Bedroom Tax non-payment levels soar

Tory minister Ian Duncan Smith has brazenly claimed his Bedroom Tax (a housing benefit cut for under occupancy of “spare bedrooms”) is a success. But the majority of Scottish councils have reported a significant increase in rent arrears since the cuts to housing benefit began in April. A CoSLA (the Scottish local authority umbrella body) survey shows debts increasing in the month of April by £2 million on 2012.

The survey shows widespread non – payment of the Bedroom Tax. Three quarters of councils reported rises in rent arrears. Four out of five local authorities report collecting 50% or less in rent due from tenants affected by the benefit cut, three in five report that they have collected as little as 40%.

Can’t Pay

It’s clear that the Bedroom Tax is simply unaffordable for tenants and increasingly local authorities and Housing Associations. CoSLA has stated that the Bedroom Tax will result in arrears of £25 million a year for local authorities. Non – payment of the Bedroom Tax in Dundee has already cost the council £250,000 since April, with arrears rising at £21,000 a week.

Housing Associations who are the biggest social landlords in areas like Glasgow face the same situation. A June survey by the Scottish Federation of Housing Associations showed similar increases in arrears. The Glasgow Evening Times has revealed that more than two thirds of tenants in Blairtumnock Housing Association in Easterhouse are in arrears, with 101 out of 146 Bedroom Tax affected tenants owing rent payments.

For non – payment levels to be this high after only a few months of the Bedroom Tax being introduced shows that those affected cannot afford to pay but also that there is widespread defiance in areas where there are strong local campaigns. The impact of the Scottish Anti-Bedroom Tax Federation that is organising and supporting people is significant. The non- payment levels should also be seen in the context of the harassment coming from local authorities and housing associations who have inundated tenants with letters threatening eviction.

Discretionary Housing Payments

The desperate situation faced by tenants is shown by Scottish councils being inundated with appeals for discretionary housing benefit -a short term means tested payment. 22,000 local authority tenants had put in applications, up until the end of May (four times the number received in April/May 2012). However many applicants for the emergency benefit (which is set at different levels depending on individual circumstances and only lasts for six months) will be refused. According to the Public Finance website CoSLA expect that a maximum of 44% of applicants will get access to payments. What is also clear is that councils don’t have the staff to cope with the numbers applying for DHP, with applications taking weeks and months to be processed.

The CoSLA survey shows that £2million of the £10 million assistance from the DWP has been spent by councils in Scotland. Even when the £10 million is distributed it will only cover 15 pence in every £1 cut from the housing benefit of the 105,000 households affected in Scotland.

No let-up in the campaign

Social landlords, SNP and Labour politicians are coming under huge pressure to take non implementation measures and protect tenants. The Scottish Anti Bedroom Tax Federation has organised successful lively well attended lobbies and pickets of MSP’s and councillors who have found their surgeries and constituency offices becoming post boxes and burning sites for harassment letters. The pressure has resulted in the SNP being forced to refer the Govan Law Centre petition (calling on the Scottish government to amend the housing act to prevent evictions) to the Scottish Parliament Welfare Committee.

The Labour council in Renfrewshire have reclassified some of its stock as “one bedroom”. Housing Associations such as East Lothian have also taken the decision to protect some of its tenants from the cost of the bedroom tax, although this is at the discretion of the management and has been worked out as a cheaper alternative to chasing rent arrears.

Councils and the Scottish Government must act now

These measures are not enough. The Scottish Government, Councils and Housing Associations need to realise that those affected by the Bedroom Tax and the wider working class communities will not accept the burden of this Tory cut, they can take immediate measures to defend tenants from eviction, the cost of the bedroom tax and write off debt from arrears. Socialist Party Scotland calls on the SNP Scottish Government to amend section 16 of the housing act to prevent evictions.

The SNP government should use the £179 million budget underspend and other reserves to protect tenants from the cost of the Bedroom Tax and fight for the money back from the Con Dem’s in Westminster. Councils and housing associations should use their borrowing powers and reserves to protect tenants, increase funding for emergency payments and reclassify properties; they should campaign with tenants, trade unions and communities for an end to cuts and increased funding for public services.

What your council and the Scottish Government could do:

• Scottish Government and Councils must refuse to allow the Bedroom Tax to pass by providing the £60 million a year to cover for the cuts to housing benefit.
• In 2012/13 the Scottish Government underspend was £179 million. Enough to write off the bedroom tax for the next three years
• Scottish Government must change the Housing Act Scotland to rule out evictions for Bedroom Tax.
• Write off all debt due to Bedroom Tax
• Stand up to the ConDem’s and refuse to make cuts to benefits, jobs and public services.　

Socialist Party Scotland is supporting the standing of candidates that will refuse to make the cuts. If Labour and SNP politicians won’t fight the ConDem’s, we need our own anti-cuts, trade union and socialist candidates that will. Over the last few years we have worked with others to offer an electoral alternative to the parties of cuts by standing as part of the Trade Unionist and Socialist Coalition, Scottish Anti-Cuts Coalition and Solidarity. With the Miliband-led Labour Party pledging to continue with the cuts, and the SNP doing the same in Scotland, we need an alternative as a step to a new mass workers party.