Lib Dems propose to overhaul bedroom tax

The Liberal Democrats will pledge to scrap the bedroom tax for all but those who refuse a suitable and reasonable offer of alternative accommodation, Inside Housing has learned.

The reform is the party’s preferred option for its 2015 manifesto, with leader Nick Clegg planning to announce it at a later stage.

The move would represent a change of direction for the Liberal Democrats, which voted down a similar amendment to the Welfare Reform Bill in February 2012, after it had been introduced by the House of Lords.

Ian Munro, chief executive of New Charter Housing Trust, described the plan as a ‘u-turn’ for the Lib Dems. But he added that the party should go even further.

‘The bedroom tax is unfair and unjust and it should be scrapped completely,’ he said.

Tuesday sees the first anniversary of the bedroom tax, which in November was affecting 498,174 social tenants across Britain.

In September, Liberal Democrat members passed a motion at their conference condemning the policy for ‘discriminating against the most vulnerable in society’.

A party spokesperson said no decisions had been made on the manifesto.

However sources close to Mr Clegg have confirmed to Inside Housing he has expressed personal support for the change.

Sam Lister, policy and practice officer at the Chartered Institute of Housing, said: ‘It would be very difficult for the local authority to make a restriction [of benefit] at all [under the reform], because almost everybody would appeal on the grounds that the offer was not suitable.’

The Liberal Democrat position will give fresh hope to campaigners that the policy, under which social housing tenants of working age deemed to have spare rooms have their benefit cut, will be scrapped or amended.

The Labour party has pledged to scrap the policy entirely. It is also understood welfare reform minister Lord David Freud has been showing an interest in a scheme under which the bedroom tax is replaced by a system of ‘social local housing allowance.’ Under this scheme, mirrored on the LHA system for private renters, tenants’ would receive a flat allowance based on household size and rents in the broader market rental area.

The idea is not currently coalition government policy, nor is it Conservative Party policy. A spokesperson for the Conservative Party said there had been no discussions about changing the bedroom tax.

To read more about the bedroom tax click here.