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

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Chief Executive & Head of Paid Service

Hull and East Yorkshire Combined Authority
£150,000 - £170,000
Chief Executive & Head of Paid Service Hull
Recuriter: Hull and East Yorkshire Combined Authority

Chief Legal Officer

Sandwell Metropolitan Borough Council
£101,275 - £117,266
We are now seeking an exceptional legal leader to join us as Chief Legal Officer. Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Major Events Manager

Powys County Council
£49817 - £51928
This is an exciting opportunity to lead Powys County Council's preparations for three major events in 2027 Llandrindod Wells, Powys
Recuriter: Powys County Council

Debtors and Collection Officers

Durham County Council
£27,274 to £29,542 p.a. (Grade 5)
This is an exciting opportunity to join a dynamic and ever-changing revenues environment. You’ll have the chance to develop your skills, gain valuable Spennymoor
Recuriter: Durham County Council
Linkedin Banner