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.’

Devolution and putting place first image

Devolution and putting place first

The real lesson of Andy Burnham's Makerfield success, argues Dr Jonathan Carr-West, is that place – not personality – is the key to Britain's future.
SIGN UP
For your free daily news bulletin
Highways jobs

Senior Organisational Development Adviser

London Borough of Richmond upon Thames and London Borough of Wandsworth
43545 - 55992
Job Title
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

School Crossing Patroller

London Borough of Richmond upon Thames and London Borough of Wandsworth
Pro Rata Salary - £5353,77
Job Title
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Senior Practitioner - Woodlands Family Centre, West Essex

Essex County Council
£48205.0000 - £57988.0000 per annum
Senior Practitioner - Woodlands Family Centre, West EssexFixed Term, Full Time£48,205.00 to £57,988.00 Per Annum Location
Recuriter: Essex County Council

Senior Practitioner - Placement Finding Team

Essex County Council
£48205.0000 - £57988.0000 per annum
Senior Practitioner - Children & Young People's Placement Service - Placement Finding TeamPermanent, Full Time£48,205 to £57,988 Per AnnumLocation
Recuriter: Essex County Council

Cleaner

Durham County Council
£24,796 (Pro Rata)
Permanent Contract - Part Time 10 hours per week 4.00pm to 6.00pm Monday to Friday. Whole Time. Required to start 1st August 2026.   Governors wish to Newton Aycliffe
Recuriter: Durham County Council
Linkedin Banner