Increasing Housing Supply and Reducing the Housing Benefit Bill

During the course of this parliament, 95 per cent of government spending on housing will go through the benefit system, with just 5 per cent invested in new homes. This more than reverses the balance of spending in the late 1970s, contributing to the undersupply of homes and a rising housing benefit bill. Even as the economy recovers, the housing benefit caseload is set to rise, with more working people finding themselves unable to pay their rent without a subsidy. The housing benefit bill is projected to rise in real terms throughout the next five years, reaching a level around £8 billion a year higher in real terms than before the recession. The overwhelming priority for addressing each of these issues is to dramatically increase housing supply so there are more homes to rent and buy overall. Boosting supply is a precondition for addressing the structural growth in housing benefit spending. Read more on the IPPR website.