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The National Housing Federation ran a campaign against the ‘bedroom tax’ while the legislation was going through Parliament – but the government was blind to the concerns of this expert organisation.

By now you should know that you’ll be in financial trouble from April next year, if you receive housing benefit and the government decides you’ve got one or two too many bedrooms.

This applies to people who are working but on low pay, who must therefore claim housing benefit in order to keep a roof over their heads. This means it applies to 93 per cent of people who have claimed housing benefit since the Coalition government came to power (only seven per cent of claimants were unemployed).

It applies to separated parents who share the care of their children and who may have been allocated an extra bedroom to reflect this. Benefit rules mean that there must be a designated ‘main carer’ for children (who receives the extra benefit).

It applies to couples who use their ‘spare’ bedroom when recovering from an illness or operation.

It applies to foster carers, because foster children are not counted as part of the household for benefit purposes (this is particularly evil, in my view).

It applies to parents whose children visit but are not part of the household -although housholds where there is a room kept for a student studying away from home will not be deemed to be under-occupying if the student is away for less than 52 weeks (under housing benefit) or six months (under Universal Credit). Students are exempt from non-dependant deductions, but full-time students will not be exempt from the Housing Cost Contribution (HCC) which replaces non-dependent deductions under Universal Credit (more on this elsewhere in the article). Students over 21 will face a contribution in the region of £15 per week.

It applies to families with disabled children; and

It applies to disabled people, including those living in adapted or specially designed properties (again, this is evil, as it could mean these people will be required to leave that home for another one, with the added expense of having to re-install all the special adaptations).

Pensioners will not be affected – unless they are part of a couple and the partner is below pension age, after Universal Credit is introduced.

The size criteria that will be applied means housing benefit wil be restricted to allow for one bedroom for each person or couple living as part of the household. However:

Children under 16, who are either both boys or both girls, will be expected to share. This will undoubtedly create many family feuds as puberty is not known for its calming effect on young people.

Children under 10 will be expected to share, regardless of gender. Again, this will create problems for families. It is not a normal situation and it seems bizarre for the government to suggest that it should be.

On the ‘plus’ side, a disabled tenant or partner who needs a non-resident overnight carer will be allowed an extra bedroom for that carer.   If you have a ‘spare’ bedroom under the new rules, you will lose 14 per cent of your housing benefit; for two or more extra bedrooms, you’ll lose a quarter of your benefit. According to the government’s impact assessment, this means 660,000 people will lose an average of £14 per week (£16 for housing association tenants).

Now for the complications.

After Universal Credit is brought in, if only one member of a couple is over pension age, the bedroom tax will apply to the household. If one is receiving Pension Credit, they will be unaffected.

There are currently six different rates of ‘non-dependent deductions’ – amounts removed from housing benefit according to the earnings of people aged over 18 who live in a household but are not dependent on the tenant for financial support. This will become one flat-rate ‘housing cost contribution’ that will be deducted from housing benefit. It will not apply to anyone aged under 21.

Under UC, each adult non-dependent will get their own room, but each must pay the full, flat-rate housing cost contribution – unless aged under 21 and therefore exempt.

Under UC, lodgers will not get a room allowance but any income is disregarded. They will not count as occupying a room under size criteria rules. Currently any income is taken into account and deducted pound for pound from benefit, apart from the first £20. As this income is completely disregarded under UC, my best guess is that the government expects this amount to cover any loss in both housing benefit and Universal Credit. I have a doubt about that. Taking in a lodger will also affect home contents insurance policies, potentially invalidating them or raising the premiums.

Bedroom tax will not apply in joint tenancy cases.

Until UC comes in, benefits will be protected for up to 52 weeks after death; afterwards the run-on will be three months.

And until UC comes in, tenants will receive 13 weeks’ protection where they could previously afford the rent and housing benefit has not been claimed in the previous year; afterwards, the size criteria will apply immediately.   Pre-1989 tenancies are not exempt from the bedroom tax.

Those are the facts relating to this particular benefit change. There are others which will also affect your ability to keep your home, but – concentrating on this for a moment – you’re probably already screaming “What does it MEAN?” in frustration at your screen.

If you’re on a low income, aged over 40 with children who have left home, or disabled, you could be not only slightly but severely and unfairly affected. It seems likely you will have to choose to either pay the extra amount, or move. It seems likely that I will be in this category, so be assured that I sympathise completely with everyone else in the same situation.

And there will be many, many people who are. Surveys say around a third of tenants will try to move, mainly to one-bedroom properties. This is far more than the government has anticipated in its planning.

Here’s where things get suspicious: There is a national shortage of one bedroom council and housing association homes, meaning many tenants will have no choice but to move into the more expensive private sector or stay put – even though they will not be able to afford the extra costs.

The majority will stay put, but nearly eight-tenths (80 per cent) of those are worried about going into debt, with two-fifths (40 per cent) fearing they will accumulate rent arrears.

The evidence shows that, whether you move or stay put, landlords will lose income, which in turn means evictions and homelessness will increase. This is my belief. We will see a lot of people going homeless at the same time as a lot of houses go empty.

In fact, homelessness is already on the rise – as it always is under a Conservative government. According to the National Housing Federation – the umbrella organisation for housing associations in England – there has been a leap of nearly 50 per cent in the number of families forced into B&Bs. Between January and March this year, they totalled 3,960, compared with 2,750 during the same period in 2011. That number will escalate under the new legislation.

Any fool can see that this is madness. The logical choice has to be that people, who would otherwise go homeless, should be housed in buildings that would otherwise go empty.

But we are under the heel of a government that has little to do with sanity. The sane choice – in order to keep housing benefit payments down – is to cap rents at a particular, affordable, level. This way, landlords receive a steady amount of money, tenants keep their homes, and housing benefit remains manageable. But the government cannot tolerate this as it is deemed to be unwarranted interference in the market. Never mind the fact that the market could collapse if enough homes go empty! The idea is that the steady drive to increase rents will attract people rich enough to afford them. Again, one wonders where these people are and how they will be able to pay. Also, every price bubble eventually pops, so sooner or later – again – we’ll have a lot of homeless people on the streets while buildings go empty and (eventually) derelict.

Am I painting a depressing picture? Let’s add to the misery by reminding you that housing benefit is being withdrawn for everybody aged under 25. The assumption is that they will return to the family home if they can’t afford their rent – but that is a big assumption. There may be reasons they cannot do so (I’m sure you can imagine some for yourself). what do they do then? Housing benefit itself is being capped. And then there is the Localism Act and its effect on Council Tax payments. From responses to my previous article about the so-called ‘Pickles Poll Tax’, you will be able to see that some councils will add as much as 30 per cent of the council tax bill to the costs of those tenants who currently receive full council tax benefit, regardless of whether they can afford to pay. And has anybody said anything recently about the plan to cap all benefits at £500-per-week-per-household?

If you want to call on the government to axe the bedroom tax, there is an e-petition against it: http://epetitions.direct.gov.uk/petitions/33438

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