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Bedroom tax will hit Salford poorest hardest, warns report





Posted by guest on 9th December 2011 at 01:14 PM
Bedroom tax will hit Salford poorest hardest, warns report
by Mark Bright

The poorest families in Salford will be hit hardest by plans to fine tenants who live in homes too large for their needs, new research has warned.

The National Housing Federation, which represents housing associations, has cautioned that the government's 'bedroom tax' could cost social tenants in Salford up to £942 per year.

The government is planning up to 25% cuts to household housing benefit by 2013, if a family is deemed to be 'under-occupying' their home.

A family living in a three-bedroom home in Salford faces losing up to £18 per week of their housing benefit – or £942 per year.

Such a household would be forced to choose between going into debt, struggling to meet payments by cutting back on essentials, or trying to move – even if no suitable alternative properties are available.

The government has previously estimated that 120,000 families across the North West will lose an average of £624 per year under the new social sector “size criteria”.

But analysis by the National Housing Federation shows for the first time the true extent of the cuts faced by many families.

Under the new size criteria, a family may be penalised for
“under-occupying” even where every bedroom in the home is in regular use. For example, separated parents will be penalised for keeping a “spare” bedroom for when their children visit. And foster parents will receive a cut even where their bedrooms are occupied by foster children, who for benefit purposes do not count as part of the household.

Under the current system, social landlords allocate families a home based on an assessment of their needs.

Anyone deemed to be under-occupying by one bedroom stands to lose up to 15% of their housing benefit and those considered to have two or more “spare” bedrooms – even if they are in use – will lose up to 25% of their benefit.

Two-thirds of those affected are disabled, the Department for Work and Pensions has admitted.

Federation analysis, using new figures from the Department for
Communities and Local Government, shows that the average social sector rent for three-bedroom properties in Salford is £72. This means affected families face losing between £11 and £18 per week – or between £565 and £942 per year.

The under-occupation penalty, part of the Welfare Reform Bill, will hit 670,000 working-age families across Great Britain when it comes into force in April 2013.


Jon Longden, lead manager for the North West for the National Housing Federation, said: “We have been deeply concerned about this bedroom tax for some time but these new figures show the damage will be far worse than previously thought.

“Hard-up families in Salford will face huge penalties simply because the government have deemed their homes are suddenly too big for their needs."

The Bill will go through the Report Stage in the House of Lords on December 12th.

The National Housing Federation is calling on local residents to petition and lobby their MP to call for a change to the Bill.

For example, the government could make the rules more flexible, to allow one additional bedroom above that permitted by the proposed criteria.

Mr Longden added: “In the vast majority of cases, people will simply not be able to make up the shortfall themselves and could end up being sucked into poverty and spiralling levels of debt.”


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