SIC agrees bedroom tax help

LOW INCOME families in Shetland hit by the bedroom tax will be able to apply for financial assistance for this financial year only.

The UK government is providing a one-off payment of £48,000 to the SIC to help alleviate the impact of the controversial levy.

On Monday, the council’s executive committee decided that this money together with a further £22,000 already budgeted will be used to help those most in need.

A report before the meeting estimated that the bedroom tax would cost local council house tenants just over £100,000 in reduced housing benefit payments in 2013/14.

A motion by councillor Allison – Flea – Duncan to dip into the council’s own reserves to the tune of £36,000 to compensate fully for the impact of the tax was defeated by five votes to four. 

He said he feared the number of people with rent arrears would be shooting up as a direct result of the bedroom tax.

Instead the meeting decided to relax the eligibility criteria for housing benefits to allow more people access to this one-off payment.

Shetland north member Alistair Cooper said the SIC should not be “firing money at people who do not need it”.

Leader Gary Robinson added that the council should not be using its own money to rectify a problem created by the Westminster government.

Council officials said they were confident that £70,000 was sufficient to help around two thirds of those affected by the spare room tax.

The decision will have to be ratified by a meeting of the full council next week.

If agreed, details of how to apply for the means tested discretionary housing payment will be published by the council shortly thereafter.