Thousands of people in Tayside and Fife could be forced out of their homes because of new caps being introduced to housing benefit payments, the Scottish Government has warned.
The UK Government wants to cap housing benefit for tenants in private accommodation from 2013 ina bid to slash £2 billion from the annual £21 billion bill.
But it is feared that this may force people out of their homes and into cheaper accommodation while 60,000 Scots are at risk of facing severe financial hardship because of the changes.
Tenants will have just nine months from April to find new homes.
The changes will affect households who pay the average rent in their area as housing benefit will now only cover the cost of accommodation in the bottom third of rental prices.
According to the Scottish Government, the changes will make it harder to meet its targets for reducing homelessness and that as many as 7500 people aged between 25 and 34 could be forced from their own flats into shared accommodation because of the limits on housing benefits.
In Dundee and Angus, people in that age bracket who receive housing benefit for a one-bedroom flat will see their allowance drop from £80.77 to £54.23 a fall of £26.54.
In Fife, the drop will be £28.85 as the allowance for a one-bedroom flat falls from £84.23 to £55.38.
Those in Perth and Kinross will suffer even more allowances will fall from £87.69 to £54.23, a drop of £33.46.
In some parts of Scotland the cut for 25 to 34-year-olds could be as much as £55 a week.’Slash and burn’The Scottish Government is now calling for powers on welfare and benefit payments to be devolved to protect Scots from the coalition government’s cut.
Housing minister Alex Neil said, “The veil has been lifted off the UK Government’s reckless and ill-thought-through policies.
“We have exposed that thousands of families and elderly people in Scotland are going to feel the full force of savage cuts by the UK Government, on top of the rises in VAT and inflation.
“There needs to be welfare reform but these measures are penalising the very people we should be protecting.”
He added, “It’s slash and burn economic policy cutting too fast, too far and too quick and will force people out of their homes.”
Mr Neil said the Scottish Government is to set up a working group comprising MSPs, local authorities and third sector groups to put forward a case against the cuts.
“In Scotland, we will be working with our third sector groups and local government to ensure we can continue to take the strongest possible case to the UK Government to think again,” he said.
“We will also be protecting household budgets with innovative homegrown policies such as school clothing grants, freezing council tax, free heating help and abolishing prescription charges.”‘Arbitrarily shifts the goalposts’He added, “The important thing now is for Scotland to have more powers to boost our strategy for economic growth and help people back into work, for example through control over Job Centre Plus, so we can streamline health, employment and training services.”
Councillor Harry McGuigan, spokesman for community wellbeing and safety with the Convention of Scottish Local Authorities said, “It is clear that the UK budget cuts and welfare reform will have a disproportionate effect on Scotland and Scottish local authorities.
“The UK Government decision to cut benefit levels and limit eligibility for welfare will seriously and significantly damage the welfare of individuals and families, resulting in increased poverty and heightening demand for Scottish local authority services.
“We do not support reform that arbitrarily shifts the goalposts for those in need of benefit.”
Graeme Brown, director of housing and homlessness charity Shelter Scotland, said, “These reforms come at a time when more people are facing homelessness. Ministers must ensure the reforms don’t derail Scotland’s progress towards the Scottish Parliament’s commitment to give everyone the right to a home by 2012.
“These changes ride rough-shod over the devolved power of housing in Scotland and are a direct attack on the aspirations of homeless people trying to rebuild their lives.”
Scottish Federation of Housing Associations chief executive Mary Taylor said, “Housing associations and co-operatives and their tenants will be adversely affected by these measures, especially proposals for those deemed to be ‘under-occupying’ their homes and a 10% cut for those on jobseeker’s allowance for more than one year.”DWP ResponseThe UK Government wants to cap housing benefit for tenants in private accommodation from 2013 inA Department for Work and Pensions spokesperson said, “There is an urgent need to reform Housing Benefit and return fairness to a system that has been allowed to spiral out of control.
“We are determined to drive down private sector rents for Housing Benefit recipients, whilst delivering value for money taxpayers.
“A third of all properties will still be affordable to people on Local Housing Allowance and alongside we have outlined a number of measures including the £130 million in discretionary housing payments that will support the most vulnerable people.
“Our aim is to help those who have been left on benefits for generations and in property that traps them in worklessness.”
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