The distribution of benefit money

[harshbuttrue1980]

This isn't intended to be a benefit bashing thread - I'm not questioning the overall amount of money that people on benefits get, but how it is allocated. I live in the SE, and have an acquaintance who is single and on benefits. As a working single person, I live in Slough rather than London as I can't afford London, and I commute in to work every day. My one-bedroom flat costs around £700 a month.
My acquaintance lives in London because she prefers being near a tube. She isn't held back by budgets, and gets £1000 a month for her one bedroom flat in a decent part of outer London. Sounds cushy... HOWEVER, she only gets around £70 a week to actually live on - that's for food, travel, electricity and water. She struggles, and has had to resort to food banks. So not so cushy at all!!!
AIBU to think this is a bit crazy? Wouldn't it be better for her to get £1280 a month and to actually have the chance to budget and make choices like everyone else? At the moment, she chooses to live in an expensive area as there is no incentive not to do so. She has already said that she would choose a cheaper area if it meant that she didn't have to struggle every month to pay the electric bill.
It seems insane to me that someone is living in a much plusher flat than lots of working people, but can barely scrape by in other ways. Maybe people out of work could be given a flat rate and make their choices about how to spend it? Or am I missing something?

[OnceThereWasThisGirlWho]

ReallyTired I feel that there should be some kind of way of helping people with housing costs for a short period of time.

I reckon the government should start paying the mortgage in this situation. Obviously they'd then own a certain % of your house, so later down the line you either pay them back or when the house is eventually sold they get their % cut. If they own more than 50% of the house by that stage they get first dibs at buying the rest of it to turn into council housing.
Voila!
Probably loads of flaws in that...

ps. If we have more people than jobs, the unemployed are doing everyone a public service, really...

[graphista]

Oncethere - that sounds a fantastic idea which means of course no govt would ever entertain it! I've never understood the refusal to pay a mortgage when a mortgage payment is usually cheaper than rent and it must incur more costs all round if a family needs rehoused?!

Andnow - I'd love to know when that was to see how much that would equate to now? But also even now £40 a week would still help a bit!

[AndNowItsSeven]

graph in was a policy in 2008 , unsure of the start and end years.

[AndNowItsSeven]

*it

[AndNowItsSeven]

"Working benefits for lone parents

Check whether you will be eligible for In Work Credit, which is worth £40 a week (£60 in London), tax-free, on top of your salary. You can receive this benefit for up to 52 weeks after you start work - find out more on the DirectGov website."

[HelenaDove]

Seven is right. A single mum friend of mine got it when she went back to work.

[AndNowItsSeven]

It stopped on October 1st 2013 so not that long ago.

[AndNowItsSeven]

As did my friend Helena , it was an excellent Labour policy. The Tories are so backward thinking.

[ReallyTired]

"Oncethere - that sounds a fantastic idea which means of course no govt would ever entertain it! I've never understood the refusal to pay a mortgage when a mortgage payment is usually cheaper than rent and it must incur more costs all round if a family needs rehoused?! "

Ofcourse a lot of people buy houses bigger than they need. We have a four bed detached house for four people. I suppose the daily fail would be in uproar at a family with a house worth 500k getting help with mortgage interest. In the future such a family might be faced with negative equity. It's not always simple to sell a property in a recession. I feel a loan to help with mortgage payments would help a lot of people. I think it's an excellent idea for the properties to become council houses after a period of time.

The mental health side of being faced with potential reprocession is hideous.

[graphista]

Wow I'm surprised it was as recent as that! I was a working lone parent at that time. Never heard of it despite having several friends who are also lone parents and on/off the benefits conveyor belt!

Yes reallytired I get the objection to do anything remotely sensible is usually down to bother perception (sigh) but you'd think saving taxpayer money would be the response?!

Martin Lewis totally gets the link between financial difficulties and mental health and is trying to persuade the govt to realise too! (As well as educate children in finance and support the waspi women too, I love him!)

[graphista]

Bother? Perception I mean voter perception of course