The new RTB - buy your council house and give a private tenant a free week in Benidorm!
In words which Cameron and the coalition will not wish to hear the new RTB is an additional ‘subsidy’ of over a hundred million pounds a year to the feckless workshy benefit claimants that will further exacerbate their benefit dependency.
The ex-private rented sector tenant may also decide to give up work as well in these circumstances. The figures again using the national averages explain the new environment: -
Current situation is a gross market rent of £161.55 of which £111.18 is paid through HB and this approximates to 70% of rent paid for by the public purse with the tenant having to make up the other 30% of £50.37 per week and hence the private tenant has to work or be evicted on arrears.
The new environment is a gross rent of £131.64 of which £131.64 will be paid through HB and equates to 100% rent paid. There is also more security of tenure making it harder to evict and the reassurance that if not working at least the roof over ones head is secure.
This creates a massive incentive for the non-working and working current private tenant to transfer to the new affordable rent scheme. Yet at the same time it is a strong incentive not to work at all as the new tenant has on average £50.37 more per week and £2628 per year to spend on other things other than housing.
The reality is get an affordable rent tenancy (Shapps replacement on a 1 for 1 basis to the RTB) give up work and get on benefits and get a free packet of fags per day / a fortnight’s jaunt to Benidorm paid with your £2628 yearly windfall OR get a job and pay 85% more rent than your council neighbour