The Socialist newspaper, 8 July 2015
Low-income tenants face rent hikes
Cap rents, not benefits (Click to enlarge)
The Tory government intends to slash housing benefit (HB) for low income households. And because rent controls have long been abolished, it will mean a substantial cut in people's living standards, already struggling to pay household bills. It will also increase evictions and homelessness for tenants unable to pay their rent.
This vicious measure will destroy people's lives. It was drawn up by millionaire welfare minister Iain Duncan Smith - who lives rent free in a country mansion and claims thousands of pounds in expenses. IDS had also introduced the hated 'bedroom tax' and slashed council tax benefit to millions of people.
The Tories, while beating up on the poor, keep quiet about the real beneficiaries of housing benefit - private landlords. The overall HB bill has doubled over the last 20 years but the number of claimants has remained fairly constant indicating that it's private landlords, by charging excessive rents, who have grown rich on this benefit.
One in four private sector tenants in England have to claim HB - a rise of 90% in the last six years. Private landlords scoop a whopping £9.3 billion in HB, 38% of the total. In addition they get huge tax breaks and grants amounting to a staggering £27 billion a year in public subsidies - the equivalent of £1,000 for every household.
If this money was instead invested in social housing then the acute shortage of affordable housing could easily be solved. But with this mob in power it's clear that the interests of private landlords comes first and those of low-income tenants last.
'Housing subsidy' hypocrisy
Osborne also intends to make social housing tenants earning £30,000 a year (£40,000 in London) to pay market rates for their rent.
The 'welfare butcher' argues that he is simply "ending the housing subsidy" paid to better off workers.
Hypocritically, Osborne fails to mention the massive public subsidy paid to private landlords, or the subsidy for further privatisation of council housing under the 'help to buy' (ie 'buy to let') scheme. He is also tight-lipped about MPs claiming up to £28,000 a year housing allowance.
The extra rent generated by this 'housing tax' won't, however, be invested in new social housing but instead will go directly to the Treasury to reduce the government deficit - caused by bailing out failed banks and the capitalist system.
Why not click here to join the Socialist Party, or click here to donate to the Socialist Party.
In The Socialist 8 July 2015:
International socialist news and analysis
Greece: Mighty class-based 'NO' shakes bosses' EU
Socialist Party news and analysis
Cuts for us, handouts for rich
Terrorism and classroom spying
Janner case: more establishment child abuse cover-ups
Stop hammering low-paid - £10 an hour now!
Low-income tenants face rent hikes
Socialist Party features
NSSN conference 2015: "We could stop austerity in its tracks"
Migrants flee horrors created by capitalism
Socialist Party workplace news
Hospital porters mop up in NHS pay battle triumph
Tube union: why we're striking
Britain's biggest union could reconsider funding Labour after leadership elections
Education under attack! Reports from the front line of the fightback
Yorkshire firefighters demonstrate against crew cuts
Socialist Party campaigns
Socialist Party LGBT group plans fightback against attacks and austerity
Bitter fight to save Bitterne walk-in centre continues
Scotland and North-West England hold TUSC conferences
Socialist Party comments and reviews
Why I joined: 'the Socialist Party has given me political confidence'
TV review: Picasso - Portillo's peculiar perspective
Home | The Socialist 8 July 2015 | Join the Socialist Party
Subscribe | Donate | PDF | ebook
2018