Part of The Comprehensive Spending Review announced by Chancellor Osborne includes a change to housing benefit claimants that from 2012, qualifying single people under 35 will be paid a shared room rate rather than the rate for a whole flat or studio.

The shared room rate is the lowest housing benefit payment and it is currently only paid to claimants under 25. The rate is based on the amount of rent charged for a single room with shared use of the rest of a house.

The government believes that this will save £215 million by 2014/15.

George Osborne said: “This will ensure that housing benefit rules reflect the housing expectations of people of a similar age who are not on benefits.”

Osborne also stated that over the next two Parliaments the current system of means tested working age benefits and tax credits will gradually be replaced with a Universal Credit.

The Chancellor also announced a package of reforms to the existing welfare system, including capping household benefit payments from 2013 at around £500 per week for couples and lone parent households and at approximately £350 per week for single adult households.

The governments stated aim is that no family will be able to receive more in total welfare payments than the median after tax earnings of working households.

Disability Living Allowance claimants, War Widows, and working families who claim working tax credits will be exempt from the above changes.