Duncan Smith Plans Benefit Overhaul

The new work and pensions secretary is considering radical changes to the way housing benefit is calculated to cut the soaring bill. A source close to Iain Duncan Smith, the former Conservative leader, said he is interested in pursuing the policies devised by his centre-right think tank, the Centre for Social Justice when reforming housing benefit. It has been suggested he could pick up recommendations made by the think-tank such as streamlining the complex benefits system so that there are only two main benefits. These would be a universal work credit and a universal life credit, which would merge housing benefit and disability living allowance. He also hinted that he is keen to create more incentives for people on housing benefit to negotiate lower rents. The most pressing concern for the department is cutting the £17 billion housing benefit bill, which is the second largest for the department next to the state pension. Read the full story on Inside Housing.