Home Labour Blame Low Wages For Soaring Housing Benefit Bill

Labour Blame Low Wages For Soaring Housing Benefit Bill

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The Housing Benefit bill is set to spiral out of control due to low wages and rising rents, official figures suggest.

Between 2010/11 to 2018/19 the amount spent on helping struggling households to keep roofs over their heads is set to rocket to a staggering £12.9 billion, or £488 for every household in the UK.

Labour’s Shadow Work and Pensions Secretary will blame the soaring Housing Benefit bill on the tory-led coalition government for failing to tackle the scandal of low wages and poor working conditions.

The figures obtained from the Commons Library also show that Housing Benefit paid to people in work is set to more than double, from £2.4 billion in 2010/11 to £5.5 billion in 2018/19.

Stagnate wages will also have a knock on effect on how much is spent supporting low-income households with tax credits. Currently the UK spends £21.2 billion on tax credits, but this is forecast to rise to £23.7 billion by 2018/19.

Speaking in Pudsey, West Yorkshire, Rachel Reeves is expected to say:

“The number of working people claiming housing benefit is set to double because the Tory Government has failed to tackle low pay, insecure work and the cost-of-living crisis.

“Labour will raise the minimum wage, introduce living wage contracts and get 200,000 homes built a year by 2020 to tackle the bill and ensure working people can make ends meet.”

She will also say that Labour may withdraw its support for Iain Duncan Smith’s flagship Universal Credit scheme, unless “urgent action” is immediately taken to prevent “more money being wasted” on the crisis hit programme.

Ms Reeves will say: “Today I want to make a direct appeal to David Cameron and Iain Duncan Smith.

“Labour wants Universal Credit to work. But we won’t accept more taxpayers’ money being wasted. It is in crisis and needs urgent action.”

Earlier this year, Welfare Reform Minister Lord Freud described the write-off of a failed £40 million IT system for Universal Credit as “deeply regrettable”.

He insisted that the programme would be delivered on time and within its £2.5 billion budget and that the scheme would benefit taxpayers to the tune of £35 billion.

Minister for Disabled People, Mark Harper MP, told the Daily Mirror that the government had “inherited an out-of-control housing benefit system from Labour”.

He added that the government were working to “build a welfare system that provides a safety net for those in need, while rewarding the willingness to work”.

 

source

 : Daily MirrorThe Guardian

Other sources may also be available and could be added at a later date.

 

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2 COMMENTS

  1. i hope the people involved in this realize that it is not the tenants that are causing the problem but the landlords,and the added problems that tenants have is that they end up having to pay for repairs to their homes etc, because the landlords cannot be arsed, but the tenants cannot complain because if they do they loose their home…. as for the comment karen passmore made that employers should be taxed at twice the cost of benefits payable for their employees. if you do that you will find a hell of a lot more people on the dole as businesses cut their employees to the bone because they cannot afford to pay for these added taxes. so you would in fact make things 100 times worse.

  2. Employers should be taxed at twice the cost of any benefits payable for their employees as this would then put an end to poverty wages and force the living wage to be paid to all. It is a national disgrace that companies can avoid paying realistic wages and expect the state to pick up the shortfall by paying housing benefit or tax credits

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