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Benefit changes could help reduce consumer debt

- Friday, 30 October 2009

New rules to the benefit entitlement system while see parents in rented properties receive extra financial help provided they still live with their children.

As of next Monday (November 2nd), income from child benefits will no longer be a matter of consideration when calculating a person's entitlement to housing or council tax assistance.

The extra support, which is available to those in council housing as well as privately rented accommodation, could ease a number of families' debt problems.

Liz Phelps, social policy advisor for the Citizens Advice Bureau, said that the added income could have a significant impact upon those people who are struggling to afford even the day-to-day basics.

She commented: "We are seeing more and more families struggling to make ends meet and finding it increasingly hard to afford to pay their essential household bills, including their rent.

"Our calculations show that this change in the rules could make a huge difference to them."

According to the Bank of England, net lending to individuals rose by £0.7 billion in September of this year.
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