ROOF Blog

The Conservative Treasury team are holding talks on handing responsibility to local councils for setting and distributing benefits such as the jobseeker’s allowance. Speaking at a conference organised by the New Local Government Network in London, the shadow chief secretary, Philip Hammond, disclosed that he was holding talks on the issue with Conservative councils, including Kent. Under the proposal benefits would be lower where it was easier to find work. Councils would also be given incentives to help people find jobs. The plan has not yet appeared in any formal document. At the same conference John Denham, the communities secretary, put his faith in Total Place, a scheme that aims to drive out duplication and increase partnership working. ‘Local people will rightly be intolerant if they are told that frontline services will be cut when their council hasn’t taken tough decisions to introduce shared services, sharing senior staff with other local authorities, PCTs or other bidders, or through making the best use of public buildings,’ he said.

The Financial Services Authority, the City watchdog, is proposing a clampdown on the charges that lenders levy on customers who are in arrears, as well as stressing that they must only consider repossessing a home as a last resort. The latest round of proposals comes after problems with the way specialist lenders and third party administrators were handling people who fell behind with repayments. Lenders have also come in for heavy criticism over the fees they levy on homeowners who are in arrears, with some groups charging £150 to people for a visit by a debt counsellor, or £300 for instructing a solicitor. Borrowers can also be charged£60 a month in fees even once they have come to an arrangement with their lender about repaying the arrears. Under Tuesday’s proposals, firms will no longer be allowed to apply monthly arrears charges to consumers when they have agreed a repayment plan

A detailed and startling analysis of how unequal Britain has become offers a snapshot of an increasingly divided nation where the richest 10 per cent of the population are more than 100 times as wealthy as the poorest 10 per cent of society. The report, An Anatomy of Economic Inequality in the UK, scrutinises the degree to which the country has become more unequal over the past 30 years. Much of it will make uncomfortable reading for the Labour government, although the paper indicates that considerable responsibility lies with the Tories, who presided over the dramatic divisions of the 1980s and early 1990s. The new findings show that the household wealth of the top 10 per cent of the population stands at £853,000 and more – over 100 times higher than the wealth of the poorest 10 per cent, which is £8,800 or below (a sum including cars and other possessions).

John Healey has extended the government’s campaign to help struggling homeowners get a grip on their finances and avoid repossession. Over 330,000 households have had help and advice with their mortgages over the past year. But with the pressure on families likely to remain high throughout 2010, starting this week the government is working with CAB to run a string of local help events in 56 repossession ‘hotspots’, so that struggling homeowners can get impartial face-to-face help and advice to keep their home. New radio and local press advertising in all 56 areas will also promote the free telephone advice line and special website to help homeowners struggling with their mortgage payments.

Applications to build houses across the UK rose in the last quarter of 2009, according to the NHBC. It said applications to build new homes between October and December 2009 rose 64 per cent from 15,879 to 26,078 compared with the same period in 2008. This was driven by the private sector, where applications surged 113 per cent, from 8,646 in the last quarter of 2008, to 18,393 in 2009. Public sector demand saw a six per cent rise, from 7,233 to 7,685. Imtiaz Farookhi, chief executive of the NHBC, said: ‘Our house building colleagues across the industry have shown cautious optimism as they reveal their predictions for 2010. Now the nation’s housebuilders need support from the government as they see their way out of this downturn and try to meet the need for new homes.’

Nearly one in ten over-70s are still paying to support their children, the Equality and Human Rights Commission (EHRC) said yesterday. Hundreds of thousands of elderly people are bearing the financial burden of a family despite having had to retire in their sixties. The findings reflect the rising ‘boomerang generation’ of twentysomethings returning to the family home to rely on their parents after leaving university, as well as the increasing age at which many couples are having children. On top of this, a quarter of grandparents are paying towards the upbringing of their children’s children, other figures have shown.

The government will struggle to build even half of its target of a million affordable homes by 2020 if the housing budget is not exempted from public spending cuts, a housing campaign group says. If the cuts to the house-building budget suggested by November’s pre-budget report go ahead, the number of affordable homes built by 2020 will be 444,000, says the National Housing Federation. The NHF is calling on Gordon Brown to make the house building budget ‘untouchable’ and give it the same status as hospitals, schooling and policing, areas the government said in November it would ringfence while it cut back spending in other areas.

Most Britons believe that house prices will rise this year as the country awaits official confirmation that the worst peacetime recession is finally over. A survey by Rightmove found that 53 per cent of those in the UK believe house prices will rise over the next 12 months, compared with just 10 per cent at the beginning of last year. The sharp upswing in confidence about one of the worst affected sectors during the recession comes prior to the publication of figures tomorrow that are expected to show the economy started growing again in the last quarter of 2009. Economists are predicting that the Office for National Statistics will say that gross domestic product increased by 0.4 per cent, which would mark the official end of the recession following six quarters of contraction.

The National Audit Office (NAO) has expressed concerns over the strength of the information collected on Decent Homes progress. It is estimated that over a million social homes have been improved by CLG’s Decent Homes Programme. The original target was that all social sector homes would be decent by 2010, but by November 2009, CLG was estimating that approximately 92 per cent of social housing would meet the standard by 2010, leaving 305,000 properties ‘non-decent’. 100 per cent decency would not be achieved until 2018-19.

Hundreds of thousands of homeowners could be in line to collect hefty refunds for unfair mortgage charges as lenders face being forced to hand back millions of pounds in fees imposed on customers who missed their monthly loan payments. One firm has been fined £2.8million and made to return £7.7million to borrowers when it was found to have acted unfairly. The crackdown by the Financial Services Authority is likely to lead to claims by hundreds of thousands of home owners who believe they have been harshly penalised.