The bedroom tax is having a devastating impact in one of the poorest areas of the country and is failing to achieve the Government’s ambition of freeing up extra social housing, a new report has revealed.
Less than 100 days into the policy’s implementation, thousands of families in Merseyside are spiralling into debt for the first time and are facing an impossible dilemma – to pay the bedroom tax and face financial hardship, or to try to downsize despite there being a huge local shortfall in smaller homes.
Based on new figures collected by the National Housing Federation from 18 housing associations across Merseyside that collectively own more than 130,000 properties in the area, The Bedroom Tax in Merseyside: 100 days on has revealed that:
- During the first four weeks of the bedroom tax coming into force more than 14,000 Merseyside households fell into arrears with their rent. For nearly 6,000 it was the first time they had ever spiralled into rental debt.
- Nearly 26,500 households in Merseyside are being impacted by the bedroom tax yet due to a shortage of smaller homes only 155 managed to downsize into housing association properties in April 2013.
- More than £22 million which could be used to build desperately needed new homes across Merseyside will be lost this financial year as a result of the financial impact on housing associations of the bedroom tax.
David Orr, Chief Executive of the National Housing Federation, said: “Housing associations warned the Government from the start that the bedroom tax would not work and that families would face financial hardship and struggle to make ends meet.
“The fact is there aren’t enough smaller social homes in Merseyside for people to avoid the bedroom tax even if they wanted to move. If they rented in the private sector, where costs are higher, this would more than likely increase the benefit bill – which raises questions on why they have been asked to move in the first place. The reality is that many people will stay in their homes and will be forced to live on less money in a country where living costs and utility bills are rising.
“The bedroom tax is hurting the most vulnerable people in Merseyside. It is time to face the facts and repeal this unfair policy now.”
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