Conclusion
230. One of the key features of this inquiry has
been the level of uncertainty around the likely impact of each
of the proposed changes to Housing Benefit and their combined
effect on households. A number of witnesses believed that they
would result in shortfalls between benefits and rents, and that
evictions and increased levels of homelessness would be inevitable,
for some client groups and in some areas. Large families, young
people, older people and disabled people may be particularly affected.
231. Another key concern expressed was the scarcity
of accommodation in the private rental sector which will be affordable
for Local Housing Allowance claimants. The possible increase in
homelessness and the influx of households to cheaper localities
are likely to increase pressure on local authorities. Community
cohesion may also be lost if people are obliged to move away from
their local networks.
232. One of the key determinants of the success of
these reforms will be landlords' willingness to reduce rents.
It is possible that the Government's objective of downward pressure
on rents paid by benefit claimants will be achieved, resulting
in better value for taxpayers. However, the private rental sector
is a market and the behaviour of markets is very difficult to
predict. Moreover, savings in Housing Benefit may be offset to
some extent by increased costs in other parts of the public sector,
particularly increased demands on local authority resources.
233. The Government's increased allocation to Discretionary
Housing Payments, which support local authorities to meet acute
housing needs, is welcome. However, at this stage it is difficult
to assess the extent to which this fund will be sufficient and
effective in mitigating hardship.
234. Many Housing Benefit claimants are amongst the
most vulnerable members of society. Given the level of uncertainty
about how different groups of people and different regions of
the country will be affected by the changes, it is vital that
the Department for Work and Pensions monitors the impact of each
of the proposed changes on each client groups across the different
regions of the country. Appropriate further mitigating measures
should then be swiftly taken to protect people from homelessness
and hardship.
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