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Tuesday, September 15, 2009

LHA cut another example of governments 'joined up thinking'

Anybody who has read our commentary on the Local Housing Allowance (LHA) issue will know that we have been far from complimentary.

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The central tennent to the whole experiment by the government has been that it encourages tenants to be more responsible and self reliant and part of the carrot of the whole process was to allow tenants to claim the additional allowance above their rent if they found a lower value rental property. Thereby acting as a responsible consumer rather than a benefit 'spunger'.

However, the very thing that was an incentive and carrot for the scheme to work; that being the tenants being able to keep up to £15 a week for themselves where they find a rental property that is cheaper than the LHA for their area. The government are proposing to remove this financial incentive which many supporters saw as vital to making the scheme work.

Seems to me that the government don't really know what they are trying to achieve with this bit of housing policy. Nothing new there then!

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