Benefits reform is going to get messy

A report by London Councils – which represents the joint interests of the London boroughs – predicts some serious fallout from the government’s proposed benefit cap. From 2013 total benefits for those out of work will be capped at £350pw for single people, and £500pw for households. The report predicts that when this happens, London’s high rents may force some families, especially those with more children, to leave their homes.

“The extent of migration, from more expensive to more affordable areas in London cannot be predicted but the extent and degree of impact on housing affordability could mean that significant movement results.”

The repercussions could be toxic. The whole point of the reforms is to incentivise employment and set a reasonable limit to the state’s support for the unemployed. These are good aims to have, and no amount of tribal Tory bashing will persuade me otherwise. But if thousands, or hundreds of thousands of unemployed Londoners are forced to leave their homes, take their children out of school, and descend all at once on the outer boroughs because the economy is flatlining and they can’t get a job…well, that’s very hard on a lot of people, and very destabilising to the city as a whole.

This one needs watching.

London Councils – Does the cap fit? An Analysis of the Impact of Welfare Reform in London (pdf)
Dave Hill – How housing benefit caps and rising rents will squeeze London’s low paid