Bedroom tax puts two thirds in debt

Tue,11 February 2014
News

Two thirds of households affected by the bedroom tax cannot find the money to pay their rents, according to new research from the National Housing Federation.

In a survey of 183 housing associations found the Federation found that:

  • 66% of their residents affected by the bedroom tax are in rent arrears.
  • More than a third (38%) were reported to be in debt because they were unable to pay the bedroom tax. 

The research also found that housing associations have invested millions of pounds to mitigate the impacts of the bedroom tax. Each housing association with affected tenants spent an average of £73,250 on additional resources before April 2013 to help their residents prepare and cope, including welfare and financial advice services. It is estimated that associations are spending even more this year, an extra £109,000 each on average, by March 2014, with larger associations spending up to £2.18m.

You can view the report at http://www.housing.org.uk/publications/browse/impact-of-welfare-reforms-on-housing-associations