Philip Hammond’s Budget contains some big numbers and ambitious promises on housing but you don’t have to delve very far to find the real priorities.
Contrast, for example, what’s happening with housing, tax and welfare, two different measures that were heavily predicted and one that was desperately needed.
Stamp duty is being cut, but the chancellor has gone further than the expected holiday by abolishing it completely for first-time buyers of homes worth up to £300,000 or the first £300,000 of homes worth up to £500,000. The cut applies from now and will cost £3bn by the end of 2022/23.
Problems with universal credit are being addressed with measures including the scrapping of the seven-day waiting period, making advances easier to get and allowing continued payment of housing benefit for two weeks after a universal credit claim. The total cost is £1.5bn by 2022/23 and there is another delay to the rollout.
The universal credit changes are welcome but will still leave claimants potentially facing destitution and people in work thousands of pounds a year worse off than they would have been under the previous system.
Originally published as a column for Inside Housing on May 20.
Some very big questions on housing, welfare and tax are looming ahead of this Budget.
If there is not the same sense of raised expectations that surrounds the prospects for land and investment, the answers given by Philip Hammond on November 22 will still go a long way to determining what type of housing system we will have going into the 2020s.
I’ve written many times before about the way that the aftermath of the financial crisis in 2008 and the policies adopted under George Osborne since 2010 have combined to create a system in which older and better-off home owners have gained at the expense of younger and poorer renters.
A piece in the Financial Times last week used figures from the Resolution Foundation to quantify just how much: housing costs for households below average incomes rose by £714 between 2007/08 while they fell by £271 for those on above average incomes. The biggest gains went to the richest 10% of households, whose average housing costs fell by £1,206.
And that these figures do not include substantial increases in housing wealth over the same period as house prices have risen.
So what could Hammond do to redress the balance?
Originally posted on May 2 on my blog for Inside Housing.
When not one but two all-party committees of MPs call on ministers to think again about a controversial policy you might think they would listen – but will they?
The Work and Pensions and Communities and Local Government Committees say the government should scrap its plan to impose a Local Housing Allowance (LHA) cap on supported housing and pay top-up funding via local authorities and devolved administrations.
Ministers claim the intention is not to save money but to ensure better value for money and monitoring of the quality of services.
But the MPs conclude that ‘the funding proposals, as they stand, are unlikely to achieve these objectives’ and that LHA is ‘an inappropriate starting point for a new funding mechanism’.
Originally posted on April 6 on my blog for Inside Housing.
What did see when you watched last night’s Panorama on the benefit cap?
Most people reading this here will, I think, have seen the impact of an arbitrary policy that leaves thousands of people with 50p a week towards their rent.
But outside my timeline on Twitter the view was very different. Roughly 95 per cent of tweets with the hashtag #benefitcap were hostile, but to the people featured in the programme rather than the policy.
There is nothing new in this divide of course – exactly the same thing happened with Benefits Street and How to Get a Council House and a Dispatches documentary on the cap last month– but this was an hour on BBC One on primetime.
Part of the problem lay with the way that Panorama framed the issue. This was clear in the first two minutes.