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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 15:39

So, that's 400 000 jobs then. Hardly NO jobs! And that is a ratio of one job to every seven unemployed so pretty good odds, wouldn't you say?

retrorita · 01/04/2013 15:39

Yep, because that's all you need to start your own business - cards.

Nothing else. Just cards.

retrorita · 01/04/2013 15:40

But not jobs which people on benefits can take Skinny

How hard can this be to understand?!

FasterStronger · 01/04/2013 15:41

yes skinny. and in the boom years, many EU citizens came here and worked. but UK nationals remained unemployed.

skinnywitch · 01/04/2013 15:41

There are no FT jobs with permanent contracts skinny.

Could you please tell that to several friends of mine who have moved jobs in the last year, please?

I mean really, when you talk in hyperbole like that you weaken any argument you might have had.

MiniTheMinx · 01/04/2013 15:41

So Bevan intended that the NHS should be sold to American companies did he?

The Torries might very well intend that people become self sufficient, even start up small businesses but as I said up thread, those with money have a strangle hold. The hight street is dead, what is left on the high street is not small businesses. The reason for this is that finance capital (banks and investors) favour large businesses. There is a nexus btw finance and business which means that competition is stacked against small businesses and individuals.

FasterStronger · 01/04/2013 15:42

retro - I was deal with one of the many objections to finding work.

skinnywitch · 01/04/2013 15:42

*But not jobs which people on benefits can take Skinny

How hard can this be to understand?!*

Why? Are they different from people not on benefits? Hmm

flatbread · 01/04/2013 15:43

Hmm, interesting that a number of people who were on the thread who argued the baby of illegal immigrants living in UK should not get necessary/urgent healthcare are now bleating on about how unfair this spare bedroom rule is.

Well suck-up then. You were so happy to say 'rules are rules' and we don't have unlimited resources to justify denying care to an innocent child suffering. Same and more applies to you. It is a rule. Accept it and live with the consequences as we have to limit benefits and ration our resources.

retrorita · 01/04/2013 15:43

Oh FGS! Do you really honestly not know this?

How can you comment on a benefits thread when you don't know the main problems associated with being on benefits.

I give up.

It's not my job to educate you. I'm hiding the thread.

FasterStronger · 01/04/2013 15:44

I hired someone a few months ago and will be recruiting soon.

both full time permanent roles. except one person wanted only 4 days and he is good so I agreed 4 days.

skinnywitch · 01/04/2013 15:45

Same here faster. In fact, both Dh and I have recruited several people recently.

PeneloPeePitstop · 01/04/2013 15:46

I know, goady fuckers do tend to congregate.

MiniTheMinx · 01/04/2013 15:48

This economic system creates dependency and welfare because it takes power away from individuals. We are taught and indoctrinated to become "employed" to sell our labour to an employer. Because of this helplessness and the fact that tools, machinery and other capital investments are expensive it removes the opportunity for people to set up and work for themselves.

This is happening all over the world, not just here. In poor countries the peasant farmers are being moved off the land so that big american agro companies can take over. They then employ only a fraction of these peasants and pay them less than a living wage. That is a perfect example of how the forces of capitalism create dependency on waged work. Where there is no work it creates welfare dependency.

PeneloPeePitstop · 01/04/2013 15:48

So, nobody is prepared to acknowledge that someone has said they have arrived in a situation through no fault of their own and that no insurance would have helped.

Why is that, fear?

Xenia · 01/04/2013 15:48

There is a deaftism about some people and sadly only making life a bit harder for them is going to get them off their usually fat bottoms and looking for work.

FasterStronger · 01/04/2013 15:49

skinny - but we obviously know nothing.

our lives are always a bed of sweetly scented roses and our gardens are full of money trees... oh wait a minute...

IneedAsockamnesty · 01/04/2013 15:49

I recently advertised a job i received over 1000 applications for 1 job.

IneedAsockamnesty · 01/04/2013 15:50

9 out of 10 HB claimants are in work there are no stats relating to the size of there bottoms.

pollypandemonium · 01/04/2013 15:51

Xenia read the statistics I posted above. Pushing the desperate further into the hole they're in really won't help any more.

pollypandemonium · 01/04/2013 15:52

I hate to say it but a complete halt to immigration will help.

FasterStronger · 01/04/2013 15:53

sock there are no stats relating to the size of there bottoms

^^^ this is where we are going wrong then Grin

MiniTheMinx · 01/04/2013 15:54

Xenia you are self employed as am I. Not everyone can be because they might be experienced in work that requires a huge capital outlay just to get started, money they don't have. Money the bank will not lend.

Xenia · 01/04/2013 15:57
  1. The requirement that you do not take social housing from the mouths of the poor so you can have studies and spare rooms is very much accepted by most people in the UK.
  1. Yes I know plenty of people on housing benefit in social housing or council housing are in work but if they want subsidised housing - think Bob Crow £100k wages plus his partner's wages in housing meant for those right at the bottom with young children on their uppers for a short while - they need to make sure it reflects their family size.
  1. Yes, jobs are hard to come by but some people manage to find them. It is not impossible. Some people make more effort than others to find work.
infamouspoo · 01/04/2013 16:02

who can afford a gardener? Now we are in la la land.
I was reading the news on saturday and in Bristol, which I think is a fairly large city, 1200 people applied for 9 jobs in DFS. Thats how bad unemployment is.

To whichever poster who was bleating on about the 'bloated' welfare state. The largest part of it is pensioners The next is health. Unemployment is actually a fairly small chunk. But it will get bigger if people are forced to move out of council housing and into private lets, assuming they can find any. It will certainly get bigger if disabled people are hit and end up in residential care (3K a week). And bigger still if families are made homeless so their kids end up in care.
Nice one Govt. But all is not lost. I hear IDS claiming its easy to live on £53 a week. I guess he's volunteering then so saving the taxpayer his 100K plus salary and £200 a week on foood plus various expenses. With any luck all MP's will follow this shining example and help save money Grin