Bedroom tax: unfair to tenants and tax payers

Rejection of amendments proposed by the House of Lords to the Welfare Reform Bill unfair to vulnerable families.

2 February 2012

Yesterday’s debate in the House of Commons saw the rarely used ‘financial privilege’ rule used to overturn all the Lords amendments to the Welfare Reform Bill.  This mechanism prevents Peers from overruling MPs on matters of spending.

Responding to the vote Federation Chief Executive David Orr said:

'The decision by MPs to reject the Lords' Bedroom Tax compromise is a blow to thousands of families in social housing across the country, many of whom are already struggling to make ends meet.

'That over 70 organisations, from disabled charities to mortgage lenders, came together in support of this change to the Welfare Reform Bill shows just how important this issue is. It is unjust to penalise people for under-occupying their homes when they have nowhere else to move to.

'Given the level of opposition in the Lords to these proposals and their potential impact, it is totally wrong for the Government to shut down discussion by claiming financial privilege.

'We will continue to campaign against these unfair proposals.

'While we welcome the Government's commitment to introduce a nine-month grace period for claimants hit by the overall benefit cap after losing their job, we remain concerned that this crude measure will lead to a rise in rent arrears, homelessness and child poverty'.

The Commons debate

With the bedroom tax vote receiving the smallest government majority of the night, it is clear that our lobbying work alongside housing associations and a coalition of over 70 disability, health and housing charities, as well as the Council of Mortgage Lenders, made an impact. 

There were three major votes last night. MPs voted on whether to accept Peers’ amendments on:

  • plans to cut payments to disabled children – this was overturned by a government majority of 69
  • the bedroom tax –this was voted down by a government majority of 42
  • charging single parents for the services of the Child Support Agency –this was overturned by a government majority of 61.

Peers had prepared themselves for legislative ‘ping pong’ over these issues. And Nick Clegg’s announcement that the coalition would not use the Parliament Act to force proposals through offered hope that scrutiny would be intense.

The ‘financial privilege’ rule is usually only used on major spending bills, such as those connected to Budgets. Although the Welfare Reform Bill will return to the Lords, Peers’ ability to amend it further is now severely restricted.

The Federation will continue its efforts to influence the regulations that will give shape to Welfare Reform Bill proposals, and its subsequent implementation. We will keep members updated as this progresses.

Our campaign

Working with members and a coalition of over 70 organisations our campaign in the lead up to the commons debate made an impact.

  • 68,331 people were reached via twitter
  • 76 organisations signed up to our joint letter to the Guardian which was published yesterday
  • 117 people tweeted our call to action to tweet Lib Dem MPs (compared to 127 people tweeting live updates from the Guardian website)
  • 350 emails were sent to MPs from supporters in the week leading up to the debate with personalised messages regarding the bedroom tax
  • We took the campaign to the doorstep of Parliament with a giant advert urging MPs to support the House of Lords amendment.  And we put it in a place few of them could avoid - their private entrance to Westminster Tube station.
Bedroom Tax poster in Westminster Tube

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