Action for now, solutions not yet

The £15 billion energy cost support package announced by Rishi Sunak rightly benefits the poorest households most but it remains to be seen what it will do about the cost of living in general and the cost of housing in particular. 

Under the package announced by the chancellor on Thursday, 8 million households on benefits will get a one-off payment of £650 paid in two lump sums in July and the Autumn. Add that to the £400 energy support payment (rather than a loan) that will go to everyone and the £150 payment already made (at least in theory) to those in Bands A-D for the council tax, and the Treasury says this amounts to £1,200 help towards the cost of living for the most vulnerable.

Background documents confirm the one-off payment will not count towards the benefit cap, unlike the £20 a week uplift to universal credit during the pandemic. That should avoid many more households seeing the help disappear as fast as it arrives.

Sunak had been under pressure to do more on benefits not just because of energy costs but also because of the large gap between the 3.1 per cent uprating of benefits in April (based on last September’s inflation rate) and the current 9 per cent rate of CPI inflation.

He said his one-off payment would be worth more than bringing forward next year’s uprating of benefits, as some had suggested. 

And he also confirmed that the April 2023 uprating will be based on next September’s inflation rate, which could easily be more than 10 per cent, rather than retaining the option of declaring it to be unaffordable.

So far, so good, then and this is probably the package that the chancellor should have delivered in a Spring Statementthat looked inadequate at the time and has seemed even weeker with each passing week. This package looks to be both more generous and more redistributive than many people were expecting.

However, that also reflects the scale of the cost of living crisis. Add the £800 increase in the energy price cap expected in October to the £700 increase already seen in April and that is already more than the chancellor’s £1,200 for the most vulnerable and that is before you get to large increases in the price of food, fuel and other essentials. 

And there was one major cost that was as absent from Sunak’s statement this week as it was from the one he made in March and the Queen’s Speech earlier this month. No prizes for guessing it must be housing. 

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Housing in the Queen’s Speech

Originally written as a column for Inside Housing.

It certainly looks like Her Majesty’s Government is doing something on housing – but is that the limit of the ambitions expressed in the Queen’s Speech?

As ever, background briefing notes provide more detail than the speech delivered this year by the future King.

Two promised headline Bills fulfil commitments to reform private renting and the regulation of social housing but both are long overdue.

A third pointedly does not include plans announced in the 2021 Queen’s Speech to reform the planning system to deliver more homes.

And there are vague promises of further ‘housing reform’ but no specifics or commitments to legislation to back them up.

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The Housing Question

If you follow my blog here, you might be interested in my new newsletter published on Substack.

The Housing Question is a newsletter about housing, but not just housing… politics, social policy, economics, history and anything else that helps makes sense of how we got here.

I’ll still be posting blogs here but mainly as an archive of articles I’ve published elsewhere. The Housing Question will explore issues in more depth, with more of a sideways look and with a bit more context and evolve over time.

You can read the first issue of The Housing Question here and more about the thinking behind it here. If you’d like to subscribe (it’s free for now) go here.


Two symbolic results in the politics of housing

Originally published as a column for Inside Housing.

The overall results may be more mixed but the Conservative loss of its flagship councils Wandsworth and Westminster could hardly be more symbolic in terms of the politics of housing.

Westminster has been Conservative-controlled since its creation in 1964 while Wandsworth has been run by the Tories since 1978.

Both were retained by the party at the height of Mrs Thatcher’s unpopularity in 1990 and throughout the Blair and Brown Labour governments between 1997 and 2010 but not anymore.

Together with Barnet, which also went Labour for the first time, they represent a sea change in politics in London, as former housing minister Lord Barwell noted in a tweet this morning:

That gives some idea of the resonance of the results for the Conservatives, but Wandsworth and Westminster are possibly even more significant in the history of the politics of housing.

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An encore all over again for Right to Buy

Originally written as a column for Inside Housing.

It is the idea that is so superficially attractive that Conservatives cannot help forgetting all the other times it proved to be hopelessly impractical.

In a story helpfully briefed to the Telegraph a few days before the local elections, Boris Johnson is planning to ‘bring back Right to Buy’.

The prime minister has reportedly ordered officials to draw up plans to give the Right to Buy to housing association tenants ‘in a major shake-up inspired by Margaret Thatcher’.

Coming just over a week after levelling up secretary Michael Gove appealed to ‘Thatcher worshipping’ Tories to want more homes for social rent, the timing does not look like a total coincidence.

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