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.