Bedroom tax costing more than saving says minister
- 07 Jan
According to the Scottish government bedroom tax is costing more than it is saving.
Whilst the controversial under-occupancy policy was designed to cut government spending, the Scottish housing and welfare minister Margaret Burgess has said that the annual costs of implementing the penalty will exceed savings by £10m.
In a letter to the UK's minister for welfare reform, Lord Freud, Ms Burgess cites the Convention of Scottish Local Authorities' finding that show the loss in savings and has demanded an urgent meeting, reports 24dash.
The Scottish government has provided local authorities with additional funding so that the amount available for discretionary housing payments is increased. In October an extra £20m was made available for those struggling with the bedroom tax.
Burgess said: "When it comes to the bedroom tax it's clear the policy is costing more than it is saving in Scotland. The apparent savings to the Department for Work and Pensions are simply because the costs are being pushed onto other stakeholders. There was no justification in introducing the bedroom tax to reduce housing benefit expenditure in the Scottish social rented sector especially when you see the financial and social costs borne by some of our most vulnerable households. It's also clear to see there is no legitimate economic and social case for its imposition. Local authorities, Citizens Advice Bureaux and other advisory groups have all reported an increase in callers who have seen their benefits reduced or withdrawn. Foodbanks in Scotland have named benefit delays and changes, including sanctions, as major factors in the increasing demand for their services. This current sanctions regime is unnecessarily harsh and there's little evidence that the penalties will have a positive long-term effect for individuals. I do not believe the UK Government has fully considered the implications of such punitive actions against the most vulnerable."
In it's latest estimate COSLA says that the annual costs of implementing the bedroom tax will be around £60m. This is due to the cost of DHPs, increased rent arrears, additional administrative costs, and the increased burden on advice and support services. Only £50m in savings will made by the DWP if the penalty were to be applied in all cases in Scotland.
What do you think of this? Tweet us your comments @suppsolutions
Image source: http://www.sxc.hu/photo/169849
- 30 Aug
RECENT ANALYSIS FINDS THAT THE HELP TO BUY SCHEME HAS ADDED TO THE INFLATION OF HOUSE PRICES
The analysis of the Help to Buy Scheme revealed the following:The chief executive of Paradigm Housing Group, Matthew Bailes, said:" ... clearly, it worked well for developers, and for providers, it...
- 22 Aug
A NORTH WALES COUNCIL REVEALED THEIR WAITING LIST FOR NEW HOMES HAS REACHED BREAKING POINT
The north Wales Council revealed their waiting list for new homes has reached "breaking point".According to Clare Budden, Flintshire Council's community enterprise chief officer said:"There are...
- 17 Aug
HOMELESSNESS POLICY IS UNDER REVIEW IN A NORTHAMPTONSHIRE COUNCIL
Kettering Borough Council has amended its letters to homeless residents to let them know of their right to request a temporary accommodation review.According to an ombudsman, Michael King:"People in...
- 15 Aug
FINANCIAL CONSTRAINTS HAVE CAUSED THE CLOSURE OF MANY CHILDREN AND YOUTH CENTRES
Local Government Association (LGA) made the following findings:Chair of the LGA's children and young people board, Richard Watts, said: "The reality is that services for the care and protection of...
- 11 Aug
RESIDENTS OF BUILDINGS IN LEDBURY ESTATE, SOUTHWARK, SOUTH LONDON WILL BE MOVED OUT TEMPORARILY
The buildings in Ledbury Estate in Southwark have been constructed in a similar way to Ronan Point, a tower block in Newham which collapsed in 1968 as a result of a gas explosion, killing three. An...
- 10 Aug
THERE IS A DECLINE IN THE HOUSING MARKET IN LONDON AND OTHER PARTS OF THE SOUTH EAST OF ENGLAND
The Royal Institution of Chartered Surveyors (Rics) made the following findings:Chief Economist at Rics, Simon Rubinsohn:"Sales activity in the housing market has been slipping in the recent month...
- 07 Aug
REPORT FINDS THAT PEOPLE ARE INTENSELY SUFFERING FROM LACK OF AFFORDABLE HOMES IN SCOTLAND
According to the report by "Shelter":Shelter's deputy director, Alison Watson, said:"This report shows the disproportionate impact of Scotland's housing crisis on young people and private renters who...
- 02 Aug
NEW REPORT BY THE PUBLIC ACCOUNT COMMITTEE IN WALES COMMENDS HOUSING ASSOCIATIONS
The report which was put together after nine months of inquiries stated the following:Nick Ramsey, Chair of the Public Accounts Committee, said:"Generally, we found governance and regulation within...
- 31 Jul
LONDON COUNCIL URGES THE GOVERNMENT TO MAKE MEASURES TO END LETTING FEES FOR PRIVATE RENTERS
The London council say urgent action is needed because the government has not provided "a clear timescale to introduce its own measure", Letting Agent Today, reports.Last year, the government had...
- 17 Jul
A NEW SCHEME HAS BEEN PROPOSED TO DEVELOP ARTHUR STREET ESTATE IN LONDON
Wates Residential will help to deliver Orbit's proposed £73m regeneration of an estate in London, after their success with making Larner Road an award winning, 40,000-home, Erith Park, Bexley.Within...
Revenue Optimisation "We really appreciate the work that Support Solutions did for Home Group in securing significant additional revenue for our supported housing schemes. This really will make a positive difference to the way in which we support our vulnerable tenants". Dave Coope - Home Group