Fixes That Fail - The Great Housing Benefit Cock Up

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In March I tried to explain on this blog how an attempt to cut costs can actually, and often does, increase them. In regards to the housing benefit cuts in the UK, I, like many others, said that the policy of moving people from one to two bedroom houses would fail because 1) there aren’t many one bedroom houses and 2) if there were not enough council houses, families would be moved to the private sector, which is more expensive.

Today the Observer reported that this is indeed what his happening. In Systems Thinking this is called a fix that fails.

You can read the article here: ‘Costs soar for wealthy councils as benefit cuts force families to quit homes’, Guardian Online, accessed on the 8th of June, 2013.