New record set - Housing benefit highest amount ever paid out!

http://www.insidehousing.co.uk/news/housing-benefit-bill-rises-by-%C2%A313bn/6517592.article

Housing benefit spending by councils rose to £18.5bn between 2009/10 and 2010/11.

 

The government’s local authority revenue expenditure and financing figures, published at the end of August, showed housing benefit spending grew by £1.3bn in that time.

 

Housing benefit spending increased by 7.2 per cent, the largest rise of the spending areas measured by the report. Education saw the second-largest growth in spending with a 2.1 per cent rise.

 

Housing benefit was the third largest area of council spending after education and social care.

 

The amount spent by councils’ general funds on housing fell by £209m to £2.5bn between 2009/10 and 2010/11, the figures showed.

 

The fall was the second largest in percentage terms behind highways spending, which fell by 13.3 per cent. But the figures exclude councils’ housing revenue accounts which handle larger sums and deal with spending on and income from their stock.

 

The general fund pays for services like maintaining a housing register and homelessness services.

 

Housing services funded by local authorities’ general funds employed 787 people.

And you can expect that bill to increase!

Oh yes indeedy!

This year social housing rents have risen above RPI yet again, and with inflation being high, social rents (and thus housing benefit) are up/going up another 7% or so.

This will force rents in the private sector up and will be welcome news to private landlords, especially when you consider the lack of properties available in the social sector.

Meanwhile, tenants will be hard pressed to find the money as they are faced by rising food costs, rising utility costs, increased taxes and frozen/falling wages. This is bad news for productive business and services as these people have less to spend in the economy.

come on peeps we can beat this next year!!!

Its a question of supply and demand,a shortage of housing increases rents,only way to sort this out is to stop mass immigration and begin a major house building programme.

Obviously the figure is higher than previous figures in absolute terms, simply because of inflation! The real terms figure would be a much more useful metric.

Obviously the figure is higher than previous figures in absolute terms, simply because of inflation! The real terms figure would be a much more useful metric.

Rents have risen above inflation...

Much more than wage inflation.

Rents should rise with wage inflation, or below wage inflation in a healthy society.

Average net weekly wage per person £332 per week

http://www.sheffield.gov.uk/your-city-council/sheffield-facts-figures/sheffield-economy/income--wealth

Average weekly private rental cost for one bedroomed house £117 per week or £94.61 per week for a studio flat.

http://www.findaproperty.com/areadetails.aspx?edid=00&salerent=1&areaid=7071

Its hardly unaffordable is it if you and/or your partner have a job.

If you dont then the housing bens and/or the council will sort you out with something on their books. Sure, it wont be in the area you want or the same standards but tough. You not paying for it after all.