The government is reducing housing benefit for the under-35s. It is being rolled out in stages from January 2012. People who are single and under-35 will only be entitled to the lower shared accommodation rate rather than the current 1-bed flat rate. Based on November figures, this is a reduction to £280 from £475 per calendar month.

We are very concerned as to the effect this will have on the housing market in Southend and on the people affected. Looking at Rightmove today, there are only 9 properties available for less than £280. Where are these people going to go?

We have contacted various people at the council to see how they are preparing for the change and what the effects will be. According to recently released, national, government figures, 10% of people claiming housing benefit are between 25 and 35 and there were 17,060 HB claimants in Southend in August 2011 so that is 1706 people about to be unable to afford their rent.

We will be contacting all of our clients affected by these changes over the next few weeks. If you wish to speak to us sooner, please call our Credit Control Manager Ryan on 01702 445 602.

The changes will come into effect from January 2012 in stages as follows:

• New claims from 1st January 2012 will be at the lower rate
• Existing claimants who moved in between April 2011 and January 2012 will move to the new rate on the anniversary of the date they first claimed so the earliest this can happen is 1st April 2012.
• Existing claimants who moved in before April 2011 will get an extra 9 month's grace. So, there will be a further 9 months on the higher rate from the next anniversary date and then it will switch to the lower rate.