The Growth of In-Work Housing Benefit Claimants: Evidence and policy implications

This research analyses the growth of Housing Benefit claimants numbers in Great Britain in 2010 and 2011. Particular attention is paid to the rapid growth in the number of in-work Housing Benefit claimants.

Analysis of figures from the Department of Work and Pensions (DWP) indicates that:

• The number of Housing Benefit claimants reached a new high of 4.95 million in December 2011

• In-work households account for almost all (93 per cent) of the increase in the number of claimants in 2010 and 2011

• In December 2011 almost one in four households who rented their accommodation and were in employment received Housing Benefit

The growing number of in-work Housing Benefit claimants will have a considerable impact on government policy. In 2011 the number of additional in-work claimants is likely to have increased overall Housing Benefit expenditure by £490 million.

The research also provides a brief review of the factors that could be leading to a change in the financial position of these households which means that they are claiming Housing Benefit to help cover their housing costs.