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

School Crossing Patrol

Durham County Council
Grade 1 £12.85 per hour
Join our School Crossing Patrol Service! Are you punctual and reliable? Do you have good communication skills and a strong sense of community spirit? Durham
Recuriter: Durham County Council

Project Manager

Durham County Council
£50,269 to £54,495 p.a. (Grade 14)
An exciting opportunity has arisen to be part of our Digital Programme and Communities Team within Digital Services as a Project Manager. If you have Durham
Recuriter: Durham County Council

Young Person's Advisor

Durham County Council
Grade 8 - £32,597 - £36,363
X1 Young Person’s Advisor (out of area) – Full-Time Temporary for 12 Months An exciting opportunity has become available within the Unaccompanied Asy Spennymoor
Recuriter: Durham County Council

Pest Treatment and Investigation Officer

Durham County Council
£30,024 - £33,699
Do you want a role where your work makes a real difference to local communities?     We’re looking for a Pest Treatment and Investigation Officer to j Durham
Recuriter: Durham County Council

Support Assistant (2 posts)

Durham County Council
£24,796 pro rata
Support Assistant Grade 1 Point 3 £24,796 pro rata Permanent, part time, term time only 32.5 hours, Mon – Fri, 9.00am - 4.00pm  Required to start as s Consett
Recuriter: Durham County Council
Linkedin Banner