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Text of Letter to Daily Telegraph 17.01.2012

Dear Sirs

The Housing Minister’s endorsement of schemes which help elderly owner-occupiers to downsize is welcome (“State to help elderly downsize as Government tackles housing crisis”, The Telegraph, 17/1/2012). However Mr. Shapps’ enthusiasm pales when seen in the context of another Government policy which will prevent thousands of elderly tenants in the social housing sector from moving into smaller, more suitable homes.

The Government is proposing to reduce housing benefit for working age tenants who under-occupy their homes. This will catch nearly 700,000 tenants, most of whom have one spare bedroom by the Government’s definition – although in reality this is often used for normal family life such as enabling teenage children to have separate bedrooms, separated fathers to have regular overnight access to their children, and heroic couples to foster.

The effect of this will be entirely predictable. Faced with a reduction in benefit of 14 – 25%, there will be a rush of working age tenants seeking to downsize – albeit reluctantly - even though there is a nationwide shortage of smaller homes. Inevitably councils and housing associations will prioritise tenants who will otherwise struggle to pay their rent, meaning that elderly under-occupiers who actually want to move will hardly get a look in. Whilst for pensioners housing benefit may be protected, many will be left rattling around in larger family houses which are expensive to heat, and unsuited to their needs as they become infirm.

In a week when the House of Lords continues to challenge the Government on its welfare reforms, it is worth remembering that before Christmas the Government suffered its biggest defeat yet on the Welfare Reform Bill, when peers approved Lord Best’s sensible amendment which would allow tenants a spare bedroom before benefit is reduced. This would mean that the number of working age tenants affected would reduce by around 80%, giving landlords the chance to help older tenants wishing to downsize too.

Let’s have some joined up thinking.

Yours faithfully

Joy Baggaley

Acting Chief Executive