Council amend rent arrears policy to assist tenants affected by Bedroom Tax

10th April 2013

Highland Councillors have agreed to adopt a “sympathetic ” policy for those Council house tenants affected by the new Bedroom Tax, who unavoidably fall into rent arrears through the loss of housing benefit for under-occupying their homes.

It is estimated that 2,200 Highland Council tenants (16%) are affected by the introduction of the Social Rented Sector Size Criteria Restriction (Bedroom Tax), which sees people who are under-occupying by one bedroom having their benefit reduced by 14% and those under-occupying by more than one room having their benefit reduced by 25%.

In a move to ease the impact of the tax, Members of the Finance Housing and Resources Committee have agreed to amend the Council’s rent arrears policy, agreeing that no Council tenants affected by the tax should be evicted from their homes in the first year of the tax because of rent arrears caused by the under-occupancy charges. The proviso is that the Director of Housing and Property must be satisfied that tenants are doing all they can to avoid falling behind with payments.

Committee Chairman, Councillor Dave Fallows, said: “The Council has started a programme of personal contacts with the tenants affected by this change. This is aimed at ensuring they are aware of the changes and implications for rent payment. It also provides an opportunity to provide general advice and information and signposting to specialist advice services. As a result of this personal contact exercise, we expect the number of tenants applying for a transfer to a smaller property to increase. Whilst, we have already approved awarding 20 additional points to transfer applicants affected by the changes to housing benefit, it is acknowledged the Council is unlikely to be able to meet the demand due to the shortage of smaller houses.

“In view of this, many tenants will have to stay in their houses and manage the reduction in benefit. It is recognised that despite their best efforts in managing the reduction, some households may end up getting into rent arrears. There is a real concern that this may lead to increased vulnerability for these households already on low incomes and therefore it is proposed that consideration is given to a change in the current approach to our rent arrears policy to provide reassurance to vulnerable tenants.”

He said the current approach adopted by the Council in managing general rent arrears was firm but fair. The change in policy governing the Bedroom Tax did not imply any change of approach to those in arrears for any other reason. Tenants were given advice, support and assistance to help them pay their rent and address any financial or benefit problems. Legal options were open to the Council, up to and including eviction to ensure the rent was collected.

He added: “The aim of the change is that no Council tenants in the Highlands affected by the Bedroom Tax should be evicted from their homes because of rent arrears caused by the under-occupancy charges. This is a sympathetic and understanding response during the first transitional year of what I can only describe as a “Dickensian” tax.”

He conceded that an increase in rent arrears was a concern. A reduction in rental income meant a reduction in funds for housing services.