Assessing the consequences of welfare reform

The Government’s changes to the welfare system could have profound and far reaching consequences for London. Hard evidence is only now beginning to emerge and the Housing Committee has begun to map the changes welfare reforms are having on housing benefit claimants.

Housing benefit

One in four households in the capital receives housing benefit to cover all, or some, of their rent. The number of claimants has grown in recent years, particularly among households living in the private rented sector, who make up a third of all claimants.

London’s high housing costs and the more recent downward pressure on wages explains the high proportion of London’s households in receipt of housing benefit.

New report

The London Assembly Housing Committee’s report, ‘Assessing the consequences of welfare reforms’ examines the changes welfare reforms are bringing to those who receive state support for their housing needs.

The report assesses available evidence in three key areas:

affordability and access to accommodation, particularly in the private rented sector;

movement of households within and out of London; and

rising homelessness and the increased use of temporary accommodation.

Recommendations

The Committee makes a number of recommendations to the Mayor and others including:

collecting and publishing regular monitoring data on the impact of welfare reforms in London, including household movement within and out of London

ensuring that additional support to London in recognition of its higher housing costs are regularly reviewed and adequate; and

working with boroughs to ensure they are allocating discretionary housing payments in an effective and sustainable way.