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The Bedroom Tax: Dundee’s Policy

The Bedroom Tax: Dundee’s Policy.

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The Bedroom Tax: Dundee’s Policy

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  1. The Bedroom Tax: Dundee’s Policy • “The City Council resolves that for a transitional period of one year, where the Director of Housing is satisfied that tenants who are subject to the under occupancy charge are doing all they reasonably can to avoid falling into arrears, it will use all legitimate means to collect rent due, except eviction.” • Dundee Housing Committee, 11th March 2013

  2. 29.2% of the population live in the 15% most deprived areas • 17.8% of the population classed as ‘income deprived’ • 5.7% of working age population receive JSA • 32% of housing tenure is either LA or RSL stock • 2,420 people had their JSA suspended Context:

  3. Mitigation: • Revised our lettings policy to allow additional points for those affected • Created a housing incentive scheme • A targeted approach for increasing DHP – a further 300+ applications submitted • New working practices within rent recovery • £25,000 of funding to Dundee Foodbank

  4. Discretionary Housing Payments: A lifeline • The total Discretionary Housing Payments budget for Dundee is £843,765. • 1130 tenants have received a DHP payment - totalling £518,891 DHP applications can be completed in a variety of ways by a variety of staff. • Pre-1996 exemptions; • 108 council tenants exempt from the bedroom tax • 39 RSL tenants exempt

  5. Dundee is the third worst hit area in Scotland with the loss of £58 million to the local economy – Only Glasgow and Inverclyde will lose more. 1,888 council tenants are currently affected by the bedroom tax; 1673 by the 14% reduction and 215 by the 25% reduction. Of those 1888 affected, 1575 are currently in arrears – 83.4% However, of these 1575 – 837 (53%) have been accepted for a DHP. Of those tenants currently in arrears, approximately 61% had no arrears prior to 1st April 2013 The Bedroom Tax: Assessing the Damag

  6. Significant Challenges Moving Forward: • Staff resources/ new working practices • Tenant engagement – a question of equity • Comparison between arrears performance pre & post Bedroom Tax • First years arrears following the Scottish Government recent funding announcement.

  7. The alternatives: the cost of eviction • Pre-action requirement • Legal process • Re-let standard investment • Void costs • Homelessness statutory requirement • Temporary accommodation costs (potentially impacted by bedroom tax) • Social & emotional costs Always a last resort…

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