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Most tenants in arrears after housing benefit cut | Most tenants in arrears after housing benefit cut |
(34 minutes later) | |
Most tenants affected by a controversial housing benefit cut have been unable to pay all the additional rent, according to an official report. | Most tenants affected by a controversial housing benefit cut have been unable to pay all the additional rent, according to an official report. |
Some 59% of people - more than 300,000 - developed arrears within five months of the cut, analysis for the Department for Work and Pensions (DWP) found. | |
Researchers found widespread concern that those who had paid had borrowed or made cuts to other essentials. | Researchers found widespread concern that those who had paid had borrowed or made cuts to other essentials. |
The government said its reforms were tackling "welfare dependency". | The government said its reforms were tackling "welfare dependency". |
A DWP spokesman said figures showed that widely predicted homelessness and mass migration had not materialised. | |
The changes to housing benefit in England, Scotland and Wales - dubbed the "bedroom tax" by critics but described by ministers as the removal of a "spare room subsidy" - were introduced in April last year. | The changes to housing benefit in England, Scotland and Wales - dubbed the "bedroom tax" by critics but described by ministers as the removal of a "spare room subsidy" - were introduced in April last year. |
Social housing tenants found to have one spare bedroom have had their housing benefit reduced by 14%. Those with two or more spare bedrooms have had reductions of 25%. | Social housing tenants found to have one spare bedroom have had their housing benefit reduced by 14%. Those with two or more spare bedrooms have had reductions of 25%. |
'Promising start' | |
The analysis for the DWP found that while many tenants hit by the cut had wanted to move, they had been unable to do so owing to the lack of smaller properties. | The analysis for the DWP found that while many tenants hit by the cut had wanted to move, they had been unable to do so owing to the lack of smaller properties. |
While 19% of tenants had registered to downsize, just 4.5% had actually managed to do so within the first six months of the policy. | While 19% of tenants had registered to downsize, just 4.5% had actually managed to do so within the first six months of the policy. |
A government spokeswoman said this figure was a "promising start". | |
David Orr, chief executive of the National Housing Federation, which campaigns for affordable housing, said the government's policy remained "flawed". | |
He said: "Time and time again it has been shown that the bedroom tax is pushing people into rent arrears and people have been unable to downsize because of a lack of smaller properties. | |
"Now the figures from the DWP prove it is not working, surely now it is time for the government to admit they got it wrong and repeal this ill-thought policy." | |
Responding to the report, Work and Pensions Secretary Iain Duncan Smith said: "This department is delivering some of the biggest welfare reforms in over 60 years, designed to return fairness to the system and we are on track to make the £6bn savings we had previously set out. | Responding to the report, Work and Pensions Secretary Iain Duncan Smith said: "This department is delivering some of the biggest welfare reforms in over 60 years, designed to return fairness to the system and we are on track to make the £6bn savings we had previously set out. |
"At the same time we are helping to make sure our housing benefit reforms have a transformative effect on the lives of those who in the past were faced with a system which trapped people into cycles of workless and welfare dependency. | "At the same time we are helping to make sure our housing benefit reforms have a transformative effect on the lives of those who in the past were faced with a system which trapped people into cycles of workless and welfare dependency. |
"The scaremongering by those opposed to our welfare reforms - in particular our housing benefit reforms - has been proven to be without substance, and we are already seeing the effects of people moving into work." | "The scaremongering by those opposed to our welfare reforms - in particular our housing benefit reforms - has been proven to be without substance, and we are already seeing the effects of people moving into work." |