In a blog for Inside Housing, Jules Birch summarises the latest housing benefit statistics which were published yesterday. This section in particular caught my eye:
The number of households who are in employment and receiving housing benefit increased from 650,551 in May 2010 to 1,058,569 in May 2014, an increase of 63 per cent. The housing benefit bill for people in employment has risen from £2.9 billion (14 per cent of the total) to £5.1 billion (21 per cent).
The total number of working claims continues to rise (and will carry on rising, according to the Office for Budget Responsibility) even as the number of claims from unemployed people slowly falls. This is consistent with yesterday’s figures showing rising numbers of people in employment and falling unemployment but it also shows the impact of stagnant and even falling earnings on the housing benefit bill. Despite all the government rhetoric about hardworking families and benefit dependency, the stats show the true cost of the boom in low-paid work or (as Joe Halewood points out) the true cost of the subsidy to low-paying employers.
It’s quite staggering that since the election in 2010, an additional 400,000 households can no longer afford to pay the full cost of housing despite being in work. What recovery?