Friday, August 30, 2013

Bedroom tax could cause Christmas homelessness crisis, Plaid warn


Landlord possession claims and court orders issued after the introduction of the tax in April saw double digit rises in the three months to June

Welsh families are being driven out of their homes by the UK Government’s bedroom tax, Plaid Cymru has said, as official figures show an increase in the number of houses repossessed by landlords since the controversial levy was introduced.

Landlord possession claims and court orders issued after the introduction of the tax in April saw double digit rises in the three months to June. Possession claims by landlords climbed by 11% and court orders rose by 16%, according to Ministry of Justice data.

Up to 78% of the claims came from the sector affected by the bedroom tax – the social housing sector, which includes council and housing association owned properties.

But statisticians stress the possession action figures are not a concrete guide to how many homes have been repossessed as not all court orders result in repossessions. Also repossessions can occur without a court order being made.

But Plaid Cymru’s Housing and Regeneration spokesperson Jocelyn Davies warned the tax could bring devastation to many families by Christmas as their savings are used up and they face bigger heating and energy costs.

She said: “I am extremely concerned that by Christmas we are going to be at crisis levels. Just how bad does it have to get before the Westminster Government realises the devastation their policies are inflicting upon the poorest in society?”

Ms Davies called on the Welsh Government to mitigate the impact of the tax through a policy of no evictions for those who find themselves in financial difficulties as a result of it.

The bedroom tax, imposed on working age social housing tenants, sees a 14% reduction in rent payments for those with one spare room and 25% for two. UK Secretary of State for Work and Pensions Iain Duncan Smith has said it is unfair to expect taxpayers to subsidise people to have homes with spare rooms they do not need. Critics suggest there is not enough social housing to move them all to smaller accommodation.
John Puzey, director of homelessness charity Shelter Cymru, said the bedroom tax is causing “huge stress and disruption for families and communities across Wales”.

Mr Puzey said tenants who have their benefit cut for a spare bedroom in social housing would get the full costs covered of smaller accommodation in the private sector, even though the rent is almost always higher. He added: “However, we know that many social tenants are going to try to struggle on, cutting back on food or heating in order to try to make up the difference.

“But even this isn’t enough as these increases in repossessions and court orders suggest and, unfortunately, we are likely to see many more tenants facing the risk of losing their family home.”

A Welsh Government spokesman said around 40,000 households in Wales are worse off since the introduction of the bedroom tax and councils are suggesting more people than ever are applying for emergency help to pay the rent. Up to £750,000 is being offered by the Welsh Government for advice, landlord liaison and face-to-face contact with tenants having problems meeting their housing costs.

“We are committed to doing all we can to find ways of helping tenants to mitigate the effects of this damaging policy,” the spokesman said.

By Darren Devine in ‘Wales Online’, 29th August 2013. Read the rest of this article here: http://www.walesonline.co.uk/news/wales-news/bedroom-tax-could-cause-christmas-5799195