Peers urged to find new exemption to 'bedroom tax'

Published by Ross Macmillan for 24dash.com in Housing and also in Central Government, Communities, Local Government

Controversial plans to cut the housing benefit of tenants living in homes with 'spare rooms' returns to the House of Lords next Tuesday.

MPs have overturned an amendment - voted for by peers in the House of Lords - to exempt those with only one spare room where suitable accommodation is unavailable.

Ministers have reinstated the original proposals winning a House of Commons vote by 310 to 268 last week.

It forms one of several measures in the Welfare Reform Bill that have been reinstated by MPs, including the £26,000-a-year benefit cap - which includes child benefit.

Under Parliamentary rules, peers won't be able to table the same amendment next week - which found favour in December.

It's understood ministers will use a rule known as "financial privilege"  which will prevent peers from tabling an amendment that negatively impacts on the Government's cost savings.

The Government hopes to save £490 million from the £23 billion annual housing benefit bill from the measure.

As the plans now stand, 670,000 social tenants - two-thirds containing a disabled family member - face losing an average of £13 per week because they are deemed to have one or more additional bedrooms.

According to the Government's own impact analysis 530,000 claimants with one spare room - nearly 80% of all those affected -  will see housing benefit cuts of £11 a week on average.

A source said: "Peers need to get their ducks in a row to overcome this issue."