Newly published figures show that the Department for Work and Pensions' target of cutting over-payments in housing benefit by 20% against 2002/03 levels by 2005/06 have failed. Over-payments increased by 13% in that period, with an estimated £770 million in housing benefit overpaid in the year ending March 2006. The report also highlights the possibility of this estimate increasing - possibly to as high as £940 million.
Mistakes by claimants is a major contributing factor in housing benefit over-payments, with the Government launching an action plan to tackle that specific issue. New changes in procedures will see an increase in cross-referencing between benefit records. Also, local authorities will have more powers to tackle fraud in their own strategies.
Confirmation came from the Department for Work and Pensions that, in 2007/08, London's local authorities will face a 5% reduction in the maximum amount of housing benefit that can be claimed for temporary accommodation. For all other regions, the maximum amount will remain unchanged.
The change responds to concerns that London councils are unfairly benefiting from benefit levels. In response to the proposal, many London councils say they are worried about implications for homelessness budgets.
It is argued that the reduction is unreasonable, given the particular problems of housing need, housing supply and homelessness in London.