Análisis de casuística internacional referente a la Reformatio in Peius

In-depth interview participants reported having a range of other repayments deducted from their benefits. These included repayment of old Social Fund loans, rent arrears and repayments of benefit overpayments. For example: Aileen was a vulnerable 20-year-old with a difficult family background and serious mental health problems, who had recently returned to Scotland after spending some time with family living elsewhere. She reported that her sole income was ESA (‘assessment rate’) of £133 per fortnight, from which £26 per fortnight was deducted for a budgeting loan which she received to cover moving costs. Others, like Helen, were affected by the recent reduction in the rate of Housing Benefit for those aged under 35. In the financial year 2013/14, an estimated 1.75 million families in the UK saw their benefit entitlement cut as a result of four changes to welfare: Local Housing Allowance (LHA), the introduction of size criteria in the social rented sector (the so-called ‘bedroom tax’), the overall benefit cap and the change from Council Tax Benefit to Council Tax Support.57

This section considers the ‘bedroom tax’, benefit cap and changes to Council Tax. Due to the qualitative nature of this study and difficulties in identifying when someone was subject to changes to LHA, it was not possible to include LHA in the coverage of this report.

56 _{(DWP, 2014).}

‘Size criteria in the social rented sector’ or ‘bedroom tax’58

The introduction of size criteria in the social rented sector, introduced in April 2013, is variously known as the ‘removal of the spare room subsidy’, the ‘under-occupation penalty’ and the ‘bedroom tax’. It should be noted that all of these terms are politicised. Within the legislation there is a neutral description of the change, ‘size criteria in the social rented sector’ – this term is not in widespread use either by the policy’s supporters or its opponents. As the change was ubiquitously referred to as the ‘bedroom tax’ by research participants, we will use that term throughout this report.

‘It’s actually destroying people’s lives because they don’t realise that £26 is a lot of money in this situation.’ Alex, Durham

For the food banks participating in the additional administrative data collection, the proportion of food bank users who reported they were affected by the ‘bedroom tax’ varied, from 19% in County Durham, 9% in Epsom and Ewell, to 6% in Tower Hamlets (Appendix B, Table 6). The lower rate in Tower Hamlets Foodbank was thought to be because Tower Hamlets Council had been particularly proactive in using Discretionary Housing Payments (DHPs) to mitigate the impact of the removal of the spare room subsidy for its tenants. In County Durham, around two-thirds of those affected knew about the DHPs,59 _{indicating that around one-}

third may have been missing out on help due to lack of information. Just under half of food bank users affected by the ‘bedroom tax’ had applied for DHP, but only 8% were receiving it. Nationally, around half of those who had applied for DHP because of the ‘bedroom tax’ said their application was successful.60 _This

indicates that those with unsuccessful applications may be over-represented among food bank users. Six in-depth interview participants directly reported that having been affected by the ‘bedroom tax’ was a significant part of the story which led to them coming to the food bank. Apart from food bank use, wider implications of the ‘bedroom tax’ included building up rent arrears and debts, and having to seek financial support from other organisations.

For example, Alex, a single male in his late forties, had been left living alone in a three-bedroomed house after his partner left with their two children (see Box 4.2). Although his most recent financial crisis was attributed to sanctions, he identified the introduction of the ‘bedroom tax’, which reduced his benefits by £26 per week, as his first reason for attending the food bank:

‘I am wanting to move [...], so I am in the process of doing that with the Housing. I live in a three-bedroomed house on my own and it’s just, it’s pointless. It’s more expensive and it’s better on tax [to move]… I mean that’s what’s really made me struggle… that ‘bedroom tax’… it’s £26 a week added to my rent money, which is half of my benefit.’ Alex Durham

He went on to list being ‘short of money and literally having nothing in’ as the main reason he was using the food bank, having been referred through a support agency linked to his housing provider. When asked how he was hoping to improve his situation, Alex was clear that he wanted to return to work. However, he said he felt hampered in his job search by the impending move, not wanting to commit to a job when he did not know where he was going to be living.

58 _{From 1 April 2013, working-age social tenants whose properties have more rooms than the DWP’s size criteria state that they need, had their rent}

eligible for Housing Benefit reduced by 14% for one spare bedroom, and by 25% for two or more spare bedrooms. DWP’s Housing Benefit data show that in August 2013, 522,905 households (11.1% of all social tenancies) were affected. (DWP, 2014).

59 _{Discretionary Housing Payments (DHPs) are made by local authorities on a discretionary basis. Originally intended to help private sector tenants}

deal with short-term financial problems, the government has made substantial increases to funding for DHPs to help some of those affected by the ‘bedroom tax’ or benefit cap and other welfare reforms.

By the time of the follow-up interview, Alex said his situation had improved because he had been awarded DHP to cover the next 26 weeks and was receiving support from a charity to pay off his rent arrears.

Whilst Alex was happy to move, some of those affected by the ‘bedroom tax’ were resistant to moving. Some families with children felt that the house or area was the right one for their family to be living in or were concerned about the disruption of moving. Another family had been advised not to move because their son was about to turn ten, making him eligible for his own room. However, in the meantime the additional rent payment had made a ‘big, massive, dent in our financial situation’. Although the family were appealing against the payment, not being able to meet the additional payment had pushed them into rent arrears, raising the fear that if they did not prioritise paying their rent they could lose their home:

‘They could happily possess our house back off of us and where would me, Wayne and the kids be? We’d be out on the street. So we have got [to have] the money now to pay for that little bit of rent that we are supposed to pay… it kind of suffocates you to be honest, because it’s all of them [the decision makers] that sort of rule your life, you don’t really get to have a say.’ Vicky, mother, North Cotswolds (see Box 5.2) Benefit cap61

Analysis of additional data shows that 3-12% of food bank users were affected by the benefit cap (3% in Tower Hamlets, 9% in Durham, 12% in Epsom and Ewell – Appendix B, Table 7). The much smaller percentage for participants affected by the cap in Tower Hamlets may well be to do with the fact that DHPs are proactively used to alleviate the effects of the cap in that local authority.

There were no in-depth interview participants who had experienced the benefit cap.

Council Tax

Even in our relatively small qualitative sample, there was evidence that the recent demands to pay Council Tax, especially when combined with other various other deductions from benefits, had played a role in people needing to use food banks. For example, Liam (a single male with poor mental health) said he received £143.40 JSA per fortnight, from which he had to pay £16 per fortnight for an old Crisis Loan and now £19 per month for Council Tax.

61 _{From April 2013, the total overall weekly benefit payment that a household can receive was limited to £350 a week for single people or £500 a week for}

single parents and couples. (If a claimant or their partner is entitled to Working Tax Credit they are exempt from the cap. This exemption also applies if someone in the household is on certain disability-related benefits such as Disability Living Allowance or War Pensions).

6 WIDER VULNERABILITIES: PERSONAL, LOCAL AND NATIONAL CONTEXT