123,0000 households are affected by the household benefit cap. The vast majority – 71 per cent – are lone parents with children.
The benefit cap limits the total amount a part-time, low-earning or out-of-work household can receive in benefits, trapping families in deep poverty. It is having a disproportionate impact on survivors of domestic abuse and on children, as this new briefing with Shelter and Women’s Aid shows.
The benefit cap makes it almost impossible to afford private rents. Recent research found that there were only enough affordable homes across the country to house one in six capped families. Increasingly even social rents (typically 30 per cent of market rents) are becoming unaffordable. In 78 local authority areas in England, average council and/or housing association rents are unaffordable for capped families.
The benefit cap is therefore contributing to homelessness, as families are trapped in refuges and other forms of temporary accommodation and are unable to move on to secure and affordable homes.
The cap is not effective and it is harming those who are already vulnerable. We are calling for the cap to be scrapped.
A new report by the Scottish Housing Regulator highlights that some councils are finding it increasingly difficult to fully meet their statutory duties on homelessness, particularly providing temporary accommodation to people experiencing homelessness.
The report highlights that councils are making considerable efforts in very challenging circumstances to deliver effective services and some have had success in moving toward an approach with rapid rehousing at its centre.
The Regulator also found that there is an emerging risk of systemic failure in their homelessness services.
The report sets out three main strategic challenges facing councils in providing services to people experiencing homelessness: dealing with the number of people in temporary accommodation; maintaining an adequate supply of temporary accommodation; and ensuring homeless people have sufficient access to permanent housing.
John Jellema, Assistant Director Of Regulation, said: “Some councils are finding it increasingly difficult to meet these challenges, and so to fully meet their statutory duties. This includes difficulties in ensuring that people with particular equality characteristics – such as single women and children – have temporary accommodation options that meet their needs.
“There are actions councils can and should take to respond to these challenges, and there are other improvements to services they can make. All councils should continue best efforts to meet their statutory obligations.
“The Scottish Government has put in place a wide range of policy actions aimed at achieving the goal of ending homelessness in Scotland. Having said that, the Scottish Government may need to consider what further urgent measures it can take to support councils to respond to the immediate challenges they face in delivering services for people who are homeless.”
Shelter Scotland has responded to yesterday’s report by the Scottish Housing Regulator, outlining the emerging risk of systematic failure within local authority homelessness services, particularly in securing temporary and permanent accommodation.
The report supports Shelter Scotland’s continued messaging that Scotland is in a housing emergency, and that the supply of more social homes must be prioritised by the Scottish Government.
It shows that councils are making considerable efforts in very challenging circumstances to provide homelessness services, however, are finding it increasingly difficult to meet their statutory duties in the provision of temporary and permanent accommodation.
The report highlights three major strategic challenges councils are facing: dealing with the significant numbers of people currently in temporary accommodation; maintaining a sufficient supply of appropriate temporary accommodation; and ensuring access to the number of permanent homes that are needed.
The report calls on the Scottish Government to consider what further urgent measures it can take to support councils to respond to the challenges they face in delivering services for people who are homeless.
It also notes that some households do not always receive a service that meets their specific needs, further demonstrating that the system is broken and biased.
In its Scottish Housing Emergency Action Plan last year, Shelter Scotland outlined three key priorities as the most critical to tackle the housing emergency: buy and build 38,500 social homes by 2026, fully fund local authority homelessness services and guarantee the right to a permanent home for every household.
Shelter Scotland Director, Alison Watson, said: “The Scottish Government know how to fix homelessness and the wider housing emergency in Scotland.
“As indicated in this report, an adequate supply of permanent, affordable housing provided by councils and RSLs is vital in ending homelessness.
“Over the years they have been presented with endless evidence and testimony that investing in social housing ends homelessness, tackles child poverty and is crucial in fighting the housing emergency. Yet, they are choosing to look the other way as thousands of families continue to struggle.
“If ever there was a clearer message from the sector that the time to act is now, this is it. The Scottish Government must recognise that its choices to ignore the housing emergency will have devasting consequences for the fight against homelessness.”
It could become the most hated piece of legislation to be inflicted on British people since the infamous Poll Tax. And it’s now only weeks away …
In April, a new measure is to be introduced that will apply to all tenants of working age – welfare reforms will cut the amount of benefit that people can get if they are deemed to have a spare bedroom in their council or housing association home.
Under the legislation, size criteria will restrict housing benefit to allow for one bedroom for each person or couple living as part of the household. Children under sixteen years old will be expected to share with others of the same gender, while children under ten will be expected to share regardless of gender.
Under the new legislation – labelled the bedroom tax – all claimants who are then deemed to have at least one spare bedroom will be affected and face an ‘under occupation’ penalty: a cut to their housing benefit.
The cut will be a fixed percentage of the Housing Benefit eligible rent, which the Westminster government has stated will be set at 14% for one extra bedroom and 25% for two or more extra bedrooms.
Those affected – around 660,000 working-age social housing tenants (over 30% of existing Housing Benefit claimants in the social sector) in the UK – will lose an average of £14 per week, with Housing Association tenants expected to lose around £16 per week.
The architect of the scheme is investment banker and Welfare Reform Minister Baron Freud of Eastry – who incidentally lives in an eight-bedroom Kent mansion when he is not staying in his four-bedroom townhouse in London’s Highgate. The noble Lord believes that ‘spare council house bedrooms are a luxury the country can no longer afford: “It’s not fair or affordable for people to continue to live in homes that are too large for their needs when, in England alone, there are around five million people on the social housing waiting list and over a quarter of a million tenants are living in overcrowded conditions. It’s only right that we bring fairness back to the system and make better use of the social housing stock.”
He went on: “Nearly a third of working-age social housing tenants on housing benefit are living in accommodation which is too big for their needs, in spite of the fact of severe overcrowding. We are stopping the practice of the state paying for rooms beyond claimant needs, and that should go in some way to help tackle the social housing shortage that has been blighting too many lives.”
Baron Freud
Lord Freud and his ministerial chums hope that more households will chose to ‘downsize’ to smaller, more affordable properties – and in the process slash £500 million from the Housing Benefit bill. So the government reduces the national debt and tenants get suitably-sized homes: a win, win situation, then – everybody’s happy?
Sadly not. There’s a desperate shortage of suitable, smaller accommodation, as Shelter Scotland Director Graeme Brown explained: “The UK Government is simply failing to listen to the voice of reason being put forward by housing professionals, social landlords, MSPs and individuals. Penalizing low-income people for having an extra room assumes that there is a ready supply of smaller properties for them to move to. This is simply not the case. So the only consequence will be people stuck in homes with mounting rent arrears and a further descent into debt. Even at this late stage, we urge the UK Government to modify its proposals.”
According to the latest Scottish government figures, there are 586,000 households in the social rented sector in Scotland, and 105,000 of these – roughly one in five – will be affected by the Bedroom Tax, each losing an average of around £50 per month.
Advice organisations have already seen a significant increase in demand for their services, and the imminent welfare reforms will inevitably lead to even more desperate cries for help.
Citizens Advice Scotland (CAS) Chief Executive Margaret Lynch gave evidence about the impact of welfare changes on advice services at the Scottish Parliament earlier this month.
She said: “We expect demand for benefit advice, to increase even further along with an increased need for other areas of advice such as debt, housing, and budgeting due to changes in benefits. This increase in casework, as well as the increasing complexity and time-consuming nature or many issues, is of course having a knock-on effect on the ability of our service to help our clients.
“We are already at breaking point so desperately need to be adequately resourced to enable us to help those who need it most as we aim to mitigate the impact of welfare reform as much as possible. The recent benefits uprating bill debate highlighted the statistics showing how the poorest are paying the price for cuts. The evidence we are publishing today is not just statistics but is based on the real lives of real people. It is not just about the numbers of people affected, but the severity of the individual cases. We have seen a big rise in the number of people in crisis situations, either because of the direct impact of a benefit cut or because they have fallen through the gaps in the safety net that is meant to protect them.
“The evidence we are publishing shows who is really being hit hardest by current policies and it includes thousands of people who are genuinely sick, disabled, and vulnerable and deserve support. The impact of current policies don’t just hit the individual claimant but can also have a huge effect on children and others being cared for. Pushing people further into poverty and financial difficulties will lead to an increase in other problems such as homelessness, health inequalities, and family breakdown, as well as lead to rising debt and an increase for food hand-outs. Tackling these issues in future years will only add to the overall public spending bill, not reduce it. The UK government must heed this evidence and question whether they really want to continue on a track of devastating reforms which can only damage more lives.”
Shelter Scotland has issued advice to tenants likely to be hit by the imminent benefit cuts, and urge them to ACT NOW:
If you’re going to be affected by a deduction to your housing benefit then it’s very important that you prepare for the change before April 2013.
There are several things you can do:
take in a lodger – renting out a spare room would bring in extra income, but make sure you get the agreement of your landlord first and check whether this will affect any other benefits that you’re currently receiving
ask for a contribution to your rent – your family members may be able to pay more towards your rent
move to a smaller property – you may be able to transfer to a smaller property, speak to your council or the housing association you’re renting from to see if you can apply to do this
apply for a discretionary housing payment – your local council may be able to give you temporary support to help you stay in your home through a discretionary housing payment.
If you can’t pay all your rent after the reduction you may have to think about finding somewhere else to live or you will risk falling behind with your rent and possibly being evicted. Speak to an adviser in your area as soon as possible if you’re worried that this may happen to you.
For Local advice:
Granton Information Centre 134-138 West Granton Road. Telephone 552 0458 Email info@gic.org.uk
