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| London housing crisis: soaring benefit claimant numbers indicate displacement from centre | London housing crisis: soaring benefit claimant numbers indicate displacement from centre |
| (about 9 hours later) | |
| The number of housing benefit claimants renting privately in Outer London increased dramatically in the 20 months after the government introduced changes to the system beginning in April 2011, while the capital's two most expensive central boroughs saw huge falls during the same period, according to new data published by the Department for Work and Pensions. | The number of housing benefit claimants renting privately in Outer London increased dramatically in the 20 months after the government introduced changes to the system beginning in April 2011, while the capital's two most expensive central boroughs saw huge falls during the same period, according to new data published by the Department for Work and Pensions. |
| The figures, showing the situation towards the end of last year, may indicate that the long-predicted "displacement effect" of capping and cutting local housing allowance - the form of housing benefit paid to tenants housed by private landlords - has been occurring, with households being obliged to relocate from the heart of the capital to its cheaper suburbs. | The figures, showing the situation towards the end of last year, may indicate that the long-predicted "displacement effect" of capping and cutting local housing allowance - the form of housing benefit paid to tenants housed by private landlords - has been occurring, with households being obliged to relocate from the heart of the capital to its cheaper suburbs. |
| The overall number of claimants in Greater London as a whole has gone up sharply in the period concerned, reflecting the very a high rate of rent increases in the capital compared with incomes. | The overall number of claimants in Greater London as a whole has gone up sharply in the period concerned, reflecting the very a high rate of rent increases in the capital compared with incomes. |
| Figures released by the government last autumn (and brought to my attention by Westminster North MP Karen Buck), showed large increases in the numbers of households where people have jobs becoming eligible for the in-work benefit, especially in Outer London. Private sector rents in the capital have rocketed by one third in the past three years. | Figures released by the government last autumn (and brought to my attention by Westminster North MP Karen Buck), showed large increases in the numbers of households where people have jobs becoming eligible for the in-work benefit, especially in Outer London. Private sector rents in the capital have rocketed by one third in the past three years. |
| The new DWP statistics, brought to public attention by Green Party London Assembly member Darren Johnson, show that those two most expensive boroughs, Westminster and Kensington and Chelsea, experienced falls of 20% and 21% respectively in their LHA claimant numbers between March 2011, the month before the first of the government's changes, and November 2012, while suburban Barnet saw an increase of 45% and East End Newham one of 41%. Outer boroughs as varied as Kingston, Enfield and Barking and Dagenham saw rises of between 25% and 29%. | The new DWP statistics, brought to public attention by Green Party London Assembly member Darren Johnson, show that those two most expensive boroughs, Westminster and Kensington and Chelsea, experienced falls of 20% and 21% respectively in their LHA claimant numbers between March 2011, the month before the first of the government's changes, and November 2012, while suburban Barnet saw an increase of 45% and East End Newham one of 41%. Outer boroughs as varied as Kingston, Enfield and Barking and Dagenham saw rises of between 25% and 29%. |
| In numerical terms, Westminster's fall in claimant numbers was 1290 - down from 6,510 in March 2011 to 5,220 in November 2012. In Kensington and Chelsea the number fell by 590, down from 2,760 to 2,170. The next largest drop in both numerical and percentage terms was in Islington (down by 4%, or by 120, from 3,190 to 3070). | In numerical terms, Westminster's fall in claimant numbers was 1290 - down from 6,510 in March 2011 to 5,220 in November 2012. In Kensington and Chelsea the number fell by 590, down from 2,760 to 2,170. The next largest drop in both numerical and percentage terms was in Islington (down by 4%, or by 120, from 3,190 to 3070). |
| There was was also a 1% fall in Camden where the number of claimants dropped by 50 from 3390 to 3340. The figures were up everywhere else. Barnet's went up by 3,840 to 12,320, Enfield's by 3,580 to 15,910 and Newham's by 3,370 to 11,510. The next biggest hikes were in Brent, Croydon, Haringey and Ealing, all by more than 2,000. | There was was also a 1% fall in Camden where the number of claimants dropped by 50 from 3390 to 3340. The figures were up everywhere else. Barnet's went up by 3,840 to 12,320, Enfield's by 3,580 to 15,910 and Newham's by 3,370 to 11,510. The next biggest hikes were in Brent, Croydon, Haringey and Ealing, all by more than 2,000. |
| The overall claimant figure change for London was a rise of 17%, or 32,910 - up from 197,140 in March 2011 to 230,050 by November 2012. That's a pretty big chunk of the roughly 3.5m households the capital contains. And these figures undoubtedly illustrate just the start of the displacement effect. As Randeep Ramesh reported last week, Camden is planning to move over 700 households out of London altogether as a result of the forthcoming cap encompassing all benefit payments, with other boroughs too anticipating huge numbers of residents having to leave. | The overall claimant figure change for London was a rise of 17%, or 32,910 - up from 197,140 in March 2011 to 230,050 by November 2012. That's a pretty big chunk of the roughly 3.5m households the capital contains. And these figures undoubtedly illustrate just the start of the displacement effect. As Randeep Ramesh reported last week, Camden is planning to move over 700 households out of London altogether as a result of the forthcoming cap encompassing all benefit payments, with other boroughs too anticipating huge numbers of residents having to leave. |
| Darren Johnson correctly points out that London Mayor Boris Johnson has always supported these benefit changes, something the mayor himself was at pains to confirm in the wake of his widely misunderstood remark about "Kosovo-style social cleansing" on a radio programme. He lobbied successfully for measures and resources to spread out the impact of the LHA reforms, but not to prevent it occurring. | Darren Johnson correctly points out that London Mayor Boris Johnson has always supported these benefit changes, something the mayor himself was at pains to confirm in the wake of his widely misunderstood remark about "Kosovo-style social cleansing" on a radio programme. He lobbied successfully for measures and resources to spread out the impact of the LHA reforms, but not to prevent it occurring. |
| Now it seems to be hitting home, and Darren Johnson is calling on the mayor to "take a long hard look" at the new figures and lobby the government to "ensure that people on low wages and seeking work can still afford to live in all parts of London, otherwise we will become a segregated city like Paris." | Now it seems to be hitting home, and Darren Johnson is calling on the mayor to "take a long hard look" at the new figures and lobby the government to "ensure that people on low wages and seeking work can still afford to live in all parts of London, otherwise we will become a segregated city like Paris." |
| Its a demand that opens up a whole load of questions about housing policy, the social and economic costs of displacement compared with those of preventing it, and the sort of city London ought to be. Those are for another day - very many other days, if they are to be addressed properly. But two things seems certain: one, London's poorest have been chosen as victims of a government policy that London's mayor has no desire to oppose; two, London's crisis of housing affordability continues to deepen. | Its a demand that opens up a whole load of questions about housing policy, the social and economic costs of displacement compared with those of preventing it, and the sort of city London ought to be. Those are for another day - very many other days, if they are to be addressed properly. But two things seems certain: one, London's poorest have been chosen as victims of a government policy that London's mayor has no desire to oppose; two, London's crisis of housing affordability continues to deepen. |
| Update, 22:05: Lively twitter debate between London Assembly Greens and statistician Declan Gaffney about the meaning of the data here. The Financial Times too has looked at the stats. Its report contains the government's familiar "fairness" argument. |