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Bedroom tax condemns homes to demolition because they are too expensive for families

10 Sunday Nov 2013

Posted by Mike Sivier in Bedroom Tax, Benefits, Conservative Party, Cost of living, council tax, Housing, Labour Party, Liberal Democrats, People, Politics, Poverty, tax credits, UK

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The obvious solution: The government should be helping build new social housing - not forcing the demolition of what little there is.

The obvious solution: The government should be helping build new social housing – not forcing the demolition of what little there is.

If the government really wants to make larger social accommodation available to overcrowded families, why are housing associations knocking them down?

They have to go because the Bedroom Tax has made them too expensive, according to The Guardian.

The story, published yesterday, is another nail in the coffin of Iain Duncan Smith’s credibility. It doesn’t matter how many polls the Conservatives produce to support their claim that people agree with them; in practice, it simply doesn’t work.

Housing associations are finding three-bedroomed properties impossible to maintain. They cannot let them out, sell them or keep up with the costs of keeping them while they are empty.

All of this has serious implications for the Coalition government that voted the Bedroom Tax onto the statute books as part of Mr ‘Returned To Unit’ Smith’s hugely unpopular – and now proving to be unworkable – Welfare Reform Act last year.

On Tuesday, MPs will debate the future of the Tax, when Labour members are expected to vote for its immediate repeal. Senior Liberal Democrats are also believed to have doubts – The Guardian (again) has quoted Danny Alexander’s father as saying it is “particularly unfair”.

Labour’s Rachel Reeves has overcome a shaky start in her role as shadow Work and Pensions Secretary to get right on-message with this. According to The Guardian report, she said: “This incompetent and out of touch government seems oblivious to the perverse and costly consequences of this unjust and unworkable policy.

“Not only is it hitting 660,000 vulnerable households, including 440,000 disabled people; the costs to the taxpayer are mounting as people are pushed into more expensive private rented accommodation while existing social homes are left vacant.”

Of course, Dear Reader, she’s right. You read it here first – all the way back in October last year.

Surely it makes more sense to have someone living in these properties, rather than losing them altogether? Does the government have an answer for this?

Apparently not. A government spokes-robot trotted out the same tired nonsense we’ve all come to despise: “The removal of the spare room subsidy is a necessary reform that will return fairness to housing benefit. We’ve been clear that hardworking people should not be subsidising tenants living in properties that are too large for their requirements.”

Let’s all remember that there never was a spare room subsidy for the government to remove. It never existed. Therefore its removal is not a necessary reform; it can never be vital to remove something that is fictional. Also, the removal of a fictional thing cannot restore fairness anywhere.

Hard-working people probably shouldn’t be subsidising tenants who are under-occupying, but then hard-working people were never the only ones paying for this to happen. Everybody in the UK pays taxes one way or another – even children.

And while we’re on the subject of what hard-working people subsidise, why is it bad for them to help people stay in the social housing that was originally allocated to them, but good for them to help massive corporations keep their payroll costs down by paying tax credits, housing benefit and council tax reduction costs for people earning less than the Living Wage? Why is it good for them to pay the cost of MPs’ energy bills as well as their own?

“Consent from the Homes and Communities Agency is required before any social housing provider can dispose of a site on which social housing stood and will ensure that public investment and the needs of tenants are protected,” the robot continued, but we should all know that this will be no obstacle.

Demolition of social housing means land becomes available for private developers to build new, luxury homes for the very rich.

That’s where the big money is.

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