Today provides further evidence that the bedroom tax is proving one of the coalition’s most pernicious policies. A survey by the National Housing Federation of 51 housing associations has found that more than half of those residents affected by the measure (32,432 people), fell into rent arrears between April (when the policy was introduced) 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 benefit.
David Orr, the chief executive of the National Housing Federation, said at its annual conference today:
“This is the most damning evidence yet to show that the bedroom tax is pushing thousands of families into a spiralling cycle of debt.
“If these figures are replicated nationwide, over 330,000 households could already be struggling to pay their rent and facing a frightening and uncertain future.
“What’s more, people can’t even move to smaller homes to avoid the bedroom tax because there aren’t enough smaller properties out there. Housing associations are working flat-out to help their tenants cope with the changes, but they can’t magic one-bedroom houses out of thin air. People are trapped.
“What more proof do politicians need that the bedroom tax is an unfair, ill-planned disaster that is hurting our poorest families? There is no other option but to repeal.”
These appalling figures prove once and for all that while this government stands up for a privileged few, a debt bombshell is exploding for a generation of people. While the nation’s millionaires get a huge tax cut, thousands more now confront arrears and eviction from which they’ll never recover. This is final proof as if we needed it, that the hated tax must be dropped and dropped now.