Tuesday, 21 October 2014

Councils spend £18.5bn on payments in 2010/11

Housing benefit bill rises by £1.3bn

Housing benefit spending by councils rose to £18.5bn between 2009/10 and 2010/11.

The government’s local authority revenue expenditure and financing figures, published at the end of August, showed housing benefit spending grew by £1.3bn in that time.

Housing benefit spending increased by 7.2 per cent, the largest rise of the spending areas measured by the report. Education saw the second-largest growth in spending with a 2.1 per cent rise.

Housing benefit was the third largest area of council spending after education and social care.

The amount spent by councils’ general funds on housing fell by £209m to £2.5bn between 2009/10 and 2010/11, the figures showed.

The fall was the second largest in percentage terms behind highways spending, which fell by 13.3 per cent. But the figures exclude councils’ housing revenue accounts which handle larger sums and deal with spending on and income from their stock.

The general fund pays for services like maintaining a housing register and homelessness services.

Housing services funded by local authorities’ general funds employed 787 people.

Readers' comments (49)

  • Chris

    What a shame investment in housing supply has been put off for so long - instead we waste more and more on non-returnable spending and supporting landlord profits. This is a waste in terms of money and the wasting of peoples' lives trapped in over-priced rentals.

    Unsuitable or offensive? Report this comment

  • Social rents went up by about 7 per cent last time,well above inflation,as they have done every year,for the past decade.
    Then they wonder why the HB bill keeps going up,you just could not make it up. :)

    Unsuitable or offensive? Report this comment

  • Melvin Bone

    Dennis. They went down in 2010 due to the low inplation rate inSpetember 2009.

    Keep up old boy.

    Unsuitable or offensive? Report this comment

  • Chris

    WTF - 'P' and 'F' are almost at opposite ends of the keyboard?

    Unsuitable or offensive? Report this comment

  • That's a good one Melvin,you must mean that select few properties on Fantasy Island?,rents never go down,not in real terms,or in any other way,only up.

    Unsuitable or offensive? Report this comment

  • Joe Halewood

    This report is out of date.

    The latest Single Housing Benefit Extract (SHBE) which are the official figures reveal:

    (a) Spending on HB at May 2010 was £20.8bn
    (b) Spending on HB at May 2011 was £22.24bn

    The May 2011 figures are the latest figures and were released in mid August 2012.

    The link to the latest statistics is here: - http://statistics.dwp.gov.uk/asd/index.php?page=hbctb

    Pehaps the most interesting thing these reveal is the difference between Nov 2009 when they start to May 2011. In this 30-month period the numbers of private sector tenants claiming HB has risen by 50% to 1.5m and these account for 70% or so of the overall increase.

    Why private tenants should account for 70% of the increase is one interesting line of enquiry.

    Yet the other fact they reveal by simple extrapolation is that we pay from the public purse £3.3bn per year extra for private renting over what we pay for the same number of properties if they were council properties. - http://speye.wordpress.com/2011/08/31/housing-benefit-and-the-hypocrisy-of-shapps/

    Unsuitable or offensive? Report this comment

  • Melvin Bone

    No it really happened Dennis. April 2010. Social/Council Housing Rent fell.

    Unsuitable or offensive? Report this comment

  • Melvin Bone

    Chris. Thanks for the spilling cheque. It is not often I make a Miss Steak...

    Unsuitable or offensive? Report this comment

  • Melvin,you know as well as I do that inflation fell,during that time,and tenants were charged,well above what they should have been,for that year,the so called fall,was just to compensate for this.
    If you take an average over two years then rents did indeed rise,and above inflation,just as they have for the past ten years.
    So what I said still holds true.

    Unsuitable or offensive? Report this comment

  • Chris

    You may find this interesting Melvin because whilst what you say is correct in theory (and I'm sure some areas had a zero increase) the calculation for RPI eventually came to -0.9%, so that RPI + 1% was able to be a positive increase. The attached also explains how negative subsidy is reached and treated, as it is expected over future years to be more and more the norm.


    This item also shows how, on the fact of it, you were right to believe in fairies:


    Dennis / Melvin - you are both correct(ish)

    Unsuitable or offensive? Report this comment

View results 10 per page | 20 per page | 50 per page

Have your say

You must sign in to make a comment

sign in register



  • Capital spending on housing falls by 35% in five years


    Capital spending on housing by English councils fell nearly 35 per cent in the five years to 2011/12 while equivalent spending on education rose 48 per cent, new figures show.

  • Employee spree


    The number of staff employed by housing associations is rising, according to Inside Housing analysis of the 100 largest landlords. Jess McCabe, Lydia Stockdale and Gene Robertson report on the surprising results

  • Rainy day savers


    The storm of welfare reform is raging for tenants, so why are councils holding onto money that could help them stay afloat? Pete Apps investigates

  • New registrations rise by 12%


    Registrations for new public sector homes have increased by 12 per cent, driven by steep increases in the north.

  • Goodwill hunting


    Cuts to government funding for homelessness services mean charities are increasingly dependent on the generosity of the public to continue providing services to rising numbers of vulnerable clients. Keith Cooper reports


  • The apprentice


    Faced with thousands of pounds of debt and uncertain job prospects, school leavers are increasingly taking up apprenticeships as an alternative to university. Gwen Smith meets apprentice turned housing officer Jordan McKenna to discover the benefits of learning on the job

  • Freedom to roam


    Brighton Housing Trust is no housing giant - but it’s a massive technological help to its clients. Jess McCabe reports

  • The prefab way


    Hammersmith & Fulham Council is erecting pre-fabricated homes and Brighton has turned to shipping containers, Lydia Stockdale reports

  • Reaching crisis point


    Tenants on the verge of eviction are being helped to remain in their homes by a recently formed social enterprise that is saving their landlords significant sums in the process. Daniel Douglas finds out how

  • Fighting back


    As the private rented sector continues to grow, so does the number of problematic landlords. Michael Pooler finds out how tenants are taking matters into their own hands to fight for better conditions

IH Subscription