The policy known widely as the bedroom tax, officially termed the Removal of the Spare Room Subsidy, marks twelve years since its implementation. Introduced through the Welfare Reform Act in 2013, this policy impacts social renters by reducing their vital financial support on Universal Credit by 14% for having one extra bedroom and by a staggering 25% if they are deemed to have two or more ‘spare’ rooms.
While intended as a tool for reform, its effects have disproportionately impacted communities across the UK, especially those in the North.
The North East: hit hardest by the bedroom tax
Research indicates that about 20% of social rental households in the North are affected by the bedroom tax, surpassing the English-wide average of 16%.
The North East stands out as the most affected region, where one in four social renters may be financially penalised for possessing an extra bedroom—a drastic measure that many see as punitive rather than helpful.
Structures in place do not facilitate adequate housing solutions; the North East has the highest proportion of social housing tenure at 21.7%, but a critical mismatch exists between household sizes and available properties.
One of the fundamental issues here is the lack of affordable one-bedroom properties, leading many families to remain in larger homes. For those already facing challenges such as job insecurity and low disposable incomes, this policy exacerbates their financial struggles, forcing many into extreme hardship.
Recent reports reveal that the North East has the highest percentage of individuals struggling to pay social rent outside of London, with 29.4% of renters finding it difficult to cover their costs.
Causing families misery
This financial strain leads to wider societal issues; the bedroom tax has been linked to increased levels of anxiety, social isolation, and even worse health outcomes. Residents report experiencing significant hardship, relying on loans just to meet rent demands while cutting back on essential items such as food.
The loss of a portion of their income creates an overwhelming sense of fear and hopelessness, compelling some parents to skip meals just to keep the rent paid. As highlighted by the negative mental and physical health impacts connected to financial insecurity, it becomes clear that the policy is a risk to the well-being of everyday people.
The bedroom tax does not just impact those renting; it also reverberates into the homelessness crisis.
With the North East witnessing the highest rates of homelessness outside London, many families are adversely affected by a contracted social housing system— one that offers them little hope of secure housing. Local authorities, often facing stringent budget constraints, can struggle to provide adequate housing options, which can lead to lengthening wait times for permanent homes. Discretionary Housing Payments exist for some, but they are not a reliable long-term solution for families facing homelessness.
The issue at hand extends beyond just housing; it reflects a broader narrative of regional inequality that entrenches poverty. Individuals in the North are grappling with multiple layers of disadvantage, with the bedroom tax being but one of many factors in a complex web of regional disparity.
For many, this relentless cycle of disadvantage feeds into a broader economic malaise which, according to experts, could be mitigated through systemic changes to policy.
Labour should scrap the bedroom tax – but won’t
IPPR previously underscored how the interlinked issues of housing affordability and poverty directly affect the way people spend, shaping local economies. The resulting economic constriction restricts growth potentials within communities, perpetuating a system that keeps many residents on the margins.
Health inequities—exacerbated by poverty and a lack of accessible housing—further isolate individuals from opportunities, making it even harder for them to escape the cycle of disadvantage.
The figures on public spending are also stark. In recent years, London has received £2,747 more per person than the North, illustrating the resource imbalance. Cuts to provision historically hit the North the hardest, leading to a widening socioeconomic gap.
Amidst this, the absence of effective place-based policies continues to stifle opportunities for those living in Northern communities.
Twelve years into the bedroom tax implementation, the urgent need for reform cannot be overstated. With a system that punishes those in critical need of social support, it is clear that the current framework fails to provide a safety net for millions.
Ending this policy could serve as merely one necessary step towards addressing the larger challenges of regional inequality—after all, where someone lives and what they can afford should not determine their future or potential wellbeing.
Featured image via the Canary
