Housing association speaks out over Bedroom Tax

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advice, advise, arrears, association, bedroom tax, benefit, benefit cap, change, chief executive, Coalition, Conservative, council housing, county council, County Times, cumulative, effect, evict, eviction, final, general dispensation, giant evils, hard work, housing, illegal, Labour, landlord, Mid Wales, motion, no eviction, policy, political statement, poverty, Powys, Reform, regressive, rent, reward, sanction, social, support, tenant, Tories, Tory, ultimate sanction, vulnerable, want, welfare state, William Beveridge, wow petition

It seems the chief executive of a local housing association has taken issue with yr obdt srvt over the Bedroom Tax.

Shane Perkins, of Mid Wales Housing, wrote to the Powys-based County Times after I used that paper to expose an illegal action by the county council’s ruling group, aimed at preventing discussing of a motion for the council to adopt a ‘no-eviction’ policy.

The motion asked the council not to evict tenants who fail to pay their rent because of the Bedroom Tax. Councillors who are also private landlords were forbidden from speaking or voting on the motion as they stand to benefit if social housing tenants are forced to seek accommodation with them as a result of the vindictive policy, and this meant 30 councillors had to leave the chamber.

Members of the ruling group, realising there was a real possibility of the motion being carried, then claimed that any councillors who are social housing tenants should also be barred from taking part – a move that is against the law (to the best of my knowledge). My understanding is that a ‘general dispensation’ allows councillors who are council tenants to take part in debates on, and vote on, matters relating to council housing.

Mr Perkins, writing in the paper’s December 20 edition, suggests that it is almost impossible to establish whether or not a tenant has fallen into rent arrears solely as a consequence of the “pernicious” (his word) Bedroom Tax, and claims that the motion was “a meaningless ‘political’ statement”.

He makes the point that it may be possible to apply the policy where the tenant has never previously been in rent arrears, but this would be unfair on other tenants who are similarly affected now but had fallen into arrears for other reasons in the past. He asks why tenants who struggle to meet their rent payments should not receive a financial subsidy or reward for being a good and conscientious tenant; and also points out that the cumulative effect of other regressive changes to benefits is also likely to affect the rent payments of vulnerable people and, to be consistent, Labour’s motion should encompass them also.

He says all social landlords, including the council, will seek to advise and support tenants who are in financial difficulty, but “in the final analysis, if a tenant fails to pay their rent, the ultimate sanction has got to be eviction.

“To do otherwise would be irresponsible, as ultimately the cost of one tenant not paying their rent is borne by all those tenants that do pay, and spiralling arrears will ultimately affect the viability of the council’s housing, which will serve none of its tenants.”

It would be easy to pick holes in his arguments. The whole point of government policy is to make sure that nobody gets a penny more than the Conservative-led Coalition decides they should have – and this government wants to drive people into poverty – so there will be no rewards for hard work. The Labour Party, and non-political groups, has campaigned ceaselessly to force the government into assessing the cumulative impact of its changes to the benefit system, but the government has refused all such calls, knowing as it does that such research would reveal the monstrous truth about its attack on the poorest in society.

If Mr Perkins is really interested, then he should encourage his own MP to support the call for such an assessment in the debate on the ‘WoW’ Petition, due to take place in the House of Commons in the New Year. I helped write that document, which calls for (among other things) “a cumulative impact assessment of welfare reform”. Labour is supporting the motion. I would suggest, therefore, that any criticism of Labour for making a “meaningless ‘political’ statement” is unfounded.

As for the difference between tenants affected by the Bedroom Tax who have never been in arrears before, and those affected by it who have – this should be something a social landlord can track, especially if they are actively seeking to “advise and support” tenants. This support should include examination of a tenants income and outgoings, before and after the Tax was imposed.

The simple fact is that Mr Perkins would move offending tenants into smaller houses if he had any, but he doesn’t. He would not be talking about eviction if he did. He never built them and we must conclude that he never saw the need. Perhaps he believed that the welfare state would continue to support his tenants.

William Beveridge, the architect of that system, in the report that bears his name, said the British government should fight what he called the “giant evils” of society, including Want.

How could Beveridge know that, 70 years later, the British government would be actively increasing Want, wherever it could. That is what the Bedroom Tax, and the benefit cap, and all the other cuts brought in by this spiteful Conservative-led Coalition are about.

These measures are crimes against the citizens of this country – citizens who have paid into the State, generation after generation since the 1940s, believing that it would look after them if the spectre of Want cast its shadow at their door.

Mr Perkins describes the changes as “pernicious”, but if he allows a single tenant to be evicted then he will be a willing accomplice.

That is what he is saying when he tells us he is prepared to use this “final sanction”.

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GDP figures due – will Gideon have anything to show for his austerity idiocy?

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Triple-dip breakfast: Will we all be dining on the sour cereal of recession again, when GDP figures are published on Thursday morning?

Thursday will be another ‘crunch’ day for our part-time Chancellor of the Exchequer – he’s having quite a lot of those lately, isn’t he?

Only last week, the academic justification for his austerity policy was disproven by an American student (oh, the shame!), and then his former allies at the International Monetary Fund distanced themselves from him (oh, the betrayal!) saying he should calm down a bit.

That’s the best advice this columnist has ever heard the IMF provide; if not for his own health, then for the nation’s.

Thursday, though, is a really big day. On Thursday, GDP figures for the first quarter of 2013 will be published.

It is a sign of how low expectations have fallen, that all the economic commentators are saying the best we can expect is to have kept out of a triple-dip recession – with falls in output due to the weather, among other things, making that unprecedented outcome more likely.

There is a problem with all of these predictions, which should be obvious to those of us living in the real world: Short-termism.

It’s all about how the UK managed in the last quarter, how it will manage in the next; what the situation is today. What about six months from now? What about next year? What about 2015, when we’re all expecting an election and the chance to banish this nightmare? What about 2017-18, when 0sborne still reckons he’ll have eliminated the budget deficit (fat chance)?

The fact is that the only options open to a Chancellor in the current climate are unpalatable to the Boy.

He could boost investment in infrastructure, in a bid to make this country a better place to open – and carry out – business. The trouble is, this tends to be a long-term project and he no longer has the time. His chances would have been better if he had started this in 2010, but his government cancelled as many such projects as they could back then, claiming it was more important to cut public spending in order to balance the books.

That was a vain hope. Without new investment, the country has lost revenue.

But if that is unpalatable, the other alternative is likely to make him choke on his pate de foie gras (or whatever it is these posh boys ingest): Increase the spending power of the poor.

It is known that the ‘trickle-down effect’ is a myth – giving all of a country’s money to the very rich, in the belief that they will spend it, boosting the economy and the income of the poor, is nonsense. What they actually do is bank it – in offshore tax havens, most likely. That is what 0sborne has been doing; it is another reason the economy has bombed.

It is also a rock-solid fact that poor people do spend their money – or as much as they can get their hands on. When you are constantly struggling to make ends meet, it’s very hard to keep cash in the bank – you have to spend it on food, clothes, rent, heat, light, water… the list is endless, because it constantly repeats.

When you don’t have much cash, as Edmund Blackadder once said, you feel like a pelican. Everywhere you turn, there’s a large bill in front of you.

That money does work for society. It reinvigorates the economy as it filters through different hands. And it brings with it the extra joy of fiscal multipliers – every pound that gets put into the economy is worth more after it has been through.

The trouble is, Gideon shut off that money supply. He raised VAT, making it harder for working-class people and those on benefits to buy certain economy-boosting products, and then he and Iain Duncan Smith spent the last few years on their project to depress wages.

(For clarity, it goes like this: The DWP makes the benefit system so difficult to navigate that people in receipt have to do their utmost to get off-benefit as soon as possible. This means they are constantly looking for jobs, which in turn makes it possible for employers to refuse pay rises for their workforce, with the classic line that “there are plenty of other people who’d be happy to have your job, you know!” You didn’t really think the benefit cap was about making work pay, did you?)

Say what you like about Labour, but they’ve got the right idea when it comes to the money supply. Ed Balls wants to cut VAT; he wants to bring back the 10 per cent tax rate for the lowest-paid; he wants to bring in a National Insurance holiday for companies that agree to take on new employees.

These are measures that will help.

What is Gideon going to do?