Housing benefit is costing too much
When, in the early nineties, I was assured that housing benefit ‘would take the strain’ of ever-increasing social housing rents, I thought it would for a while, but not for long. I did not dream that it would be 2010 before a government would realise that the crazy system had become far too expensive.
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Unfortunately, housing benefit has become essential to housing associations which, with the approval of governments, have been empire building, taking on more and more responsibilities which are the remit of other agencies. What little social housing has been built has been largely subsidised by housing benefit and the rents of tenants not eligible to receive it.
Undoubtedly, high social housing rents dependent on high housing benefit discourage many working age tenants from seeking employment but rents would need to be radically reduced for there to be any effect. Ironically, associations are being harassed into borrowing up to the hilt on their bricks and mortar assets to finance development so any meaningful reduction in rents will cause great difficulty.
Inside Housing rather dramatically foresees thousands of dispossessed tenants as a result of housing benefit reduction. That would not happen as tenants would refuse to make up any shortfall, knowing very well that mass eviction would not be possible.
Perhaps a slow, planned reduction in benefit would be the answer.
Roger Harvey, tenant board member, Westlea Housing Association
(writing in a personal capacity)