In April 2013, the Government introduced the controversial 'under occupancy rule' to housing benefit as part of its welfare reforms.
The new rules do not affect pensioners claiming housing benefit but they do affect separated parents who do not live with their children on a full time basis. It's a stark choice, the tenant either pays the shortfall or moves to a smaller property. Many people have found themselves in a position where they can't afford to pay the shortfall, increasing the risk of rent arrears and eviction. It's a vicious circle that could end up costing housing providers a stack of cash, which in turn will effect their cash flow.
Many people feel that the 'bedroom tax' undermines the fundamental principle of social housing which is to provide an affordable housing option for individuals and families on low incomes. Around 600,000 people in the UK are affected by the bedroom tax, and as result, may be finding it hard to to pay their rent. This, along with the benefits cap, changes to council tax benefit and universal credit, has created new challenges for social landlords.
With registered providers busy looking at way to help struggling tenants cope with changes to the welfare system, it was a stroke of good fortune that we had a reasonably mild winter. Add cold weather to the conundrum, rising energy costs and lack of spare cash in the resident's pocket and there could be real cause for concern.
Some tenants are left with the tough choice of heating just one room simply because they can't afford to heat the whole property. And, once the heating is off and the temperature drops, the property becomes vulnerable to condensation and damp. Prolonged condensation leads to black mould and all sorts of problems. It's a miserable scenario, so it is well worth taking the opportunity to be proactive during the warmer months by taking measures to ensure that your housing stock is well ventilated. Many social landlords send out regular newsletters with hints and tips of how to keep warm during winter. What's more, many have refurbished their housing stock removing old, inefficient storage heaters and replacing them with an energy efficient alternative.
A great example of this is Engels House, a tower block in Salford managed by City West Housing Trust. Although Engels had an extensive make-over, issues such as fuel poverty were successfully addressed through innovative materials such as thermal cladding and EcoPod heating System. Each apartment was fitted with its own MEV Spider, a continuous mechanical extract ventilation system, chosen for its eco-friendly features, energy efficiency and long term savings.