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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:
VictorTango · 01/04/2013 21:33

Well, technically your husband worked hard. And possibly your parents. You just struck lucky by birth and marriage.

And then think others that don't strike it quite so lucky are lazy and idle.

But don't let that view from your ivory tower blind you now

skinnywitch · 01/04/2013 21:33

*They may not want to work for Tesco for NMW

Why?*

Yes, why?

FasterStronger · 01/04/2013 21:34

yes sock. I am going in 5 mins...hopefully out to eat....but how would you utilise housing stock better in a cost neutral way to the tax payer?

skinnywitch · 01/04/2013 21:34

So are we talking about luck now, victor?

Is it luck who we choose to marry now?

VictorTango · 01/04/2013 21:35

Well unless you knew he was going to turn into a millionaire then yes you got lucky.

Darkesteyes · 01/04/2013 21:35

skinnywitchMon 01-Apr-13 21:33:04

*They may not want to work for Tesco for NMW

Why?*

Yes, why?

Maybe cos then they will have to claim IN work tax credits and then have people like you look down on them for it

IneedAsockamnesty · 01/04/2013 21:35

I'm not poor I'm quite happy to be a hrt payer I also don't much care if skinny sees things the way I do but I do care that she has totally side lined a thread with her benefit bashing when we are trying to talk about vulnerable people with genuine reasons for requiring additional space.

pollypandemonium · 01/04/2013 21:36

Many parents will sit back and let their grown up children live in squalor because they are trying to encourage their independence - I can see the logic in that actually. It's mean-spirited and not very nice, and I wouldn't do that, but my parents were exactly the same. They behave as though I deserve NONE of their wealth - not that they have a lot, but property values go up so the reality is it is a fair amount now. It's weird but it's their values and they are entitled to them. I would go so far as to say that the working class people I know are far more generous and good at sharing than the wealthy / middle class ones.

twofingerstoGideon · 01/04/2013 21:36

It's got like Harry Enfield's 'I can't help noticing I'm considerably richer than you' sketch on here now.
Jesus.

VictorTango · 01/04/2013 21:36

Tasmania - That's the biggest load of rubbish on this thread.

FasterStronger · 01/04/2013 21:36

skinny - if you were in social housing now, affected by the cap and the bedroom tax change, how would you adapt?

IneedAsockamnesty · 01/04/2013 21:37

Well to start with I would build more

skinnywitch · 01/04/2013 21:37

Have you not read the part where I said neither myself nor anyone I know is against in work benefits, darkesteyes?

Dawndonna · 01/04/2013 21:37

Tas as explained upthread, a point which you studiously ignored, some of us, although not affected by this, are not in a position to help.

Redbindy · 01/04/2013 21:37

In the short term this is going to be a personal disaster for lots of people , but the idea is right. There is limited social housing and it needs to be fairly distributed. That means fair to people who do not have enough living space. If you live in subsidised accommodation, you should accept the requirement to move on if you no longer need all of that accommodation.

FasterStronger · 01/04/2013 21:38

sock - where would you get the money? because it cannot be on the UK balance sheet or we risk UK borrowing rate rises.

private? govt pensions?

VictorTango · 01/04/2013 21:39

But where do they move to Red?

This thread is just doing circles

pollypandemonium · 01/04/2013 21:39

Fasterstronger I said when I joined this thread that council housing should be means tested. Earnings should be looked at so that higher earners pay higher rents. Also, council and HA homes should not be sold. If you can afford to buy a home you should be able to afford to pay a market rent to the HA.

Dawndonna · 01/04/2013 21:39

Just as an aside, David Starkey has been out and proud for a good few years and definitely doesn't have a wife.

skinnywitch · 01/04/2013 21:42

faster what would I do?

If I were out of work right now this is what I'd do. I'd do my CV and put on something smart. I'd spend a morning on Google and then I'd knock on doors, introduce myself and ask for work.

I'd go to vistaprint and order business cards and a car magnet and a corporate polo shirt. I'd carrd drop and put them up in every shop window offering my cleaning and ironing services.

The problem is it's no good asking me. I'm already a confident risk taker and I've never had a day out of work, ever and I've done NMW jobs.

williaminajetfighter · 01/04/2013 21:42

I think it would be helpful if people didn't make so many generalisations about class on this post. Everyone's experience is different.

My parents were very middle class but incredibly strict and stoic... When I left home that was it -- I was given no help with Univ, never any assistance with rent, never a helping hand with moving as I moved from one glamorous bedsit to another in my 20s or when I moved to 5 different towns for work (clearly govt didn't care about about embedding me in a community or the impact on transience on my life) and I had very little emotional support. They were also cheap and growing up we didn't have holidays or much on the way of material goods.

Conversely my observation is that a lot of working class families are a lot closer and tighter, mum and dad are best friends to their kids, families often live close to one another and mum and dad 'would do anything for their kids' if they would.

Again a total generalisation. But people have got to stop slagging off others who they perceive to be middle class for all the opportunities they've been given. It's so derivative but I see it happening all the time on Mumsnet.... It honestly sounds like some kid in first year University who just took Marxism 101 and is now banging on about the patriarchy and capitalism. Zzzz

FasterStronger · 01/04/2013 21:43

dawndonna - well I am relieved. I thought my gaydar had broken.

I am off for the evening. shall be checking in at about 7am so hopefully you will have the whole thing sorted tonight Grin

Redbindy · 01/04/2013 21:44

VictorTango - that's the disaster - there is no where for them to go. I'm sure IDS and his advisers are aware of this, and don't give a flying ph*que.

VictorTango · 01/04/2013 21:45

Skinny - What would you do if you couldn't afford the car or the road tax/mot/fuel?

Its clear you have never been on the breadline.

MiniTheMinx · 01/04/2013 21:48

I have met people who through inheritance have no money worries what so ever and never stop to think what life is like for those less fortunate. They don't lack empathy just insight.

Whilst the self made brigade seem to think that their meteoritic rise is due to some special attributes that they possess, namely something moral. They think that because they got lucky with a bit of hard work that everyone who doesn't make it lacks something, something that is due to personality and within that persons control. They think that their peers lack something other than opportunity or luck or even moral standard, they are lazy, feckless, scrounging, winging, snivelling. In short they despise there peers and the place they came from. I should think a great many live in fear of losing all they have. And so they should because businesses rely on customers and without them can not survive.