Housing allowances and the fiscal crisis of the welfare state

Abstract

Abstract A rapidly growing public sector borrowing requirement, caused by the longest recession since the second world war, has promted the British Government to carry out a ‘fundamental review’ of state spending programmes. One of the areas on which much attention has been focused is the housing allowance scheme, the cost of which has increased substantially. This article examines the review of housing allowances that is being undertaken as part of the wider review of welfare spending. Some of the key differences between housing allowances in Britain and those in other countries are also discussed. Some of these differences are likely to be removed as a result of the review, thus making the British scheme more like those elsewhere.