Housing benefit can be the route to social mobility

Without housing benefit mine and my family's life chances would have been obliterated.

For four weeks in 2008, aged 24 and an unemployed graduate, I tried to claim housing benefit. I had just moved to London with my then partner from Yorkshire via a postgraduate training course in Essex, and a stint living back with my dad and temping in a bid to clear multifarious student debts. Both my partner and I were interning, me for a national magazine, he for a think tank. Neither of us was paid bar minimal expenses. But since his internship was longer-term, DFSS somehow decided that constituted a job, a job that meant he could or should support me (despite the fact he was living on hand-outs from his parents) and which invalidated my claim for housing benefit after just three weeks. In the end his family (who lived in Cyprus) offered to lend me some money, and soon after I landed a minimum wage media database job.

I was relatively privileged. There was some housing benefit available to me, for however short a time. At the eleventh hour, there was someone to help out. If I’d gone back home to West Yorkshire I could have kissed goodbye to a media career in the capital and my autonomy, but I’d still have had bare means. Certainly more than my younger cousin, a carpenter by trade, married with two small children and who had lost his job twice in 12 months since the recession gauged a chunk out of the northern economy, relying on benefits to keep him and his family going until he finally found work again. Brought up in a two-up two-down terrace, moving back into his childhood home with his partner and two small children wouldn’t exactly have made for comfortable living. That my aunt had serious health problems and one of her daughters (admittedly over the age of 25), her partner and two small children living with them for a while too due to similar economic constraints would have made it untenable.

Give or take a couple of years and Cameron’s proposed policy would have seen my cousin and I, two prime examples of the ‘feckless’, ‘entitled’ under-25-year-old benefit scroungers he wishes to obliterate, pretty much obliterated before we’d had a chance to make adult lives for ourselves. 

Where should my cousin have moved back to, exactly, Mr Cameron when there was no work for him, though he was desperate to graft, and when his family home was already overstretched? And shouldn’t I, along with thousands of other have been paid for working in the first place, so that there was no need to claim housing benefit? For me, housing benefit was a means of realising my ambitions and enabling social mobility; for my cousin, it was a matter of basic sustenance and pride.  Neither of us wanted state support, but to be able to support ourselves. And that’s not even to mention the situations, needs, or desires of our parents, whom Cameron would similarly see encumbered by banishing us back home in his bid not to overburden the state.

In Cameronland, it’s either spare bedrooms and free use of the second car, or gutless work-shysters who dream of a shabby, free flat on a sink estate. There may well be some 18-year-olds that plot a trajectory from their parents’ council house to their own, but for the majority of the 380,000 under-25-year-olds currently claiming house benefit, their circumstances will be as nuanced and complex as Cameron’s proposed policy is crude. You might want to look at some of those case studies, Mr Cameron, before being dazzled by the immediate cost savings. The sanctity – and sanity – of your so-called big society is at stake.

A block of flats in Bath. Photograph: Getty Images

Nichi Hodgson is a writer and broadcaster specialising in sexual politics, censorship, and  human rights. Her first book, Bound To You, published by Hodder & Stoughton, is out now. She tweets @NichiHodgson.

Getty
Show Hide image

The tale of Battersea power station shows how affordable housing is lost

Initially, the developers promised 636 affordable homes. Now, they have reduced the number to 386. 

It’s the most predictable trick in the big book of property development. A developer signs an agreement with a local council promising to provide a barely acceptable level of barely affordable housing, then slashes these commitments at the first, second and third signs of trouble. It’s happened all over the country, from Hastings to Cumbria. But it happens most often in London, and most recently of all at Battersea power station, the Thames landmark and long-time London ruin which I wrote about in my 2016 book, Up In Smoke: The Failed Dreams of Battersea Power Station. For decades, the power station was one of London’s most popular buildings but now it represents some of the most depressing aspects of the capital’s attempts at regeneration. Almost in shame, the building itself has started to disappear from view behind a curtain of ugly gold-and-glass apartments aimed squarely at the international rich. The Battersea power station development is costing around £9bn. There will be around 4,200 flats, an office for Apple and a new Tube station. But only 386 of the new flats will be considered affordable

What makes the Battersea power station development worse is the developer’s argument for why there are so few affordable homes, which runs something like this. The bottom is falling out of the luxury homes market because too many are being built, which means developers can no longer afford to build the sort of homes that people actually want. It’s yet another sign of the failure of the housing market to provide what is most needed. But it also highlights the delusion of politicians who still seem to believe that property developers are going to provide the answers to one of the most pressing problems in politics.

A Malaysian consortium acquired Battersea power station in 2012. Initially, it promised to build 636 affordable units. This was pretty meagre, but with four developers already having failed to develop the site, it was still enough for Wandsworth council to give planning consent. By the time I wrote Up In Smoke, this had been reduced to 565 units – around 15 per cent of the total number of new flats. Now the developers want to build only 386 affordable homes – around 9 per cent of the final residential offering, which includes expensive flats bought by the likes of Sting and Bear Grylls.

The developers say this is because of escalating costs and the technical challenges of restoring the power station – but it’s also the case that the entire Nine Elms area between Battersea and Vauxhall is experiencing a glut of similar property, which is driving down prices. They want to focus instead on paying for the new Northern Line extension that joins the power station to Kennington. The slashing of affordable housing can be done without need for a new planning application or public consultation by using a “deed of variation”. It also means Mayor Sadiq Khan can’t do much more than write to Wandsworth urging the council to reject the new scheme. There’s little chance of that. Conservative Wandsworth has been committed to a developer-led solution to the power station for three decades and in that time has perfected the art of rolling over, despite several excruciating, and occasionally hilarious, disappointments.

The Battersea power station situation also highlights the sophistry developers will use to excuse any decision. When I interviewed Rob Tincknell, the developer’s chief executive, in 2014, he boasted it was the developer’s commitment to paying for the Northern Line extension (NLE) that was allowing the already limited amount of affordable housing to be built in the first place. Without the NLE, he insisted, they would never be able to build this number of affordable units. “The important point to note is that the NLE project allows the development density in the district of Nine Elms to nearly double,” he said. “Therefore, without the NLE the density at Battersea would be about half and even if there was a higher level of affordable, say 30 per cent, it would be a percentage of a lower figure and therefore the city wouldn’t get any more affordable than they do now.”

Now the argument is reversed. Because the developer has to pay for the transport infrastructure, they can’t afford to build as much affordable housing. Smart hey?

It’s not entirely hopeless. Wandsworth may yet reject the plan, while the developers say they hope to restore the missing 250 units at the end of the build.

But I wouldn’t hold your breath.

This is a version of a blog post which originally appeared here.

0800 7318496