Friday, 31 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    This report is out of date.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.

    http://www.communities.gov.uk/documents/housing/pdf/1455317.pdf

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

    http://www.communities.gov.uk/documents/housing/pdf/1454583.pdf

    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

Related

Articles

  • Wales housing bill becomes law

    18 September 2014

    The first significant piece of housing legislation for Wales created through devolved powers has now become law.

  • EXCLUSIVE: Housing chief executives' pay rises above inflation

    18 September 2014

    Chief executives of the biggest housing associations in the UK received an inflation-busting 3.85% pay rise on average in the 2013-14 financial year, Inside Housing can reveal.

  • Housing benefit error rises by 9%

    10 September 2014

    Housing benefit overpayment in Britain due to error has increased by 9% compared to last year, official figures have shown.

  • Homelessness prevention by councils rises

    24 July 2014

    The number of households councils prevented from becoming homeless increased by 15% last year compared to the previous 12 months, official statistics reveal.

  • Housing Bill passed in Wales

    9 July 2014

    Wales’ first piece of major housing legislation has been passed by the Welsh Assembly by a majority of 41 for and 12 against.

Resources

  • Job interviews in housing: outside the box

    20 August 2014

    Some social landlords believe a traditional interview is not the way to find the best candidate for the job. Simon Brandon reports on how Bromford Group is using role-playing games to get to know prospective employees

  • Housing lessons to learn

    07/02/2014

    With a week left to enter the Into Africa competition, Erick Kabendera reports from Dar es Salaam on the rise of affordable housing

IH Subscription