Laura Sharman 27 February 2020

Housing benefit reform a ‘false economy’

Councils have been left carrying the financial burden of reforms to housing benefit, new research has revealed today.

A new paper from economists at the University of Warwick has found that since 2011, for every pound the Government has saved in housing benefit, councils have been forced to spend 53p more on temporary housing.

The researchers also found the cuts have had ‘substantial’ human costs such as an increase in evictions, individual bankruptcies and homelessness.

They found that forced evictions in the private rented sector rose by 22% after the cuts were implemented, with the number of households living in council-provided temporary accommodation increasing by nearly 18%.

Dr Thiemo Fetzer of CAGE said: ‘Our study shows that this has been a very costly social policy choice both in the short term and in the long term.

‘In the short term councils have had to increase spending to meet their statutory obligations in addressing and preventing homelessness. As councils have limited means of raising revenues, let alone issue debt, they are left with cutting services elsewhere to pay for these extra costs.’

SIGN UP
For your free daily news bulletin
Highways jobs

Director of Technology and Customer Experience

Oxfordshire County Council
£125,350 - £135,928
Lead transformation through local government reorganisation. This is a pivotal opportunity for an exceptional, director level leader who thrives on turning complex change into better outcomes for people. If you’re ambitious to get Oxfordshire County Oxford
Recuriter: Oxfordshire County Council

Caseworker - Essex Legal Services

Essex County Council
£25081.00 - £27653.00 per annum + + 26 Days Leave & Local Gov Pension
Caseworker - Essex Legal ServicesPermanent, Full Time£25,081 to £27,653 per annumLocation
Recuriter: Essex County Council

Catering Assistant

North Yorkshire Council
£12.65 per hour
Full uniform will be provided including safety footwear. Bedale, North Yorkshire
Recuriter: North Yorkshire Council

LGV Driver

North Yorkshire Council
£34,094 - £37,225 per annum
Would you like a rewarding role that allows you to work outside in some of the most scenic places in the country? Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Facilities Assistant

Essex County Council
Up to £25081.00 per annum
Facilities AssistantFixed Term, Full Time£25,081 per annumLocation
Recuriter: Essex County Council
Linkedin Banner