The government’s ‘mortgage for benefits’ distraction is crumbling from the foundations up
The government’s latest policy announcement – or leak – comes directly from what we can only assume is a folder named ‘Look – a squirrel!‘.
Exclusive:
Boris Johnson will tomorrow announce plans to allow low earners to use benefits to buy a home
He wants to change rules so people can use benefits to pass affordability checks & make monthly mortgage repaymentshttps://t.co/E0sHjj1ZBE
— Steven Swinford (@Steven_Swinford) June 8, 2022
The obvious flaws in the scheme must have been apparent to whichever Johnson fan (including Johnson, himself) came up with it – but it was left to Twitter to point them out.
1.
In order for this to actually be viable, the Govt need to:
– Raise benefits to a standard where 7 million people aren’t missing meals, because those people sure as heck ain’t saving for a house
– Build loads of genuinely affordable safe decent housing
I bet they’ll do neither. https://t.co/YDhnBEKPdW
— Jack Monroe (@BootstrapCook) June 9, 2022
2.
The maximum amount of savings anyone can have and qualify for means-tested benefits is £16k. Most banks are asking for a 15% deposit now.
So I hope the government will also be making sure that there are plenty of £106k houses available to buy, to make this workable. https://t.co/m5u04mfqT3
— Hannah Al-Othman (@HannahAlOthman) June 8, 2022
3.
How does this new rule about using benefits to pay a mortgage work if you can’t receive universal credit with savings (aka a deposit) of £16k or more?
— Chris Bryant (@RhonddaBryant) June 9, 2022
4.
doesn’t look like this new policy (letting people use house benefits to get mortgages) is remotely workable in practice, question is whether Downing St knew this before briefing it out
— Jim Pickard (@PickardJE) June 9, 2022
5.
As soon as you've saved more then £15,999 for your deposit then you lose your benefits. That's just one detail that suggests this policy hasn't been thought through at all. Maybe everyone in No.10 was drunk at the time? https://t.co/4BtDbvXrkl
— Michael Moran (@TheMichaelMoran) June 9, 2022
6.
BREAKING: People on Universal Credit who can't afford to eat or put the heating on are ecstatic the government will allow them to apply for a mortgage x
— Laura Kuenssberg Translator (@BBCLauraKT) June 9, 2022
7.
Excellent, we've not had a sub-prime mortgage crisis for a decade or so.
— Devil's Food Cake (@NoCakeLeft) June 8, 2022
8.
— Toby Earle (@TobyonTV) June 8, 2022
9.
love how Boris Johnson is desperately trying to copy any of Margaret Thatchers policies to keep his backbenchers happy not long now til he invades the Falkland Islands
— dave ❄️ (@davemacladd) June 9, 2022
10.
And people using food banks will be given business loans to open a restaurant. https://t.co/Ml7z67oCas
— (@JayJay08752584) June 8, 2022
11.
In 2015, the Conservatives promised to build 200,000 starter homes and make them available to first time buyers at below open market value. Not a single home was ever built. It's hard to say which is more laughable. That, or this. https://t.co/1GVnS2ChRI
— Martyn McLaughlin (@MartynMcL) June 8, 2022
This reminder from Richard Coles doesn’t bode well for the government’s assurances of maintaining social housing stock.
Houses lost from the social sector through extending Right to Buy will be replaced like for like. What percentage of homes lost from the social sector through Right to Buy have so far been replaced?
Less than 5%.
— Richard Coles (@RevRichardColes) June 8, 2022
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148 Tory MPs voted against Boris Johnson and Gary Lineker had the best response
Source Steven Swinford Image geralt on Pixabay
