When the bedroom tax was first introduced, lots of housing charities were up in arms. They said that the controversial tax would cause enormous hardship to vulnerable families living in rental accommodation. Anyone in receipt of Housing Benefit who had a spare room would be affected by the changes and some families stood to lose up to £100 per week from their Housing Benefit, which is a not inconsiderable amount in these tough times.
Benefits Claimants Back to Work
The whole point of the so-called Bedroom Tax was to give people an incentive to go back to work. Well in this instance it seems to have worked because according to the Daily Mail today, a recent survey undertaken by a Tory councillor has revealed that 11% of benefits claimants in areas governed by a Tory council have stopped claiming benefits.
Work Really Does Pay
Instead of enjoying a lifestyle funded by the state, these people have taken the decision that work really does pay. However, there does appear to be a wide variance across different areas of the UK. For example, in Tower Hamlets, London, 32% of Housing Benefit claimants came off benefits whereas in Liverpool only 2.5% decided to look for work.
Labour Pledges to Reintroduce the Subsidy
So despite the claims from housing charities and the opposition, it would appear that a lot of hard up families have chosen to get a job rather than lose their more spacious rented home. But if Labour comes back into power, they have pledged to reintroduce subsidy (although how they intend to fund this remains unclear).
Landlords – let us know if the bedroom tax has affected you and your tenants!
