UNISON is calling for the government to abolish the bedroom tax, rather than rushing to close a loophole which meant some tenants did not have to pay the tax.
At the start of January, the Department of Work and Pensions (DWP) revealed that a mistake in the way their legislation was drawn up meant that some tenants should have been receiving their housing benefit in full without the bedroom tax applying until the legislation was amended. This meant that councils should refund deductions made since last April.
The mistake affects working age tenants in social housing who have occupied the same home continuously since 1996.
Thousands of people, including some who now face eviction or have already been forced to move to a smaller property, could now be eligible for refunds worth on average £640 and totalling millions.
The DWP estimates 5,000 tenants are affected, however housing experts believe as many as 40,000 people or one in twenty five people could be due a refund. Councils will now have to assess how many households in their area are affected to begin to pay back the deducted benefit. However, they will not be able to ask tenants to return any emergency discretionary housing payments (DHPs) they may have received.
The DWP has said the regulations will be amended to close the loophole in March 2014.
Policy officer Allison Roche said: “UNISON believes the bedroom tax should be abolished now. We can’t wait until the 2015 general election to end the unfair and unworkable bedroom tax.”
The union is urging members to work jointly with other unions, employers and social housing providers, tenants associations, community and welfare support and councils to demonstrate the hidden costs, impracticalities and unfairness of the bedroom tax and demand that it is abolished now.
Find out more about whether you are entitled to a housing benefit refund (external site)