Department for Work and Pensions - responding to change in jobcentres, fifth report of session 2013-14, report, together with formal minutes, oral and written evidence (Paperback)

Housing Benefit helps those on a low income in social or private housing to pay all or part of their rent, and supported some five million households in Great Britain in 2011-12 at a cost of GBP23.4 billion. Reforms aim to reduce annual expenditure by GBP6.2 billion by the end of 2014-15. The changes are being introduced without comprehensive modelling of the likely outcome on individuals or on housing supply and with limited understanding of the costs local authorities will incur. Those individuals who receive Housing Benefit are by definition on low incomes and even small reductions in entitlement can have a significant impact on their finances. The reforms are expected cut benefits for two million households. The impact of these reforms on claimants' finances may be compounded by other changes to the welfare system. The Department cannot model the impacts of the reforms as they depend on the actions claimants take in response to changes in their individual circumstances. Instead the Department plans to adopt a reactive approach, changing rules as problems arise.Claimants need to understand now how their benefit payments will change and what options they have to minimise the impact on their finances, for example, by taking in a lodger. Strong efforts must be made by the Department, local authorities and Social Housing organisations to inform claimants about the reforms; however, to date the evidence suggests that they have not been effective. Aldo, the Department has failed to take into account the administrative costs of implementing the reforms.