Almost 200 people wrongfully charged bedroom tax across the borough

Rochdale Boroughwide Housing has identified 191 housing tenants who have wrongfully been charged bedroom tax since April last year.

In a loophole around the charge of bedroom tax, it states that working age tenants living in the same home and in continuous receipt of housing benefit since 1996 are in fact exempt from a reduction in their benefit.

The oversight, by the Department for Work and Pensions (DWP), was made when legislation for the new tax was being drafted. When drafting the legislation, housing benefit regulations dating back to 1996 were not updated.

Angela Havens, RBH Head of Income and Enforcement, said: “RBH is aware of the reported Department for Work and Pensions (DWP) error concerning regulation 217 of the Welfare Reform Act (2012). Following investigation we have identified 191 tenants across the borough that may have had an incorrect reduction in their benefits. We are contacting those tenants we believe may be exempt as quickly as possible and will do everything we can to support them to reclaim the under occupation charge and get them in receipt of the correct benefit entitlement.

“As a mutual housing society, we are committed to supporting our communities through the unprecedented challenges of welfare reform.”

It is understood that a refund averaging at least £640 per claimant could potentially be made. Currently the bedroom tax imposes an average penalty of between £14 and £22 a week on working age tenants deemed to have more bedrooms than needed.

The error made by the DWP could also lead to hundreds of applications being made to the council ombudsman as tenants seek redress for being wrongly made liable for the tax.

A spokesperson for Rochdale Borough Council added: “There is still confusion surrounding this issue and Rochdale has joined with other regional councils to obtain guidance. AGMA has written to the DWP to seek further clarification. Once information has been received each council will deal with this accordingly.”

It is understood that nationally, the error could be affecting over 40,000 people.

Any RBH tenants who are struggling with their rent or need help with housing benefit can contact RBH Freephone on 0800 027 7769 or local rate on 01706 274100.