Research reveals the real cost of the bedroom tax

Published by Roisin Rowley-Smith for Riverside in Housing and also in Central Government, Communities

Research reveals the real cost of the bedroom tax

Social landlord Riverside is continuing to pressure MPs to give up the bedroom tax and cites new research by the Housing Futures Network (HNF), a collection of leading housing groups, to support its case.

The research, carried out for Riverside in Wirral’s Tranmere and Rock Ferry neighbourhood, found that one in four tenants would be affected by housing benefit cuts, if they are of working age and  deemed to be under occupying their home by just one bedroom.  This is in accordance with very strict criteria to be introduced by the Department of Work and Pensions. 

The cuts would not only affect tenants, but could have an impact on the local economy, which stands to lose £65,000 per annum just from Riverside tenants.  For all social housing tenants affected in the area, the annual local economic impact could be as much as £400,000 per year.

Despite the House of Lords voting against the proposal to cut benefits for those of working age deemed to be under-occupying their homes, the proposal returns to the House of Commons this week.

For those facing the benefits cuts, the research suggests:

• around a third of tenants will seek to move, although the restricted availability of one bed properties means very limited opportunity
• those seeking a private rented home would face a rent increase and a similar increase in housing benefit
• those who stay put will have to cope with reduced income levels – nearly 30% of weekly disposable income for single job-seekers, causing significant hardship for people already coping in a low-income community
• residents suggest harsh choices will be made between paying their rent and basic necessities
• increased rent arrears and bad debts will lead to higher levels of eviction, with a combined cost to Riverside of £287,000, equivalent to 39% of its annual budget for local repairs and maintenance.
• residents value the flexibility of having a spare room, often used to support normal family life, allowing teenage children to have separate bedrooms, separated parents to have regular access to their children, and couples with health issues to sleep apart.

Hugh Owen, Riverside’s director of policy and communication, said:  “This research paints a broader picture of the effect of the bedroom tax and how it will impact on communities.  Tranmere and Rock Ferry is a deprived neighbourhood, which has suffered due to the decline in ship building and manufacturing industries.  It has recently undergone a successful programme of housing led regeneration, but there are still not enough one bedroom houses to meet demand.  Under these proposals we would be unable to downsize retired tenants to more suitable accommodation, as we would have to concentrate on working age tenants who wish to move.

It would take us six years to downsize our own tenants to our available one bedroom properties, without even considering new applications for housing. In the mean time they would face crippling cuts to their income.”

Similar research was carried out in London, Sunderland and Lancashire as part of the HFN campaign to urge the government to change their plans to ensure that tenants with a single spare bedroom do not face cuts to their benefit.