Does the bedroom tax actually save money?

The Guardian reports that ‘Bedroom tax’ prompts surge in pleas for council aid.

Notwithstanding that the article repeatedly compares April this year to April last year, it seems that applications for discretionary housing payments (DHP) has jumped from 5,700 to 25,000. Cutting costs always leads to costs going up and this seems to point in this direction.

The article goes onto mention that,

The Independent reported that in some areas the influx of people seeking help had forced councils to hire extra staff. Birmingham saw the number of DHP claimants rise from 496 in April last year to 2,601 last month, and the city council said many of those hit by the welfare reforms were turning to “last-resort services” such as food banks.

Hiring extra staff can’t be saving money, neither can having to deal with all the extra DHP claims. And the increasing pressure on food banks is just passing the costs and problem off central and local government and onto the charity sector.

Is this really helping to cut costs?



If you found this interesting