'Housing Benefit Changes Would Cost Government £120 Million A Year'

Research undertaken by the University of Cambridge to investigate the true impact of cuts, both on households and on the government’s own finances, shows that 134,000 households will either be evicted or forced to move when the cuts come in next year as they will be unable to negotiate cheaper rents. Of these, an estimated 35,000 households will approach their local authorities for housing assistance, and where councils have a legal duty to help they will face costs of up to £120 million a year for providing temporary accommodation such as hostels or bed and breakfasts. The costs would cancel out a fifth of the £600 million the Treasury has said it will save from the cuts in 2012, the first full year they are in force. There will also be additional administrative costs to councils in processing the thousands of homelessness applications they are likely to receive. Read more on the Shelter website.