Society urges tenants to prepare for new tax
Albyn Housing Society is urging affected tenants to seek advice about the UK Government’s impending ‘Bedroom Tax’ which will see Housing Benefit awards reduced from April 2013.
Under new rules targeting working-age tenants with extra bedrooms, Housing Benefit will be slashed by 14% if the claimant has one extra bedroom and by 25% if their home has two or more extra bedrooms.
Currently, more than 300 Albyn Housing Society tenants face Housing Benefit cuts, although only around 100 tenants are currently seeking larger homes due to overcrowding.
Calum Macaulay, chief executive of Albyn Housing Society said: “These changes to Housing Benefit will have a significant impact on social housing tenants across the Highlands, where the number of properties deemed ‘under occupied’ by the Bill far exceeds the demand for larger properties by almost three to one.
“Many of our tenants will be unable to pay the shortfall, leading to an increase in rent arrears. This will affect our ability to meet local needs as well as our business planning as 95% of our running costs are met through rental income.
“We are also gravely concerned the shortage of smaller properties in the Highlands means entire communities will be financially penalised, with no option to move into smaller accommodation.
“We are working really hard to ensure our tenants are up to date with the changes and are well informed of the options available to them.
“We are also collaborating with The Highland Council and other partner organisations to help tenants best manage their finances, ensure they are getting all the benefits they are entitled to and promote access to training and support if they are currently unemployed.”
The Welfare reform changes will allow households one bedroom for each adult or couple. It expects two children under the age of 10, and two same-sexed children under the age of 16 to share a room.
This is the case even for those affected by ill health or disability unless there is a regular need for an overnight carer or sharing is considered ‘unreasonable’.
The changes will also not permit additional bedrooms for foster children as they are not considered part of the claimant’s household when assessing need.
Isabell McLaughlin, Chair of Albyn Housing Society Board and Vice-Chair of Milton Tenants Forum in Inverness, added: “It is very concerning to learn many tenants still don’t realise the ‘Bedroom Tax’ is not only going ahead, it is going affect them directly.
“In Milton alone, around 30 households face a cut in their Housing Benefit entitlement. There aren’t enough smaller properties in the community for them to move to, so where are they going to go?”
For more information please contact Di Norris, tenancy sustainment team leader at diane.norris@albynhousing.org.uk or by calling 01463 701279.
