Scotland Pushes Back Against UK Welfare Reforms

Scotland’s Housing Minister Attacks Benefit Reform

Scotland Pushes Back Against UK Welfare Reforms

Latest Landlord News by: Madalena Penny

While landlords and LHA tenants in England brace themselves for the impact of ground zero through welfare reform detonation, Scotland’s government have formed an alliance with experts within housing and welfare agencies to gain control and liberate themselves from the UK’s national housing benefit policies due to be introduced in April this year.

Although Scotland administer and control some of their own government policies, welfare is not devolved and they still adhere to central government policies and reform in England.  A recent report concerning the impact which housing benefit and welfare cuts would have on the Scottish economy, implied that 60,000 households would be detrimentally affected by the reform.

Projected Impact on 60,000 Scottish Households

The report, Housing Benefit Changes – Scottish Impact Assessment, indicates that the planned reduction in housing benefit would result in 55,000 Scottish households having little choice but to either move from their homes to cheaper accommodation or subsidize the deficit of rent themselves, potentially pushing vulnerable members of society below the breadline.

Scottish Ministers Condemn ‘Slash and Burn’ Policies

Calling the English government’s plan a “slash and burn economic policy”, Scotland’s housing minister, Alex Neil, said:

“The veil has been lifted off the UK government’s reckless and ill thought through policies.”
“There needs to be welfare reform but these measures are penalising the very people we should be protecting.”

Young Adults Set to Lose Independent Living Support

The report also claims that from April, 25–35-year-olds will lose housing benefit that allows them to live independently in their own homes. The loss of the £55-a-week benefit will affect 7,500 people, forcing many into shared accommodation.

Shelter Scotland Warns of Rising Homelessness Risk

Director of Shelter in Scotland, Graeme Brown, said:

“These reforms come at a time when more people are facing homelessness. Ministers must ensure the reforms don’t derail Scotland’s progress towards the Scottish Parliament’s commitment to give everyone the right to a home by 2012.”

Private Rented Sector Faces Rising Demand and Higher Rents

This comes at a time when Scotland’s private rented sector is also experiencing the same surge in tenant demand as their English counterparts. Research by property services Citylets reveals that rents increased by a further 2.2% in Q4 2010 compared to the same quarter in 2009.

The largest rise occurred in Stirling, where rents increased a substantial 15% over 2010, raising the average rental value for a 2-bed flat from £530 to £611 per month.