5 top tips to tackle the “bedroom tax”

It’s less than 3 weeks to go until thousands of people living in Wales with a “spare bedroom” have the help they receive with their housing costs cut, by between 14% and 25%.  As politicians and the media finally realise the massive financial as well as human cost of this most bizarre of policies, it nevertheless looks unlikely that the UK Government will change its mind.

There are actions that the Welsh Government could take to reduce the negative impact of the under-occupancy rule.

1.  Define what is a bedroom

Despite many requests, the originator of the bedroom tax, the Department for Work and Pensions, has not yet defined what counts as a “bedroom” – and just as importantly, what does not.  Without a definition, dining rooms or tiny box-rooms could all be deemed to be bedrooms.  Although any Welsh Government definition would not have any power, it could set a benchmark and encourage consistency amongst Welsh social landlords.

2. Increase the supply of small properties for rent.

There is a surplus of 3-bedroom socially-rented properties and a massive shortage of 1-bedroom homes. Welsh Government should encourage social landlords to adapt and re-designate existing properties so that they can be used flexibly, as well as encouraging new build of smaller properties. The “Houses into Homes” scheme could help with this, as could changes in planning policies to encourage for example use of premises above shops for housing.  Welsh Government could also encourage social landlords to establish common waiting lists in a locality so that a wider range of housing is available to tenants needing to down-size.

3. Cover short-falls in Housing Benefit

Discretionary Housing Payment allows local authorities who administer Housing Benefit discretion to make additional payments in certain circumstances. The funding available for DHP is to be increased – yet many local authorities, according to Shelter Cymru, do not make full use of the DHP available to them. Shelter’s paper on DHP can be found HERE.

Welsh Government should ensure authorities make the fullest possible use of DHP – perhaps also increasing the sum available – to reduce the need for disabled people and tenants who are within two years of being eligible for the accommodation they currently occupy (e.g. 2 years off retirement age or 2 years off a child’s 10th or 16th birthday) so that multiple home-moves are avoided.

4.    Make moving easier

For tenants who have to move to smaller properties, social landlords should allow under-occupiers with arrears to move into smaller properties provided there is a structured repayment plan. The Welsh Government to work with organisations such as Disability Wales and Tai Pawb to ensure that adaptions on for disabled people forced to move are prioritized.  Social Landlords should consider working with social enterprises to undertake removal services and provide recycled furniture and white goods.  They could also work closely with Credit Unions or Moneyline Cymru to establish an Affordable Loan Fund whereby tenants could access money that would meet the cost of transferring to new accommodation.

5.    Managing the short-fall

Where tenants are unable or unwilling to move to smaller properties, the Welsh Government and social landlords should help tenants to manage on a reduced amount of help with rent.  The Welsh Government should extend its funding to promote Credit Union budgeting accounts, raise awareness about the risks of pay-day loans.  When the worst does happen, the Welsh Government should encourage social landlords to adopt best practice in managing debt, and establish a “gold standard” for landlords to aspire to.   This should include establishing common “trigger points” for early intervention, using innovative methods to engage with tenants who are in arrears, such as texting immediately when rent is overdue.  Social Landlords need to establish more communication with Local Court User Groups, including feeding experiences/pressures into the court system to enable Judges to have a better understanding.

Sadly none of these actions will remove the misery that the new under-occupation rule will bring but they might go some way to mitigate its worst effects.

Cuts Watch Cymru’s recommendations on ‘Mitigating the Impact of Changes to Housing Benefit in Wales’ can be found HERE.

Victoria Winckler is Director of the Bevan Foundation