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London Housing Benefits Spend £39bn, Undermine Work Incentives

6/16/2026

Summary

Story summary

Policy analysts say the London rent-subsidy scheme discourages work by making low-cost social housing widely available.
Benefit claimants rent central London social housing for £720-£744 a month, versus private rents of £1,100-£1,200.
Centre for Policy Studies says taxpayers spend £18 billion a year on London housing support, split evenly between low rents and benefits.
Housing-benefits spending is projected at £39 billion this year, a 40 percent rise since 2018-19 and 1.38 percent of GDP.

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Story summary

Policy analysts say the London rent-subsidy scheme discourages work by making low-cost social housing widely available.
Benefit claimants rent central London social housing for £720-£744 a month, versus private rents of £1,100-£1,200.
Centre for Policy Studies says taxpayers spend £18 billion a year on London housing support, split evenly between low rents and benefits.
Housing-benefits spending is projected at £39 billion this year, a 40 percent rise since 2018-19 and 1.38 percent of GDP.