Details

Published on Friday, 17 February 2012 07:48

On Tuesday the Welfare Reform Bill returns to the House of Commons and MPs will have the opportunity to accept an amendment that will make a difference to thousands of families in social housing across the country.

Under measures in the Bill, 670,000 households – two thirds containing a disabled family member – are set to be hit by an average £728 bedroom tax every year because they are deemed to have one or more additional bedrooms.

On February 14th Lords voted once again to limit the impact of this bedroom tax. Peers backed a much more modest amendment than the one that came back to the Commons last time. Tabled by crossbencher Lord Best, it protects certain vulnerable groups including disabled people, war widows and those unable to work from the bedroom tax and only if they turn down a suitable smaller flat.

Explanation

• The Government plans to use the Welfare Reform Bill to cut the housing benefit of any working-age social housing tenant deemed to be ‘under-occupying’ their social home. Under its social sector size criteria, anyone with one extra bedroom would lose 14% of their housing benefit (on average £12 per week) and those with two or more would lose 25% (on average £22 per week).

• The House of Lords’ compromise amendment ensures the Government’s proposals are targeted at the type of high level under-occupation that provokes wider public concern.

• Without the amendment the Government’s proposals will have disastrous implications for a huge number of people already struggling to make ends meet. Lord Best's amendment will exempt from the bedroom tax a number of vulnerable groups and only if they turn down a suitable smaller flat. This includes:

o disabled people who rely on local family and support networks

o disabled children who need care during the night and cannot share with a sibling

o War widows

o Families who foster children who for benefit purposes do not count as part of the household

o The amendment would reduce the Government’s target annual savings by less than £100 million per annum. In fact the £100million maximum is based on everyone in the vulnerable categories with one spare bedroom staying put and being protected from benefit cuts (because they don’t have a suitable smaller flat to move to) which of course will not happen.

Why Discretionary help is not enough

Welfare Reform Minister Lord Freud announced that additional Discretionary Housing Payments (DHP) could be used to cover the loss of benefit income for foster carers when they are between foster placements, and to help disabled people remain in properties with adaptations.

While the Government has offered £30million in DHP for certain groups, this is undermined by its decision to set the under-occupation penalty for all tenants at the maximum possible level   14%/25%. It is clear that this DHP pot is therefore being paid for by an increase in the penalty of all tenants affected by the cuts.

Beyond that, DHP do not offer the protection that vulnerable groups need. They are made from a discretionary fund that will be under significant pressure as a result of major cuts to Local Housing Allowance for private sector tenants. Many of these tenants will face homelessness or having to move home if a DHP is not made. Local authorities may not. Therefore, choose to priorities social tenants with disabilities or foster children.

Protecting disabled people

The Department for Work and Pensions’ Equality Impact Assessment shows that the size criteria will impact disproportionately on disabled people. 66% of the claimants affected (450,000) will be disabled (based on the claimant or partner meeting the Disability Discrimination Act definition of disability).

The amendment would exempt from the bedroom tax an estimated 200,000 households in receipt of Disability Living Allowance (or personal independence payment). This will help protect vulnerable people by bringing the measure into line with the proposed overall benefit cap, which already contains an exemption for DLA recipients.

Protecting foster carers

The size criteria will hit foster carers claiming housing benefit even when the bedrooms are being used by foster children. This is because foster children, for the purposes of housing benefit, are not counted as part of the household.

Without this amendment a foster carer with two ‘spare’ bedrooms would see a drop in his or her income of between £16 and £34 per week due to the size criteria. The Fostering Network has warned that failure to exempt foster carers from this financial penalty could lead to some quitting fostering altogether. It is wrong to penalise foster carers when their bedrooms are occupied.

For further information please contact Amanda Oliver, Head of Policy on 02920557404

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