HOUSING associations face a funding crisis if the UK Government's welfare reforms are allowed to go ahead, it was claimed today.

Social landlords fear the planned 'bedroom tax' and the introduction of the universal credit could lead to rent arrears, threatening services and their ability to build more houses.

New research shows three out of four associations in the city are expecting rent arrears to increase as a direct result of universal credit, which pays cash to tenants and not rent direct to the landlord.

The Scottish Federation of Housing Associations, which carried out the study, fears rental income will be eroded as a result of the changes.

Jim Harvey, of the Glasgow and West of Scotland Forum of Housing Associations, said: "Higher rent arrears is bad news for all tenants. If less money comes in, housing associations will find it harder to maintain services and to invest in tenants' homes."

Both Labour and SNP politicians are campaigning against the changes and want the bedroom tax scrapped.

Scottish Housing Minister, Margaret Burgess, said: "It is completely unacceptable that vulnerable people in Scotland should bear the brunt of this ill- considered and damaging tax.

"It is deeply worrying that with only two months to go until the policy is implemented, the UK Government only now seem to be waking up to its potentially damaging and disproportionate effect on disabled people."

MPs debated the welfare changes and under occupancy rules in the house of Commons.

Margaret Curran Labour MP for Glasgow East, said: "The bedroom tax is a cruel and unfair attack on people across the country.

"The UK Government just don't get it, they're giving millionaires a tax cut at the same time as penalising some of the poorest people in our country.

"Nearly 100,000 Scots will be worse off, 40,000 are likely to face rent arrears and thousands could end up homeless."

stewart.paterson@ eveningtimes.co.uk

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