Managing the Impact of Housing Benefit Reform
Author: Great Britain: National Audit Office
Publisher: The Stationery Office
Published: 2012-11
Total Pages: 48
ISBN-13: 9780102980462
DOWNLOAD EBOOKAs part of the measures announced in the emergency budget in June 2010 and the Spending Review of October 2010, the Government announced changes to housing benefit, including reductions to local housing allowance rates for private rented sector claimants and deductions in payments to social sector tenants in under-occupied homes. The Department is actively preparing for the implementation of housing benefit reform, using available data to assess the impact of the reforms on current entitlements. It has estimated that the reforms will result in around two million households receiving lower benefits. Claimants with large numbers of children and those living in areas of high rent such as London will be most affected. The Government intends the reforms to improve incentives to work and lead to positive changes for claimants. Reforms could also lead to hardship or an increased risk of homelessness. How tenants and landlords will respond is highly uncertain at the moment and the Department has commissioned independent research to evaluate the impact of the reforms after implementation and is also working with local authorities to identify the extent to which the reforms will increase the administrative. Uprating local housing allowance by the consumer price index, rather than local rent inflation, could put pressure on the supply of affordable local housing. Downward pressure on rents or increased employment would mitigate the impact but NAO analysis indicates that, on current trends, 48 per cent of local authority areas in England could face shortfalls by 2017