Wealth disparity in Britain

Homelessness rife in UK: Research shows millions are paycheck away from losing home

One-third of UK residents only have enough money to pay rent one month at a time, meaning millions only have a paycheck-sized buffer between themselves and losing their homes. For entire families, the situation is particularly dire.

RT,

26 January, 2013

Some 35 percent of poll respondents – equivalent to 8.6 million Britons – would be unable to pay rent from savings, a recent YouGov poll found. The study, published on Thursday, polled 2,000 UK residents. If these statistics are extrapolated to the entire UK population, 3.9 million British families could be just one paycheck away from losing their family home.

Britons can lose their homes very quickly if they miss payments, especially both members of a resident couple are laid off in a short space of time. If mortgage payments are not made on time, homes can be repossessed – especially if further outstanding debts are secured against the house, as was the case with a resident from Kent, southeast England.

“We knew there was no hope. We looked for help from the council and even tried renting the house out, but things spiraled out of control right away,” he told the Guardian.

If a tenant falls behind on rental payments and refuses to leave, the landlord can issue two eviction notices, and the tenant is taken to court and evicted if payments still have not been made. Landlord autonomy and decentralization means that tenants have little protection, and councils have been heavily criticized in the past for failing to support those at risk of homelessness.

Unemployment in the UK rose by 7,000, to 2.52 million in the three months before January 2013, according to the Office for National Statistics.

UK housing charity Shelter said it is “bracing itself” for a surge in demand for housing, especially amid the recent wave of welfare reforms that has struck the UK. The charity’s work involves providing support for those facing problems with homelessness and housing.

In the last two weeks, the UK has implemented welfare cuts, benefit reforms and cuts to central council funding, which has spurred over 70 percent of local councils to impose a minimum council tax payment, hitting low-income families especially hard.

Among poll respondents, 18 percent – equivalent to 4.4 million people, one-fifth of Britons – would be unable to pay rent or mortgage at all if they did not immediately secure new employment after losing their job.

“Millions are living on the edge of a crisis, only secure in their homes for a matter of weeks. At the same time, support for people who have lost their homes is being stripped away,” Shelter Chief Executive Campbell Robb said.

UK Queen gets £5m ‘pay rise’ as public cuts strike populace

RT,

3 April, 2013

The British taxpayer funding for the queen has peaked at 36.1 million pounds (US$54.6 million), rising 5 million pounds from the previous year. The new Sovereign Grant replaces previous separate grants, rolling them into one large subsidy.

It will be used to maintain palaces as the country faces cuts.

The Sovereign Grant, used to finance royal duties and transportation, pay staff and maintain palaces, has had the publically-funded boost, topping last year’s sum of 31 million pounds - despite the fact that last year an extra 1 million pounds was allotted for the Diamond Jubilee celebration.

The money will cover the year 2013/2014, and the new financial year will begin on Monday. Official expenditure increased slightly from 32.1 million pounds in 2010/11 to 32.3 million pounds in 2011/12.

The Sovereign Grant is a replacement for the old UK funding system for the monarchy. Previously, the civil list, and ‘grants in aid’ funded the Queen’s transport and duties separately.

The new rise means funds equate to 15 per cent of the profits of the Crown Estate – the body that oversees the administration of the Queen’s properties.

The Crown Estate's 2011/12 accounts show that profits of 240.2 million were reaped from its properties that year. It is one of the largest property owners in the UK.

A spokesperson for the UK monarchy defended the increase, saying that in real terms, the grant is 15 per cent less than expenditure five years ago.

Some 10 million pounds is contributed towards paying the salaries of the queen's staff, including footmen and chefs. However there has been a freeze on their wages in place for a number of years.

On Monday, a series of welfare reforms began to be implemented by the UK government, in the hope of cutting 2 billion pounds from the budget.

Some 660,000 people dependent on social housing because of low incomes will lose, on average, over 700 pounds per year through the introduction of 'bedroom tax' - a cut to government-funded support payments, should the occupant of a house have a 'spare' room.

A minimum council tax payment will has additionally been broadly imposed, negatively affecting those on low incomes too.