Temporary Housing Costs Up By Half In Four Years

Temporary housing costs in London have risen by half in the past four years, figures show. Costs rose from £460m to £690m over the period, freedom of information figures from 31 councils show. One single mum whose son has leukaemia spent the past six years in temporary housing in Essex and has only just been found a property, after the council was contacted by the BBC for comment. The government said boroughs would be getting money to tackle homelessness. Read more on the BBC website.

https://www.bbc.com/news/uk-england-london-44885033

PRS Rent Increases Not Overtaking Wages

The cost of private rented housing has largely followed changes in earnings across England, in stark contrast to the social rented sector where rents have increased faster than wages. The new report from the National Audit Office said that “since 2006, the cost of private rented accommodation has broadly followed changes in earnings across England” whilst “social housing rents have increased faster than earnings since 2001-02.” It does, however note that the exception to this is in London, where rents are rising much faster. Read more on the RLA website.

Care Home Rooms Now Cost More Than £30,000 A Year

The financial pressure on older people and their families when trying to pay for social care is growing, with the average cost of a room in a care home now more than £30,000 a year. The cost of a care home room has risen by 5.2% in the last year, more than 10 times the average increase in pensioners income, according to a report by Prestige Nursing and Care. The figures highlight the financial crisis in the care home industry and the impact this is having on older people and their families. Four Seasons Health Care, Britain’s biggest care home group, reported a pre-tax loss of £264m last year and that it was struggling under the weight of more than £500m of debt. Read more on the Prestige website.

Universal Credit Costs Leap by More Than 20% to £15.8bn

The total lifetime cost of the Universal Credit welfare reform programme has increased by nearly £3bn in the past three years to £15.8bn, according to figures from the government’s Major Projects Authority (MPA). The last time the DWP calculated an official cost estimate for the whole project, in 2012, it was £12.85bn. But the latest annual report from the MPA shows that, as of September 2014 when the report was compiled, the cost is now expected to be more than 20% higher. Since the 2012 estimate, DWP has been forced to tear up its original plans for the troubled programme, writing off millions of pounds in scrapped IT development and revising the timetable for roll-out. That process, labelled as a “reset” in 2014’s MPA report, allowed the revised lifetime costs to remain under wraps until now. Read more on the Computer Weekly website.

Benefits Chaos May Cost Taxpayers £1.25BILLION as Universal Credit Bill Soars

The chaos over bringing in Universal Credit could end up costing taxpayers an extra £1.25billion. The new system is ­gradually being rolled out to merge most working age benefits into one by 2017. But its mastermind Iain Duncan Smith is dithering over how entitlements such as free school meals and cold weather payments will work with UC. The Work and Pensions Secretary must decide whether UC claimants will still be eligible for those benefits too. Shadow work and pensions ­secretary Rachel Reeves said: “The failure to decide how Universal Credit will work threatens to cost ­ £1.25billion.” Read more on the Sunday People website.

Homes in Deprived Areas Costing Landlords £750 More Per Property

Housing associations operating in deprived neighbourhoods face increased costs of around £750 (19%) per property, analysis from the Homes and Communities Agency (HCA) shows.  The figure was published by the HCA in an analysis of factors driving unit costs in registered providers with stock of 1,000 homes or more.  The analysis is designed to help boards and executives demonstrate how they are meeting the new Value for Money standard, part of the new regulatory framework. The HCA believes driving out unnecessary unit costs should be part of a provider’s strategy to achieve this. Last year providers put operating costs per social housing unit at £3,440. However, the HCA says there is “considerable variance” around this figure with two-thirds of landlords reporting operating costs per unit ranging between £1,200 and £6,800.  Download a copy of the research report from the HCA website.