UK's housing benefit cost may hit 20 bn pounds this year

LONDON: Thousands of families in the UK are pocketing housing benefits worth more than 26,000 pounds per annum, drawn in from taxpayers' income, an analysis of the welfare system indicated today.

A total of 3,400 people are receiving the handouts from housing benefits as more families are forced to seek social security benefits as a result of recession.

The study, based on Treasury figures, showed that families are allowed to claim up to a maximum of 94,000 pounds a year - or 1,800 pounds a week - to live in a five-bedroom property in Central London.

Britain's bill for housing benefit this year is expected to hit 20 billion pounds - up 3 billion pounds on last year - despite repeated pledges by ministers to crack down on excessive claims.

Housing Benefit is a benefit that is intended to help meet housing costs for rented accommodation.

According to a report in The Daily Mail, in November, it was revealed that Somali-born Nasra Warsame and seven of her children were living in a 1.8 million pounds house in Westminster at a cost to taxpayers of 1,600 pounds a week.

Her husband, Bashir Aden, and her eighth child were living in an "overspill" property, also on housing benefit.

The study also indicated that more than 750,000 families receive benefits and tax credits worth in excess of 20,000 pounds a year.

In total, the Government will this year spend 200 billion pounds on social security and tax credits - the largest area of public spending.

The analysis also found that nearly 13 per cent of Britain's working age population are on out-of-work benefits and nearly two million children live in workless households - the highest of all industrialised nations.

The UK also spends 11.5 billion pounds on disability allowance - more than the budget for the Home Office.

People can claim more than 30 benefits, which leads to in excess of 1,000 possible combinations of handouts.

The new Work and Pensions Secretary, Iain Duncan Smith, has warned that hundreds of thousands now have little hope of ever getting off benefits.