PowerPoint Presentation

The Welfare Reform Act 2012 makes changes to the rules concerning a number of benefits offered within the British social security system.[changes to housing benefit came into force on 1 April 2013. These changes include an "under-occupancy penalty" this reduces the amount of benefit paid to claimants if they are deemed to have too much living space in the property they are renting.

Government Goals/aims The government aim is to provide a fairer approach to the way housing costs are paid in order to:help bring stability to the housing market andimprove incentives for people to find workor increase their hours

Goals of this government policy continued to save 500m on the housing benefits billto solve the problem of overcrowding by freeing up "under-occupied" social properties for families on the waiting list.Since April 2013The bedroom size limit rule or bedroom tax restricts the size of accommodation you can receive housing benefit or universal credit for based on the number of people in your household

Local Housing Allowance Size Criteriaone bedroom for: an adult couple (married or unmarried) where at least one partner is working ageany other adult aged 16 or overany two children of the same sex aged under 16any two children aged under 10any other child (other than a foster child or child whose main home is elsewhere)

Where a property is under occupied the eligible rent is reduced by14 per cent if under occupied by one room and25 per cent if under occupied by two rooms or more.

Social Impact of this Change ever-decreasing incomes, debt rent arrearsChoice of eating or paying rent Food BanksStress/Illness/mental healthDisabled people and the poor disproportionally affected

Has this policy been successful financially?numbers currently affected lower than initial government estimates. A Department for Work and Pensions impact assessment in June 2012 estimated affect660,000 households, saving 480 million in 2013/14 DWP revealed in reality November 498,174 claimants were affected by the policy, a saving of 373 million, 107 million less than expected.

People wishing to downsize finding no smaller houses availablePensioners are most likely to have spare rooms, but the government has exempted them from the bedroom tax.

Other considerationsthe costs of dealing with the debt, eviction Cost of misery caused by the bedroom tax may mean cash savings are minimal.Two-thirds affected are disabled, specially adapted houses., taxpayer may be forced to meet the costs of adapting the new property.

Eg Newcastle-upon-Tyne practically no overcrowded families to be rehoused. bedroom tax is estimated to "save" 3.2m in housing benefit each year for council estimates it spends more than 2m providing help and support to affected households, government is providing nearly 700,000 a year temporary financial support to tenants.

11Positiveshelp to reduce UK welfare spending and spur a fairer redistribution of rented accommodationEncourage people to move to smaller accommodation and help overcrowding.Decrease Benefits Bill

All of the above is debatableDo you think this has been a successful policy?