Coalition plans to cap benefits will not work as intended, and are unnecessarily draconianby Tim Leunig / November 17, 2010 / Leave a comment
Published in December 2010 issue of Prospect Magazine
Policies designed to hit people who never work and have child after child will hit others too—not least children themselves. Photo: Paul Box/Reportdigital
Housing benefit is suddenly newsworthy. It costs £20bn a year and will rise to £25bn without reform. The government’s planned changes are sweeping. The most prominent is an absolute cap on rent: £250 for a one-bedroom property, £400 for a four-bedroom one. London’s mayor Boris Johnson says it will lead to “ethnic cleansing”; London’s former mayor Ken Livingstone that the Tories are gerrymandering, Shirley Porter-style. The Guardian’s Polly Toynbee worries that central London will run out of cleaners. All are wrong.
Yes, the changes will force some people to leave central London, but this is not ethnic cleansing. Provided that childrens’ educations are not disrupted, and excepting a few special cases, it is reasonable for society to refuse to fund people living in London’s best addresses. Ken’s gerrymandering argument is self-evidently absurd, as every voter moving out of one constituency moves into another. And cleaners can commute from zone three, just like other workers. If companies are short of cleaners, they can raise wages. Make no mistake: outside London people are shocked at anyone claiming £400 a week for rent.