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

School Crossing Patrol Officer - United Academy

Essex County Council
Up to £13.00 per hour
School Crossing Patrol Officer - United AcademyPermanent, Term Time£13.00 per hourLocation
Recuriter: Essex County Council

Customer Service Advisor

London Borough of Richmond upon Thames and London Borough of Wandsworth
£32,841 - £42,888 per annum
Job Title
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Speech and Language Therapist (Grenfell Education Hub)

The Royal Borough of Kensington & Chelsea Council
Up to £53076 per annum
Support the North Kensington community to find and use their voices to shape futures beyond tragedy.As Speech and Language Therapist in the Grenfell E England, London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Development Officer - Museums

The Royal Borough of Kensington & Chelsea Council
Negotiable
Secure the future of our historic museums through fundraising and community support. As a Development Officer, you'll play a crucial role in sustainin England, London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Educational Psychologist (Grenfell Education Hub)

The Royal Borough of Kensington & Chelsea Council
£53076.00 - £54076 per annum
Support the North Kensington community to rebuild, aspire and shape futures beyond tragedy.Support the North Kensington community to rebuild, aspire a England, London
Recuriter: The Royal Borough of Kensington & Chelsea Council
Linkedin Banner