Forum Home → Discussion → Housing costs → Thread
bedroom tax
Absolutely.
I have a case on my desk as I type. Current rent (full) is £449.50 per month (HB will be £386.57 per month from April onwards after 14% deduction). If client moved into 1 bedroom private rented property LHA would be £645.02 per month. Logical (not).
The bedroom tax, across the whole population will save the govt pots of money.
The fact that some people chose to move from large low cost accommodation, to higher cost smaller accommodation, is simply not a problem.
Because….. the demand for low cost accommodation from those already in high cost/high benefit accommodation far exceeds supply the supply of low cost flats.
So your total benefit bill will always fall accross the population as a whole….
As yor are in effect saving by implementing a “tax” on those that either “choosing not to move” or simply are “unable to move.”
Its a net saving.
Giving up HA status?
Not going to happen; for at least two reasons. They would lose their charitable status which enjoys considerable tax advantages and business rates relief. And second, they would lose access to financial investment and development land.
Martin is right, when looking at possible savings through the bedroom tax you have to look right along the chain. In 1964’s case, who will move into the home vacated by your client, where do they live now and how much does it cost?
In cold financial terms there will be a saving, either as a result of that kind of musical chairs or by people staying put and paying the tax
Giving up HA status?
Not going to happen; for at least two reasons. They would lose their charitable status which enjoys considerable tax advantages and business rates relief. And second, they would lose access to financial investment and development land.
That is pretty much what I thought, the advantages of thse status’s probably far outweigh the increased rent they would be able to get.
Martin is right, when looking at possible savings through the bedroom tax you have to look right along the chain. In 1964’s case, who will move into the home vacated by your client, where do they live now and how much does it cost?
In cold financial terms there will be a saving, either as a result of that kind of musical chairs or by people staying put and paying the tax
True on the face of it, but we also need to factor in the hidden costs (for example, applications to local welfare provision schemes for help towards removal/furnishing costs, additional burden on the NHS/local mental health services/social services/charitable & voluntary services due to deterioration in health/family breakdown, recovery costs to HA’s/LA’s in relation to increasing levels of rent & CT arrears, costs of court hearings, legal representation, etc). I’m really not sure that there will be any real financial saving overall, leaving aside the moral costs.
Many charities have commercial trading arms which are, in themselves, not charities but pass any profits back.
I wonder if a HA could ‘temporarily’ pass some properties across to such a construct?
Many charities have commercial trading arms which are, in themselves, not charities but pass any profits back.
I wonder if a HA could ‘temporarily’ pass some properties across to such a construct?
I am wondering if they even need to be a charity;
have alook at HB/CTB Circular S4/2010
7 The definition of a registered housing association has been updated. The term ‘registered housing association’ has the same meaning as in regulation 2(1) of the Housing Benefit Regulations 2006. ‘Registered housing association’ means a
private registered provider of social housing, as defined by the Housing and Regeneration Act 2008. These bodies (formerly known as Registered Social Landlords) are registered with the Tenant Services Authority, the regulator of social housing in England
8 Instead of having Registered Social Landlords (RSLs) there are now two types of Registered Providers (RPs) of social housing: those that are non profit-making RPs (effectively the same as previous RSLs); and those that are profit-making RPs (effectively private sector landlords that have some social housing stock).