Low Income Households Cannot Afford Council Tax

Local authorities were unable to collect up to 40% of council tax due from low-income households that had the charge imposed on them for the first time last year. Council tax – set on average at £5 a week – has been levied on the poorest households in England since April last year as part of a cut in benefits. But such is the squeeze on household budgets, say campaigners, that the poor cannot afford to pay even these small sums. The figures, obtained from responses from 140 councils to Freedom of Information requests, reveal that some of the biggest towns and cities were left chasing millions of pounds from the poor. Read more on the False Economy website.

One In Three 'Behind on Rent' Since Housing Benefit Changes

One in three council tenants affected by a recent cut to housing benefit has fallen behind on rent since the policy took effect, figures suggest.  The TUC's False Economy campaign made Freedom of Information requests to all of Britain's councils; 114 responded. Data revealed 50,000 tenants had fallen into arrears since 1 April 2013 when the housing benefit changes came in - a move critics called the "bedroom tax". The government said the figures did not represent "long-term" changes.Read more on the False Economy website.

Bedroom Tax Is Postcode Lottery As Residents in Some Areas Avoid Levy

The hated Bedroom Tax is turning into a cruel postcode lottery.  A survey of local authorities shows that what you pay depends on where you live, with some local authorities – including Tory-run councils – using a loophole to exempt tenants with tiny bedrooms.  Most councils, however, insist people must pay for all bedrooms listed on their tenancies.  “A postcode lottery is developing,” said the TUC-funded False Economy group, which conducted the research using freedom of information laws. “Tenants with the same sized properties and bedrooms are treated differently depending on which local authority they live in.” Read more on the Daily Mirror website.

Bedroom Tax Is Creating a False Economy

The ‘bedroom tax’ is creating a “false economy” that is harming local growth Wakefield and District Housing’s (WDH’s) chief executive Kevin Dodd has warned.  The northern economy has put forward a more workable solution in local job creation schemes he said which can save the Treasury almost twice as much each year as the spare room subsidy. “WDH invest £3 million each year in employment initiatives, as it is good business to reduce benefit dependency. Last year over 300 people have been found employment opportunities by WDH, which is over 25 people per month. Work such as this by registered providers is pro-rata, on a par, or better than the Government’s ‘Work Programme’ targets on a regular basis,” said Dodd.  “Having more local people in work saves the Treasury nearly £6 million a year, which in turn boosts the local economy by around £18 million a year just in the Wakefield district.”  Read more on the Housing Excellence website.

Bedroom Tax Could Make 1000s Homeless

Research at False Economy shows that a severe shortage of one-bedroom properties will hit tens of thousands unless new homes are built.  Data from 107 local authorities shows 86,000 households have been forced to look for one-bedroom homes, of which only 33,000 have become available in the past year.  The figures mask considerable regional variation. In Essex, 100 social housing tenants in Rochford were deemed to require a one-bedroom property because of the benefit changes but only five had become vacant the previous year. In Gloucester the council said 111 one-bed homes had been available last year, but almost 500 households needed them because of the bedroom tax. Read more on the False Economy website.

More Than 2,000 Charities and Community Groups Face Cuts

More than 2,000 charities and community groups are facing budget cuts as local authorities reduce their funding – or in some cases completely withdraw it – according to research by False Economy. The research, based on hundreds of Freedom of Information responses from local councils across England, shows that one year on from the launch of the Big Society, many charities and voluntary groups face deep funding cuts. The False Economy research shows that charities face net funding reductions of more than £110 million this year, though the final figure is likely to be far higher given that some large authorities have not yet finalised where the cuts will hit. All charities or voluntary groups receiving a funding cut of at least five per cent are listed in the research, although most of the cuts are far deeper – and many groups have had their funding cancelled completely. Read more on the False Economy website.