Expenditure on Housing Benefit shot up after 2008 with the introduction of the over generous Local Housing Allowance system.
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2007 £14.8bn
2009 £20bn
2010 £21.4bn
2011 £22.8bn
...
2013 £24.2bn
2016 forecast £24.1bn
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From DWP report of 2009.
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7. In addition, the implementation of the Local Housing Allowance has raised problems with
high rents in some areas. The way in which rates are set has meant that customers in some
areas have benefited more than others. In some areas, Housing Benefit can support
customers to live in accommodation that many people in work cannot afford. This makes
it harder for customers to come off Housing Benefit when they move into work.
Furthermore, including high rents when setting Local Housing Allowance rates has driven
up benefit levels and has contributed to the annual Housing Benefit budget rising more
than it otherwise would have done.
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