Nothing new…
Today's benefits cap impact assessment only highlights what those of us in the housing sector already knew – that the perceived short-term savings are likely to be overshadowed by a set of complex problems in the longer-term, says Brian Johnson, chief executive of housing association, Moat.
The impact assessment shows that more families will be affected than expected, with most in London and the South East where Housing Benefit payments are highest. Larger families, (with three or more children) will be disproportionately affected.
In principle, of course we understand the need for welfare reform. The true aim of the system should always be to help people back to work and stability; there is no argument that in order to achieve this, aspects of the system require modification. It is also reasonable to seek to contain public expenditure under the current economic climate. The challenge for the housing sector is how best to manage these choices in a way that does not worsen existing problems.
In the context of the benefits cap, this means crafting a solution that gives people the help they need when they need it. A smart system would recognise different levels of need, not only taking earnings into account, but also other factors such as family size and geographical location. It is also essential that it accounts for increases in inflation. A system that cuts out at the same average level for everyone – regardless of composition or circumstance – can neither be regarded as fair or efficient.
Next week we'll launch a paper, together with several other leading housing associations in the South East, that finds a direct link between proposed reforms – including the benefits cap – and a reduction in future build capacity. The danger is that as the Department for Communities and Local Government embarks on a programme to increase housing supply, the Department for Work and Pensions is preparing to implement policies that are certain to do the opposite.
