Welfare rules will be changed under new plans, so that the 1.5 million people who are in work but also on housing benefit will be given the choice to use their benefit towards a mortgage, rather than it automatically going directly to private landlords and housing associations.
Currently, welfare rules taper the amount of Universal Credit received when the claimant’s savings exceed £6,000, and it stops entirely when savings exceed £16,000.
The Government plans to exempt Lifetime Isa savings from these rules – meaning people can save a little each month specifically for a deposit without it impacting their Universal Credit payments.
Boris Johnson set out the vision for lower-paid workers to be able to use housing benefits to buy their homes and an extension of the right to buy for housing association tenants.
He will hope the pledges to assist individuals onto the property ladder will please rebel MPs and voters who are facing fresh pressures from the cost-of-living crisis.
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