Bedroom tax will cost taxpayers more, says Shelter Cymru

7 Mar 2013 source Wales Online

THE bedroom tax could force tenants in Wales into the private rented sector at a greater cost to taxpayers, housing charity Shelter Cymru warns today.

THE bedroom tax could force tenants in Wales into the private rented sector at a greater cost to taxpayers, housing charity Shelter Cymru warns today.

New rules on under-occupancy of social housing would cut the housing benefits of tenants with unused bedrooms.

But that could force many tenants to move to smaller properties in the private sector because of the chronic shortage of one-and two-bedroom social housing properties.

Figures published by the charity revealed ‘startling differences’ in rent levels, and the Local Housing Allowance rate for two-bedroom privately rented properties outstrip those for three-bed social housing.

In Gwynedd, an average three bedroom property rent is £71.85, while the allowance for a two-bed privately rented home is £87.69, some 22% more. In Rhyl, the difference is £81.25 compared to £103.85, or 28% more.

In Swansea, the allowance for a two-bedroom private property is 46% higher than the rent for a three-bedroom house in the social sector. In Cardiff the difference is 42%, and in Wrexham 37%.

John Puzey, director of Shelter Cymru, said: “These figures really highlight the absurdity of this policy. Not only will the bedroom tax result in massive stress and disruption for families and communities, it will end up costing the taxpayer more.”

Households that were previously in safe, long-term social tenancies would also have to face the insecurity of short-term private tenancies and an increased risk of homelessness.

“We have always argued that the bedroom tax just penalises social tenants for a situation that is generally beyond their control because there simply aren’t enough smaller properties into which they could downsize. Now we can see clearly that the policy makes no sense financially either.”

The charity called on the Welsh Government, social landlords and councils to act to minimise the worst effects and has put forward five proposals.

Social landlords should pledge that nobody will be evicted for Bedroom Tax arrears, it said. Local authorities should also ensure that anyone evicted for Bedroom Tax arrears should not be deemed intentionally homeless.

A DWP spokesperson said: “These claims ignore the fact that when someone moves into private rented accommodation, the social sector property they vacate can be moved into by someone else. Changes to housing benefit in the social sector will save the taxpayer around £500m a year.

“It’s only right that we return fairness to the system and ensure a better use of housing when there are millions of households on social housing waiting lists, and many tenants living in overcrowded conditions. We are providing councils in Wales with more than £6.1m this year to support people and vulnerable groups who might be affected by these changes.”