Frustration at the lack of progress on the housing Green Paper has prompted an influential committee of MPs to conduct its own inquiry into housing benefit reform
The social security select committee has announced that amongst other things, its inquiry will look at "the lack of incentive to economise on rents."

Almost two years ago the committee warned that government welfare changes would fail unless housing benefit was "central" to the project. Despite the warning the government has repeatedly shied away from the issue. Housing benefit reform was dodged in the comprehensive spending review, removed from the welfare reform proposals, and put off, until at least the next Parliament, by the announcement of the Green Paper.

The delay in the publication of the Green Paper has underlined the problems that housing benefit reform is posing to ministers. The delay has also annoyed the social security committee.

In a statement on the new inquiry, the committee notes that the Green Paper was "due to be published 'in due course'". It adds: Since the consultative document is still awaited, the committee has decided to start the inquiry now."

National Housing Federation director of policy Liz Potter said: "This is a clear signal that the committee is disappointed with the lack of progress on long-term reform of housing benefit."

The committee lists seven areas that the inquiry will cover:

  • Work disincentives
  • The lack of incentive to economise on rents
  • Restrictions on rents met by benefit, causing hardship and homelessness
  • Poor administration by councils, due largely to complexity
  • Fraud
  • Regional differentiations
  • The financing of housing benefit

A background note on the inquiry also appears to perpetuate the myth that housing benefit is spiralling out of control, by pointing out that "expenditure has doubled over the last decade." It does not say that the cost has now stopped rising.

Housing benefit expert Steve Wilcox said the committee should consider recommending a £20 flat rate housing top-up to the working families tax credit, which he said would take more families off housing benefit.

Source

Housing Today