A BBC investigation has found that only 6% of tenants affected by the bedroom tax have moved to smaller homes, prompting fresh concerns that the policy has failed to achieve its stated aims. The measure, officially known as the abolition of the spare-room subsidy, was introduced to save £500m on the housing benefit bill and free up under-occupied social properties for families on waiting lists.
Evidence suggests it has failed on both counts. The projected saving has already been downgraded from £500m to £390m, and the government indicated on Friday that it could fall further to £360m. Meanwhile, housing experts say the costs of dealing with debt, eviction and widespread misery caused by the policy may mean any cash savings are minimal.
About 500,000 working-age people in social housing receive reduced housing benefit because they are deemed to have spare bedrooms. Deductions average £14 for one extra bedroom and £22 for two. Housing associations report that many tenants want to downsize, but there are simply not enough smaller homes available. In England alone, 180,000 tenants under-occupy two-bedroom homes, yet only 85,000 smaller properties exist, with the shortage particularly acute in rural areas.
Local figures illustrate the policy's limited impact. In the London borough of Camden, which has more than 1,000 overcrowded households on its waiting list, only 84 of 1,587 affected tenants had moved by January – around 4%. In Newcastle upon Tyne, where there are virtually no overcrowded families waiting to be rehoused, the bedroom tax is estimated to save £3.2m a year in housing benefit, but the council spends over £2m supporting affected households, while the government provides just £700,000 in temporary financial aid. The council says 139 families now face eviction as a direct result of the policy.
The government insists the tax is not a failure, pointing out that 6% of tenants still amounts to 30,000 people. However, it remains unclear how many moved into smaller social homes rather than pricier private rental accommodation, which could actually increase the housing benefit bill. Rental arrears among social tenants have risen sharply, with 28% falling into debt for the first time. Food banks, advice agencies and housing professionals say the bedroom tax is generating avoidable stress and misery, hitting some of the poorest and most vulnerable members of society.
