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

Armed Forces Commissioner

Ministry of Defence
£170,000 per annum
This is a unique opportunity to serve as the independent champion for Service personnel London (Greater)
Recuriter: Ministry of Defence

Executive Director Finance, Governance and Assets (s151)

East Surrey
£153,592 - £168,952
Local government in Surrey is being reshaped for the first time in more than 50 years. East Surrey
Recuriter: East Surrey

Transport Planning Officer Policy

Brighton & Hove City Council
£35,570 - £40,444
We are seeking candidates with experience of working in transport and an interest in developing policies and transport schemes... Hove Town Hall, Norton Road, Hove, BN3 3BQ
Recuriter: Brighton & Hove City Council

Social Work Consultant

Durham County Council
Grade 13 £48,738 - £53,051
Are you passionate about working with children and families?   This could be the post for you!   WHAT IS INVOLVED?  As Social Work Consultant you will Newton Aycliffe
Recuriter: Durham County Council

Missing Children Coordinator

Durham County Council
Grade 7 £31,015 - £34,811
Are you passionate about improving outcomes for vulnerable children and young people? Do you have experience working with children who go missing, exp Durham
Recuriter: Durham County Council
Linkedin Banner