An article examined the income support role of means-tested housing allowances in European Union countries. Housing allowances varied both within and between welfare regimes. They were not simply a liberal policy instrument: they were employed extensively within social democratic and conservative welfare regimes, and they were not only focused on the poorest households. Housing allowances had a significant impact on disposable incomes (after housing costs) and had an important income support function.
Source: Julia Griggs and Peter Kemp, 'Housing allowances as income support: comparing European welfare regimes', International Journal of Housing Policy, Volume 12 Issue 4
Links: Abstract
Date: 2012-Dec
The coalition government published early findings from demonstration projects for the direct payment of housing benefit to tenants in the social rented sector. Over the first 4 months rent collection rates stood at 92 per cent. A total of 316 tenants (5 per cent of the total) had been switched back to payments to their landlords.
Source: Direct Payment Demonstration Project: Payment Figures, Department for Work and Pensions
Links: Report | DWP press release | CIH press release | Inside Housing report
Date: 2012-Dec
A report provided a baseline survey in respect of demonstration projects for the direct payment of housing benefit to tenants in the social rented sector.
Source: Peter Kemp, Paul Hickman, Kesia Reeve, Ben Collins, Stephen Finlay, and David Robinson, Direct Payments Demonstration Projects: Findings from a baseline survey of tenants in five project areas in England and Wales, Research Report 822, Department for Work and Pensions
Date: 2012-Dec
A survey found that reduced benefits for young people were increasing their chances of becoming homeless. 65 per cent of local authorities reported a negative impact on the ability of young people to access private rented accommodation due to the extension of the shared accommodation rate to people under 35. Almost one-half of local authorities reported that capping the housing allowance for young people had had a similar impact.
Source: Young & Homeless 2012, Homeless Link
Links: Report | Homeless Link press release | Depaul UK press release
Date: 2012-Dec
An audit report said that cuts in housing benefits could put pressure on the availability of affordable housing. Within five years 48 per cent of England's local authorities would have more than twice as many housing benefit claimants as two-bedroom dwellings, the most popular housing stock, available to rent.
Source: Managing the Impact of Housing Benefit Reform, HC 681 (Session 2012–13), National Audit Office, TSO
Links: Report | NAO press release | CIH press release | BBC report | Guardian report | Inside Housing report | Public Finance report
Date: 2012-Nov
The coalition government published its response to a consultation on arrangements for devolving council tax support schemes to local authorities in England.
Source: Localising Support for Council Tax: Council tax base and funding for local precepting authorities – Government response to the outcome of consultation, Department for Communities and Local Government
Links: Response to consultation
Notes: Consultation document (August 2012)
Date: 2012-Nov
The report was published of a project in Wales that sought to minimize the impact of the 'bedroom tax' on tenants and reduce the rate of tenancy failure, or alternatively to develop innovative approaches to assist tenants affected by the tax. It said that the Welsh Government should undertake a thematic review of the impact of the bedroom tax and the introduction of universal credit on the financial viability and business plans of all social landlords in Wales.
Source: Simon Inkson Ltd, The Bedroom Tax Project – Final Report, Welsh Local Government Association
Links: Report | WLGA press release
Notes: Under United Kingdom benefit changes, housing association and council tenants of working age will have their housing benefits cut from April 2013 if they are deemed to have spare bedrooms.
Date: 2012-Nov
A report said that the coalition government's goal to reduce benefits bill was at risk from a soaring housing market. Years of not building enough homes have led to rising rental and house prices, leaving millions of families struggling to pay for their home. The result was an unsustainable housing market that could see millions more families relying on government support to pay their rent in the next few years. Already 417,830 more working people than in 2009 – an 86 per cent increase – relied on housing benefit to help them pay the rising rents on their home, and this figure was increasing by almost 10,000 every month.
Source: Home Truths 2012: The housing market in England, National Housing Federation
Links: Report | NHF press release | Labour Party press release | BBC report | Guardian report | Inside Housing report | Telegraph report | Full Fact blog post
Date: 2012-Oct
A report said that the coalition government's proposed reform of the benefits system would present 'significant challenges' for some social housing tenants and, in some cases, risks to their financial well-being. The risks hinged primarily on the requirement for tenants to move away from patterns of financial management that had evolved to manage the difficulties of living on a very low income. 1 in 3 social housing tenants on benefit were not confident that they could keep up-to-date with rental payments if they received their benefit direct.
Source: Optimising Welfare Reform Outcomes for Social Tenants: Understanding the financial management issues for different tenant groups, National Housing Federation
Links: Report | Inside Housing report
Date: 2012-Oct
The coalition government announced that new funding of £100 million would be made available to local authorities in England to support 'best practice' in localized council tax benefit schemes. The grant would be available for schemes designed so that:
• Those who would be on 100 per cent support under existing council tax benefit arrangements paid between zero and no more than 8.5 per cent of their council tax liability.
• The taper rate did not increase above 25 per cent.
• There was no sharp reduction in support for those entering work – for claimants previously entitled to less than 100 per cent support, the taper would be applied to an amount at least equal to their maximum eligible award.
Source: Written Ministerial Statement 16 October 2012, columns 13-14WS, House of Commons Hansard, TSO
Links: Hansard | CIPFA press release | IFS observation | Public Finance report
Date: 2012-Oct
A study examined the impact of changes to housing benefit and local housing allowance on claimants and landlords in the private rented sector in Northern Ireland. There was relatively low claimant awareness of the changes, with 6 out of 10 saying they knew 'nothing at all' about them. There was widespread concern among landlords about the potential repercussions for their business if housing benefit were to be paid direct to tenants.
Source: Christina Beatty, Ian Cole, Stephen Green, Peter Kemp, Ben Marshall, Ryan Powell, and Ian Wilson, Monitoring the Impact of Recent Measures Affecting Housing Benefit and Local Housing Allowances in the Private Rented Sector in Northern Ireland: Findings from the Stage 1 surveys of landlords and claimants, Northern Ireland Executive
Links: Report | NIE press release
Date: 2012-Oct
An article examined the 'commodification' processes through which 'Right to Buy' housing entered the private rented sector. It estimated the additional annual cost of housing benefit support to this stock at over £1 billion per year. Plans to expand the Right to Buy scheme would simply increase revenue costs in return for no discernable social or housing supply benefit.
Source: Nigel Sprigings and Duncan Smith, 'Unintended consequences: local housing allowance meets the Right to Buy', People, Place & Policy, Volume 6 Issue 2
Links: Article | Inside Housing report
Date: 2012-Aug
A report said that working-age tenants of housing associations and housing co-operatives in Scotland would lose between £123 million and £228 million by 2017 as a result of the coalition government 'reforms' to social security benefits. Tenants would lose around £33.5 million annually in housing benefit alone.
Source: The Impact of Welfare Reform on Housing Associations and Housing Co-operatives in Scotland, Scottish Federation of Housing Associations
Links: Report | SFHA press release
Date: 2012-Aug
Date: 2012-Jun
Researchers examined the initial reactions of private sector tenants and landlords to changes to the local housing allowance (LHA) system that were introduced in April 2011. Just over two-thirds of claimants (and 8 out of 10 new claimants) had a 'shortfall' between their LHA and their rent.
Source: Christina Beatty, Ian Cole, Peter Kemp, Ben Marshall, Ryan Powell, and Ian Wilson, Monitoring the Impact of Changes to the Local Housing Allowance System of Housing Benefit: Summary of early findings, Research Report 798, Department for Work and Pensions
Links: Report | Summary | DWP press release | Guardian report
Notes: From April 2011, local housing allowance (LHA) rates were capped at £250 per week for a one-bedroom property, rising to £400 per week for four bedrooms or more. In addition, from October 2011, local housing allowance rates were set at the 30th percentile of local rents.
Date: 2012-Jun
A think-tank report examined the likely impact on Wales of the coalition government's proposal to devolve responsibility for council tax support from 2013-14, and to cut funding for it by 10 per cent. It considered the options available to the Welsh Government. Any cuts to council tax support were bound to hit lower-income households. More aggressive means-testing could protect those in the greatest poverty, but with the result that some people would be worse off after a pay rise. Reforms that saved the full 10 per cent typically involved reducing support for those entitled to maximum support – those with the lowest incomes.
Source: Stuart Adam and James Browne, Reforming Council Tax Benefit: Options for Wales, Briefing Note 129, Institute for Fiscal Studies
Links: Briefing Note | IFS press release | Welsh Government press release | Plaid Cymru press release | Public Finance report
Date: 2012-Jun
A report said that successive governments have tried to curb the rising cost of housing benefit by adjusting benefit entitlement and imposing additional restrictions on the regime: but these efforts had focused on treating the symptoms rather than the cause. The report called for the long-sighted approach – investing in supply to bring down the housing benefit bill by reducing the cost of housing and lifting households out of the benefit trap.
Source: Kate Webb, Bricks or Benefits? Rebalancing housing investment, Shelter
Date: 2012-May
A paper examined the likely effects of the policy of localizing support for council tax in England from 2013-14 and cutting funding for it by 10 per cent, together with the options available to councils. Although localization had advantages, it would create undesirable incentives for councils as well as desirable ones, and variation across the country would add to the complexity of council tax support.
Source: Stuart Adam and James Browne, Reforming Council Tax Benefit, Commentary C123, Institute for Fiscal Studies
Links: Commentary | Summary | IFS press release | Labour Party press release | Guardian report | Public Finance report
Date: 2012-May
The government began consultation on the proposed funding arrangements for localized council tax benefit schemes. It also published a statement of intent setting out policy for the key regulations to be provided under the Local Government Finance Bill, together with associated impact assessments.
Source: Localising Support for Council Tax: Funding Arrangements Consultation, Department for Communities and Local Government | Localising Support for Council Tax: A Statement of Intent Consultation, Department for Communities and Local Government
Links: Consultation document | Statement of intent | Impact assessment | Equality impact assessment | LGA press release
Date: 2012-May
The Court of Appeal ruled that the size criteria in the housing benefit regulations discriminated against disabled people, because they did not allow for an additional room to be paid for where a disabled person had a carer, or where two children could not share a room because of disability.
Source: Burnip v Birmingham City Council and Secretary of State for Work and Pensions/Trengrove v Walsall Metropolitan Council and Secretary of State for Work and Pensions/Gorry v Wiltshire Council and Secretary of State for work and Pensions, Court of Appeal 15 May 2012
Links: Judgement | CPAG press release | EHRC press release | Inside Housing report
Date: 2012-May
A briefing paper examined cuts in housing benefit introduced or planned by the coalition government. It said that the cuts would adversely affect some of the most disadvantaged groups in society, and were likely to lead to an increase in homelessness. An inner London borough said that it was seeking to 'export' homeless tenants to a housing association in Stoke-on-Trent, 160 miles away in the midlands, because of the effects of the coalition government's housing benefit cuts.
Source: Housing Benefit Cuts, Crisis
Links: Briefing | Newham letter | Shelter press release | Guardian report
Date: 2012-Apr
An article examined issues of equity and efficiency in the housing benefit system in the private rented sector in England. It was unclear whether the existing system enabled housing benefit recipients to consume more housing than was available to otherwise similar households not receiving housing benefit. The rules on eligible property size appeared not to unduly favour housing benefit claimants compared with low-income working households. The latter, however, tended to pay a rent that was less than the maximum amount a housing benefit recipient could receive. This was particularly true for low-income working families with children, who were most likely to be living in properties smaller than allowed by benefit regulations. Second, there was no evidence that the housing benefit system incentivized low-income working households to give up work or otherwise seek to become eligible for housing benefit.
Source: Bruce Walker and Pat Niner, 'Welfare or work? Low-income working households' housing consumption in the private rented sector in England', Housing Studies, Volume 27 Number 3
Links: Abstract
Date: 2012-Apr
A paper examined the scope for, and implications of, devolving United Kingdom-reserved housing benefit to Scotland.
Source: Kenneth Gibb and Mark Stephens, Devolving Housing Benefit: A discussion paper, Chartered Institute of Housing in Scotland/Scottish Federation of Housing Associations
Links: Paper | CIH press release | SFHA press release
Date: 2012-Mar
A report examined the growth in the number of housing benefit claimants in Great Britain in 2010 and 2011. It highlighted the rapid growth in the number of claimants who were in work, and reviewed the factors that could be leading to a change in the financial position of these households.
Source: Ben Pattison, The Growth of In-Work Housing Benefit Claimants: Evidence and policy implications, Building and Social Housing Foundation
Links: Report | Summary | Guardian report
Date: 2012-Mar
A report examined the implications for social housing providers of the coalition government's proposed 'reforms' of housing benefit. It said that unless the £26,000 annual cap were indexed for inflation the affordable rent model – where social landlords could set rents at up to 80 per cent of market rate – would not work for larger homes. Plans to pay housing benefit to tenants rather than landlords would lead to an increase in arrears and larger borrowing costs. Measures designed to clamp down on under-occupation would require the rebuilding of the equivalent of 7.5 per cent of total rented stock as 1-bedroom properties by April 2013.
Source: The Impact of Welfare Reform on Housing, CASE (Consortium of Associations in the South East)
Links: Report | Inside Housing report
Date: 2012-Jan
A study found that more than 800,000 homes were no longer fully covered by local housing allowance for private tenants as a result of cuts imposed by the coalition government with effect from 1 January 2012. Housing benefit claimants faced the 'unenviable choice' of going into debt or cutting back on basic living expenses, and faced the risk of homelessness through inability to pay their rent.
Source: Press release 3 January 2012, Chartered Institute of Housing
Links: CIH press release | BBC report | Guardian report | Inside Housing report
Date: 2012-Jan
A study examined under-occupation within social housing, and the implications of proposed cuts to housing benefit that would affect under-occupiers of working age from April 2013. Middle-aged tenants, parents with children who lived away at college or with their other parent, and disabled people were particularly likely to be affected. Tenants were currently unaware of the reforms, and lacked the information needed to make decisions over options such as downsizing. 37 per cent of tenants surveyed thought that they would be very likely to fall into arrears as a result of the 'reforms'.
Source: Anna Clarke and Peter Williams, Under-Occupation and the New Policy Framework, Cambridge Centre for Housing and Planning Research (University of Cambridge)
Links: Report
Date: 2012-Jan
