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

Chief Executive

West Northamptonshire Council
£188,576 - £201,902 (pay award pending)
Join us for a rare opportunity to lead one of the UK’s newest and most ambitious councils Northamptonshire
Recuriter: West Northamptonshire Council

Durham Cares Sufficiency Delivery Lead

Durham County Council
£44,075 - £48,226 Grade 12
Do you want your work to make a real difference to the lives of children and young people in our care?   This is a brilliant opportunity to join a new Spennymoor
Recuriter: Durham County Council

Durham Cares - Care Resource Specialist

Durham County Council
£38,220 - £41,771 Grade 10
Do you want your work to make a real difference to the lives of children and young people in our care?   This is a brilliant opportunity to join a new Spennymoor
Recuriter: Durham County Council

Waste Project Officer

Durham County Council
£32,597 - £36,363
The strategic waste management team have an opening for a Waste Project Officer. If you are interested in community engagement, are an excellent commu Durham
Recuriter: Durham County Council

Policy Officer

Durham County Council
Career Grade 7 to 9 - Grade 7 £30,024 - £33,699 / Grade 8 £32,597 - £36,363 / Grade 9 £35,412 - £39,152
We are seeking a motivated and analytical Policy Officer to support the design, delivery, and evaluation of key policy and strategy documents relating Durham
Recuriter: Durham County Council
Linkedin Banner