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40% of households in four London boroughs claiming housing costs – report

Tory thinktank Bright Blue says largest increases in claims during first nine months of Covid were in cities
At least 40% of households in four London boroughs are having to claim help with affording a place to live as the economic impact of Covid-19 exacerbates the housing crisis in urban areas, analysis reveals.
Research by the Conservative thinktank Bright Blue found that the most significant increases in the proportion of households claiming state support for housing costs in the first nine months of the pandemic were in cities – particularly London.
In Newham, Haringey, Barnet and Hackney, 40% or more of households are now reliant on benefits – such as the housing element of universal credit – to meet part of their housing costs.
Bright Blue published the research as it launches a cross-party commission on the future of social security, with members including the food campaigner Jack Monroe and the Labour peer and social policy expert Ruth Lister, as well as the former Tory work and pensions secretary Stephen Crabb.
Much of the increase in claims for housing support has been within the private rented sector, the research found, with 212 of the 317 local authorities in England seeing at least 60% of new claims coming from private tenants.
The smallest increases in housing claims were seen in rural areas, with the least-affected local authorities including the chancellor’s leafy Richmondshire, where 12% of households claim housing support, up just 1.8% from before the pandemic.
Richmondshire was recently placed in the highest tier for applying for the government’s new £4.8bn “levelling up fund,” raising questions about how the money will be allocated.
There are mounting concerns among charities and anti-poverty campaigners about what will happen when the government’s support measures, such as the furlough scheme, which has protected millions of jobs, are phased out in the coming months.
Rishi Sunak extended the £20-a-week increase in universal credit in his budget this month, but it is now due to expire in September, as he insists on the need to start repairing the public finances.
The government is also freezing the level of local housing allowance (LHA), which determines how much private tenants can claim, after reconnecting it to a measure of average local rents a year ago. At the same time, the stamp duty holiday, which can tend to drive up property prices and therefore rents, was extended by another three months.
LHA has been consistently eroded over the past decade, Bright Blue points out, so that by 2019, it did not meet the full cost of rent for claimants in 97% of areas.
The thinktank’s chief executive, Ryan Shorthouse, warned the government against making benefits claimants bear the burden of trying to balance the books.
“After the last economic crisis in the late 2000s, those claiming working-aged benefits experienced deep and disproportionate cuts to their incomes as the government repaired the public finances. That can’t happen again,” he said.
Calls for reform of the welfare safety net have grown through the pandemic, as many people who had never expected to rely on benefits have found themselves asking for help.
“The pandemic has proven that almost all of us can fall on hard times because of random, unpredictable events,” Shorthouse said. “A popular and effective welfare system is needed to maintain participation in and support for our socio-economic system.”
Lady Lister, welcoming the establishment of the commission, said: “The pandemic has exposed and aggravated the extent of economic insecurity in our society as well as the cracks in the social security system, which mean that it is failing to provide genuine security.”
Her remarks echoed those of Britain’s leading expert on health inequalities, Michael Marmot, who has called for benefits to be increased significantly to curb a mental health crisis.
Marmot, who produced a significant study on health inequalities in 2010, and whose work was recently praised by the Labour leader, Keir Starmer, told the Observer the “brutalising” universal credit system should be reformed.
“Ideally, all people of working age should be in work. That’s the desirable state. And in work, they should be paid a living wage. If they can’t work, for whatever reason, then the welfare system should be sufficiently generous for their health not to be damaged by that experience. We know what needs to be done. Let’s do it,” he said.
The commission is being funded by the Lloyds Bank Foundation – the bank’s charitable arm – as well as the Trust for London.
source: Heather Stewart
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BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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