A new bed tax is expected to have nightmare repercussions for South Holland residents in social housing.
Spalding Citizens Advice Bureau has described the run-up to benefit changes in April 2013 as the “calm before the tsunami”.
Talks have already begun between the CAB and South Holland District Council to set a budget capable of dealing with a huge rise in enquiries.
According to John Willerby, CAB’s strategic manager for South Holland and South Kesteven, currently benefit enquiries account for about 40 per cent of their work.
He said: “We believe it’s the calm before the tsunami. Once these changes take effect next April we are expecting a huge footfall of people needing help.”
Benefit changes are expected to hit working-age households. Pensioners, those in receipt of war pensions and vulnerable people will be exempt.
A new bedroom tax, affecting people aged 16 to 61, is expected to have the most impact because people with more bedrooms than they need will be penalised. Those with one extra bedroom will lose 14 per cent of their benefit and two or more 25 per cent.
Mr Willerby said: “The concern is that in South Holland there will not be enough one or two-bed houses for people to downsize to.”
The new “universal credit” – incorporating housing benefit, income support, job seekers allowance, working tax credit, child tax credit and income related employment and support allowance – is to be capped at £500 a week for a family and £350 a week for a single person.
With the average social housing rent at £90 a week, it is hoped residents will not be too badly affected. Mr Willerby said: “We are concerned people budget properly for this. Before they have been paid weekly and they mustn’t blow it all at once.”
For more information on the benefit changes, visit www.direct.gov.uk
To contact the CAB, call 08444 994199 for the Lincolnshire Advice Network or 01775 717444 for the offices at South Holland District Council in Priory Road.