Bedroom Tax keeping people up at night

Published: 29/01/2014

The controversial ‘Bedroom Tax’ policy is facing harsher criticism after thousands of households are plunged into debt as a result of the additional charges.

Over half of the households surveyed have now fallen behind on the rent with 25 per cent of those slipping into rent arrears for the first time.

Many are trying to overcome the penalties by downsizing. However due to a severe shortage of smaller homes this is simply not possible, thus leaving many with no other option than to tighten their belt even further and critics in uproar at the injustice.

David Orr is the Chief Executive of the National Housing Federation:

“This is the most damning evidence yet to show that the bedroom tax is pushing thousands of families into a spiralling cycle of debt.

“If these figures are replicated nationwide, over 330,000 households could already be struggling to pay their rent and facing a frightening and uncertain future.

“What’s more, people can’t even move to smaller homes to avoid the bedroom tax because there aren’t enough smaller properties out there. Housing associations are working flat-out to help their tenants cope with the changes, but they can’t magic one-bedroom houses out of thin air. People are trapped.”

And there is nothing more terrifying than slipping further and further into debt with seemingly no way out, a situation Andrew Watson hears all too often:

“The cost of living is already pushing household budgets to the limit and this was before the introduction of bedroom tax.

“This policy ultimately impacts on the poorest households who may already be battling against increasing living costs. Many may find themselves backed into a corner, borrowing on top of borrowing to keep their heads above water. Sadly this often only leads to one thing – the receipt of a statutory demand and an imminent threat of bankruptcy.

“Whilst there may be little households can do about their downsizing options, they do have options – albeit limited - should they receive a statutory demand. Our team are helping many clients set aside their statutory demand or negotiate a reduction on their outstanding debt and could be able to help you.”

If you have received a statutory demand, contact Goldsmith Williams immediately to find out if you have your debt set aside. We work on a no win no fee basis so there is absolutely no risk to you.

Content correct at time of publication