Austin Macauley 20 October 2014

Report: bedroom tax widens north-south divide

The bedroom tax has hit council tenants in the north of England far harder than those in London, research has revealed.

A survey found 7% of residents in the north are in rent arrears compared with 2% in London. And while 5% of tenants in the capital have been hit with under-occupation penalties, the figure is 13% among those in the north.

The statistics were revealed in a joint report by the National Federation of ALMOs (NFA), the Association of Retained Council Housing (ARCH) and the Councils with ALMOs Group. The three organisations represent more than 1.3 million council properties between them.

‘The results of our latest survey suggest that although overall levels of rent arrears attributed to welfare reforms are falling nationally, there are considerable regional differences with the north of England being hit harder than other areas,’ said Chloe Fletcher, NFA policy director.

‘There are a number of reasons for this including a lack of suitable one and two bed properties to move to and far fewer employment opportunities for tenants to apply for.’

ARCH policy adviser Matthew Warburton said: ‘Despite the worrying regional variations, the overall picture of falling arrears does suggest that landlords have put in a lot of resources and support to minimise the impact of welfare reforms on their residents and their organisations’ finances.

‘However, the large increase in the number of households receiving discretionary housing payments could also explain some of the reduction in arrears which does pose significant questions over how sustainable this position is in the long term.’

A Department for Work and Pensions spokesman said: 'Ending the spare room subsidy was vital to return fairness and we have made over £345m available to councils to support the most vulnerable people since our reforms were introduced, which has been allocated according to need.

'As the research notes fewer people are being effected by the policy and tenants are taking action in a number of ways, and we have seen over 25,000 people across Great Britain successfully downsizing their home or finding jobs and increasing their earnings.'

Skills Pipelines: What local government needs to know image

Skills Pipelines: What local government needs to know

Councils and mayors are to be handed a central role in developing skills pipelines for local industries, as the Government unveils what it calls a ‘fundamental change’ to the education system aimed at tackling youth unemployment. Here's what council leaders and officers need to know.
SIGN UP
For your free daily news bulletin
Highways jobs

Executive Director for Place

Wokingham Borough Council
£148,609 per annum, plus benefits
As our Executive Director for Place, you will lead an outward looking and forward-thinking place-shaping agenda. Wokingham, Berkshire
Recuriter: Wokingham Borough Council

Service Director

South Gloucestershire Council
£100,289 to £109,445 per annum
South Gloucestershire is changing things for good. Gloucestershire
Recuriter: South Gloucestershire Council

Assistant Director, Development Management and Environment

Newham London Borough Council
£90k
Newham is entering an ambitious new chapter Newham, London (Greater)
Recuriter: Newham London Borough Council

Executive Director of Resources

West Northamptonshire Council
£151,368 - £161,559
West Northamptonshire is one of the UK’s newest and most ambitious councils. Northamptonshire
Recuriter: West Northamptonshire Council

Assistant Director, Regeneration and Growth

Newham London Borough Council
£100k
Newham is entering an ambitious new chapter Newham, London (Greater)
Recuriter: Newham London Borough Council
Linkedin Banner