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BENEFIT CHANGES – COUNCIL PREPARES FOR HARD TIMES

Submitted by Editor on

City of Edinburgh Council will consider ways of reducing the effect of national changes to welfare benefits during its Corporate Policy and Strategy Committee on 16 April, it announced today.

Housing Benefit Under-Occupancy Restrictions (known by critics as the 'Bedroom Tax') are of particular concern. These will affect around 3,800 Council tenants and 2,500 Housing Association tenants here. The Scottish Local Government Forum Against Poverty estimates that this – combined with other national changes to the benefit system – could result in in an income slump for Edinburgh residents of £223 million by 2015/16. (More background information on these restrictions, provided by Shelter Scotland, is available here.)

This will very likely have negative impacts on low-waged individuals and families, jobless and disabled people, and those on benefits, with a concomitant rise in demand for social work, housing and homelessness services.

CEC has contacted those likely to be affected, and with help from the voluntary sector is offering advice on everything from downsizing to a smaller home, to taking in lodgers and budgeting on an even more restricted budget than usual.

It's a humanitarian problem affecting the most vulnerable in the city, but the problem also affects CEC. Councillor Ricky Henderson (Health, Wellbeing and Housing Convener) says that if tenants' financial hardship leads to rent arrears, it may have an 'adverse effect on the Council's ability to deliver services and capital investment in its homes'. 

On Tuesday next week, therefore, the Committee will consider investing £350,000 in extra services (including £100,000 on those to be provided by the Citizens Advice Bureau). A separate sum of £67,000 has already been agreed for the Welfare Rights and Health Project, CHAI Advice Service and Granton Information Project. Is it enough? The Committee will discuss further measures on 23 April. 

Opposition to the 'Bedroom Tax' has been vocal and widespread over recent weeks, organised in large part by the Edinburgh Anti-Cuts Alliance. On 5 April, a petition attracting 1,251 signatures called on CEC not to evict tenants who had get behind with their rent owing to this benefit change.

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[Image by Matthew Woitunski, Creative Commons]