Workers claiming Housing Benefit nearly doubles in 3 years

Graham_Devon

Workers are increasingly depending on benefits to pay their rent, the body which represents English housing associations has warned.

The National Housing Federation says a failure to build homes has led to an 86% rise in UK workers claiming housing benefit from May 2009-May 2012 because of soaring rents and house prices.

It has called for a solution for the "millions of families" affected.

The government said it would "pull out all the stops to get Britain building".

The NHF cites Department for Work and Pensions figures that show 903,440 people in work claimed housing benefit in May 2012 compared with 485,610 three years earlier.

This really isn't good news. Things might seem rosy with the housing market on first glance, but behind the figures, nearly 10,000 extra working people per month have been claiming housing benefits, as the cost of living increases.

It's led to more pressure for houses to be built.

Surely the government must be feeling the need also? This isn't good for the the taxpayer to be shelling out to an extra 10k workers every single month. At what point does hoousing costs officially become a problem...if these numbers in the background are not doing it?

And is it just me, or has Univeral Credit been pushed back again?

http://www.bbc.co.uk/news/business-20023113

Pimperne1

Graham_Devon wrote: »

This really isn't good news. Things might seem rosy with the housing market on first glance, but behind the figures, nearly 10,000 extra working people per month have been claiming housing benefits, as the cost of living increases.

It's led to more pressure for houses to be built.

Surely the government must be feeling the need also? This isn't good for the the taxpayer to be shelling out to an extra 10k workers every single month. At what point does hoousing costs officially become a problem...if these numbers in the background are not doing it?

And is it just me, or has Univeral Credit been pushed back again?

http://www.bbc.co.uk/news/business-20023113

And it said that, while 390,000 new families were formed in 2011, only 111,250
new homes were built.

In other words, of the nearly 1m new families created in excess of new houses built in the last three years only about a third have been workers who needed to apply for housing benefit?

Wookster

This is a damning verdict over housing policy over the last 25 years and if this not the alarm to galvanise government into a mass house building plan, not the tiny 70,000 that they are referring to then there is truly no hope.

Graham_Devon

Pimperne1 wrote: »

In other words, of the nearly 1m new families created in excess of new houses built in the last three years only about a third have been workers who needed to apply for housing benefit?

Are you trying to water this down?

If you are, as it looks, then I'd just point out to you that not all of the newly created families will be working families (as it seems you believe), therefore this makes the numbers even more damning.

Loughton_Monkey

Isn't building more houses somewhat a red herring?

Surely it's the rules under which HB is paid that seem too generous. We either pay it, as now, to people who rent privately, or pay it in subsidies to supply 'cheap' housing. Either way the taxpayer seems to be supplying free housing to virtually all non working families on 'benefits' (obviously) but now a massively increasing proportion of working families.

ILW

Rent controls could solve the problem overnight.

wotsthat

I wonder if some of the newly created families are looking to the world of work as a response to increases in the cost of living. The report itself is jam packed with data but seems to focus on claimant count rather than the amount they are claiming. I don't buy into the static system that increased costs of living automatically has to mean an increase in benefits as if people are powerless to do something to help their own situation.

Other than that what's to be expected? Increased family formation without a corresponding increase in the housing stock is going to make accommodation an increasingly valuable commodity. Planning constraints, lack of mortgage lending and a recession will ensure this situation continues.

wotsthat

ILW wrote: »

Rent controls could solve the problem overnight.

How would that work?

the_flying_pig

Loughton_Monkey wrote: »

Isn't building more houses somewhat a red herring?

Surely it's the rules under which HB is paid that seem too generous. We either pay it, as now, to people who rent privately, or pay it in subsidies to supply 'cheap' housing. Either way the taxpayer seems to be supplying free housing to virtually all non working families on 'benefits' (obviously) but now a massively increasing proportion of working families.

well, it's both.

10k new working claimants per month on top of a huge existing stock of claimants fairly clearly shows that HB is itself a big component of the high 'demand' for rented accommodation, that with tighter HB rules there'd be less upward pressure on prices.

but more houses would help too.

Graham_Devon

wotsthat wrote: »

I wonder if some of the newly created families are looking to the world of work as a response to increases in the cost of living. The report itself is jam packed with data but seems to focus on claimant count rather than the amount they are claiming. I don't buy into the static system that increased costs of living automatically has to mean an increase in benefits as if people are powerless to do something to help their own situation.

It's widely known, that while all the hurrah happens over employment figures, more and more people are being left with no option but to work part time.

This makes the job figures look fantastic. However, it doesn't help people pay their rent.

This was something that was focused on in an interview earlier.

It's NOT all about rental prices. Obviously rental prices are insane and urgently need looking at (plenty of ways to reduce rental prices, such as building more). The whole thing needs looking at, and celebrating job figures each month while ignoring how they are made up isn't doing the country any favours.

Seems to me we are continually sleepwalking into the next disaster, continually trapped with amindset that we can't upset the short term figures at any cost, while ignoring the long term costs.

Trouble with continually propping up housing costs, is that, as these figures clearly show, it traps more and more as each month passes, and does absolutely nothing to even attempt to resolve the growing problem.

ILW

wotsthat wrote: »

How would that work?

Landlord registration required. Yearly limits set on rent increases (above or below inflation).