The government will spend more money than it saves by cutting housing benefit for social tenants who underoccupy their homes, Labour’s housing benefit spokesperson has warned. Karen Buck told a committee of MPs working on the Welfare Reform Bill that the cut, which is intended to encourage social tenants to leave houses that are too large for their needs, could lead to a rise in homelessness. She also said that as there are not enough smaller housing association and council properties to move the tenants into, demand would rise for housing benefit to cover more expensive private sector rents. Read more on Inside Housing.
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