Housing benefits will increase by £143m with Bedroom Tax
- 28 Mar
The National Housing Federation (NHF) have published research that shows the annual housing benefit bill will increase by £143 million a year.
The research shows the effects of what would happen if tenants who were affected by bedroom tax downsize to avoid the charge, which is what the government have said is the intention of the cut.
The bedroom tax, that comes in to effect from 1st April next week, is being brought in by the government because they say there are too many people with spare bedrooms that need to downsize, partly because it is too expensive, and partly because there are too many people in overcrowded homes that need the rooms that are unused.
They have accepted that there are not enough houses in social housing that are available for downsizing, particularly one bedroom properties, and have said that tenants may need to move to the private sector.
The NHF says there are around 180,000 households under-occupying two bedroom homes, but only 85,000 one-bedroom homes became available last year. This means that 95,000 households would have to either accept the benefit cut, or move into more expensive private rented accomodation.
If they moved into the private sector, NHF have calculated that this will increase the housing benefit bill by £143 million, just for those moving from 2 bed to 1 bed properties.
There would also be other households out of the remaining 480,000 who may choose to move to the private sector if there is no other accomodation suitable, which would increase it even further.
The secondary priority for the government is that the housing bill is costing to much, and they are expecting to save around £500 million a year through the policy. This is unlikely, if the tenants follow the expected plan given, and to move to smaller accomodation.
David Orr, chief executive of the NHF, called on the government to repeal the bedroom tax:
The government's assumed savings are questionable and this policy could ultimately cost the taxpayer more in the long term.
It takes no account of the fact that there are not enough smaller homes in the social sector available for people who are under-occupying to move into.
For them, the only options will be to take the financial hit or to move into a smaller home in the private sector, which could lead to higher housing benefit claims.Read more on bedroom tax here.
Related articles
- 02 Nov
THE ONS PLANS TO CHANGE THEIR DECISION TO MAKE HOUSING ASSOCIATIONS PUBLIC BODIES
According to reports by 24 Housing, the ONS said the following:Gavin Smart, Chartered Institute of Housing's deputy chief executive also said:"Although we have been expecting this decision for some...
- 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:Â "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...
How to Fund Housing Support and Social Care Sevices Extremely informative, excellent speaker. Alison Halstead - Riverside ECHG
