Issue - meetings

The Size Criteria, or ‘Bedroom Tax’ will be implemented for underoccupiers of social housing stock from the 1^st April 2013, and tenants will receive a reduced amount of Housing Benefit to pay the rent with.  Given the current demand on social housing, particularly from homeless households who will be affected by other Welfare Reform measures, transferring underoccupiers to right sized accommodation is favoured, and needs to be encouraged. The currently financial incentive offered to households to motivate the move is a flat rate of £1,000.  The proposal is to increase this to £2,000 per bedroom released, per household (to a maximum amount of £6,000) to encourage underoccupiers to move to smaller homes. The cost of providing the increased incentive payments is offset against savings to both the Temporary Accommodation (TA) budget and the Housing Revenue Account (HRA).

That approval be given to increase the financial incentive paid to tenants to move out of underoccupied Council housing stock to £2,000 per bedroom released but up to a maximum payment of £6,000 to any household, subject to the availability of Council funding for the scheme and within the parameters set out in paragraph 3.5 of this report.

The Size Criteria, or ‘Bedroom Tax’ would be implemented for underoccupiers of social housing stock from the 1 April 2013, and tenants will receive a reduced amount of Housing Benefit with which to pay the rent.  Given the current demand on social housing, particularly from homeless households who would be affected by other Welfare Reform measures, it was felt to be preferable to encourage underoccupiers to transfer to right sized accommodation. Councillor Long (Lead Member, Housing) referred to the council’s existing financial incentive offered to households to motivate the move in operation since 1997 and the proposal to increase the flat rate of £1,000 to £2,000 per bedroom released, per household (to a maximum amount of £6,000). The cost of providing the increased incentive payments was offset against savings to both the Temporary Accommodation budget and the Housing Revenue Account. The Executive noted that there were currently 634 under occupiers and that tenants over 61 years of age were exempt.

Councillor Butt (Chair, Leader of the Council) reiterated that a support package was in place and that efforts would be made to minimize alarm and distress to the those residents that were not affected by the changes.

RESOLVED:

That approval be given to increase the financial incentive paid to tenants to move out of underoccupied Council housing stock to £2,000 per bedroom released but up to a maximum payment of £6,000 to any household, subject to the availability of Council funding for the scheme and within the parameters set out in paragraph 3.5 of the report from the Director of Regeneration and Major Projects.