Disabled families still aren't exempt from the bedroom tax

The "discretionary fund" cited by Duncan Smith will cover just £2.71 of the £14-a-week loss in housing benefit facing disabled claimants.

In a sign that ministers are increasingly losing the argument over the bedroom tax, Iain Duncan Smith has announced that 5,000 foster carers and some armed forces families will be exempt from the measure, which will see housing benefit reduced by 14 per cent for those deemed to have one spare room and by 25 per cent for those with two or more, an average loss of £14 a week or £728 a year. 

Those tenants who have children serving in the military will no longer be charged for the vacant room while they are away. In addition, carers will be allowed extra space as long as they have fostered a child or become a registered carer in the past 12 months. Yesterday it was announced that families with severely disabled children would be exempt. 

It would be churlish not to welcome these concessions, but the overwhelming majority of the 670,000 tenants due to be affected will still lose out, including thousands of disabled families. In his written statement, Duncan Smith emphasised that Discretionary Housing Payments would remain available for "other priority groups" including those "whose homes have had significant disability adaptations and those with longterm medical conditions that create difficulties in sharing a bedroom." 

But research published by the National Housing Federation shows how inadequate this support is. Were the £30m discretionary fund to be distributed equally among every claimant of Disability Living Allowance affected (229,803 in total), they would each receive just £2.51 per week, compared to the average weekly loss in housing benefit of £14.

Having conceded that those families with severely disabled children should be exempt, on what grounds does the government maintain that those with one more or disabled adults should not? In a recent letter to George Osborne calling for all disabled families to be spared from the cut, the heads of seven charities, including Carers UK, Mencap and Macmillan Cancer support, cited one typical case.

Jean and Carl live in a two bedroom house. Carl has suffered from serious health complications for years and is now unable to work as a result of a series of operations and treatment. Jean juggles caring for her husband with a job at a local supermarket. They are unable to share a room because Carl’s condition causes very disrupted sleep and if they share Jean cannot sleep. Her shifts at work mean she frequently has to be up at 4am and she would simply be unable to do this if she could not get a good night’s sleep. They fear they will not be able to make up the shortfall in their Housing Benefit and if forced to downsize Jean is worried about her ability to do her job if she is unable to sleep properly (names changed to preserve anonymity).

With increases in most working-age benefits capped at just 1 per cent and a shortage of one bedroom houses for tenants to downsize to (there are 180,000 English social tenants "under-occupying" two-bedroom houses but fewer than 70,000 one-bedroom social houses available), the bedroom tax is both immoral and unworkable. Labour's Helen Goodman has written movingly on The Staggers of her experience of living on £18 a week, the amount many of her constituents will be left with after the measure is introduced. The only "concession" we should accept is the full abandonment of the policy. But, at the very least, ministers must protect the disabled, who, more than any other group, will suffer the most from this cut. 

Work and Pensions Secretary Iain Duncan Smith arrives to attend the government's weekly cabinet meeting at Number 10 Downing Street. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Theresa May gambles that the EU will blink first

In her Brexit speech, the Prime Minister raised the stakes by declaring that "no deal for Britain is better than a bad deal for Britain". 

It was at Lancaster House in 1988 that Margaret Thatcher delivered a speech heralding British membership of the single market. Twenty eight years later, at the same venue, Theresa May confirmed the UK’s retreat.

As had been clear ever since her Brexit speech in October, May recognises that her primary objective of controlling immigration is incompatible with continued membership. Inside the single market, she noted, the UK would still have to accept free movement and the rulings of the European Court of Justice (ECJ). “It would to all intents and purposes mean not leaving the EU at all,” May surmised.

The Prime Minister also confirmed, as anticipated, that the UK would no longer remain a full member of the Customs Union. “We want to get out into the wider world, to trade and do business all around the globe,” May declared.

But she also recognises that a substantial proportion of this will continue to be with Europe (the destination for half of current UK exports). Her ambition, she declared, was “a new, comprehensive, bold and ambitious Free Trade Agreement”. May added that she wanted either “a completely new customs agreement” or associate membership of the Customs Union.

Though the Prime Minister has long ruled out free movement and the acceptance of ECJ jurisdiction, she has not pledged to end budget contributions. But in her speech she diminished this potential concession, warning that the days when the UK provided “vast” amounts were over.

Having signalled what she wanted to take from the EU, what did May have to give? She struck a notably more conciliatory tone, emphasising that it was “overwhelmingly and compellingly in Britain’s national interest that the EU should succeed”. The day after Donald Trump gleefully predicted the institution’s demise, her words were in marked contrast to those of the president-elect.

In an age of Isis and Russian revanchism, May also emphasised the UK’s “unique intelligence capabilities” which would help to keep “people in Europe safe from terrorism”. She added: “At a time when there is growing concern about European security, Britain’s servicemen and women, based in European countries including Estonia, Poland and Romania, will continue to do their duty. We are leaving the European Union, but we are not leaving Europe.”

The EU’s defining political objective is to ensure that others do not follow the UK out of the club. The rise of nationalists such as Marine Le Pen, Alternative für Deutschland and the Dutch Partij voor de Vrijheid (Party for Freedom) has made Europe less, rather than more, amenable to British demands. In this hazardous climate, the UK cannot be seen to enjoy a cost-free Brexit.

May’s wager is that the price will not be excessive. She warned that a “punitive deal that punishes Britain” would be “an act of calamitous self-harm”. But as Greece can testify, economic self-interest does not always trump politics.

Unlike David Cameron, however, who merely stated that he “ruled nothing out” during his EU renegotiation, May signalled that she was prepared to walk away. “No deal for Britain is better than a bad deal for Britain,” she declared. Such an outcome would prove economically calamitous for the UK, forcing it to accept punitively high tariffs. But in this face-off, May’s gamble is that Brussels will blink first.

George Eaton is political editor of the New Statesman.