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People Being Urged to Defy New Bedroom Tax by Rachel Gawith





People Being Urged to Defy New Bedroom Tax by
Article Posted: 04/09/2013
Article Views: 683
Articles Written: 62
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People Being Urged to Defy New Bedroom Tax


 
Real Estate,Tax
There has been an awful lot of mis-information and misunderstanding about the new "bedroom tax" the Government are bringing in under welfare reforms this spring [2013]. Under the new rules if someone is deemed to have a room that they do not use or require, then they will face a decrease in housing benefit of up to 25% and so could face having to fund an additional £728 a year. The Government are hoping that these new measures will allow better utilisation of social housing and reduce the amount paid on in housing benefits , which currently stands at over £20 billion a year.

The Department for Work and Pensions says that these changes will save the UK tax payer around £480 million each year, whilst affecting around 600,000 people directly who currently have a spare room in the council or social housing property. On average there will be a reduce of £14 a week in housing benefit for anyone with a spare bedroom.

There are exemptions that have recently been announced so that approved foster carers and people with adult children in the Armed Forces, who come home on leave, will not lose benefits. However, in general the new policy has been poorly received and highly controversial. Pensioners are also exempted from any changes.

Labour have attacked the policy saying it will force many families into arrears and force many to have to move to smaller homes, calling it a bedroom tax, while the Conservative party have countered saying the current rules allow people with a spare room to get a subsidy.

And now a leading Labour MP has now come out and actively urged people to take matters into their own hands and defy the new rules by knocking down walls and blocking up windows and doors to make two rooms into one. Frank Field, who was actually appointed by Mr Cameron to advise the Government on poverty and was formerly the Welfare Minister, has asked Council Landlords to take direct action against rules he termed "grossly unfair".

Nick Clegg, the Deputy Prime Minister, has indicated that there will be further changes to the welfare reforms and the way the housing benefit is calculated. Any changes will be carefully monitored as they come into force and adaptions made as the Government feels necessary in the future. He defended the rule changes saying in many cases the empty rooms were very small box rooms and so not actually classed as spare bedrooms. And many families were currently in unsuitable accommodation too small for them and were waiting for larger houses in any case. For others found to have a spare useable bedroom there were various options such as moving to small accommodation, taking in a lodger or working a few extra hours. However, if people were in dire straights they could approach the local council for an exemption.

For more information and news on the UK property market visit new homes for sale

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