Watchdog Highlights Dangers of Benefit Reform

The government’s spending watchdog has warned changes to the way housing benefit payments are calculated for tenants in private rented accommodation could lead to a massive shortfall of ‘affordable’ properties. In a report on housing benefit reform (Managing the impact of housing benefit reform) the National Audit Office warns increasing local housing allowance payments in line with the consumer price index rather than local rent inflation ‘may lead to a divergence between local area rents and benefits’. It calculates that if current trends continue 48 per cent of local authorities in England will have twice as many people on LHA seeking two bedroom properties than can be paid for using the benefit by 2017.  Download a copy of the report from the NAO website.

Every New Affordable Home to Cost £17,500 in Increased Housing Benefit

Taxpayers will have to fork out £17,500 in increased housing benefit costs for every new home built under the Government’s Affordable Rent programme, figures highlighted by the National Audit Office (NAO) in a new report reveal.  Despite concluding the launch of the programme to deliver 80,000 by 2015 has been a success, the NAO has concerns that there could be slippage as more than half of the homes – 45,000 – are set to be completed in the final year of the programme.  It also warns that some providers in London have concerns they may not be able to charge rents at the levels they originally agreed.  Download a copy of the report from the NAO website.