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People in work claiming housing benefit up by 60% (12 May 2014)

Date: 12/05/2014
Duncan Lewis, Legal News Solicitors, People in work claiming housing benefit up by 60%

The number of people with a job claiming housing benefit in the UK has escalated by 60% – despite the government’s cuts to welfare benefits.

Many new housing benefit claimants are working, but high rents have stretched household budgets to the point where even those working are being forced onto state benefits to survive.

Figures compiled by the House of Commons Library for the Labour Party suggest that there are 368,000 more people in work who are claiming housing benefit than in 2010 – a total of 1,036,813 in November 2013, compared with 650,551 in May 2010.

Labour Shadow Work and Pensions Secretary Rachel Reeves MP said that during the course of this Parliament, the increase was likely to cost the taxpayer an additional £4.8 billion.

Rising rents and utility bills have placed even those in work under financial pressure – despite the government announcing an upturn in Britain’s economy. In recent months, even middle class families have been turning to food banks as a result of not being able to afford spiralling rents and high gas and electricity bills.

The Shadow Secretary for Work and Pensions said:

"Since 2010, there has been a 60% increase in the number of working people claiming housing benefit – costing taxpayers a staggering £4.8 billion.

"The huge increase in people who are in work claiming housing benefit is the result of the government's failure to make work pay, tackle the cost-of-living crisis – and build the new homes we need.

Ms Reeves said that, if elected in the 2015 General Election, the Labour Party would tackle the rising cost-of-living by freezing gas and electricity bills.

Ms Reeves added:

“…we'll make work pay by restoring the value of the national minimum wage – and getting more employers to pay a living wage, ensuring more people earn enough to cover the cost of living.”

If Labour is elected in the General Election, the Labour Shadow Home Secretary Yvette Cooper MP has also pledged to tackle a loophole which means many migrants to the UK end up working for less than the minimum wage – which some critics of government policy claim has also pushed down wages for British workers.

The government has already imposed welfare restrictions on new migrants to the UK, including having to wait three months before being able to claim housing benefit and out-of-work benefits such as Jobseeker’s Allowance.

Commenting further on the escalating number of people in employment who are now forced to claim housing benefit, Rachel Reeves said:

"These shocking figures expose the complete failure of David Cameron’s government to control housing benefit spending because more people are struggling to pay their rent. "

Duncan Lewis Housing Solicitors

Duncan Lewis housing solicitors can advise on debt and housing benefit entitlement, as well as Local Authority housing, Landlord & Tenant disputes (rental property), disrepair of rental property and unlawful eviction or mortgage repossession.

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For expert legal advice on housing matters, contact Duncan Lewis housing solicitors on 020 7923 4020.

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