26 January 2011
Housing professionals have welcomed the government’s commitment to an independent review of the Housing Benefit cuts.
Welfare minister Lord Freud yesterday told the House of Lords he was commissioning a ‘comprehensive and thorough’ external evaluation of the impact of the proposed Housing Benefit caps. He was responding to a motion tabled by cross-bench peer Lord Best, which raised concerns about the effect of the caps on children, homelessness and local authority resources.
‘I am very happy to agree to his proposal for an independent review. I make a firm commitment to the House that we intend to commission independent, external research to help us evaluate the impact of the reforms,’ Freud said.
Responding to the announcement, Sarah Webb, chief executive of the Chartered Institute of Housing, said: ‘The promise of a review demonstrates that the government has listened to some of the concerns voiced by professionals around the impact of Housing Benefit reforms on low-income households.’
The CIH’s analysis of the proposals has shown that Housing Benefit claimants face an increased risk of evictions, homelessness and being priced out of the private-rented sector.
The British Property Federation also welcomed the review. Policy director Ian Fletcher urged the government to hold off on further reforms until the impact of those already planned were understood.
‘By admitting that a review is needed, it would now be a gamble to proceed with further reforms until the findings of the review are clear. By accepting Lord Best’s motion, the government is admitting it does not really know the likely impact of cutting Housing Benefits and should proceed carefully therefore,’ he said.
Freud said initial findings would be made available in spring 2012, with an interim report to follow in the summer. The review will take into account the impact of the caps in both Greater London and rural communities as well as their effect on ethnic minority households, large families, older people and disabled people.
The Housing Benefit caps were announced in last June’s Emergency Budget. They will restrict local housing allowance levels to £250 for a one-bedroom property; £290 a week for a two-bedroom property; £340 a week for a three-bedroom property; and £400 a week for a four-bedroom property or larger.
