THE new Tory changes to housing benefit could leave 21,000 young Scots adversely affected, according to a new report for the Scottish Government.
The Chartered Institute of Housing (CIH) have called on the UK government to change their plans to cap housing benefit for social housing tenants aged under 35, labelled by opponents as “Bedroom Tax 2”.
Under the Department of Work and Pensions (DWP) proposals, tenants of council or housing association properties will no longer receive payments that exceed the rate of housing benefit paid to those living in houses owned by private landlords. That rate is known as the Local Housing Allowance (LHA).
But single people under 35 are only eligible for the Shared Accommodation Rate (SAR) of housing benefit.
The maximum they can receive is the rate for renting a single room in a shared house.
This applies even if they rent a self-contained flat.
With housing association rents typically higher than local authorities it will mean serious cuts.
Analysis by campaigners suggests a younger tenant in Glasgow, who would normally be entitled to £92.06 under the current system, will receive just £68.28 in housing benefit.
The changes will, the CIH say, result in a collective shortfall of £22.8 million, though the DWP dispute that figure.
CIH also claim that the changes will almost certainly affect around 14,000 people, and, depending on exemptions, could also impact on 7000 young people in supported accommodation. The DWP question this figure also.
The report, commissioned by Scottish ministers, will be submitted this week to the Scottish Parliament Public Petitions Committee in response to a campaign by tenants champion Sean Clerkin.
Clerkin, spokesman for the Bin The Bedroom Tax 2 campaign, said: “This analysis shows very clearly that this is a Tory tax on the poorest and most vulnerable people in Scotland. Everybody progressive in civic Scotland should unite to oppose this bedroom tax going through.”
Sarah Boyack, head of public affairs for the Scottish Federation Of Housing Associations, said: “LHA rates do not reflect the fact that social housing rents are based on the cost of provision, standards and services.
“Housing associations charge rents on the basis of the quality of services to tenants. Some tenants may pay a higher rent but have benefited from energy efficiency investment giving them lower energy bills. LHA takes no account of this.
“We suggested that the Scottish Government should use its powers to vary the housing cost elements of Universal Credit to mitigate the arbitrary nature of LHA rates which do not reflect the cost of providing services to tenants. We believe that the LHA should be replaced by a Social Housing Allowance.”
A DWP spokesman said: “We continue to spend £24 billion a year helping people across the UK with their housing costs. This report does not take into account the exemptions and top up funding in place for those in supported housing.”
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