Published on:
10
July 2013
A national survey which reveals significant financial pressures are being placed on Councils across Scotland because of welfare reform changes to housing benefit, also reflects the situation in Clackmannanshire.
A survey of all local authorities in Scotland carried out by COSLA, reveals the very significant financial pressures being placed on councils by the UK Government after their introduction 100 days ago.
Under occupancy changes made under the Welfare Reform Act 2012, which came into effect on 1 April, reduce housing benefit by 14% for those with one 'extra' bedroom and by 25% for those with 2 'extra' bedrooms. These changes apply to councils tenants and tenants of registered social landlords - the so called 'bedroom tax.'
The changes are already leading to sharp rises in rent arrears. In Clackmannanshire, around 716 tenancies have been impacted by the change and of those 491 now have arrears where previously their account was clear, and 225 who already had arrears have seen their levels of arrears increase. The amount of money owed to the Council in rent has increased from £382,699 on 31st March to £485,955 on 9th June.
Council Leader Gary Womersely said: "The non-payment of rent now due following under occupancy changes, is directly responsible for the rise in arrears. Councils are being required to reduce housing benefit payments only to see rent arrears rise sharply and tenants experiencing distress. At the same time as housing services are being undermined by a threat to our income streams.
"Our staff have been making contact with tenants because we are acutely aware of the potential difficulties people may face and we wish to assist, as much as we can. It is important that people make contact as soon as possible if they are having difficulties so that the Council is aware of the situation and able to consider what help might be available."
There has also been a sharp rise in requests for Discretionary Housing Payments for those in particular housing need. So far the Council has made 80 financial awards to individuals suffering hardship as a result of the impact of recent changes to the benefit system. These awards have totalled £6,200.
Councillor Womersley added: "I am pleased that this Council has been able to respond so quickly to applications and that individuals who meet the criteria have been provided with much needed assistance."