This evaluation sought to understand the impact of the size criteria on claimants, landlords and other stakeholders and to explore how households responded to the reduction in their benefits.
CCHPR, together with Ipsos MORI, were commissioned by the DWP to evaluate housing benefit changes in the social rented sector. The ‘removal of the spare room subsidy’ involved introducing size criteria for the social rented sector, in April 2013 in order to reduce housing benefit for working age tenants deemed to have spare bedrooms. This was part of a range of welfare reform measures, including the household benefit cap, to reduce expenditure and improve work incentives. Social tenants of working age who under-occupy will lose either 14% or 25% of their eligible housing benefit, depending on whether they have one or two or more spare rooms.
Evaluation of Removal of the Spare Room Subsidy: Final Report
The Final Report from the Evaluation of the Removal of the Spare Room Subsidy (often referred to as the 'bedroom tax'), carried out jointly by CCHPR and Ipsos Mori, has been published. The report explores the effects of the cuts to Housing Benefit for working age social housing tenants who are deemd to be under-occupying their home.
This evaluation explored the impact of the first 20 months of operation of the Removal of the Spare Room Subsidy from April 2013 until November 2014. It examined the preparation, delivery and implementation of the policy changes by local authorities and social landlords. It has also explored the extent of increased mobility within the social housing sector leading to more effective use of the housing stock, and the extent to which, as a result of the RSRS, more people are in work, working increased hours or earning increased incomes. The research found that:
• Concerns around large scale reclassification of properties, or landlords knocking down walls to avoid the effects of the measure appear to have been largely unfounded; such activities have been very small scale.
• Discretionary Housing Payments (DHP) have helped to alleviate the difficulties of some of the most vulnerable groups affected by RSRS, though this funding is by its nature short term and offers tenants little certainty over their future.
• Claimants’ responses to the reduction in their Housing Benefit have been mixed. Six months into the policy landlords reported that around a fifth had paid none of their rental shortfall, but by autumn 2014 this had fallen to one in ten. Eighteen months into the RSRS, only very small numbers of RSRS-affected claimants had been evicted.
• The most common way that claimants had responded to the RSRS was by cutting expenditure and paying the shortfall.
• 20 per cent of affected claimants said they have looked to earn more through employment-related income as a result of the RSRS, rising to 63 per cent of those who said they were unemployed and seeking work. However, their success has been limited. Only five per cent of claimants who were affected by the RSRS in 2013 said they had found work by the following year, and three per cent had lost a job.
• Overall around 45,000 RSRS-affected households had downsized within social housing by autumn 2014, as compared with 471,887 households who were still affected by the RSRS. Larger numbers were registered for moves than had managed to move by autumn 2014.
• This number of moves has nevertheless – in housing management terms - produced a considerable increase in downsizing within social housing, albeit from a very low base.
• Moves into the private rented sector have remained low in number and tenants were largely reluctant to move to the private rented sector because of affordability concerns and the difficulty in finding a deposit.
• In many areas major restructuring of the housing stock – such as selling off or remodelling larger homes, or letting homes as shared houses – would be needed to address the imbalance in supply and demand. This research found little evidence of these kinds of activities.
Summary
Final Report
Evaluation of Removal of the Spare Room Subsidy: Interim Report
The Interim Report from the Evaluation of the Removal of the Spare Room Subsidy (often referred to as the 'bedroom tax'), carried out jointly by CCHPR and Ipsos Mori, has been published. The report explores the effects of the cuts to Housing Benefit for working age social housing tenants who are deemed to be under-occupying their home.
The Interim Report from the Evaluation of the Removal of the Spare Room Subsidy, carried out jointly by CCHPR and Ipsos Mori, has been published. The report explores the effects of the cuts to Housing Benefit for working age social housing tenants who are deemd to be under-occupying their home.
The Removal of the Spare Room Subisdy was introduced in April 2013. These interim findings report on the first eight months of the policy and drew on surveys of tenants affected by the policy, social landlords and local authorities thoughout Britain. Detailed case study work in 10 case study local authorities was also undertaken.
The report includes a summary of the key findings.
The final stage of the evaluation will be undertaken later in 2014 with the final report to be published in 2015. Findings on the Benefit Cap will be published separately later in 2014.
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Supporting households affected by the Benefit Cap: Impact on Local Authorities, local services and social landlords
This research was carried out for the Department for Work and Pensions as part of a programme of work analysing the impact of the Benefit Cap. The Benefit Cap was brought in over the summer of 2013 and limits working age benefits for out of work households to £500 a week for families and couples, and £350 for single person households. This report highlights the key findings from work in ten case study local authorities, including: interviews with local authority staff, local agencies and Housing Associations; a nationwide survey of social landlords; and consultation with major lenders to the Housing Association sector. It provides information on how local agencies have been affected by the Benefit Cap and how they are working with capped claimants.
Supporting households affected by the Benefit Cap: Impact on Local Authorities, local services and social landlords
This research was carried out for the Department for Work and Pensions as part of a programme of work analysing the impact of the Benefit Cap.
The Benefit Cap was brought in over the summer of 2013 and limits working age benefits for out of work households to £500 a week for families and...