Jonathan Werran 20 June 2013

'Bedroom tax' councils could lose HB subsidies, Lord Freud warns

Housing Benefit (HB) subsidies could be axed for councils which have sought to get around the so-called ‘bedroom tax’ by re-designating their properties without cutting rents, welfare ministers have warned.

In a letter sent to all council chief executives today, welfare minister Lord Freud states where local authorities have reduced the number of rooms without reasonable grounds and without reducing rents, the Department for Work and Pensions (DWP) could either restrict or not make HB payments.

Lord Freud states such blanket redesignations are inappropriate and fall outside the spirit of the policy to remove the Spare Room Subsidy - which is designed to trim £500m from the annual welfare bill through greater use of social housing stock.

‘I would like to stress that if it is shown properties are being re-designated inappropriately this will be viewed seriously,’ Lord Freud writes.

‘If the department has cause to believe this is the case, we will commission an independent audit to ascertain whether correct and appropriate procedures have been followed.’

A fortnight ago, Manchester City Council hosted a conference at which 36 local authorities considered how the welfare change was affecting residents.  The conference called for the government to scrap the reform which was introduced in April.

Last month Leeds City Council informed 837 households of its plans to reclassify their homes, many of which are five- bedroom properties, since re-designated as four-bedroom properties.

A DWP spokesman told The MJ: ‘Where re-designation of property does occur it’s expected that the rent charged should change accordingly, and from that, the amount of subsidy paid from the DWP to the council must also be amended. This is fair.

'However it has come to light that some councils are re-designating properties and claiming the same amount of Housing Benefit subsidy,’ the spokesman said.

Click here for Lord Freud's letter to local authority chief executives
 

SIGN UP
For your free daily news bulletin
Highways jobs

Executive Director of Place and Customer

Essex County Council
up to £179,404 per annum
Shape the Future of Essex. Drive climate action. Deliver for our communities. Essex
Recuriter: Essex County Council

Arts Officer Exhibitions – Maternity Cover

London Borough of Richmond upon Thames and London Borough of Wandsworth
£37,602 - £45,564
Arts Officer (Exhibitions) – Maternit... Twickenham, Greater London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Traveller Site Officer

Oxfordshire County Council
46142 - 49282
About Us Oxfordshire County Council is seeking a Traveller Site Officer to join our small but brilliant, Gypsy and Traveller Service. We aim to deliver an outstanding service that is community focused, trusted, and inclusive, as well as promoting fairness Kidlington
Recuriter: Oxfordshire County Council

Financial Assessment Officer

Oxfordshire County Council
31537 - 34434
Work location
Recuriter: Oxfordshire County Council

Senior Voluntary Sector Grants and Project Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£43,545 - £52,767
Senior Voluntary Sector Grants and Proj... Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth
Linkedin Banner