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Originally posted on SPeye Joe (Welfarewrites):

Below are a number of tables which show the reality of the Overall Benefit Cap (OBC) and what it will mean for social housing, in short its demise.

The tables are self-explanatory as they detail the anticipated levels of the cap itself (A) using wage inflation (AWE) currently at 1.5%; the anticipated welfare benefit rates using CPI inflation (2.2%); and rent inflation  RPI of (3.1%) + £2 is used for rent figures.

The way the OBC will work is CAP less WELFARE BENEFIT equals the maximum amount of HB payable

Table 1 looks at a 2 child family living in a 3 bed social housing property and as we can see at row E that the family can afford to live there at the inception of the OBC in 2013 and indeed are £118pw under the cap limit.  Yet note that by 2035 and because of the systemic flaw the same…

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