Housing Benefit Cuts Will Hit Economic Growth, Says OECD

The cuts to housing benefit proposed by the Tory-led coalition government will limit economic growth and cost more than they save, according to a report on housing by the OECD. The thinktank says housing benefit should be maintained to support low paid workers as they search for jobs further afield. Without a guaranteed rent subsidy, low paid workers will be restricted to poorer areas with few jobs and become locked in a cycle of worklessness. OECD economist Dan Andrews said the government was concerned that rising rents had pushed up the cost of housing benefit in recent years, but the answer was to increase the supply of housing and not to limit the level of subsidy. He said housing benefit acted like a voucher that can be used anywhere to obtain housing while workers are on low incomes. Read more on the Guardian website.