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08/08/2013

Rent Arrears Increase Since Bedroom Tax Introduced

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Edinburgh Council has said the number of social housing tenants falling into debt arrears since the so-called 'bedroom tax' was introduced two months ago, has surged.

Figures released by the local authority reveal that the number of tenants with spare bedrooms who are unable to pay increased from 969 to 2,561 in the eight weeks following 1 April.

This means around 72% of those affected by the changes did not pay, following cuts made to their housing benefits. Tenants with one spare bedroom lost 14% of their payments, leaving them to make up the difference, while those with two spare bedrooms lost 25%.
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Around 3,560 of the 20,000 council homes in the city are affected by the benefits changes.

Council leaders said they hoped an increase in funding for Discretionary Housing Payments would temporarily ease the burden, but admitted there was no long-term solution to the problem.

Speaking to The Scotsman, Ricky Henderson, Edinburgh Council's Health, Social Care and Housing Leader said: "People who are unable to pay are incurring a substantial personal debt, which is going to stay with them until they pay it off.

"We have invested in advice services and we are offering Discretionary Housing Payments, but they are really only short-term and there is no permanent solution in sight."

The bedroom tax was introduced by Westminster to encourage social housing tenants with a spare bedroom to downsize, but many local authorities have argued that even if tenants wished to downsize, there are not enough one-bedroom homes to do so.

(JP/IT)

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