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'Millions' owed to Scottish councils in housing arrears 'Millions' owed to Scottish councils in housing arrears
(about 4 hours later)
Scottish councils believe they are owed more than £3m in rent arrears brought about by recent changes to housing benefit, according to BBC Scotland research. Scottish councils believe they are owed more than £3m in rent arrears brought about by recent changes to housing benefit, BBC Scotland has learned.
It is estimated about 80,000 tenants lost some of their benefit in April. Edinburgh City Council alone blames the withdrawal of the spare room subsidy, known by opponents as the bedroom tax, for £1.3m of arrears.
They were deemed to have a spare bedroom. It is estimated about 80,000 tenants across Scotland lost some of their housing benefit in April.
Several councils in central Scotland have spare room subsidy arrears which run into six or, in one case, seven figures. The reductions came because they were deemed to have a spare bedroom.
However, some also believe many of the people who have lost money may not have applied for help or may even be actively refusing to do so. However, some councils believe many of the people who have lost money may not have applied for help or may even be actively refusing to do so.
BBC Scotland obtained information from 18 Scottish councils which are also landlords about their current rent arrears and how much, if any, they believe may be the result of the withdrawal of what the UK government has called the spare room subsidy. The picture varies widely from council to council.
The changes to benefits have been dubbed the "bedroom tax" by opponents. North Lanarkshire Council - Scotland's largest council landlord - recently told BBC Scotland it had £675,000 of arrears which may be the result of the benefit changes.
The picture on arrears varies widely from council to council.
North Lanarkshire Council - Scotland's largest council landlord - had already told BBC Scotland it had £675,000 of arrears which may be the result of the benefit changes.
Information collated by BBC Scotland suggests many other urban councils in west central Scotland have also seen a comparable rise in arrears. Neighbouring South Lanarkshire estimates its figure is £425,000.Information collated by BBC Scotland suggests many other urban councils in west central Scotland have also seen a comparable rise in arrears. Neighbouring South Lanarkshire estimates its figure is £425,000.
However, several local authorities in other parts of Scotland could not say how much they were owed specifically because of the so-called "bedroom tax" or said it was a relatively small amount. Amongst the other councils with substantial arrears which they believe are the result of the benefit changes are Renfrewshire (£322,000), East Ayrshire (£232,000), North Ayrshire (£112,000) and West Dunbartonshire (£67,000).
For instance Perth and Kinross believes it is only owed £12,000 from tenants as a result of the withdrawal of the spare room subsidy and Shetland says it has no arrears at all as everyone affected received help. Glasgow and Inverclyde Councils are no longer landlords.
Discretionary help However, several local authorities in other parts of Scotland could not say how much they were owed specifically because of the benefit changes or said it was a relatively small amount.
Some councils believe some tenants with arrears have not applied for the special discretionary help which is available or may even be refusing to pay as a protest. For instance Perth and Kinross believes it is only owed £12,000 from tenants as a result of the withdrawal of the spare room subsidy. Meanwhile Moray's total is just £5,600 and Shetland says it has no bedroom tax arrears at all as everyone affected received help.
Some councils believe some tenants with bedroom tax arrears have not applied for the special discretionary help which is available or may even be refusing to pay as a protest.
The leader of North Lanarkshire Council Jim McCabe condemned the UK government's changes to housing benefit but urged people who have been affected to speak to the council to see if help could be provided.The leader of North Lanarkshire Council Jim McCabe condemned the UK government's changes to housing benefit but urged people who have been affected to speak to the council to see if help could be provided.
The council has nearly £1.2m available to hand out in these payments - £470,000 of it is from the UK government, the rest is from the council's own budget.The council has nearly £1.2m available to hand out in these payments - £470,000 of it is from the UK government, the rest is from the council's own budget.
So far it has paid out £350,000 in these payments to nearly 2,900 people.So far it has paid out £350,000 in these payments to nearly 2,900 people.
A spokesperson for the UK Department for Work and Pensions said: "Scotland has been given £10m this year to help vulnerable people and we are monitoring this spending carefully to ensure that tenants get the support they need during welfare reforms.A spokesperson for the UK Department for Work and Pensions said: "Scotland has been given £10m this year to help vulnerable people and we are monitoring this spending carefully to ensure that tenants get the support they need during welfare reforms.
"It is important to remember that housing benefit will still cover the vast majority of people's rent, but the taxpayer can no longer afford to pay for spare bedrooms."It is important to remember that housing benefit will still cover the vast majority of people's rent, but the taxpayer can no longer afford to pay for spare bedrooms.
"People have a number of options available to them, including moving to another property in the public or private sector, or making up the difference in rent through going into work or working more hours.""People have a number of options available to them, including moving to another property in the public or private sector, or making up the difference in rent through going into work or working more hours."
While every council which responded said they had seen a rise in both the number of people with arrears and the total value of rent arrears since the changes to benefit were made, they cautioned against presuming this was entirely the result of those changes.While every council which responded said they had seen a rise in both the number of people with arrears and the total value of rent arrears since the changes to benefit were made, they cautioned against presuming this was entirely the result of those changes.
Warning letters
Rent arrears can tend to fluctuate across the year. Some councils charge rent over 10 months rather than 12 but this means tenants with minor arrears can sometimes make up the difference during the months when they would otherwise have paid no rent.Rent arrears can tend to fluctuate across the year. Some councils charge rent over 10 months rather than 12 but this means tenants with minor arrears can sometimes make up the difference during the months when they would otherwise have paid no rent.
At the weekend, it emerged that South Ayrshire Council had sent letters to about 40 people with arrears warning them the council would take action against them or even re-possess their home. At the weekend, it emerged that South Ayrshire Council had sent letters to about 40 people with arrears warning them the council would take action against them or even re-possess their home. Overall it has £92,000 worth of bedroom tax arrears.
However, BBC Scotland understands these letters were all sent to people who had refused to engage with the council about their arrears or who had even wilfully refused to apply for help.However, BBC Scotland understands these letters were all sent to people who had refused to engage with the council about their arrears or who had even wilfully refused to apply for help.
South Ayrshire Council says it would not evict a tenant simply because of "bedroom tax" arrears as long as the tenant was working with the council to try to find a solution. South Ayrshire Council said it would not evict a tenant simply because of arrears caused by the changes as long as the tenant was working with the council to try to find a solution.
A spokesman said: "We pro-actively contacted 1,137 tenants who are affected by under-occupancy reduction in housing benefit.A spokesman said: "We pro-actively contacted 1,137 tenants who are affected by under-occupancy reduction in housing benefit.
"We have worked to assist our tenants in applying for Discretionary Housing Payments if they are in financial hardship."We have worked to assist our tenants in applying for Discretionary Housing Payments if they are in financial hardship.
"There may be some tenants who have failed to make contact or engage with the council, who will not have applied for discretionary housing payments and we would encourage them to contact us if this is the case.""There may be some tenants who have failed to make contact or engage with the council, who will not have applied for discretionary housing payments and we would encourage them to contact us if this is the case."