Where housing benefit really goes
March 4, 2014 2 Comments
A press release from GMB union last week stated: HUGE PAYMENTS FOR HOUSING BENEFIT IN EAST OF ENGLAND SHOWS LANDLORDS ARE THE REAL WINNERS FROM BRITAIN’S WELFARE SYSTEM. Amongst the statistics that accompanied this release were the following, directly relevant to everyone in south Essex:
• Regis Direct Plc – £725,000 from Southend, £24,000 from Rochford. Donated £7,900 to Conservatives in 2008.
• Thorney Bay Park Ltd – £1.45m from Castle Point. Donated £3,000 to conservatives in 2001.
• Horwood, PACE plc – £596,000 from Southend, £12,500 from Rochford
• Martin & Co – Letting Agents, £3.1m from 20 districts nationally. £484,000 from Southend and £19,000 from Rochford
• Hopson Property Management Ltd – £761,000 from Southend
• The Letting Shop – £136,000 from Colchester and £29,000 from Chelmsford
• Northwood – National lettings Agency getting over £2.3m nationally. £251,000 from Milton Keynes, £162,000 from Chelmsford
I oppose the housing benefit cap because, whatever the intentions, its actual consequence is to drive the poor out of expensive areas. The effects of this are being felt in Southend as Londoners seek to escape over-priced and unaffordable accommodation costs.
Tenants do not get housing benefit – it goes straight to landlords. Despite what some of the headlines may imply, no-one on welfare is being made rich by housing benefit. There are those who are coining it in – the landlords. I think there is a problem here, and the solution is not the cap. The solution lies ultimately in the need for affordable housing, which can only be met with a vigorous house-building program.
There are 16,439 private rented households in Southend-on-Sea. 10,282 (62.5%) are in receipt of housing benefits.