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Bedroom tax will be costly disaster, says housing chief

999 replies

vivizone · 31/03/2013 06:51

I don't understand how they can implement it. When a council tenant signs the tenancy agreement, if bedroom tax is not mentioned, is it not illegal to implement it at a later date?

I don't see how it is enforceable. Let's say a tenant refuses to pay/can't pay. They then get evicted - wouldn't the council still be obliged to house them after eviction, especially if they have children?

The whole thing is a mess. Why so many changes all at the same time?!

www.guardian.co.uk/society/2013/mar/30/bedroom-tax-disaster-housing-chief

Cost-cutting policy will push up benefit bill, cause social disruption and create widespread misery, say critics

Ministers came under new fire over benefit cuts last night as the independent body representing 1,200 English housing associations described the controversial bedroom tax as bad policy and bad economics that risks pushing up the £23bn annual housing benefit bill.

David Orr, chief executive of the National Housing Federation, said the tax would harm the lives of hundreds of thousands of people. It comes into force this week alongside a range of other tax and benefit changes.

"The bedroom tax is one of these once-in-a-generation decisions that is wrong in every respect," he said. "It's bad policy, it's bad economics, it's bad for hundreds of thousands of ordinary people whose lives will be made difficult for no benefit ? and I think it's about to become profoundly bad politics."

His intervention came as opponents launched nationwide protests against the tax, which will hit 660,000 households with each losing an estimated average of £14 a week.

Crowds gathered in London's Trafalgar Square yesterday to protest against the measure, and simultaneous protests were being held in towns and cities across the UK. One protester, Sue Carter, 58, from Waltham Forest, told the Observer: "I'm a working single parent with a tiny boxroom and now I'm faced with the choice between food, heat or paying the bedroom tax. People have looked after their homes, improved them ? why should they be turfed out?"

Under the scheme, which is introduced tomorrow, people in social housing with one spare bedroom will have their housing benefit cut by 14%, while those with two or more unoccupied rooms will see it slashed by 25%.

Ministers say the tax, which David Cameron calls the "spare room subsidy", will encourage people to move to smaller properties and save around £480m a year from the spiralling housing benefit bill. But critics such as the National Housing Federation (NHF) argue that as well as causing social disruption, the move risks increasing costs to taxpayers because a shortage of smaller social housing properties may force many people to downsize into the more expensive private rented sector.

The federation's warnings came as charities said the combination of benefit cuts and tax rises coming in from this week will amount to a £2.3bn hit on family finances.

Labour said analysis of official figures showed average families would be £891 worse off in the new tax year as the changes ? including those to tax credits and housing benefits ? begin to bite.

Research by the NHF says that while there are currently 180,000 households that are "underoccupying two-bedroom homes", there are far fewer smaller properties in the social housing sector available to move into. Last year only 85,000 one-bedroom homes became available. The federation has calculated that if all those available places were taken up by people moving as a result of the "bedroom tax", the remaining 95,000 households would be faced with the choice of staying put and taking a cut in income, or renting a home in the private sector.

If all 95,000 moved into the private sector, it says the cost of housing benefit would increase by £143m, and by millions more if others among the remaining 480,000 affected chose to rent privately.

As well as the move on spare bedrooms, council tax benefit will be replaced from this week by a new system that will be run by English local authorities but on 10% less funding. Pensioners will be protected under the changes but, as a result, it is feared there will be a bigger burden on poor working-age adults. Restrictions on the uprating of a number of welfare payments will also hit millions of households, homelessness charity Crisis has warned.

Chief executive Leslie Morphy said: "Our poorest households face a bleak April as they struggle to budget for all these cuts coming at once. People are already cutting back on the essentials of food and heating but there is only so much they can do.

"The result will be misery ? cold rooms, longer queues at food banks, broken families, missed rent payments and yet more people facing homelessness ? devastating for those directly affected, but bad for us all."

A Department for Work and Pensions spokesman said: "Our welfare reforms will improve the lives of some of the poorest families in our communities, with universal credit simplifying the complex myriad of benefits and making three million people better off. And by next year, we will have taken two million of the lowest earners out of paying tax altogether."

Crisis argues that homelessness is set to rise dramatically. This winter has already seen a rise of 31% in the numbers of rough sleepers across the country and a 20% rise in people seeking help with homelessness from their local authority in the past two years, according to Crisis.

ChartiesCharities are also concerned that the government-funded network of homelessness advisers in England is to be scrapped. The team of regional advisers and rough sleeper and youth specialists which have provided councils with expert guidance on meeting statutory homelessness duties since 2007 will be disbanded just as the bedroom tax comes in. Also being scrapped are the crisis loans and community care grants which provided a lifeline for people in financial crisis who needed essentials when moving to a new home.

Shadow chancellor Ed Balls said: "This is the week when the whole country will see whose side David Cameron and George Osborne are really on and who is paying the price for their economic failure."

OP posts:
skinnywitch · 01/04/2013 13:43

If I were dependent on state support, I would do anything I could (and I appreciate that disability can prevent this) to not rely on the state. it is a very vulnerable place to be & I would not waste my efforts trying to swim against the tide.

chrismse · 01/04/2013 13:44

I fall into this trap and my council has no one bedroom flats for me to move into. It makes no sense because if I moved to a more expensive private one bed flat they would pay that rent???
Madness

lottieandmia · 01/04/2013 13:44

skinnywitch - most welfare payments go on pensions

retrorita · 01/04/2013 13:47

"if I were dependent on state support, I would do anything I could (and I appreciate that disability can prevent this) to not rely on the state."

Honestly, what world do you live in?

If a person currently claiming JSA and Housing benefit, with no qualifications, got a job tomorrow - do you think that job would pay enough so they could pay all their rent without having to rely on the state?

Do you think they are just going to walk into a job that pays enough for them to give up benefits do you?

And that example doesn't even take into account single parent families where childcare becomes an extra issue.

Do you really think these people are choosing to rely on the state. They are not wasting their efforts swimming against the tide. There is very few options for some people in this world. They have been failed by their parents, by the education system and now they are trapped.

You cannot address these issues by telling them to pay for their spare room or capping their benefits.

All the support they would have been given, access to adult education for example, is being cut, what do you propose these people do?

chrismse · 01/04/2013 13:50

Should have written more before people think I just live on benefits. I work part-time and have a son with schizophrenia who lives independently but needs my support to do so. I therefore need some housing benefit and a spare room. I didn`t choose to live in a council flat I had a mortgage but house repossed after redundancy and divorce.

FreedomOfTheTess · 01/04/2013 13:51

Some people seem to be missing the point about Fred.

The point is, he only has a spare bedroom, because that's what he was offered. He didn't want a 2-bed flat, it's what he was OFFERED, as they hadn't built enough 1-bed places.

Furthermore, he had a job locally, so that was his main reason for wanting to stay in the area. Now he has lost that job due to redundancy.

Do you think he wants to be unemployed? No he doesn't. He's applied for over 100 jobs (some of them further away), and he's even "over qualified" or "under qualified", he isn't sitting back and expecting state handouts.

The point of my original post, was to point out, he is being penalised through no fault of his own. He isn't "bedroom blocking" - it was the property he was GIVEN!

Not rocket science to understand that surely?!

skinnywitch · 01/04/2013 13:52

Oh god, not the old, failed by the system baloney again!
Education in this country is FREE and of a standard millions worldwide would walk tens of miles a day for and still, STILL, thousands choose not to avail themselves of it, piss about and ruin the chances they are blessed with and then moan they can't get a job!

Tasmania · 01/04/2013 13:56

retrorita The question is - how COULD someone end up with NO QUALIFICATIONS despite years and years of FREE education?!?

It's either schools are not good enough or the person was just p*ssing around (if so, why?). Either way - someone is at fault, and that has to be corrected.

MiniTheMinx · 01/04/2013 13:56

Now we are dividing the working class into the: working population and the non-working population. oh dear. You really have fallen for neo-liberal spiel.

retrorita · 01/04/2013 13:56

Skinny you think everyone has had a very simple life.

Bought up in 2.4 houselhold, with regular meals, bedtimes and appropriate parenting.

You simply don't the understand the world I know.

skinnywitch · 01/04/2013 13:56

Cross posted there tasmania!

FasterStronger · 01/04/2013 13:57

retro - the same one as you. take where my DM lives. she is an old widow and needs help with the garden

Gardeners can earn £20ph. she does not need someone with skills. just lawn mowing, weeding.

Except no one wants the work. she has tried for years to find someone reliable.

Tasmania · 01/04/2013 13:58

chrismse - Did you not have Mortgage Protection (whereby they will pay for you, if you get made redundant)? There are many ways to not end up in that situation...

MiniTheMinx · 01/04/2013 13:59

Education in this country is FREE

At the moment but it will be privatised, the groundwork was put in place by the last labour government.

We have a political class over run with corporate puppets all dancing to the same tune and a two tier education system. Because one class is educated to rule and the others to be indoctrinated so that they accept this situation.

retrorita · 01/04/2013 14:03

Tas - maybe because that person when they were 12/13 and didn't want to go to school (like all of us never) and simply chose not to go.

And then maybe the parents didn't give a shit if that child didn't go. Because they were drunk/high/bad parents/had mental health problems.

And the school, in that deprived area, twenty years ago, couldn't be arsed to chase the 'drop out' kid.

Or maybe the kid was stuck at home looking after a sick parent.
Or maybe the kid was dyslexic and no one picked up on it so she couldn't do well in the exams
Or maybe no one simply told the kid the importance of work, of doing well in school. And maybe the parents told the kid to ignore the 'busybody' teachers.

Or maybe gangs or teenage pregnancy ..

Who fucking knows.

But what we do know, is that there are people out there who are not qualified to earn above NMW and NMW isn't enough to live off without benefit top ups.

FasterStronger · 01/04/2013 14:03

retro - what is stopping someone bought up in the type of household you are referring to working as a gardener?

MiniTheMinx · 01/04/2013 14:03

"piss about and ruin the chances they are blessed with and then moan they can't get a job"

Childhood is getting longer and therefore children stay in education much longer, first until they were 12 then 14 now 18....... because modern technological advances in production requires fewer workers and different skills. State education teaches people not to be self reliant, instead it teaches people to be docile and accept wage labour, not because selling your labour is the root to freedom but because the capitalist class make money from your labour.

skinnywitch · 01/04/2013 14:04

*Skinny you think everyone has had a very simple life.

Bought up in 2.4 houselhold, with regular meals, bedtimes and appropriate parenting.

You simply don't the understand the world I know.*

You know nothing about me or my background.

Tasmania · 01/04/2013 14:05

You simply don't the understand the world I know.

Retrorita - Considering that my life is not as simple as most people may think (it took years for me to tell other people that my life wasn't as rosy as it seems to most - an image I seem to have perpetuated as defense mechanism), I am flabbergasted each time I hear of someone being hard done by.

Most of time, nothing major happened in their life (no murders, etc.)! More likely everything had to do with peer pressure...

Dawndonna · 01/04/2013 14:09

There really are some deeply unpleasant, uncaring and unthinking people around here.

skinnywitch · 01/04/2013 14:09

But what we do know, is that there are people out there who are not qualified to earn above NMW and NMW isn't enough to live off without benefit top ups.

I don't know anyone who minds helping those who help themselves or those who can't.

It's those that WON'T that are the concern.

Xenia · 01/04/2013 14:09

There is huge support for this measure. If you have more bed rooms than you need do not expect the state to support you in that. Those who work often do not have the luxury of spare rooms so why should those depending on state benefits? Most tax payers support this change. Social housing subsidised by hard working mothers and fathers needs to go to those who need it, not to fund extra studies and spare rooms.

MiniTheMinx · 01/04/2013 14:10

Under capitalism which has monopoly tendencies, where banks only lend to large enterprise and established business, where working class people have to compete for fewer and fewer jobs, they can only compete against each other.

Just look at the changes to welfare that will effect thousands of self employed people. When UC is introduced it will discourage people from creating their own employment.

The system is rigged to create dependency and increase welfare. And yet those of you who love it so much think it is the fault of individuals not to thrive.

Maggie said "There is now no such thing as society, just individuals" and she was right, by implementing neo-liberal economic policies she succeeded in changing the way people think.

Dawndonna · 01/04/2013 14:11

Do you mean extra studies as in a place to study, Xenia?

As for huge support, where, other than the Tory Party? The church is against it, the housing and homeless charities are against it, the local authorities are against it.

skinnywitch · 01/04/2013 14:11

There really are some deeply unpleasant, uncaring and unthinking people around here.

And Bingo!

Was waiting for the usual, " you're all soooo nasty" namecalling that inevitably crops up when anyone dares to suggest that people try and improve their own situations rather than rely on everyone else's taxes.