An article in the Telegraph yesterday suggests that if Labour comes
back into power, they will introduce caps on rents in the private
sector in a bid to curtail the continually rising welfare bill. The
information came from Mr Byrne, Labour’s Shadow Work and Pension
Secretary, at the same time as Ed Milliband prepares to make a speech
outlining how Labour will be seeking to curb welfare spending.
Crackdown on Private Landlords
“A lot of people say to us why are we spending £24 billion on housing
benefit – a lot of that money is going to private landlords,” Mr
Byrne told the BBC.
“Why don’t we give local councils the power to bring down the cost of
rents, particularly in the private rented sector, and use some of
those savings to actually build more social housing? That would stop
the housing benefit bill going up and up and up.”
Big Spenders
Labour has a reputation for being the last of the big spenders, so Ed
Milliband is trying to get away from that negative image. In line
with the current government, Labour is now willing to concede that
welfare spending needs to be brought under control and capping
housing benefit costs is one way to do this. Since a large proportion
of housing benefit payments go to private landlords, the private
rental sector may well take a hit if Labour are voted into power.
Contributory Principle
Another one of Labour’s ideas is to give those who have a history of
work a higher level of benefit payment.
