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

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Jeremy Corbyn fans are getting extremely angry at the wrong Michael Foster

He didn't try to block the Labour leader off a ballot. He's just against hunting with dogs. 

Michael Foster was a Labour MP for Worcester from 1997 to 2010, where he was best known for trying to ban hunting with dogs. After losing his seat to Tory Robin Walker, he settled back into private life.

He quietly worked for a charity, and then a trade association. That is, until his doppelganger tried to get Jeremy Corbyn struck off the ballot paper. 

The Labour donor Michael Foster challenged Labour's National Executive Committee's decision to let Corbyn automatically run for leadership in court. He lost his bid, and Corbyn supporters celebrated.

And some of the most jubilant decided to tell Foster where to go. 

Foster told The Staggers he had received aggressive tweets: "I have had my photograph in the online edition of The Sun with the story. I had to ring them up and suggest they take it down. It is quite a common name."

Indeed, Michael Foster is such a common name that there were two Labour MPs with that name between 1997 and 2010. The other was Michael Jabez Foster, MP for Hastings and Rye. 

One senior Labour MP rang the Worcester Michael Foster up this week, believing he was the donor. 

Foster explained: "When I said I wasn't him, then he began to talk about the time he spent in Hastings with me which was the other Michael Foster."

Having two Michael Fosters in Parliament at the same time (the donor Michael Foster was never an MP) could sometimes prove useful. 

Foster said: "When I took the bill forward to ban hunting, he used to get quite a few of my death threats.

"Once I paid his pension - it came out of my salary."

Foster has never met the donor Michael Foster. An Owen Smith supporter, he admits "part of me" would have been pleased if he had managed to block Corbyn from the ballot paper, but believes it could have caused problems down the line.

He does however have a warning for Corbyn supporters: "If Jeremy wins, a place like Worcester will never have a Labour MP.

"I say that having years of working in the constituency. And Worcester has to be won by Labour as part of that tranche of seats to enable it to form a government."