MPs call on Holyrood to pay all bedroom tax

The Scottish Affairs Committee said people who have "scrimped and scraped" to meet the extra rent should have the cash paid back after the Scottish Government announced it would fund all arrears from April.

Last week John Swinney, Finance Secretary, revealed in his Scottish Budget he had the £15 million necessary to mitigate all costs of the under-occupancy tax for the next year from April.

If Westminster doesn't lift the cap on discretionary housing payments Mr Swinney said a fund will be established, to pay the cash to landlords to write off the extra arrears.

The MPs said Holyrood could have taken the step at any time since the tax was introduced and said in choosing to wait, people have endured hardship.

Ian Davidson, Glasgow South West Labour MP, is chairman of the committee, which has been in Scotland taking evidence from tenants.

He said all arrears should be written off now and cash handed back to those who have paid it during the last year.

Mr Davidson said: "What about the moral hazard of penalising those who did not go into debt but instead scrimped and scraped, suffered hardship, borrowed money or used up savings to pay the extra costs?

"The witnesses we heard said the only fair, equitable way forward would be to reimburse all the bedroom tax that has been paid.

"All of these problems have been created by the Scottish Government's delay. We now know that they could have addressed this at any time since the bedroom tax was introduced but, as they did not, households and councils have been left to deal with it at great personal and administrative expense.

"The Scottish Government has the power and the money to resolve this mess.

"They should now announce a scheme to meet all the bedroom tax charges for Scottish tenants, write off all the arrears, and refund all the payments that have been made."

The Scottish Government were asked to comment on Mr Davidson's suggestion but did not respond.

stewart.paterson@evenngtimes.co.uk