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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:
IneedAsockamnesty · 01/04/2013 20:59

Skinny why are you still banging on with your benefit bashing on a thread about how one aspect of one benefit it going to impact on those with genuine reasons to require additional space.

Can't you just fuck off to one of the hundreds of threads where the benefit bashing actually fits in.

Big whoop de do that your dh did well but does he require additional room due to medical equipment that he needs to use, does he have a child that requires so much additional care at night that it would be wrong to share or a child protection risk to do so, has his spare room been converted to a lift just so he can get to his child or bathroom or is he one of the 9 out of each 10 claimants who are quite likely to be affected by this who are also working people.

Thought not.

MiniTheMinx · 01/04/2013 21:01

Did it ever occur to you that your biggest gamble could fail and you might end up homeless without a pot to piss in?

skinnywitch · 01/04/2013 21:02

How fucking rude victor. I have always worked, I still work. It was my DH living off ME for years in the early days. Now we work as a team. Many hours a week.

FasterStronger · 01/04/2013 21:02

Rhonda - IMU primary is not like that at all. do you mean secondary schools?

VT - I think the Tory party would expect 'the poor' to share a millionaire. New Labour is more the millionaire for everyone kind of party Grin

skinnywitch · 01/04/2013 21:02

No mini it didn't.

VictorTango · 01/04/2013 21:02

We only had three when we took the biggest gamble.

Dont you mean We only had three when he took the biggest gamble. He is the self made millionaire after all. You just married him and got lucky when he hit the jackpot.

Is that how you think all the poor should pull themselves out of poverty -marry soon to be millionaires?

skinnywitch · 01/04/2013 21:04

No, WE took the gamble, read my previous post.

skinnywitch · 01/04/2013 21:06

And victor just for the record, I have never been poor, I come from a solid middle class background. It was my DH who grew up in poverty.

MiniTheMinx · 01/04/2013 21:07

Skinny.....it wasn't a gamble then was it.

rhondajean · 01/04/2013 21:08

VIve seen it happen at primary level faster - kids already informally "banded" in p1 and the reputation follows them through.

It's worse in secondary where schools are driven by exam results.

It's NOT universal and I would do many teachers a disservice to claim it is but it is also not uncommon.

Even the new skills development Scotland strategy is focusing on middling pupils who are easy fixes and leaving admittedly the top students who will find their own way, but also the bottom students who need real help, out.

Anyway I digress - the point is, very few people can manage to pull themselves put of poverty. They don't have the skills, opportunities, contacts, etc. it's another layer of disadvantage on top of everything - and then they are told they should be able to, it's all their fault they aren't successful. How depressing.

IneedAsockamnesty · 01/04/2013 21:08

Under occupancy rules anyone

rhondajean · 01/04/2013 21:08

Ajj skinny - so your DH married put of poverty and into a good set of contacts etc then. I get it now.

rhondajean · 01/04/2013 21:09

Sorry sock well off topic.

skinnywitch · 01/04/2013 21:10

How do you work that out, mini? Hmm

We were far from rich as a couple, I was working for an average wage and we took a gamble, he gave up a job to strike out by himself.

VictorTango · 01/04/2013 21:10

And victor just for the record, I have never been poor, I come from a solid middle class background

And that explains everything you have posed on this thread Skinny.

lottieandmia · 01/04/2013 21:11

skinny - not everyone thinks like you. You and your dh have been successful and yet you feel the need to be bitter that not everyone is able to achieve what you have?

I actually feel sorry for you that you have such a profound lack of empathy for others.

FasterStronger · 01/04/2013 21:11

Rhonda - I don't think talking about school is a digression as everyone is going to have to be more self reliant in the future.

..but ok on returning to the topic...

MiniTheMinx · 01/04/2013 21:13

But you already had some income, your income. You also say that you came from a solid middle class background. I'm sure your family wouldn't have seen you out on the street because you were £14 short on the rent????

You see, this huge gamble wasn't such a huge gamble was it?

Tasmania · 01/04/2013 21:13

Polly For a while, I topped up my salary from my full-time job that pays well above national average with some freelance work.

The organisation that paid me did not have to check I pay taxes on that. They assume you do it on your own, because you are essentially self-employed. And all you need to do is declare the income on the self-assessment form. You don't pay NI on it if it is below a certain threshold either.

Why should flatbread check that her cleaner does the same? Flatbread does not "employ" her. She pays her for her services. Otherwise, you'll have to cheek the account of DC's tutor, ballet teacher, etc., too! I have a mild suspicion you just said that because she is an immigrant which is a sad thing to do.

skinnywitch · 01/04/2013 21:13

rhonda you clearly don't see. He had no contacts through me. We did it all by ourselves, sorry if that fucks you and your leftie thinking offGrin

VictorTango · 01/04/2013 21:14

This reply has been deleted

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VictorTango · 01/04/2013 21:15

X posts with mini

skinnywitch · 01/04/2013 21:16

You know what? We can trade insults all night but the changes are here, they are in place and they are happening.

flatbread's advice is words to the wise. If you are dependent on welfare, I'd be doing everything humanly possible not to be.

MiniTheMinx · 01/04/2013 21:16

I also can't imagine Skinny why your solidly middle class parents sat back whilst you lived in a "pissing little room" when you started out. My parents would never have allowed that. Something doesn't sit right with me about your story. Hmm

VictorTango · 01/04/2013 21:18

Yes. That would be your advice Skinny. Because you have no idea, even after it has been explained to you many times, that people cannot simply leave the benefit system behind them.

But we have already established you cannot understand that.