Glasgow Advice Agency calls for local authority guidance to enable tenants to mitigate bedroom tax

As reported in The Herald (Saturday, 16 February 2013) the Glasgow Advice Agency (GAA) has obtained the opinion of senior counsel and understands that the meaning of 'bedroom' for the purposes of the Housing Benefit (Amendment) Regulations 2012 is not legally defined, and that, importantly, the definition is not static or fixed in time. GAA funds and manages free financial inclusion, welfare rights and advice services across the South and North East of Glasgow. Its principal members include GLC, Govan Money Matters Advice Centre and GEMAP Scotland.

Essentially, GAA understand that it is a matter for each local authority as 'the relevant authority' under the regulations to determine what is and is not a 'bedroom', and that the actual use of a room by a particular household will be critical in deciding whether that room is a bedroom or not. Accordingly, GAA believes it is possible for tenants to change the use of what might be regarded as a 'spare bedroom' in terms of the regulations into something that need not be counted as such, and not be subject to the housing benefit under-occupancy deductions (bedroom tax). In that regard, the guidance and approach of individual local authorities will be critical.

In particular, this approach is of obvious application for disabled tenants in Scotland or the UK who may use a 'spare bedroom' for the purpose of therapy, storing wheelchairs, medical equipment or to undertake medical procedures. Other tenants may be able to avoid the bedroom tax too. The critical factor is there is a need for formal guidance and then advice to ensure an uptake of that guidance to help tenants mitigate against the bedroom tax.

"GAA believes there is a key role for the Scottish Government to take a lead in this matter and provide formal guidance for local authorities to enable a consistent approach and facilitate best practice across Scotland."

At present, 95,000 households in Scotland are affected from 1 April 2013, with a cost implication in lost rent to councils and housing associations in the sum of around £50m per annum in Scotland. GAA believe the issuing of guidance and providing advice could enable many of those affected by the bedroom tax with a means to lawfully mitigate against it by using a spare room for a purpose that would not be regarded as a bedroom in law.

Civic Scotland organisations unite for law reform to protect tenants against bedroom tax evictions

Oxfam, Govan Law Centre, Shelter Scotland, Money Advice Scotland, the Carrington Dean Group and Glasgow Central Citizens Advice Bureaux have come together to support a campaign film calling on the Scottish Government and Parliament to prevent Scottish tenants being evicted for bedroom tax arrears.

The campaigners are calling for section 16 of the Housing (Scotland) Act 2001 to be amended so that bedroom tax arrears are treated as an ordinary debt in law, and not as rent arrears which would constitute grounds or evidence for eviction. The new campaign film explains the expected impact of the 'bedroom tax', and the concerns that advice agencies and anti-poverty charities in Scotland have in relation to increased evictions and homelessness in Scotland.

The campaign film asks for people to sign and support the 'No evictions for bedroom tax' petition in the Scottish Parliament - which is online here: http://www.scottish.parliament.uk/GettingInvolved/Petitions/bedroomtax  (anyone, anywhere can sign this, and you do not have to be in Scotland or the UK to do so).  The 'Amend section 16' campaign film can be watched below.

We can stop evictions for bedroom tax if you sign this petition

GLC's petition in the Scottish Parliament for 'No evictions for bedroom tax arrears' is now online, and we would be grateful if you would consider supporting same by adding your signature here: http://www.scottish.parliament.uk/GettingInvolved/Petitions/bedroomtax  Please circulate this link to your friends, family and colleagues and ask them to sign too. The bedroom tax is the new poll tax, but it is much worse than that.

Housing benefit under-occupancy provisions - 'the bedroom tax' for tenants in the social rented sector are introduced by section 69 of the Welfare Reform Act 2012 and the (draft) Housing Benefit (Amendment) Regulations 2012, from April 2013.  These provisions will see tenants of councils and RSLs in Scotland lose on average £ l12 per week, with some tenants losing as much as £22 per week in housing benefit. There is widespread concern in Scotland that these changes will cause major detriment to thousands of households in Scotland.

The DWP estimate 660,000 claimants will be affected across the UK, and the Chartered Institute of Housing in Scotland suggest as many as 95,000 tenants could be affected in Scotland.[1] 

When it comes to Scottish rent arrears eviction actions in sheriff courts, often the success or failure of a tenant in preventing eviction will turn on a few pounds per week, for example the standard payment for arrears direct is £3.55 per week. Accordingly, the prospect of £12 to £22 per week being deducted from rent payments under the bedroom tax from next April means Scotland's law centres and advice sector will be unable to defend many eviction cases in practice. 

We are suggesting a minor amendment to section 16 of the Housing (Scotland) Act 2001 (as follows) which would prevent 'bedroom tax rent arrears' being used to establish or justify a crave for eviction, and instead the landlord could obtain a payment decree for these 'type of arrears', and pursue them an ordinary debt. 

We do not believe the bedroom tax is fair or morally justifiable for the following reasons:

• Arrears accrued by tenants due to the ‘bedroom tax’ from April 2013 are not the ‘fault’ of social rented sector tenants, and therefore using such arrears to establish or make out a case for eviction must be unfair and unreasonable as matter of principle and social policy.

• The DWP’s Impact Assessment accepts there are insufficient smaller properties for tenants to downsize to, and therefore many tenants will have no realistic alternatives other than to accrue rent arrears from the bedroom tax.

• The public cost to accommodate a family made homelessness is on average £24,000 per case , which would place major pressure on local authorities and the NHS in Scotland in a time of budget cuts, and therefore the need to prevent eviction from the bedroom tax is in the wider public interest.

• Given the imminent nature of the cuts, and the lack of practical solutions available to tenants, there is a cogent case for providing social tenants with a longer transitional period, and a guarantee that they will not be evicted due to these reforms in the short to medium term.

• Ultimately, many social landlords in Scotland are already taking proactive action to mitigate against these forthcoming housing benefit cuts, and have no desire to evict tenants because of the cuts. However, RSLs and councils are subject to public audit and have a duty to pursue rent arrears as a matter of law, and in terms of their regulatory supervision. Accordingly, this amendment would assist social landlords, by ensuring they could only pursue bedroom tax arrears by way of ordinary debt recovery (payment actions, followed by ordinary diligence). 

[1] http://www.cih.org/resources/PDF/Scotland%20Policy%20Pdfs/Bedroom%20Tax/Bedroom%20Tax%20Final.pdf

Shelter Scotland and STUC endorse 'No eviction for bedroom tax' campaign

GLC is delighted that Shelter Scotland and the STUC have endorsed the principles of the 'No eviction for bedroom tax' campaign, which is already supported by local tenants and residents in Glasgow, following two public meetings in Govan.

GLC had suggested the need for urgent minor law reform amendment to implement a 'No eviction for bedroom tax' policy in Scotland, upon the basis the bedroom tax cuts would be affecting tenants within 4 months or so, and Scotland needed a new safety net otherwise we would be unable to prevent evictions based on rent arrears caused by the bedroom tax.

Many defended eviction actions in court can often turn on £3.55 per week payments to arrears, and with £12 to £22 per week being deducted from housing benefit it could become almost impossible to defend such eviction actions in the near future.

GLC has suggested bedroom tax rent arrears could be pursued as an ordinary debt, and should not be founded upon as a ground of eviction or to establish the reasonableness of local authority and housing association evictions. Such a policy could either be considered on a permanent or transitional basis with a sunset clause.

The support from Shelter Scotland and the STUC to this proposal is very welcome and will help forge much wider civic Scottish support to the 'No eviction for bedroom tax' campaign.

Cross-party agreement to consider 'no bedroom tax eviction' policy in Scotland

Last night, a packed Mary Barbour Hall in Govan's Pearce Institute heard the heartfelt concerns from local tenants frightened for their families future with the 'bedroom tax' cuts, due next April.

The cuts will see those who are retired, working, or in receipt of benefits, receive housing benefit cuts of £48 per month from their rent, and in some cases £88 per month.

Humza Yousaf MSP

The meeting heard from a panel comprising of Johann Lamont MSP, Leader of the Scottish Labour Party, Humza Yousaf MSP, Scottish Minister for External Affairs and International Development, Cllr James Adams, Bailie Fariha Thomas, Dave Moxham, Deputy General Secretary of the STUC, Mike Dailly, Principal Solicitor, GLC, John Flanagan, Chair of Govan Housing Association, and Kenny McLeod, Deputy Director of Linthouse Housing Association.

There was a unanimous consensus from the panel and members of the public at the meeting, that the 'under-occupancy' housing benefit reforms were irrational and morally wrong, would unfairly force families to give up their homes of many years, and would ultimately lead to an increase in evictions and homelessness across Scotland.

Johann Lamont MSP

Both Johann Lamont  and Humza Yousaf agreed that the housing benefit proposals were irrational and would force families to make distressing and unfair choices. Cllrs Adams and Thomas were worried that the bedroom tax would cause misery for many local people and ultimately lead to greater homelessness, with the package of welfare cuts taking £115m out of the Glasgow economy. There was a need for local advice agencies to use the law and provide welfare rights support for those affected.

The STUC's Dave Moxham reflected on the need to look at rent capping in the private sector and much stronger rent regulation. He noted that levels of child poverty and equality of pay was actually better-off in 1979 than it was today, and how we needed a fightback in the spirit of those of the 1915 Glasgow rent strike, which included Govan's Mary Barbour.  Kenny McLeod explained that 75% of Scottish housing associations relied on housing benefit for more than half of their operational revenue, and that many tenants were already borrowing from high interest home credit lenders.

John Flanagan emphasised the need for all stakeholders and campaigners to come together to work with a united front. This was echoed by the chairman of the meeting, John Foster, and the meeting resolved to form a steering committee to take forward a united campaign on behalf of Glasgow tenants. Govan Law Centre (GLC) agreed to provide full support and backing to the steering committee.

Members of the public in Govan's Mary Barbour Hall

Mike Dailly talked to GLC's call for an urgent minor law reform amendment to implement a 'no eviction for bedroom tax' policy* in Scotland, upon the basis these cuts would be affecting tenants within 4 months or so, and we needed a new safety net otherwise we would be unable to prevent evictions based on the bedroom tax.

Mike explained that at the moment defended eviction actions in court can often turn on £3.55 per week payments to arrears, and with £12 to £22 per week being deducted from housing benefit it could become almost impossible to defend such eviction actions in future.

Both Humza Yousaf and Johann Lamont agreed to consider the feasibility of GLC's law reform proposal which was backed by those present at the public meeting. GLC has suggested bedroom tax rent arrears could be pursued as an ordinary debt, and should not be founded upon as a ground of eviction or to establish the reasonableness of local authority and housing association evictions. Such a policy could either be considered on a permanent or transitional basis with a sunset clause.

The meeting was organised by the tenants and residents associations of Govan and Linthouse, and the Govan Communnity Council.

* GLC's briefing paper and proposed statutory amendment is online here (opens as a PDF).