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Prime minister’s ‘benefits to bricks’ plan will not benefit ‘most’ people, admits DWP
“Most” people in receipt of housing support will not be able to take advantage of Boris Johnson’s ‘benefit to bricks’ plan, the Department for Work and Pensions (DWP) has admitted.
“Most” people in receipt of housing support will not be able to take advantage of Boris Johnson’s ‘benefit to bricks’ plan, the DWP has admitted #UKhousingMinister for welfare delivery David Rutley admitted that the prime minister’s recent proposals to boost homeownership will likely impact a limited number of people in response to a parliament question submitted by shadow levelling-up secretary Lisa Nandy.
In a speech delivered earlier this month, Mr Johnson announced a plan to “turn benefits to bricks” by changing the rules on welfare, which would allow people in receipt of benefits to put the money towards saving for a first-time buyer deposit.
Ms Nandy asked the government if it could make an estimate of the number of people who would benefit each year from Mr Johnson’s proposal.
In response, Mr Rutley said: “There are five million in receipt of housing support, and though we know that it is likely most will not be in a position to take up the new policy, it removes a barrier that currently prevents thousands of families from buying their own home.”
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There is currently a limited amount of detail on how Mr Johnson’s “benefits to bricks” plan will work, however multiple experts have told Inside Housing that such a policy could face major challenges.
For example, in areas where house prices are high, it is unlikely that Universal Credit payments will be enough to allow people to be able to buy a home, experts have said.
It is also unclear whether lenders will be willing to accept the prime minister’s proposals, however Mr Johnson said he will work with banks to “recognise the creditworthiness of tenants with a track record of paying their rent on time”.
Mr Johnson’s housing speech earlier this month also included the proposal to extend the Right to Buy to housing association tenants.
The National Housing Federation said it was not consulted on the government’s plan and that it has raised concerns with ministers.
Housing secretary Michael Gove has said housing associations will be “seduced” rather than forced to comply with the proposal.
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