Posted by Jake on Monday, July 15, 2013 with No comments | Labels: Article, Austerity, benefits, Big Society, Graphs, housing, inequality, property
July 2013 saw the rollout of a £500 per week (after direct taxes) cap on benefits paid to a family. Using graphs produced by the BBC we contrast how far the government will go to help the poor, with how far it is prepared to go to help the rich.
The impact of this is families on benefits will be pushed out of the South East, while families earning up to £80,000 will be subsidised to buy properties in 99% of the UK.
Our assumptions relate to renting or purchasing a 3 bedroom property at the cheaper end of the local market in each area:
1) Renting family on benefits:
- can afford to pay 30% of post tax income on rent or mortgage payments. With the benefits cap that would be £600 per month.
2) Buying family: all the below are eligible for government 'affordable housing' policy:
- can afford to pay 30% of gross income mortgage payments
- has a deposit equal to twice gross income
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