Costs Soar as Wealthy Councils Rehouse Families in B&Bs

The government's clampdown on benefits is forcing up, rather than cutting, the cost of housing low-income families in wealthy areas, as people are shifted into hotels and bed and breakfasts, according to new figures obtained for the Observer. At Westminster council the bill for homelessness has shot up by 63.5% since last year as new temporary accommodation has had to be found for those hit by cuts. The figures show that it has cost Westminster more to place thousands of people in temporary accommodation, including hotels, than the council has saved through the government's welfare clampdown.  The council says it cut "around £40m" from its costs, thanks to the introduction in 2011 of restrictions to housing benefit. However, replies to FOI requests show that it has cost the council £135.83m to rehouse homeless people since 2009.  The council's bill for housing vulnerable families in temporary accommodation this financial year alone is estimated to be £41.8m, compared with £25.5m last year.  Read more on the Observer website.