Tuesday, 07 February 2012

Housing benefit crucial to combat poverty

Helping low-income families with housing costs has a larger impact on their welfare than any other type of support, according to a study.

What's the benefit logo

The European Commission-funded report says government policy can play a crucial role in weakening the links between poverty and poor housing.

The study, which took place in six European countries with varying welfare systems, says housing outcomes such as affordability, physical and space standards and neighbourhood quality are driven by housing conditions in the country as a whole, reflecting not only general living standards but housing interventions.

The study comes at a time when the UK government is proposing to reduce housing benefit payments, placing a cap on the amounts that can be claimed, and setting rents at a lower rate.

Mark Stephens, professor in urban economics at the University of Glasgow and leader of the study, underlined the importance of housing benefit in the UK.

‘Social security benefits do not make any allowance for housing costs,’ he said. ‘Consequently, the impacts of restrictions are likely to be severe.’

The study also highlights the stronger role housing systems must play in labour market strategies. Many were deemed inflexible, posing problems for people with fluctuating incomes, insecure employment or who need to move to find work.

It found short term changes to the labour market rarely result in homelessness, as long as welfare support is available, but longer term unemployment is more of a problem.

Professor Suzanne Fitzpatrick, until recently director of the Centre for Housing Policy at the University of York, who led the homelessness strand in the project, said: ‘This is especially the case in pressurised regions and where social housing providers are not obliged to prioritise those in greatest need.’

Inside Housing is running a campaign calling for the government to find alternative ways to reduce the housing benefit bill.

Visit our What’s the Benefit? page for more information or sign our petition to support the campaign

Readers' comments (2)

  • Sidney Webb

    If there are any jobs going at the ministery of the bleeding obvious could someone let me know.

    Unsuitable or offensive? Report this comment

  • Melvin Bone

    'Social security benefits do not make any allowance for housing costs,’ he said.’

    Oh yes they do...

    You can get the interest paid on your mortgage and as the HB scheme is actually run on behalf of the DWP by Local Authorities it is effectivley a social Security Benefit. Even DHP payments are financed partially by the DWP. Any one on JSA/IB, ESA/IR or IS is automatically entitled to the maximum amount of LHA.

    LHA is currently a bloated benefit and needs serious trimming of the legislation. Labour failed and failed again to take notice and control LHA when they were in power, I hope the ConDems do a better job.

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