Housing Subsidies – Britain

London’s poor facing squeeze amid housing-benefit cuts, By Anthony Faiola, June 20, 2011, Washington Post: “The choice of the London A-list, St. John’s Wood is a neighborhood of ethereal wealth, its leafy avenues lined with the ample mansions of Paul McCartney, Ewan McGregor and Kate Moss. And yet, they share the most unlikely neighbors – the Kastrati family. Poor immigrants struggling to survive in one of the world’s most expensive cities, the family of four nevertheless lives in a sunny, two-bedroom flat in an enclave of urban privilege. Their benefactor: the British government, which covers 85 percent of their $3,600-a-month rent through welfare benefits giving tens of thousands of low-income earners access to even the best neighborhoods. But the clock on such subsidized London lifestyles is suddenly running out. The Conservative-led government is rolling out Britain’s most sweeping welfare reform since the 1940s, taking aim at the ballooning bills in cities such as London, where a few families receive as much as $160,000 a year to ensure economic diversity and quality housing for the poor in some of the priciest districts in the world. Yet as benefits are rolled back, academics are warning of a major side effect: an exodus of the poor from central London in numbers not seen since the demolition of soot-caked Dickensian slums in the 19th century…”