Government ministers repeatedly claimed their Discretionary Housing Payments (DHPs) would help councils support the most vulnerable hit by this regressive tax. But figures published by the Department for Work and Pensions have shown many local authorities have been forced to use taxpayers’ money to top up inadequate DHP funds.
Harborough District Council has had to supplement its DHP fund by £2,098 as the £58,543 the council received proved to be insufficient. Seventy other councils across England and Wales found themselves with shortfalls.
According to the National Housing Federation, 390 households in the Harborough constituency have been hit by the Bedroom Tax, which sees people living in social housing being charged for bedrooms the government deems the occupants do not need. However, the inflexible policy doesn’t take into account the shortage of smaller for people to move to or the needs of families with disabled members, those who take on fostering responsibilities or those with a family member serving away in the forces or at university.
Commenting on the news, Sundip Meghani, Labour’s Parliamentary Candidate for Harborough, said: “David Cameron and Nick Clegg’s Bedroom Tax has been a disaster for the hundreds of thousands of people hit by this cruel levy – including 390 households here in Harborough – and it has come at a huge cost for taxpayers.
“The government’s own figures have shown their Discretionary Housing Payment funding has failed to cover the huge costs of the Bedroom Tax and councils have had to pick up the tab. So instead of freeing up housing and driving down costs, the Bedroom Tax has left people trapped in their homes with local authorities having to footing huge bills.”
Chris Bryant MP, Labour’s Shadow Minister for welfare Reform, echoed Sundip’s concerns; he said: “At next year’s election, the British people face a choice between a Labour government which will scrap the unfair Bedroom tax and a Tory Government who will keep this cruel and costly policy in place.”
In the East Midlands 32,127 people have been hit by the Bedroom Tax. At least 3 councils have been forced to top up discretionary housing funds.
The government’s discretionary housing payment data is available here.
Bedroom Tax data is available here.