35% increase in arrears due to bedroom tax in 14 Merseyside HAs

A group of 14 housing associations shared data on the impact of the policy, which came into effect across Britain a year ago today.

The survey shows the average rent arrears for the 18,722 households renting from the 14 landlords who are affected by the tax was £374, up from £276 this time last year. The total arrears of 12 of the landlords increased 8.45 per cent from £17.3 million to £18.8 million.

The research also showed 553 residents have been referred to food banks by their landlord in the last year, although this is likely to be just ‘the tip of the iceberg’ the landlords said. They cited figures showing Knowsley food bank has had a 93 per cent increase in use, feeding an extra 6,000 people over the past year. North Liverpool food bank experienced a 67 per cent increase, feeding 7,129 people, compared with 4,256 the previous year.

Gill Payne, director of policy and external affairs at the National Housing Federation, said: ‘From day one we said the bedroom tax is unfair and warned the government that it would not work. Most people in Merseyside haven’t even been able to downsize and are being pushed into arrears as there aren’t enough smaller properties.

‘We’ve been told time and time again that the bedroom tax is necessary to cut the housing benefit bill but this policy is still in danger of costing the taxpayer more in the long term.’

Esther McVey, minister for work and pensions, has argued the policy is ‘a vital reform when we face around a quarter of a million people living in cramped, overcrowded accommodation in English social housing alone and 1.7million people on waiting lists’.