Rent arrears among tenants of social landlords taking part in a trial of the Government’s flagship benefit reforms have soared.
The pilot is testing out the effects of paying the tenants their rent money, and trusting them to pass it on to their landlords.
A Liverpool-based housing association is asking tenants to sign forms that say they accept they will be hit with legal action if they don’t pay their rent as a result of the ‘bedroom tax’.
One Vision Housing has sent out documents to 2,900 of its tenants who will be hit by the under-occupation penalty asking that they return them signed, and with a counter signature by a witness.
The national roll-out of the benefit cap will begin on 15th July, the Department for Work and Pensions (DWP) announced today.
Ministers have opted for a phased roll-out of the controversial policy, with benefit cap pilots to start in Bromley, Croydon, Enfield and Haringey from April 15, three months before its introduction in all other local authority areas across England, Scotland and Wales. It will be completely implemented by September this year.
The coming bedroom tax will end up costing Scottish taxpayers more not less, a housing charity has warned.
Shelter Scotland is now calling on the Scottish Government to make £50m available to protect the country's tenants from the under-occupancy charge which is due in April.
A housing association's chief executive has labelled the Government's plans for direct payments to tenants under Universal Credit as "daft".
Matt Cooney, CEO of asra Housing Group, has written to MPs to urge them to pressure the Government into rethinking its plans, claiming that direct payments will be damaging to both social landlords and tenants.
“The very high housing costs in Camden and across London mean that low-income households will find it increasingly hard to find affordable accommodation if they are not in social housing.
“Sadly however, the scale of the cuts, high private rental costs and lack of available housing in Camden will mean that more people will soon have to consider moving from the borough and in some cases London entirely.”
Labour’s Stephen Timms, speaking on Radio 4 yesterday, criticised the controversial policy, under which benefit claimants in social housing of working age with spare rooms will have their benefit cut from 1 April.
Mr Timms said: ‘We have argued for the last two years that it would be fine to apply the penalty where people have refused to take smaller accommodation, but to penalise people when there’s nowhere smaller to move to is perverse.’
A London council is considering shipping tenants that'll be hit by the coming benefit cuts as far away as Leicester and Birmingham.
Camden Council's Tory leader, Andrew Mennear, has backed the plan, saying that "London's not everything. There is a life outside of London".
Liberal Democrat peers have called for there to be no fresh welfare cuts before the next general election.
Peers yesterday debated the Welfare Benefits Uprating Bill, which will cap increases in a number of benefits at 1 per cent rather than the level of inflation as is currently the case.
'Vulnerable' claimants will get personalised help with their Universal Credit claims, and some may even continue to see their housing benefits paid directly to their landlords, ministers have confirmed today.
Split payments between different household members could also be considered.