Planned housing benefit cuts 'will hinder the UK's economy'

Posted: 08 Sep 2010 09:50:47 GMT

Proposed cuts in housing benefits are a "recipe for destitution", one organisation has warned.

The British Property Federation said the changes will affect around 800,000 claimants and will also "hinder" the UK's economic recovery.

Director of policy at the organization Ian Fletcher noted reform is needed, but "piecemeal" changes to Local Housing Allowance will worsen a flawed situation.

"For the victims of the recent recession and working claimants, the last thing they need is to move away from their local jobs market as a result of the cuts to their housing benefit entitlement," he added.

Mr Fletcher observed the planned amendments may not encourage individuals to go back to work and could even have the opposite effect.

Last week, head of communications at the Home Builder's Federation Steve Turner remarked government officials need to treat the UK's housing shortage seriously.

He explained there are massive economic and social implications attached to not building more domiciles.
 

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