Bedroom Tax Loophole

by admin on March 5, 2013

Many people will  be able to avoid housing benefit cuts and take up to £1,000 a month while still claiming benefits due to a loophole in welfare reform.  Labour says 660,000 tenants will be hard hit by what it calls the ‘bedroom tax’, which from next month cuts the amount people can claim in housing benefit if they are deemed to living in homes too big for their needs.  However, the DWP has not capped how much they can earn from a lodger or boarder (or a relative) before it affects their benefits claim.  So while they would be an average £11.00 a week worse off because of benefit cuts on spare bedrooms they could net up to an average £100 a week in rent by taking in one of the above examples as tenants  and still claim welfare.  Sunday Express, 3rd March, p7.

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