Government Says There Are No Plans to Extend the Benefits Freeze

Statement by Will Quince MP, DWP Junior Minster

There are no plans to extend or maintain the Benefit Freeze.There are no plans to extend or maintain the Benefit Freezeafter March 2020. Specific decisions on how to uprate the Local Housing Allowance from April 2020 will form part of the discussions in supportof fiscal events later this year.

Universal Credit is causing a significant rise in homelessness. This is due to the waiting period that forces new claimants to borrow a Universal Credit advance which has a short repayment period. Also, this freeze has reduced the value of benefits due to inflation caused by the fall in the value of the pound [Brexit] increasing the cost of food imports and Quantitative Easing, what was once called printing money.

Landlords are refusing to let to people on Universal Credit. The repeal of Section 21 means that landlords cannot evict tenants on a whim and without good reason. Letting to people on benefits is therefore riskier, especially as landlords know how difficult it is to live on such a small amount of money.

Making people homeless just 'kicks the can down the road'. It costs far more to house people in temporary accommodation. People become focused on immediate survival. Job chasing without a permanent address is done more as a token gesture to please the DWP and avoid sanctions. People are more concerned about getting accommodation than a ‘career’.   

The stress of having to survive on such a low income is a major driver of mental illness caused by stress. What can seem a short-term saving, has long term consequences for claimants who may never full recover.

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