Council looks at care-home conversions to soften 'bedroom tax' blow

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

A Stoke-on-Trent councillor says the local authority is going to have to look at converting care homes and unwanted city council buildings into one and two-bed accommodation as a result of the Government's under-occupation penalties which come in next year.

From next April, council and housing association tenants face cuts in their housing benefit if they have spare rooms. The move is part of the Government's plan to reduce the benefit bill, bring the social sector more inline with the private rented sector and free up larger homes for families on the waiting list.

Some 660,000 working age tenants are expected to be hit by the measure, losing some £14 a week on average.

In a bid to protect rental income and help tenants sustain their tenancies most landlords are looking at incentive schemes for tenants to downsize.

However, the Government has admitted in its own impact assessment that there is a stock mismatch across the country, with not enough smaller homes for people to move into.

According to figures highlighted by local paper, the Sentinel, 27,000 residents claim housing benefit in the city and a further 17,000 in North Staffordshire. Estimates show 33 per cent of claimants will be hit by the charges.

Janine Bridges, cabinet member for housing, neighbourhoods, and community safety at Stoke-on-Trent City Council, told the paper that there weren't enough smaller homes for people to downsize into. 

She said: "We don't have enough one and two-bedroomed properties to house people if they decide they want to downsize.

"Social landlords are also frightened and have serious concerns.

"It will impact on our budget as we have to make provision for our tenants if that's what they want and we just do not have the housing stock.

"We're going to have to look at care homes and other buildings being converted into one and two-bedroomed accommodation. We can't build houses fast enough."

Speaking last month at the Chartered Institute of Housing conference in Manchester, the Government's welfare reform minister, Lord Freud defended the reforms.

He said: "We've got a great shortage of housing across this country and it doesn't make sense for the Government to go on and basically provide a benefit system which is blind to that situation. What we're doing is effectively bringing into line a proposition to social housing tenants which is - we'll pay for the housing you need, and if it's beyond that it's up to you. Either adjust your circumstances or find more income, bring in a lodger, you must make a judgement. We're bringing social housing in line with the private sector in that way. The housing benefit bill has been going up very substantially."