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UK Housing Benefit Reforms: A Spatial Analysis of Local Housing Allowance (LHA) Changes on Leeds

UK Housing Benefit Reforms: A Spatial Analysis of Local Housing Allowance (LHA) Changes on Leeds. Stuart Hodkinson, Mark Birkin and Chris Thompson School of Geography (SOG) University of Leeds, UK July 2012. Research Aims and Data. Aims

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UK Housing Benefit Reforms: A Spatial Analysis of Local Housing Allowance (LHA) Changes on Leeds

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  1. UK Housing Benefit Reforms: A Spatial Analysis of Local Housing Allowance (LHA) Changes on Leeds Stuart Hodkinson, Mark Birkin and Chris Thompson School of Geography (SOG) University of Leeds, UK July 2012

  2. Research Aims and Data • Aims • Understand the geographical distribution of Housing Benefit cuts across Leeds to identify ‘who’ is affected, ‘by how much’ and ‘where’ they live; • Explore the possible displacement effects of Housing Benefit cuts • Understand how neighbourhoods may change as a result of Housing Benefit cuts, Welfare Reform and Housing Policy changes • Data • We are using anonymised data provided by Leeds City Council of 66,983 housing benefit claimants (both social and private) that made up the January 2011 caseload in Leeds • In some slides, we are using LCC’s analysis of September 2011 caseload - this will be highlighted

  3. Tenure Profile of HB claimants April 2008 to January 2011

  4. Housing Benefit Rule Changes – we have analysed 1-5, and 8

  5. Impact on LHA ClaimantsDWP data vs. Our data

  6. Leeds: Weekly loss by LHA rate and range These tables show the total number of losers by LHA rate with their average and max losses, and the range of loss in £10 bands

  7. Key geographical stories by Ward and Lowest Super Output Areas (LSOAs)

  8. Geography of LHA claimant count Jan 2011

  9. Total number of HB claimants losing

  10. How much local areas lose (£) per week (LSOA)

  11. Average weekly loss (£) per claimant by LSOA

  12. Total numbers of 25-34 Single affected by LSOA NB: Based on LCC analysis of September LHA caseload

  13. Impact on Wards Average loss per Ward resident based on 2001 census data

  14. Impact on most deprived LSOA areasIMD 2007 deprived

  15. Top 10 losing LSOAs with reference to Index of Multiple Deprivation (2007)

  16. Key demographic stories

  17. Range of weekly average HB* loss by Age / Gender** *Includes impact of LHA reforms 1-3,5 and non-dependant deductions to all HB claimants but exclude under-occupancy rule **Gender of claimant (thus not a full equality impact)

  18. Weekly HB* loss: households with dependent children *Includes impact of LHA reforms 1-3,5 and non-dependant deductions to all HB claimants but exclude under-occupancy rule

  19. Weekly HB* loss: single vs two parent households *Includes impact of LHA reforms 1-3,5 and non-dependant deductions to all HB claimants but exclude under-occupancy rule

  20. Weekly HB* loss: Households with Disabled** People *Includes impact of LHA reforms 1-3,5 and non-dependant deductions to all HB claimants but exclude under-occupancy rule ** This does not include any HB gains from the LHA rate change for disabled claimants to support carer

  21. LHA levels to be up-rated by Consumer Price Index, not rent data • Over the period 1991-2009 rent increases outstripped CPI in every single year with the sole exception of 2009. If this trend continues, the change will mean that the purchasing power of the LHA will gradually be eroded. The effect will be to shrink the 30% of the market that is at least theoretically available to tenants claiming the benefit. In the long term there will come a point at which the cheapest property which is available in a given market area is more expensive than the full LHA rate… In high cost regions (i.e. the greater South of England) accommodation affordable to benefit claimants will become increasingly confined to isolated low cost islands which may become a magnet for benefit claimants in the surrounding areas • Chartered Institute for Housing (2011:10-11)

  22. CIH / Shelter analysis of CPI rate impact on England & Wales by 2023, more than a third (34%) of England’s local authorities (excluding London) to be very unaffordable, rising to 60% by 2030 by 2019, Leeds, Leicester and Cornwall to be first local authority areas outside London to become very unaffordable

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