Welfare chiefs admit cuts will affect existing tenants
DWP apologises over statement that is branded highly misleading
WELFARE bosses have apologised after falsely claiming existing social housing tenants will not be affected by the so-called Bedroom Tax 2.
The reality is that from this April families renting a council or housing association property could be affected by the controversial change which caps payments for those needing help with housing costs.
It means thousands of Scots, particularly single people under 35, risk finding their tenancies are suddenly unaffordable in April 2019.
The Department for Work and Pensions (DWP) told The Herald earlier this month: “The reality is, nothing will change until April 2019 and existing tenants will be unaffected”.
But this directly contradicts a statement given by Secretary of State for Work and Pensions (DWP) Damian Green in November, who said new rates for the housing element of benefit claims will affect all new and existing tenants.
After April 2019, claims for housing costs will only be met up to the Local Housing Allowance (LHA) rate, while anyone under 35 years old will be permitted to claim only a lower rate based on shared accommodation.
Mr Green told Parliament: “To ensure simplicity and a streamlined process, Local Housing Allowance rates will apply to all new and existing tenants.”
Over the next three years, tens of thousands of Scots are expected to sign up to new tenancies, and housing charities and social housing providers fear many may not realise they will soon have to find hundreds of pounds a year extra to afford to stay in their home.
Social housing providers claimed the Department of Work and Pensions was either confused, or deliberately misleading the public.
Mary Taylor, CEO at Scottish Federation of Housing Associations, said: “The DWP spokesperson was at best unaware of the statement made to the House of Commons on November 21, where Damian Green, said Local Housing Allowance rates will apply to all new and existing tenants.”
David Bookbinder, director of Glasgow and West of Scotland Forum of housing Associations said the DWP comment was “highly misleading”.
Last night, a DWP spokewoman apologised for the mistake.
She added: “The reality is, nothing will change until April 2019, and existing tenancies signed before April 1 2016 will be unaffected.”
The DWP says the change is in the interests of making the system fairer, and ensuring people on benefits face the same choices as everyone else.
It claims £1billion in Discretionary Housing Payments will be made available to help those affected by the transition to the new rates.
However, many housing experts in Scotland fear the reforms will penalise single people under 35 in particular, if they are on benefits, because most social housing tenants have no opportunity to live in shared accommodation.
They also say the funding available for transitional support is inadequate and when it is spent, tenants will face the same problem.
Meanwhile large arrears could affect the viability of housing associations, and limit new housing developments.
One housing association in Aberdeen has seen 75 of its 95 tenants rack up arrears since the introduction of the new benefit Universal Credit, Mary Taylor of SFHA said.
‘‘ The DWP spokesperson was at best unaware of the statement made to the House of Commons on November 21