The Department for Work and Pensions has released its analysis of the impact of the bedroom tax, finding that 59% of tenants subject to bedroom tax are now in rent arrears because of it.
The review was released earlier this month and was based on a survey taken during April to November 2013. The DWP survey also found that only 4.5% of people were able to downsize during the same time frame in a bid to avoid the bedroom tax, due to the shortage of smaller properties available. In addition, 1,628 possessions proceedings cases were brought solely on bedroom tax arrears.
Joanne Ellis, partner and head of the Housing Law team at Stephensons Solicitors LLP, said: “The survey findings support what we have found from our own experience dealing with working age tenants in receipt of housing benefits on a daily basis – which is that they are less able to cope since the bedroom tax was implemented last year.
“This survey simply underpins ours and many others argument that the bedroom tax is not fit for purpose and is fuelling an increase in debt among already vulnerable people.”
Stephensons highlights that single people on benefits with no dependents are the main people affected by the bedroom tax. This is because they will only be in receipt of around £75 per week and may have to make a shortfall up of 14% or 25% which is typically around £13 - £24 per week.
The bedroom tax is also affecting people who were already behind in paying their rent before it was implemented, who will not form part of the 59% figure who are now in arrears because of the bedroom tax. This means they cannot move into a smaller property due to the policy of not being able to move while in arrears.
Joanne Ellis added: “Since the bedroom tax was implemented, tenant-related possession proceedings at our local court have almost doubled from 25 to 48 cases a month. It is very important for the tenant to attend the Court hearing because in their absence, the landlord will automatically be awarded a suspended possession order.
“If the tenant can attend, and make representations as to why they have fallen behind with their rent, then it is more likely that they will be able to make an agreement with the landlord. They may be eligible for Discretionary Housing Payments or have time to look at other means of increasing their income.”
Those who are affected by the bedroom tax and need legal assistance can call Stephensons on 0333 344 4772.
ENDS
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Media information: Lianne Tracey and Chloe Kendall
Stephensons Solicitors LLP
Tel: 0161 696 6229
Email: lct@stephensons.co.uk or cke@stephensons.co.uk