Thomas Bridge 10 January 2014

Thousands hit by bedroom tax error

Thousands of social housing tenants could have been incorrectly affected by the ‘bedroom tax’ thanks to a policy error.

An unforeseen loophole in the Government’s spare room subsidy means tenants who have continuously claimed housing benefit and lived at the same address since at least 1 January 1996 were in fact exempt from the policy and could now have funds returned.

An ‘urgent bulletin’ issued by the Department of Work and Pensions (DWP) revealed tenants meeting this criteria could now be owed housing benefit lost since April 2013.

Councils now face returning housing benefit collected from those ineligible for the policy until the loophole is closed.

Welfare reforms launched last year cut levels of housing benefit for social housing tenants living in residences thought to be larger than their need.

While housing experts have claimed as many as 40,000 people could have been affected by the mistake, a DWP spokesperson told LocalGov they expected ‘less than 5,000’ would be affected by this ‘minor issue with regulations’.

‘We are looking at this issue carefully and working with local authorities, and we will take any necessary action in due course,’ the DWP spokesperson said. ‘We expect very few people to be affected.’

Rounding on the Government, Labour’s shadow minister for welfare reform, Chris Bryant MP, said: ‘This is the latest example of the chaos and confusion within the DWP under Iain Duncan Smith.

‘Rather than closing loopholes in the policy, the Government should scrap their hated bedroom tax. If they don’t, the next Labour government will.’

Click here for more information on the ‘bedroom tax’.

SIGN UP
For your free daily news bulletin
Highways jobs

Complaints Officer - Harlow District Council

Essex County Council
Up to £130.0000 per day
Complaints Officer - Harlow CouncilLocation, HarlowFull time, Temporary 6 Months Contract £101.37 PAYE / £130.00 Umbrella - daily rate Closing Date
Recuriter: Essex County Council

Community Engagement Officer

Wyre Borough Council
£30,024 - £32,061
Do you want to play a key role in building stronger, healthier, and more cohesive and connected communities? Poulton-Le-Fylde, Lancashire
Recuriter: Wyre Borough Council

Community Administration Assistant

Wyre Borough Council
£26,824 - £28,598 (PRO RATA)
We are looking for a Community Administration Assistant to join our Leisure, Healthy Lifestyles & Communities team. Poulton-Le-Fylde, Lancashire
Recuriter: Wyre Borough Council

Contact Centre Officer

Wyre Borough Council
£25,185 - £26,403 (pro rata)
Our Contact Centre is looking to recruit a permanent member of staff to join our busy and customer-focused Contact Centre team. Poulton-Le-Fylde, Lancashire
Recuriter: Wyre Borough Council

Customer Insight and Complaints Officer

Sandwell Metropolitan Borough Council
£37,280-£41,771
Excellent opportunity has become available for a Customer Insight & Complaints Officer Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council
Linkedin Banner