Welfare changes bring 'bedroom tax'

Feb 1 2012

Controversial changes to the welfare system amount to a "bedroom tax", a Scottish Government minister has said.

Keith Brown criticised plans to alter rules on under-occupancy, which he said will remove £54.4 million a year from the Scottish economy.

The UK Government's Welfare Reform Bill, being debated at Westminster, has already been scrutinised by the Lords.

Under the proposals, people who are judged to be "under occupying" their home by one bedroom will have their housing benefit reduced by 14%. Where they are under occupying by two or more bedrooms the deduction is 25%.

The Scottish Government said the new rules will mean that ill or disabled people, who use a spare bedroom for medical equipment, may be affected.

Mr Brown, the housing minister, said: "The UK Government's proposals amount to a bedroom tax that will remove £54.4 million annually from the Scottish economy piling untold misery on the lowest income families. The House of Lords has proposed a sensible, common-sense compromise, which I would urge the UK Government to accept."

Graeme Brown, director of housing charity Shelter Scotland, said: "At a time when Scotland doesn't have enough one bedroom homes to rehouse those affected, the refusal by the UK Government to grant exemptions where there is no suitable alternative is grossly unfair."

David Ogilvie, policy and strategy manager with the Scottish Federation of Housing Associations, said: "These proposals are short-sighted and fail to recognise that there is a chronic shortage of one-bedroom properties - 44% of working age housing association and co-operative tenants need a one-bedroom property but only 24% can get one.

"That's why we have written to all Scottish MPs reminding them of the devastating impact that this new measure will have upon 70,000 of Scotland's poorest households, many of whom are disabled or otherwise vulnerable."

The wide-ranging Bill aims to make a number of changes to areas such as disability allowances and housing benefit. The legislation would introduce a Universal Credit to replace existing means-tested benefits and tax credits from 2013.