Labour have persistently called for the Bedroom Tax to be scrapped and pledged to scrap the tax if elected into government. This cruel and unjust measure has affected over 400,000 disabled people. For the vast majority of those affected, there is nowhere smaller to move to, hitting vulnerable people through no fault of their own. There is now a real risk that the Bedroom Tax will cost more money than it saves.
The Bedroom Tax policy is both unjust and unworkable, but Labour are clear that repeal cannot mean extra borrowing to pay for social security changes. To ensure that it can be reversed without any additional borrowing, funds have been earmarked from reversing recent tax cuts benefiting the wealthy and addressing the tax loss from disguised employment in construction. The Labour Party are confident that these measures will cover the £470 million cost of repealing the Bedroom Tax.
Labour will deal with under-occupation by funding local authorities who are able to help people with the costs of moving to suitable accommodation, using the funding set aside by the Government through Discretionary Housing Payments for dealing with the problems caused by the Bedroom Tax.