Bedroom tax ‘will lead to Scots homelessness rise ’

COUNCIL leaders have warned that the “bedroom tax” will lead to a rise in homelessness in Scotland, ahead of an appearance before MSPs today of the UK minister behind the levy.

The overhaul will cause “chaos” among hard-pressed Scots and is the most “abhorrent” policy ever introduced by any government, MSPs on Holyrood’s welfare reform committee were told yesterday. Work and Pensions Secretary Iain Duncan Smith will appear at a closed-doors evidence session before the committee during a trip to Edinburgh today.

Stuart Bell, the executive member for economic development at Borders Council, delivered a stark warning as the committee took evidence from council chiefs.

“We fear that there will be an increase in homelessness,” he said. “We’re very concerned about the structures of payment and non-payment to the registered social landlords, inhibiting their capacity to raise funds.”

Housing benefit recipients living in social housing will have their benefit cut if they are deemed to have more bedrooms in their home than is needed. One extra bedroom will mean a 14 per cent cut; two or more bedrooms means a 25 per cent cut. The controversial measures will see affected tenants lose an average of £14 a week.

A key change will see rent money paid to tenants instead of going directly to the social landlord, prompting fears many tenants could spend the cash elsewhere and fall into arrears.

About 7,000 families will be hit by the tax in North Lanarkshire, the committee heard, plus around 3,000 in Dundee and the Highlands, and around 1,000 in the Borders.

“There’s nothing in the legislation which I find attractive,” North Lanarkshire Council leader Jim McCabe said. “I think it’s the most abhorrent piece of legislation I’ve seen.”

Mr McCabe called for some form of “mitigation” on the imposition of the bedroom tax, allowing councils to show some “laxity” for the most hard-pressed tenants.

Jimmy Black, deputy convener on the development management committee at Dundee City Council said of the tax: “I know it’s going to cause absolute chaos in the next two or three years.

“I am quite concerned at the threat to the housing revenue account, as well as the threat to individual households as a result of that ill-thought-out policy.”

Welfare Reform Committee convener Michael McMahon said afterwards that the concerns will be raised with Mr Duncan Smith in today’s closed-doors meeting.