SFHA Critical of Welfare Reform Bill

The SFHA, commenting on the UK Government's Welfare Reform Bill, welcomed the Government's u-turn... on one of the proposed sanctions on those out of work for more than a year, but was critical of the bill as a whole.

SFHA Policy and Strategy Director Maureen Watson said:

"We are delighted that the Government has listened to the SFHA, our sister Federations and others, and has at the last minute decided to drop the plan to cut Housing Benefit by 10% for people on Job Seekers Allowance for more than one year - an unfair proposal which would also have affected people's ability to pay their rent."

But the SFHA is critical of other provisions in the Bill, including a proposal that will put pressure on the tenants of housing associations, co-operatives and local authorities to leave their homes. The Bill proposes to limit Housing Benefit paid to social housing tenants who are deemed to be in a property larger than they need.

Maureen Watson said:

"This has the potential to impact on around 110,000 households in Scotland. The size profile of the affordable rented housing stock means that for many households, there is likely to be no alternative. This means that tenants will have to find the shortfall in rent from their already limited incomes.

The SFHA's campaign, Housing Benefits, aims to highlight the detrimental impact the UK Government's proposed reforms will have on tenants in the affordable housing sector.

Maureen Watson continued:

"Many of the proposals announced today in the Welfare Reform Bill will hit the incomes of some of the poorest in society, as well as increasing pressure on housing associations and co-operatives.

"Changes such as the penalties for those deemed to be under-occupying a property will cause hardship and could be impractical to implement. Housing associations and co-operatives are at the forefront of initiatives to encourage tenants who are under-occupying to move to smaller properties (where they exist) but this new sanction on those receiving Housing Benefit is punitive.
"The changes to the Local Housing Allowance, which affects the private rented sector, will increase demand for affordable rented housing - putting further pressure on social landlords already struggling to meet huge housing demand.

"We are also concerned about the inclusion in the Bill of a £26,000 cap on total welfare benefit payments. This, in tandem with some of the other measures, has the potential to drive up rent arrears and increase homelessness, all at a time when affordable rented housing is in short supply.

Maureen Watson continued:

"We also want Government to ensure that when Housing Benefit becomes part of the Universal Credit, the benefit paid is still sufficient to meet actual housing costs and that there remains a facility for the housing element to be paid direct to social landlords."

"The SFHA wants to see politicians, policy makers and practitioners working together to develop a fairer system for supporting vulnerable people."

 

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