Miliband pledges that a Labour government will scrap the bedroom tax

Labour leader announces: "We’ll scrap the bedroom tax by abolishing the shady schemes of tax loopholes for the privileged few which the Tories keep inventing."

Last month, I revealed that one of Labour's "policy goodies" for conference was likely to be a pledge to scrap the bedroom tax - and Ed Miliband hasn't disappointed.

The party has announced tonight that a Labour government will repeal the measure, which has already forced around half of those tenants affected into rent arrears, a quarter of those for the first time ever. Significantly, rather than merely another policy that Labour would enact "were it in government now", this is a manifesto commitment. 

The National Housing Federation and the National Audit Office have predicted that the measure could end up costing more than it saves by forcing social housing tenants into the more expensive private sector (due to the lack of one-bedroom council properties available) and by increasing rent arrears (which deprives councils of revenue). But in order to demonstrate their commitment to fiscal discipline, Miliband and Ed Balls have still outlined how they will raise the £470m the Treasury claims the measure will save this year.

Labour has said it will: 

- Reverse the £150m tax cut for hedge funds announced in the 2013 Budget.

- Abolish George Osborne's "shares for rights" scheme, which businesses have been using to avoid capital gains tax (shares sold at a profit are exempt) and which the OBR has forecast could cost up to £1bn. 

- Prevent construction firms avoiding tax by falsely listing workers as self-employed. 

Miliband will say tomorrow: 

One Nation Labour is meeting here in Brighton talking about the most important issue facing families in Britain: the cost of living crisis.

Under David Cameron life is getting harder and harder with prices rising faster than wages in 38 of the 39 months that he has been in Downing Street. And working people are an average of almost £1,500 a year worse off under his government.

But we have a Tory-led Government which listens only to a privileged few. Tax cuts for millionaires and tax breaks for hedge funds.

I am leading a different Labour Party, a One Nation Labour Party, which listens to and will stand up for ordinary families like that of Danielle Heard, who I met this week.

We’ll fight for her like she has fought cancer heroically for 14 years. She is disabled and battling cancer again. But now her family must pay £80 a month they can’t afford under this government’s hated bedroom tax.

The bedroom tax – not what the Tories call the spare room subsidy – the bedroom tax: a symbol of an out of touch, uncaring Tory government that stands up for the privileged few – but never for you.

So we will scrap that tax. And what’s more I can tell you how.

We’ll scrap the bedroom tax by abolishing the shady schemes of tax loopholes for the privileged few which the Tories keep inventing. Tax cuts for hedge funds, the billion pound black hole created with a scheme for workers to sell their rights for shares, and by tackling scams which cheat the taxpayer in construction.

That’s what a One Nation Labour government will do. That’s a party that will fight for you.

The Tories will respond by arguing that Labour has abandoned its commitment to fiscal responsibility and returned to its old spending ways. But unlike on other issues, such as the benefit cap, they find themselves on the wrong side of public opinion. A ComRes poll published today by the National Housing Federation (NHF) found that 59% of the public believe the policy should be abandoned, up from 51% when it was introduced in April. Four-fifths of Labour supporters (79%) favour its repeal, along with 65% of Lib Dems and 34% of Tories. 

And one doesn't have to look far for evidence why. As I noted, a survey by the NHF of 51 housing associations found that more than half of those residents affected by the measure (32,432 people), fell into rent arrears between April and June, a quarter of those for the first time ever. 

Ministers have defended the policy, which reduces housing benefit by 14% for those deemed to have one 'spare room" and by 25% for those with two or more, on the basis that it will encourage families to downsize to more "appropriately sized" accommodation. But they have ignored (or at least pretended to ignore) the lack of one bedroom houses available. In England, there are 180,000 social tenants "under-occupying" two bedroom houses but just 85,000 one bedroom properties available to move to. Rather than reducing overcrowding, the policy has largely become another welfare cut, further squeezing families already hit by the benefit cap, the 1% limit on benefit and tax credit increases (a real-terms cut) and the 10% reduction in council tax support. 

The measure is also coming under increasing fire from the Lib Dems. Shirley Williams described it as "a big mistake" at the party's conference and delegates passed a motion calling for "an immediate evaluation of the impact of the policy, establishing the extent to which larger homes are freed up, money saved, costs of implementation, the impact on vulnerable tenants, and the impact on the private rented sector." It also called for "a redrafting of clear housing needs guidelines in association with those representing vulnerable groups including the disabled, elderly and children." 

Whether or not the coalition eventually goes as far as scrapping the measure, to prevent Labour surfing a wave of public outrage, it is hard to see it surviving in its current form. 

Ed Miliband speaks at the TUC conference at the Bournemouth International Centre on September 10, 2013. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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It's time the SNP's terrible record in government was exposed

Do not expect the SNP to apologise for these failings anytime soon. They do not really need to, so successful have they have been in creating a new paradigm in Scottish politics.

The only suspense in Scotland’s elections lies in who comes second. So complete is the Scottish National Party’s dominance that the Scottish Conservatives’ manifesto is called ‘A Programme for Opposition’, summing up a campaign in which the Tories and Labour scrap for second while the SNP waltz to victory.

Nicola Sturgeon says it is a matter of when, not if, there is another referendum on Scottish independence; should the UK vote to leave the EU in June, the SNP is likely to push for another independence vote. But all the debates over constitutional questions miss a bigger point: Scotland already has one of the most powerful devolved administrations in the entire world. The SNP has ruled in Holyrood for nine years, and had a majority for the last five. Yet the SNP’s record, particularly for the most disadvantaged in society whom it claims to speak for, is dire.

Let’s begin with higher education. This, after all, is the area in which the SNP are proudest. Five years ago, Alex Salmond declared: “The rocks will melt with the sun before I allow tuition fees to be imposed on Scotland’s students.” He was so enamoured with the SNP’s policy of maintaining free tuition north of the River Tweed that he unveiled them on a commemorative stone at Heriot-Watt University on his last day as First Minister in 2014.

Scotland is by far the worst country in the UK to be a disadvantaged student. The richest Scottish students are 3.53 times more likely to enter university at age 18 via UCAS than the poorest ones, compared with 2.58 in Northern Ireland, 2.56 in Wales and 2.52 in England. Fewer than one in ten young people from the most disadvantaged areas begin to study towards a degree by the age of 20. And the problems are actually getting worse: just 8.4 per cent of entrants to Scotland’s elite universities came from the poorest communities in 2014/15, down from 8.8 per cent the previous year.

Rather than being beneficiaries of free university tuition, poor Scots have actually been victims of it. Protecting Scottish students from university tuition fees has resulted in a £20 million transfer from disadvantaged students to middle-class ones, according to the policy analyst Lucy Hunter Blackburn. Free tuition has been funded by cutting student grants. And, for all Sturgeon’s disingenuous rhetoric that she would not have been able to afford university with the tuition fees south of the border, protecting Scottish students from tuition fees has been funded by loading debts onto the poorest Scottish students. There is an iron law in Scottish universities: poorest kids graduate with the most debt. Students from households earning less than £34,000 typically graduate with between £4,000 to £5,000 more debt than those from families earning more.

The situation in primary and secondary schools is little better. The Scottish Survey of Literacy and Numeracy shows standards of reading, writing and numeracy for 13-14-year-olds all declining since 2011. As if that wasn’t bad enough, the biggest decrease in both writing and numeracy attainment aged 13-14 has been among disadvantaged students.

Educational inequality cripples Scotland from an early age. At the age of five, the vocabulary of the poorest quintile of students is 13 months behind the richest quintile in Scotland. Poor children aged five perform worse than those in England; the gap in cognitive development between children from less well-off backgrounds and others is also bigger in Scotland. Disadvantaged children are the real victims of the SNP’s failure to make good on its pledge, in 2007, to reduce average class sizes in primary schools to 18; they are now 23.3. And this, in turn, can be traced back to the political choice to prioritise spending on free tuition fees over other areas that would help disadvantaged children far more. Between 2010 and 2013, school spending in Scotland fell by five per cent in real terms from 2010 to 2013 while, in England, it rose by three per cent in real terms between 2010 and 2015. Perhaps that explains why, after Easter, 17 schools in Edinburgh  remained closed because of safety concerns, leaving pupils to be taught in other schools and temporary classrooms instead.

The SNP is not only failing Scots in schools and universities. The number of working age adults living in absolute poverty (after housing costs) rose by 80,000 between 2010/11 and 2013/14; the number of children living in absolute poverty also rose by 30,000, and the number of pensioners by 20,000. Pockets of crippling intergenerational deprivation remain too frequent in Scotland: life expectancy in Glasgow is a year lower than in any other part of the UK. Indeed, life expectancy across Scotland is almost two years younger than the rest of the UK, even though Scotland has the highest health expenditure per head of any UK country.

It is a microcosm of wider problems with NHS Scotland. The SNP’s targets for waiting times for hospital admission have been repeatedly missed, including its “guarantee” of a 12-week maximum wait for planned treatment for inpatients. Patients are more likely to have to wait over 31 days for cancer treatment in Scotland than England, and the percentage waiting so long in Scotland has been rising since 2014. There are also grave health inequalities: those in most deprived areas are 2.4 times more likely to have a heart attack than those in the most affluent areas.

Yet perhaps the most shameful part of Scotland’s health record lies in mental health. Patients are 8 per cent more likely to have to wait over 18 weeks for psychological therapy based treatment than in England. Since July 2014, NHS Scotland has also repeatedly missed its targets on children’s mental health.

Do not expect the SNP to apologise for these failings anytime soon. And they do not really need to, so successful have they have been in creating a new paradigm in Scottish politics, in which the independence debate is the only game in town. But none of this should obscure the truth that the SNP have been in government, and with huge power, for nine years. They have floundered - and underprivileged Scots have been the biggest victims of all.

Tim Wigmore is a contributing writer to the New Statesman and the author of Second XI: Cricket In Its Outposts.