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Third 'behind on rent' since changes

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One in three 'behind on rent' since housing benefit changes

One in three council tenants affected by a recent cut to housing benefit has fallen behind on rent since the policy took effect, figures suggest.

The TUC's False Economy campaign made Freedom of Information requests to all of Britain's councils; 114 responded.

Data revealed 50,000 tenants had fallen into arrears since 1 April 2013 when the spare room subsidy was scrapped - a move critics called the bedroom tax.

The government said the figures did not represent "long-term" changes.

The policy was introduced to reduce the housing benefit bill and free up homes for families living in overcrowded conditions.

It means that housing benefit was cut to tenants in a council or housing association property who are deemed to have bedrooms they do not need.

The Department of Work and Pensions said the policy is in its early stages and it was "carefully monitoring the policy nationally, ensuring the extra funds to support vulnerable tenants are used well as these changes are introduced".

False Economy's report is the biggest study of the effects of the benefit change carried out so far.

None of the 50,000 tenants were in arrears prior to the benefit changes.

'Only get worse'

The council with the greatest percentage of tenants who had fallen behind was Barrow in north-west England. Of the 289 tenants there affected by the cut, 219 have not been able to pay rent since the policy came into effect.

False Economy campaign manager Clifford Singer said the figures show that, along with other benefit cuts, the benefit change is "driving tenants and families who were just making ends meet into arrears".

He predicted that tenants could struggle even more if council payments designed to help the most in need stop.

''The worst part is that these figures have been collated while councils' emergency Discretionary Housing Payments are still available; they are being used up at record speed and when they run out, these figures will only get worse," Mr Singer said.

The National Housing Federation has also carried out a survey looking at the numbers of tenants in arrears.

It found that a quarter of households affected by the cut have fallen behind in their rent for the first time ever - 11,000 out of 44,000 households were in arrears according to data given by 38 of England's housing associations.

The National Housing Federation's Chief Executive David Orr, called the figures "damning".

"What more evidence 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," he said.

'Have to lump it'

One of the central criticisms of the policy is that there are not enough one or two bedroom homes for people to move into.

The National Housing Federation estimated in March that although 180,000 households were under-occupying two bedroom social homes, only 85,000 one-bed social homes became available in 2011-2012.

It is one of the reasons why Tony Wilson, a former civil servant who worked on housing policy, thinks that rent arrears could become the new normal in social housing.

Now head of policy at Centre for Economic and Social Inclusion, he said that research shows most tenants are unlikely to move out of their homes - instead they will deal with the cuts.

"Essentially people either reduce what they spend, or they find work. The problem is that even where people are looking for work, they're not finding it.

"I think, going forward, this is going to be a permanent problem for social landlords and for Local Authorities, of increasing rent arrears. To some extent, they're going to have to put up with that, they're going to have to lump it.''

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None of the 50,000 tenants were in arrears prior to the benefit changes.

This part sticks out to me, I bet some of these people have never been in any debt in their life and now due to these stupid changes are left owing money that they can't afford to pay.

I would say a repeal is on the cards, for those on a fixed income like benefits it proves that they are not as some think raking it in.
As well as the extra bedroom tax this year there is also the £125 fixed contribution to council tax to find also, I would think this too has been impossible to budget for for some.
This must be most unwelcome for those local councils in deprived areas as they have in effect been cut adrift with these changes, services will begin to be affected as the reduction of support from central government will take it's toll.
I really am at a loss to understand why they didn't envisage this happening?
What is being offered as a solution, cardboard city?...

It is going to get worse and this is before the eviction processes get going too so a lot more negative publicity to come on this issue.

A ridiculous policy that I still feel will contribute negatively to the chances of this Govt. getting in again.

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Originally Posted by Kizzy (Post 6386534)

And what do the councils do when people don't pay their council tax? That's right. Fine them. Throw them into even more debt and then spend more money taking them to court. I think it's also stupid that parents with kids of a certain age have to downsize as they can share but will have to up size again in a year or two. In fact I watched a programme a few months ago when a couple got a council house as they were expecting a baby. When the house was signed over to them the baby was still not due for 9 days so they had to pay bedroom tax as it was under occupied. I bet the admin work involved cost more. Ridiculous.

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Originally Posted by Josy (Post 6386510)

http://www.bbc.co.uk/news/business-24149763

When are they going to realise that this 'Bedroom Tax' just isn't ever going to work?

They don't have and never will have enough smaller houses to downsize everyone that needs it, leaving all these people in rent arrears that are only going to keep building up is just ridiculous.

This part sticks out to me, I bet some of these people have never been in any debt in their life and now due to these stupid changes are left owing money that they can't afford to pay.

Bedroom Tax is they to make back some of the money the gov have wasted on thing that don't work

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Originally Posted by michael21 (Post 6386579)

Bedroom Tax is they to make back some of the money the gov have wasted on thing that don't work

Is it.

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Originally Posted by Mrluvaluva (Post 6386559)

Exactly, it's this bureaucracy that's at fault, it's so very obviously slap dash you would have thought it was dreamed up by GCSE students not economists and ministers...

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Originally Posted by Josy (Post 6386583)

Is it.

well there trying to get the uk out of debt sadly this wont happen in out life time

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Originally Posted by michael21 (Post 6386590)

well there trying to get the uk out of debt sadly this wont happen in out life time

Yeah and having 50,000 people now in arrears with bedroom tax is really helping isn't it.

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Originally Posted by Josy (Post 6386593)

Yeah and having 50,000 people now in arrears with bedroom tax is really helping isn't it.

i did not say it was helping or a good idea did i

but the 50,000 is extra money that is coming in but the bad news is the gov will probably blow it all on something stupid

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Originally Posted by michael21 (Post 6386598)

i did not say it was helping or a good idea did i

but the 50,000 is extra money that is coming in but the bad news is the gov will probably blow it all on something stupid

It isn't extra money because it's not being paid, people can't afford it.

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Originally Posted by Josy (Post 6386599)

It isn't extra money because it's not being paid, people can't afford it.

lol that not how it work all money own will have to be paid at some point you cant just say oh Mr and Mrs itdoesrntmatterwhattherenameis have not paid there rent for 3 month never mind let just let them of :bored:

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Originally Posted by michael21 (Post 6386603)

They can't pay it if they don't have it which then means they could end up being evicted unless the bedroom tax is scrapped.

Which is basically the entire point of the article and the OP....

They do it all the time write rents off.....

I can see that under occupancy, when some people are living in overcrowded conditions, does need looking at. But bloody hell... what a ridiculous way to go about it. You can't ask people to downsize when there are no smaller properties available. You don't have to be a genius to see that, so why are these people with their expensive educations not able to grasp it?

Since they came to power the Tories have lurched from one crisis to the next, making ridiculous decision after ridiculour decision. Even their own supporters are turning against them. There was a not-so-secret meeting a few weeks ago (that Cabinet members were politely requested not to attend), where the possibility of ousting Cameron was discussed. They need to get rid of him, and Osborne, and everyone else who has not the first *******ing clue what real life is like. They have a year and a half to the next General Election. If they're going to stand any chance at all of doing well then they need a complete reversal of 80% of things they've implemented since they took over. It's got harder and harder to try to justify, professionally, the decisions they make. Thank God I don't have to do it for much longer.

The housing association that operates in my area have been reassigning rooms in some of their houses :p Basically small second bedrooms have been altered to utility rooms, plumbed in for washing machines and stuff.

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Originally Posted by Josy (Post 6386605)

They can't pay it if they don't have it which then means they could end up being evicted unless the bedroom tax is scrapped.

Which is basically the entire point of the article and the OP....

well we don't no how much money each household has coming in and i not joking but some could be making money from drug dealing there not going to declare it are they

Stuff like this is why the Colonies started a revolution

this tax will be scrapped along with the single benefit payment scheme.
the world encourages debt by handing out credit cards to people that can afford to pay them.

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Originally Posted by BBfanUSA (Post 6386675)

Stuff like this is why the Colonies started a revolution

In what way is what is happening here similar to what provoked revolution then?

I wonder how much is down to the tenants now receiving the money to pay their rents instead of it going directly to the landlords.

I am surprised the amount of people in arrears is so low tbh. You can't magic money from nowhere lie people are expected to do. Especially when they CANT downsize as the smaller places arent there :bored:

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Originally Posted by smudgie (Post 6386691)

I wonder how much is down to the tenants now receiving the money to pay their rents instead of it going directly to the landlords.

That doesnt happen yet. Thats when universal credit starts.

Thank god i have a one bedroom flat then. :hugesmile:

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Originally Posted by Vicky. (Post 6386708)

That doesnt happen yet. Thats when universal credit starts.

That's going to be a huge strain on some people, those in debt will skyrocket!