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

Family Support Worker

Durham County Council
Grade 6 - £27,269 - £30,060 (Pay award pending)
Do you have a real passion for helping families to make positive changes for themselves and their children? This might be the right role for you!   WH Durham
Recuriter: Durham County Council

Clerical Officer Receptionist

Durham County Council
Grade 3 £24,404 - £25,183 Pro Rata to hours worked Pay award pending
WHAT IS INVOLVED? We are looking to appoint a part time Clerical officer/Receptionist within Business Services to provide a professional, effective a Durham
Recuriter: Durham County Council

Administration Assistant

Durham County Council
£25,584 - £27,711 pro rata
Administration Assistant Grade 5    £25,584 - £27,711 pro rata Temporary – required from 1st October 2025 until 31 December 2025 37 hours per week, Te Consett
Recuriter: Durham County Council

Support Assistant

Durham County Council
£24,027 pro rata
Support Assistant Grade 1 £24,027 pro rata Temporary – required from 1st October 2025 until 31st October 2026 Part Time, 32.5 hours Mon - Fri 9am -4pm Consett
Recuriter: Durham County Council

Lecturer in Foundation Learning -Maths, English and Digital

Durham County Council
Grade 9 £34,314 - £37,938 pro rata for part-time term time working PAY AWARD PENDING
The DurhamLearn Foundation Learning programme area delivers Digital Skills, English and Maths Functional Skills.   An opportunity has arisen for a Lec Durham
Recuriter: Durham County Council
Linkedin Banner