Impact of private rent growth on housing benefit expenditure

Document type
Paper
Corporate author(s)
Great Britain. Department for Work and Pensions
Publisher
DWP
Date of publication
1 July 2013
Subject(s)
Poverty Alleviation Welfare Benefits and Financial Inclusion, Housing and Homelessness
Collection
Social welfare
Material type
Reports

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This analysis examines the impact of private sector rent growth on Housing Benefit expenditure. The analysis shows that the average eligible private sector rent for Housing Benefit increased by 45% between 2000/01 and 2010/11. This means that around £3 billion of Housing Benefit expenditure in 2010/11 can be attributed to real private rent growth over the previous ten years. From April 2011, Local Housing Allowance reforms were introduced and are expected to save around £2 billion a year in Housing Benefit expenditure by 2015/16. These reforms restrict eligible rent, causing growth to be below inflation in 2011/12 and 2012/13.

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