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The benefits cap will not address the affordable housing crisis The benefits cap will not address the affordable housing crisis
(6 months later)
Four boroughs in London including my own, Haringey, have become a testing ground for the next piece in the government's welfare agenda, the benefits cap.Four boroughs in London including my own, Haringey, have become a testing ground for the next piece in the government's welfare agenda, the benefits cap.
The rationale is simple: housing benefit has doubled in a decade. At an annual cost of nearly £23bn, it represents more than 10% of the welfare budget. A rising housing benefit bill should be a concern for all serious political parties. Few would argue that the current system is not in need of an overhaul.The rationale is simple: housing benefit has doubled in a decade. At an annual cost of nearly £23bn, it represents more than 10% of the welfare budget. A rising housing benefit bill should be a concern for all serious political parties. Few would argue that the current system is not in need of an overhaul.
The government says those who rely on benefits should not have incomes above the national median. But things are rarely as simple as suggested by the coalition.The government says those who rely on benefits should not have incomes above the national median. But things are rarely as simple as suggested by the coalition.
Government is making £18bn of social security cuts on the back of a handful of high-profile cases splashed across the tabloids – typically showing large families living in opulent surroundings at taxpayers' expense. These exceptional cases will be dwarfed by the million families losing out.Government is making £18bn of social security cuts on the back of a handful of high-profile cases splashed across the tabloids – typically showing large families living in opulent surroundings at taxpayers' expense. These exceptional cases will be dwarfed by the million families losing out.
As a borough leader, I see all around me the arbitrary nature of who the benefit cap will hit. There are examples of neighbours in identical rented homes on estates in Haringey: one a council property, next door owned by a private landlord who exercised right to buy. The family living in the private property – where rent is three times higher – will be affected by the cap, their neighbours will not.As a borough leader, I see all around me the arbitrary nature of who the benefit cap will hit. There are examples of neighbours in identical rented homes on estates in Haringey: one a council property, next door owned by a private landlord who exercised right to buy. The family living in the private property – where rent is three times higher – will be affected by the cap, their neighbours will not.
Families will be severely disadvantaged, some almost £400 a week worse off. People desperate to stay in their local area will have to downsize, making households overcrowded, or move into poorer quality accommodation. There will undoubtedly be a knock-on effect on other services, and children will be forced to move schools.Families will be severely disadvantaged, some almost £400 a week worse off. People desperate to stay in their local area will have to downsize, making households overcrowded, or move into poorer quality accommodation. There will undoubtedly be a knock-on effect on other services, and children will be forced to move schools.
We will not move anyone out of Haringey during the pilot. The council will cover the initial rent shortfall. However at an annual cost of £7m this will be unsustainable given the many other vital public services already squeezed. When the cap is rolled out nationally, local authorities will face invidious choices about where to house families. We have started to have honest conversations with those affected to help them understand the scale of the changes, and their options.We will not move anyone out of Haringey during the pilot. The council will cover the initial rent shortfall. However at an annual cost of £7m this will be unsustainable given the many other vital public services already squeezed. When the cap is rolled out nationally, local authorities will face invidious choices about where to house families. We have started to have honest conversations with those affected to help them understand the scale of the changes, and their options.
The benefit cap maintains popular support due to the coalition's cynical framing of the debate around pseudo concepts of "fairness". Its cynical narrative has proved effective in skewing the debate, pitching residents against each other and putting opposition parties on the back foot. It is right that we oppose the language of the debate, but that in itself does not provide an alternative. Reducing the cost of housing benefit cannot be an issue that a serious opposition shies away from: indeed, a rising housing benefit bill is far from progressive.The benefit cap maintains popular support due to the coalition's cynical framing of the debate around pseudo concepts of "fairness". Its cynical narrative has proved effective in skewing the debate, pitching residents against each other and putting opposition parties on the back foot. It is right that we oppose the language of the debate, but that in itself does not provide an alternative. Reducing the cost of housing benefit cannot be an issue that a serious opposition shies away from: indeed, a rising housing benefit bill is far from progressive.
Without a doubt, the housing benefit bill must be reduced. But the current situation is the result of a 30-year affordable housing crisis. Rents continue to rise (up 11% in 10 months in Haringey) while the economy flatlines. Add to this the fact that people can't afford to get on the housing ladder, and the result is increased eligibility for housing benefit. The benefit cap fails to take into account the high cost of housing in London. Symptoms have been mistaken for root causes – the root is a lack of affordable housing.Without a doubt, the housing benefit bill must be reduced. But the current situation is the result of a 30-year affordable housing crisis. Rents continue to rise (up 11% in 10 months in Haringey) while the economy flatlines. Add to this the fact that people can't afford to get on the housing ladder, and the result is increased eligibility for housing benefit. The benefit cap fails to take into account the high cost of housing in London. Symptoms have been mistaken for root causes – the root is a lack of affordable housing.
The blind spot at the heart of this debate is the disconnection between the supply of affordable housing and benefits, with each issue too often discussed in isolation. The most recent government data reveals a worrying trend in numbers of new affordable homes being built. Last year saw a fall of 4%, and figures are well short of government targets.The blind spot at the heart of this debate is the disconnection between the supply of affordable housing and benefits, with each issue too often discussed in isolation. The most recent government data reveals a worrying trend in numbers of new affordable homes being built. Last year saw a fall of 4%, and figures are well short of government targets.
Alongside stagnant private house-building, this drives rents up further. Councils are rightly demanding greater freedoms and flexibilities to deliver new housing. This will be part of the solution, alongside a recovery in private developments.Alongside stagnant private house-building, this drives rents up further. Councils are rightly demanding greater freedoms and flexibilities to deliver new housing. This will be part of the solution, alongside a recovery in private developments.
Local authorities have to act together to tackle the problem, but the solution requires the broader support of a government that identifies and fully understands the root causes of a high housing benefit.Local authorities have to act together to tackle the problem, but the solution requires the broader support of a government that identifies and fully understands the root causes of a high housing benefit.
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