Fresh call for Labour to scrap bedroom tax and free up £70m for Scottish councils

The NEW Labour government has been urged to scrap the bedroom tax to save Scotland £70 million a year.

Since the so-called spare room allowance was introduced by David Cameron’s Conservative government in 2013, SNP ministers at Holyrood have spent more than half a billion of taxpayers’ money to mitigate its effects.

Now politicians, charities and the leader of the country’s largest local authority are calling on Keir Starmer to repeal the hated policy to free up money that could be spent on alleviating child poverty.

Glasgow City Council spends £14 million a year – more than any local authority – to offset the tax.

Leader Susan Aitken said: “Austerity is a choice.

“Every penny the city spends trying to mitigate the worst effects of the austerity imposed on our communities by the UK government could be used on other priorities and strengthening our public services if the new government took a different direction.

“In fact, we would almost certainly still choose to direct much of that money toward fighting poverty.

“The difference would be that the city’s efforts would have a much greater impact – and could deliver more effective and sustainable outcomes for Glasgow families – if they weren’t constantly undermined by UK government policies.”

Under the policy, people who have one spare bedroom in their home see a 14% reduction in their benefits, while those who have two spare bedrooms see 25% less.

At the same time, a cap was also introduced on the amount people could receive in benefits.

In 2017, Holyrood was given powers to reduce accommodation tax for its citizens as ministers feared failing to do so would lead to a spate of evictions and increased homelessness.

Scottish Government Housing Minister Paul McLennan also said he wanted the tax abolished.

He said: “Since 2017, we have invested over £613 million in Discretionary Housing Payments to mitigate the bedroom tax and benefit cap.

“We want to work with the UK Government to drive the action needed to end child poverty once and for all. However, decades of Tory austerity and welfare cuts mean the Scottish Government has been working with one hand tied behind its back.

“In the last two years alone, the Scottish Government has committed almost £14 million to mitigate the benefit cap as fully as possible within our powers, helping to support around 2,300 families.

“And this year, more than £70 million will be spent on mitigating the bedroom tax, helping more than 92,000 families in Scotland to sustain their tenancies. We are also continuing to protect investment in the Scottish Welfare Fund by £41 million to support those most in need.

“This is money that could have been spent on services such as health, education, transport or on more ambitious measures to combat poverty.

“We continue to call on the UK Government to lift the benefit cap and bedroom tax to benefit those on low incomes in Scotland.”

Shelter Scotland campaigned for the Conservatives to abolish the bedroom tax in 2013 and still believes it should be scrapped now, under a Labour government.

Director Alison Watson said: “The bedroom tax was wrong when it was introduced and it remains wrong now.

“It has always been clear that the UK Government should scrap it. The resources spent on mitigating the bedroom tax would be much better spent on the only long-term solution to our housing emergency: building more social homes.”

Scottish Labour was asked if it supported calls to scrap the tax but said it could not comment.

A UK government spokesperson said: “We are committed to reviewing Universal Credit to make work pay and tackle poverty, recognising the very challenging state of the economy and public finances.

“This new government will provide the change needed to grow the economy and improve the situation for everyone.”

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