Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Help For Housing Costs Is Forcing Up The Uk Benefits Bill, Warns Labour

Recommended Posts

http://www.theguardian.com/society/2014/aug/04/housing-benefit-driving-up-uk-welfare-costs-labour

The growing housing benefit bill, particularly for those in work, is responsible for much of the increase in welfare costs, rather than out of work benefits for the idle poor, Labour will say on Tuesday.

Rachel Reeves, the shadow work and pensions secretary, will say that the number of working people claiming housing benefit is due to double between 2010/11 and 2018/19. Her figures, which are drawn from the House of Commons library, show an increase in working people claiming housing benefit would cost £12.9 bn – or £488 for every British household between 2010/11 and 2018/19.

The bulk of the increase will come in rent subsidies in the private sector and, in part, reflects the number of people in part-time or low-paid work. Housing benefit makes up about 14% of welfare spending, much of which goes into the hands of private landlords.

Labour knows it is unlikely to turn the welfare debate into anything more than a political draw by the time of the election, and will only get that far if it can convince the public that the welfare bill is not only down to the number of unemployed, but is also related to rising housing costs for those in work.

The party argues the increase in the housing benefit bill from the early 1990s is partly because of the rise in the private rented sector after market liberalisation (including the ending of all rent control), while large numbers of local authority-owned properties were transferred to housing associations. These changes both increased the average level of rents subsidised through housing benefit.

They just couldn't bring themselves to say it could they? Most of it ends up in the hands of BTL landlords. It's a marvellous capitalist subsidy that gets recycled back into the banking system.

This also highlights the problem of the deficit, how can that be tackled when rents are going up and the number claiming housing benefit increases. The entire system is unsustainable, although I have no idea where the tipping point is.

Share this post


Link to post
Share on other sites

Labour are making some of the right mood music but they need to commit to dropping 'Help to Buy' and sort out their idiotic tenancy proposals. At least the problems are being highlighted.

If they promised to drop 'Help to Buy', the first thing they'd do would be to introduce an alternative prop.

Blair in 1997 - "Watch my lips, no tax increases" - followed immediately after the election by a hike in National Insurance.

Share this post


Link to post
Share on other sites

If only the Labour party could finally win power for say, what, three terms to finally sort all this out.

Edited by davidg

Share this post


Link to post
Share on other sites

The Labour Party is now trying to persuade the Tories that socialism doesn't work? :lol:

No. They havent joined the dots between throwing increasing amounts of money at a market for which the supply is price inelastic. They dont see that the increasing amounts of free money (and immigration) serve only to fuel demand and thus raise the market price whilst having little impact on supply.

There point is one of class warfare. The working poor are struggling because they arent given more free money (which would drag even more people into the ranks of the working poor).

No joined up thinking, but what do you expect from any political party?

Share this post


Link to post
Share on other sites

No joined up thinking, but what do you expect from any political party?

I disagree, they know perfectly well what they are doing. They are enriching themselves by running up government debt via the benefits bill. Frankly they couldn't give a toss if the poor people get poorer as long as they collect their MP's allowance, expenses, second hole allowance and rental payments form tenants.

MP's couldn't give a toss if it all collapses because the sheeple have to vote for somebody and the MP's are filling their boots. How can they loose?

What is in it for MP's to make housing more affordable and make the poor richer? Nothing and that's why it wont happen.

Share this post


Link to post
Share on other sites

That was a classic legalistic twisting of words that led to everyone just thinking he was a kunt.

How he thought that was okay in his detached lawyer mind, only Tony can tell.

When he said it (and kept saying it) I was screaming at the television "Ask him about National Insurance", but no, none of the interviewers did. What is obvious to us is completely missed by the majority who only hear what they want to hear.

From the first time Blair appeared on the scene it was obvious to me what he was, but he won a landslide victory. I must admit to having been taken in by Cameron though.

Share this post


Link to post
Share on other sites

James O'Brien is discussing this at moment on LBC. Obviously he refuses to accept that it could be due to high housing costs.

Share this post


Link to post
Share on other sites

Housing benefit is simply a symptom of people priced out by high prices.

It was low and actually fell in the first year labour were in power, before snot gobbler decided to hell with no more boom and bust, I want to be known as Bubble Brown.

housing-benefit.gif

So unless labour can categorically say we'll half house prices, its all lies.

Share this post


Link to post
Share on other sites

So it's only taken them about 66 years to cotton on.


http://

www.politics.co.uk/reference/housing-benefit

Background

HB has its roots in the "national assistance scheme" of 1948. Throughout the post-war period, successive governments' approaches to the problem of housing for people on low incomes fluctuated between building more social housing and providing support for rent.

As such, the arrangements grew to be highly complex, and were consolidated for council tenants in 1972 under the National Rent Rebate Scheme, and for private and housing association tenants in 1973 under the parallel Rent Allowance Scheme. Both were introduced at a time when local authority housing finance was being overhauled, with the effect that council rents rose sharply.

The introduction of these arrangements did not stem the growing complexity of the system, and generated a "better-off" problem, where payments differed under each scheme.

The 1948 government being Labour under Clement Attlee.

Apparently it was changed to Housing Benefit in 1982 under the Conservative (Thatcher) wing of the LibLabCon.


HB was introduced under the Social Security and Housing Benefit Act 1982 to replace them. It was not until 1988, however, that HB was in full operation, with the integration of in-work and out-of-work HB systems, by which time it had already begun to be amended.

......

Edited by billybong

Share this post


Link to post
Share on other sites

housing-benefit.gif

Why does that graph start in 1997 and not 1988 (with Housing Benefit)? Be great to see one from 1988 to 2014 if anyone can find one.

It's a bricks or benefits argument for me.

There's a big spike in benefits post 1988 (that graph ignores for some reason), and as you say, as housing costs have soared so too has the benefit bill.

A lack of bricks again certainly contributing to those rises.

I'm particularly uncomfortable as neither party seems to have noticed how the HB bill has quadrupled since all the social housing was sold off and we became an asset inflation obsessed economy.

The Tories obviously can't admit it as they sold the social housing, and Labour (and the current coalition) can't admit it because they were/are so reliant on said asset inflation to massage GDP. Bunch of clowns the lot of em.

Edited by byron78

Share this post


Link to post
Share on other sites

From the guardian link in the OP.


Rachel Reeves highlights how housing payments make up 14% of welfare spending, with more working people claiming benefit.

.....

Rachel Reeves, the shadow work and pensions secretary, will say that the number of working people claiming housing benefit is due to double between 2010/11 and 2018/19. Her figures, which are drawn from the House of Commons library, show an increase in working people claiming housing benefit would cost £12.9 bn – or £488 for every British household between 2010/11 and 2018/19.



According to wikipedia


http://

en.wikipedia.org/wiki/Housing_Benefit


Housing Benefit is a means tested social security benefit in the UK that is intended to help meet housing costs for rented accommodation. It is the single biggest cost for the taxpayer, totalling £23.8billion in 2013-14 - almost 30% of the entire welfare bill.

Which is true - 14% or 30%.

Apparently the total housing benefit bill is something in the region of £24 billion so 16% of that amount is a pretty big discrepancy somewhere along the line.

If it's going to double it's going to cost another £24 billion rather than £12.9 billion.

Edited by billybong

Share this post


Link to post
Share on other sites

Why does that graph start in 1997 and not 1988 (with Housing Benefit)? Be great to see one from 1988 to 2014 if anyone can find one.

It's a bricks or benefits argument for me.

There's a big spike in benefits post 1988 (that graph ignores for some reason), and as you say, as housing costs have soared so too has the benefit bill.

A lack of bricks again certainly contributing to those rises.

I'm particularly uncomfortable as neither party seems to have noticed how the HB bill has quadrupled since all the social housing was sold off and we became an asset inflation obsessed economy.

The Tories obviously can't admit it as they sold the social housing, and Labour (and the current coalition) can't admit it because they were/are so reliant on said asset inflation to massage GDP. Bunch of clowns the lot of em.

Chart porn

Declan Gaffney (@djmgaffneyw4) tweeted at 8:57 pm on Tue, Jul 01, 2014:

Working towards the ideal of a blogpost covering political, social & cultural history & consisting of a single chart.

http://t.co/WpUf1JWCJx

(https://twitter.com/djmgaffneyw4/status/484063209981476864)

Share this post


Link to post
Share on other sites

Chart porn

Declan Gaffney (@djmgaffneyw4) tweeted at 8:57 pm on Tue, Jul 01, 2014:

Working towards the ideal of a blogpost covering political, social & cultural history & consisting of a single chart.

http://t.co/WpUf1JWCJx

(https://twitter.com/djmgaffneyw4/status/484063209981476864)

Bre87C3IgAAmCsh.png

The chart is missing the fastest growing benefit and that's tax credits.

Share this post


Link to post
Share on other sites

Housing benefit is basically a transfer of wealth from one group of middle class people to another- which group you are in depends on how may BTL properties you own.

The obvious solution is to shift away from subsidizing private landlords and to start building houses that the state can then rent out to lower paid families- but this is ideologically impossible for any party so will not happen.

There is something comical about Osborn pumping up house prices on the one hand with his help to buy scheme while on the other complaining that housing costs are pushing up the housing benefit bill- given the fact that house prices and the rents charged by landlords are not entirely unconnected.

Share this post


Link to post
Share on other sites

Bre87C3IgAAmCsh.png

The chart is missing the fastest growing benefit and that's tax credits.

Also missing off anyone over 60 getting Housing Benefit by the looks.

That's a black hole no one dare peer into right there.

Edited by byron78

Share this post


Link to post
Share on other sites

There is something comical about Osborn pumping up house prices on the one hand with his help to buy scheme while on the other complaining that housing costs are pushing up the housing benefit bill

Agree!

Share this post


Link to post
Share on other sites

The Labour Party is now trying to persuade the Tories that socialism doesn't work? :lol:

Agreed, what a joke the Labour party are, they get us into this mess then blame everyone else,

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   206 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.