Impact of the changes to Housing Benefit announced in the June 2010 Budget

Written evidence submitted by Tameside Metropolitan Borough Council

As will be seen from the data below the number of JSA claimants in Tameside who had been claiming JSA for over 12 months has risen from 620 in August 2009 to 1305 in June 2010. This represents a rise from 8.8% to 20.9% of the JSA claimant count, and an increase in arithmetic terms of over 100% in less than 12 months. It seems reasonable to assume that this is a function of the fragility of the local employment opportunities rather than a dramatic behavioural change by the Tameside workforce. In this context it is hard to determine the policy objective behind the proposal to reduce the Housing Benefit entitlement of this cohort by 10%. Sanctions already exist for those claimants deemed not to be complying with their Jobseekers agreement. The most likely outcome of this policy is the growth in indebtedness amongst the long term unemployed which will manifest itself in an increase in rent arrears and fuel poverty. This would then likely have a negative impact on the health of this cohort, which could prompt increased attendance at GP surgeries and increased NHS spend. Concern is also felt about the possible impact on re-offending rates of a reduction in income of those who are struggling to enter employment following a period serving a community sentence.

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WORKING-AGE BENEFITS

The Jobseeker's Allowance (JSA) is payable to people under pensionable age who are available for, and actively seeking, work of at least 40 hours a week.

Total JSA claimants (June 2010)

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Source: ONS claimant count with rates and proportions

JSA claimants by age and duration (June 2010)

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Source: ONS claimant count - age and duration

Over 12 months - short time-series
Tameside

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Source: ONS claimant count - age and duration

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6 September 2010