Why Labour will consign the Bedroom Tax to the dustbin of history

For the vast majority of those affected, there is nowhere smaller to move to, leaving vulnerable people hit with extra costs through no fault of their own.

We Britons are proud of our national characteristics. Others might see them as foibles but we see them as qualities – doughtiness, support of the underdog, keeping a cool head in sticky situations. But our greatest quality is a sense of fair play. That’s the reason why the British people get so angry about the Bedroom Tax.

The Bedroom Tax is cruel and unfair. For those in social housing whom the government thinks have an extra room, it means paying up or moving house. But for the vast majority of those affected, there is nowhere smaller to move to, leaving vulnerable people hit with extra costs through no fault of their own. In my city of Edinburgh, vacant one bedroom flats are attracting over 200 applications each week.  The average family will lose £720 a year.

Families are facing a cost of living crisis. They’ve seen prices raise faster than wages for the last three years. They are on average £1,500 worse off under this government than under the last Labour government. This is something David Cameron and his out of touch ministers just can’t get their heads around. Even worse the Bedroom Tax hits over 400,000 disabled people hard. It's not just Labour politicians or campaigners who don’t like it, housing experts across the board condemn it. The Chief Executive of the National Housing Federation has described the policy as "an unfair, ill-planned disaster that is hurting our poorest families."

So it hurts people, but surely you’d think, at least it will bring in some extra revenue to the Treasury and help bring down this government’s borrowing? Well, you’d be wrong. It’s becoming more and more apparent that the Bedroom Tax could cost more money than it saves. The National Housing Federation have said the savings claimed by the government are "highly questionable", partly because those forced to move to the private rented sector will end up costing more in Housing Benefit. Housing Associations say that tens of millions are likely to be lost through the build up of arrears. And the National Audit Office have said that the government’s costing does not take account of the full scale of potential impacts and does not include the additional costs faced by local authorities.

Ed Miliband is crystal clear. The next Labour government will repeal the unfair and cruel Bedroom Tax. So how can this be funded? We need to do this by following our principles – a One Nation approach. David Cameron has cut tax for those who earn over £150,000 a year while raising it for everyone else. A classic example of him standing up for the wrong people.

We’ve been clear that we can’t borrow more to pay for social security changes. And we’ll take tough choices where necessary, including cutting Winter Fuel Payments for the wealthiest pensioners, and not reversing the cuts to child benefit for those on the highest incomes. But we’ll fund this change by getting rid of George Osborne’s tax loopholes, including the extraordinary tax cut for hedge funds announced in the 2013 Budget. We will also reverse his shares for rights schemem, which has been rejected by businesses and has, according to the Office for Budget Responsibility, opened up a tax loophole of up to £1bn. And we’ll tackle tax scams in the construction industry. These changes will fully fund the cost of repealing the Bedroom Tax.

This is about taking a One Nation approach to deliver and run an economy that works in the interests of all the people, not just a narrow minority.
The Bedroom Tax is cruel, unjust, uneconomical and offends our sense of natural justice. The next Labour government will consign it to the dustbin of history.

Sheila Gilmore is Labour MP for Edinburgh East

Demonstrators hold placards as they gather to protest against the bedroom tax outside the High Court. Photograph: Getty Images.

Sheila Gilmore is Labour MP for Edinburgh East

Julia Rampen
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Donald Trump's inauguration marks the start of the progressive fightback

Opponents to Donald Trump and Brexit are reaching across the Atlantic. But can they catch up with the alt-right? 

In the icy lemon sunshine of 20 January 2017, a group of protestors lined London’s Millennium Bridge, drumming. Two scarf-clad organisers held placards that spelt “Open Hearts”. 

Protesting the inauguration of Donald Trump as the 45th US President might seem like a waste of time when you could spend the day under the covers instead. But the protestors were upbeat. Sophie Dyer, a part-time student and graphic designer I met on the bridge, told me her group were “trying to avoid mentioning his name”. 

When I asked her what had catalysed her interest in political activism, she said: “Everything. 2016.”

One of the trademarks of the times is the way the alt-right learnt from each other, from Donald Trump crowning himself “Mr Brexit”, to France’s Marine Le Pen sipping coffee at Trump Towers. Now, progressives are trying to do the same. 

The protestors were part of the Bridges Not Walls protests. Ten hours before I stepped onto the Millennium Bridge, New Zealand activists had already got started. As the sun rose over Europe, banners unfurled from bridges in Dubai, France, Spain, Sweden and Norway. In the UK, there were also protests in other cities including Edinburgh and Oxford.

The demonstrations are about Trump – the name is a direct rebuke to his pledge to build a wall on the southern border – but they are no less about Brexit, or, as environmental campaigner Annabelle Acton-Boyd put it, “right-wing populist movements”. 

Acton-Boyd said she had come to show solidarity with American friends who opposed Trump.

But she added: “It is about coming together supporting each other geographically, and across different [political and social] movements.” 

In the election post-mortem, one of the questions confronting progressives is whether voters and activists were too focused on their own issues to see the bigger picture. This varies from controversial debates over the role of identity politics, to the simpler fact that thousands of voters in the rustbelt who might have otherwise helped Clinton opted for the Green candidate Jill Stein.

But while Bridges Not Walls paid homage to different causes - LGBTQ rights were represented on one bridge, climate change on an other - each  remained part of the whole. The UK Green Party used the event to launch a “Citizens of the World” campaign aimed at resettling more child refugees. 

Meanwhile, Trump and his European allies are moving fast to redefine normal. Already, media critics are being blocked from presidential press conferences, divisive appointments have been made and the intelligence authorities undermined. 

As US opponents of Trump can learn from those in the UK resisting a hard Brexit, resisting this kind of right-wing populism comes at a cost, whether that is personal infamy a la Gina Miller, or the many hours spent dusting off books on constitutional law. 

The question for transatlantic progressives, though, is whether they are prepared to leave the morning sunshine for the less glamorous elbow grease of opposition – the late night email exchanges, the unpaid blog posts, the ability to compromise - that will be needed to bend the arc of history back towards justice. 

 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.