The truth about the bedroom tax. It costs the taxpayer MORE

Karen Buck the Labour MP tweeted a stunning and stunningly simple message which exposes the bedroom tax for what it is, a costly mistake.

Here is how the bedroom tax costs the taxpayer in just one case the princely sum of £7,398.92 per year more in Housing Benefit.

The HB bill for this social tenant who downsized from a social housing 2 bed to a social housing 1 bed (Yes no private rental involved here!) increases from £5,384.83 per year to £12,783.75 per year.

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This social housing tenant would have received £103.20 per week in HB in the £120 per week 2 bed social housing property after the 14% bedroom tax deduction was applied.  Yet she downsized to a 1 bed “affordable rent” (sic) social housing property with a rent of £245 per week all of which is payable in Housing Benefit as there is no bedroom tax and because the misnamed affordable rent property attracts 100% in HB.

Of course if the tenant had moved to a 1 bed private rented property in Westminster then she would have received £255.50 in LHA per week and cost the taxpayer a further £547.88 per year more.  Though she would have had to pay £51.04 per week to cover the shortfall between her £255.50 LHA and her rent of £306 per week.

What a damning indictment of the bedroom tax and its claimed savings to the taxpayer!

What a damning indictment of the coalitions “affordable” (sic) rent policy too?

What better retort to IDS, Freud, Mcvey et al saying the bedroom tax saves the taxpayer?  What better retort to the nonsense Grant Shapps MP said today about the savings from the bedroom tax will go into building new properties!!

Yes dear reader, the Tories are lying when they say the bedroom tax saves money as it costs the taxpayer MORE.

 

 

 

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22 thoughts on “The truth about the bedroom tax. It costs the taxpayer MORE

  1. Reblogged this on Citizens, not serfs and commented:
    Exactly right. When I lived in London (not eligible for Council Housing) I started off in a good sized bed-sit at £300 pm ten years ago. Then the landlord “upgraded” it by putting a wall down the middle bringing my total accommodation costs to over £600pm (for standing room only space). Council tenants at work were paying just over £300pm for 3-bed flats. Obviously forcing Council tenants into smaller private accommodation will cost more. Approximately double I estimate for worse and insecure accommodation subject to arbitrary and swingeing increases.

  2. I was told by my housing officer they could not re-house me into a smaller property as there were none available nor would there be in the foresee-able future and even though moving into the private sector would double my rent the whole amount would be covered by housing benefit so for me the massive stress of the bedroom tax would be gone. My concern was that once back in work I would be able to afford the full rent on my current flat but once renting privately would always be dependent on benefits as I can only ever get minimum wage jobs.

    If those who brought about this legislation knew this would be the case for the majority then they would have known there would be no savings for the taxpayer so it must have been an exercise in causing maximum stress and suffering to the most vulnerable. Fortunately I have been awarded DHP of £14 a week so in reality have achieved a massive saving for the council compared to me moving which would have added another £100+ to the HB benefit bill. Multiply that by 160,000 who are “under-occupying” and you quickly realise councils could go bankrupt because of this stupid bedroom tax. Perhaps that was the plan. The whole fiasco could have all been avoided with just a smidgen of intelligence and planning.

  3. Nice for the rentiers though, including Tory MPs with an interest in Buy To Lets and bankers mortgaging properties housing associations can’t afford to maintain once they’re empty.
    I never believed this policy was focused on the tenants. It was always focused on the properties.

  4. Reblogged this on Vox Political and commented:
    We ALL knew the Bedroom Tax would create a greater cost for the taxpayer – at least, those of us with any forewarning knew that this would be the case.
    The Conservative-led government (including the Tory Democrats who prop it up) was told that the cost would be greater and ignored the warning.
    My impression was that they wanted it to cost more, as part of their overarching “starve the beast” policy to make public services unsustainable.

  5. It has taken Labour a while, but they seem to be getting there now. This kind of obviious flaw in the system needs to be broadcast from all quarters, and Milliband needs to be far more fforceful.

  6. We warned of this extra cost, even without the vicious “affordable rent” regime if I downsized my rent old go up from £85 for a 2 bed to £108 for the 1bed bungalow directly opposite. Same property in better part of city where gov’t say must charge affordable rent to all new tenancies would put that same bungalow at £280 per week, some saving!

    Round my way we are lucky best estimate is 8 years to get everyone downsized in some areas it old be a case of you qualify for your pension before you ever get a move as waiting time can be 30+ years

  7. I believe this fiasco was actually DESIGNED to bankrupt councils thereby allowing housing stock to be sold off to their rich pals at a greatly reduced cost, then those pals could re-let them at greatly increased rents, thus costing the taxpayer possibly billions.

    1. I ttotally agree! The people behind this caannot be so stupid as to not have realised the implications of their ppolicy. Therefore it must be willful sabotage of soccial housing sector.
      happy easter IDS!

  8. I rent a 2 bed bungalow in private accommodation – I have to find over £250 per month as my housing benefit is for myself and hubby to have one bedroom. It’s been like this in private renting (the bedroom tax) for many years now and we can’t do a damn thing about it. We are both disabled and have a lot of equipment – we need a bedroom each, but we are told that we can share!!
    We asked a couple of years ago to go into council or social housing – they offered us a tiny matchbox OAP bungalow! or a 1 bed flat on the second floor which was up a steep hill. I have one leg, I cannot do stairs and I need space for my wheelchair as well as other aids, but that’s what they said we were entitled to. I was disgusted.
    That’s why I rent privately, but I can tell you, you do not get all your rent paid by HB.

  9. A friend of mine has just downsized from a 3bed house at 118.00 per week which then has a 14% bedroom tax applied to a 2bed flat at 150.00 per week paid in full. GO FIGURE PERHAPS IDS NEEDS TO TAKE ADVICE FROM CAROL VORDAMAN!

  10. I’m saving them an absolute fortune, I have a child aged 15 who currently lives in a specialist residential unit at a cost of 4k per week..We are currently working to get her back to me next year when she’s 16, that is providing I have somewhere to put her..

    I’m paying the tax on her ‘unoccupied’ room, had she and her baby sister been here (deceased) I wouldn’t have to pay, when she’s 16 though she’s entitled to her own room as I have 3 other children & I’m in a four bed property..

    My choices are to downsize from my £440 per month property & take a private 3 bed at a cost of £900, I’m near London so rents are quite high, I’ll also have the upheaval to the kids & myself, I’m a spoonie so moving would be really hard..

    When she’s 16 a choice will have to be made, I can’t keep paying this, can’t keep having threatening letters from the council cos they haven’t bothered to check wether my payments have been made or not..
    If I keep my daughter where she is due to lack of space if I’m forced to move it will cost the tax payer thousands per month extra, her wish is to come home, I feel like I’m over a barrel. It’s madness & cruel..They hit us where it hurts..

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