NI 'Can't Afford' Bedroom Tax

Changes to housing benefit planned by the UK government will cost Northern Ireland more money than it will save, according to new figures.

The new 'Bedroom Tax' is part of the Conservative government's welfare reforms, which seek to save money and help cut Britain's deficit.

The regulations would see tenants of Housing Executive and housing association rooms lose 14% if they have one 'spare' bedroom and 25% if they have two or more.

But a report released by the Northern Ireland Federation of Housing Associations (NIFHA) and the Chartered Institute of Housing (CIH) claims the cost of implementing the bedroom tax would be at least £21m, but would only cut the benefits bill by £17m.

The bedroom tax will affect 32,000 households in Northern Ireland.

NIFHA and CIH estimate that the first year of the Bedroom Tax would see housing association tenants will lose £3.8m in housing benefit.

The figures also show an additional cost to housing associations of £6.4m, including increased costs for collecting rent, managing tenancies and adapting current systems.

Direct costs to the Housing Executive are expected to be at least £10m a year.

Cameron Watt, Chief Executive of NIFHA said: "Government has yet to calculate the true cost of implementing the Bedroom Tax.

"It’s clear that the numbers don’t add up. Northern Ireland can’t afford the human or economic damage this policy would inflict. 

"We share the Social Development Minister’s desire that no tenant should lose their home as a result of the various welfare reforms. However, as our members are social businesses, they will have to continue to collect the full rent from customers to remain viable, providing good services to tenants and building much-needed social and affordable homes.

"A delay of even three years is not the solution for a policy that it is so unsuited to Northern Ireland. And even a ten-fold increase in the number of smaller social homes being built would still leave the vast majority of affected tenants without a suitable social home to downsize to.

"Therefore the only sure way for Minister McCausland and his NI Executive colleagues to protect social tenants, is not to introduce the Bedroom Tax.

"That’s why we’ll be campaigning hard for MLAs to bin the Bedroom Tax when the Welfare Reform Bill returns to the Assembly on 16th April. When even the Chairman of the NI Conservatives admits the policy is 'unfair' here, it’s definitely time for Northern Ireland to bin the Bedroom Tax."

(IT/CD)