A recent report on housing by the OECD regarding cuts to housing benefits claims they will ultimately stifle growth and be more costly than expected. The Organization for Economic Cooperation and Development purpose is to help stimulate economic progress. The global think tank believes housing benefit should be extended to low-paid workers so they can begin a job search beyond their current employment type.

Dan Andrews, OECD economist, believes the government took a misstep when they started limiting subsidy, instead of increasing housing, when rents began to rise. This placed lower paid workers in an almost perpetual circle, struggling to make it.

Andrews defined the benefit as a voucher which can be used anywhere, for housing while workers are struggling to get by.

He commented further on the benefit, saying: "The UK government is cutting housing benefit but there is an important implication for labor mobility. A housing voucher is a more efficient way to provide housing than directly building more social housing."

He added: "But you must expand the housing stock or it just goes to increase prices and the amount spent on housing benefit."

In the OECD’s view, stamp duty on property transactions should be discontinued. A higher annual property and land value tax should replace it. The OECD feels strongly about maintaining taxes on property transactions and discouraging mobility - a practice the UK and other OECD countries have participated in for many years.

The goal of Work and Pensions Secretary Iain Duncan Smith is to slash 2 billion pounds off the 21 billion pounds annual benefit bill by 2014-15. To do this, reforms will have to be made to the weekly payment structure.