Lord Freud states that where it is found that a local authority has re-designated properties without reasonable grounds and without reducing rents, his Department would consider either restricting or not paying their Housing Benefit subsidy
On the 29 May we reported the Leeds council had reclassified certain spare rooms as 'non-specific rooms' to help tenants in social housing avoid reduction in housing benefit (see
The Government has responded to this by issuing a letter, written by Lord Freud threatening an audit and loss or restriction of HB subsidy where there is no good reason for a room reclassification.
For more about the tax see our Factsheet F57 - the bedroom tax