Housing benefit cuts ‘to hit councils’

Much of the concern centres around strain on public services, with over half (52%) of councillors fearing that families moving as a result of reductions to housing benefit will put extra pressure on schools, hospitals and advice and support services. Worryingly, 61% believe that their local authority does not have sufficient resources to cope.

Overall, half (49%) of councillors surveyed said they did not support the scale of the Government’s cuts, highlighting the extent of concern at local level about impact of the changes in their area.

Shelter chief executive Campbell Robb said: "Shelter is already seeing an increased demand for our services, and all the evidence shows this will only get worse when these cuts start to bite.

"Now we know that councillors across the country, and from all political parties, are also deeply concerned about the consequences of these changes and how they are going to deal with the fall-out from thousands of local people losing their homes.

"It’s time councils made clear to government the true impact of these changes on their local area so that plans can be put in place to prevent complete chaos from erupting in our communities."

The survey also revealed overwhelming opposition among councillors to the principle of proposals in the Welfare Reform Bill to change the way housing benefit is calculated. The move will up-rate housing benefit in line with the Consumer Price Index (CPI), a national measure of inflation which does not include housing costs, instead of the changing cost of rents.

More than three-quarters (76%) of councillors surveyed said housing benefit should be based on rental costs in their local area and not on a measure of national inflation.

Robb said: "Local councillors know how variable housing costs are and that any effective system of housing support should reflect and respond to the cost of rents in the local area.

"Government needs to listen to its own councillors and rethink further cuts to housing benefit in the Welfare Reform Bill which could lead to even more people losing their homes."

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