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

Transport and Major Work Manager

Slough Borough Council
£54,556 to £60,085 per year Inclusive of Local Weighting Allowance of £1096
Drive the future of transport and infrastructure in Slough Slough, Berkshire
Recuriter: Slough Borough Council

Restorative Justice Practitioner

Essex County Council
£26284.00 - £33256.00 per annum + pension
Restorative Justice PractitionerPermanent, Full Time£26,284 up to £33,256 per annumLocation
Recuriter: Essex County Council

Events Administrator - Harlow District Council

Essex County Council
Up to £14.8800 per hour
Events Administrator - Harlow District CouncilHarlow District CouncilTemporary, Full Time£14.88 ph PAYELocation
Recuriter: Essex County Council

Adults Social Worker - South Essex (Various Teams)

Essex County Council
£38487 - £51834 per annum
We're an adult social care service that wants to see citizens of Essex have as much choice and control over the way they live their lives as possible England, Essex, Basildon
Recuriter: Essex County Council

Autism Training Coodinator

Essex County Council
£48121.0000 - £56612.0000 per annum
Autism Training CoodinatorFixed Term, Full Time£48,121 to £56,612 Per Annum Location
Recuriter: Essex County Council
Linkedin Banner