Impacts of rents on Housing Benefit and work incentives
Working Paper No. 38
By Angelina Cannizzaro
The links between high rents and work incentives has been the focus of many discussions. The common perception is that high rents must impact negatively on a Housing Benefit (HB) claimant's decision to enter work. However, there are many factors that influence whether or not the level of rent impacts on work incentives, and one of these is the job move an individual may be contemplating. This report seeks to highlight the different issues at play when considering the links between rents and work incentives and takes a more detailed look at the theoretical impact HB could have. One of the main conclusions of the report is that high rents do not impact on an HB claimant's financial incentive to move into work. This is because the cash gain to work, where claimants qualify for in-work HB, is unaffected by high rents.
March 2007
ISBN 978 1 84712 170 7 Paperback
Impacts of rents on Housing Benefit and work
incentives 
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