MORE than 1,000 households in Swindon are going to be hit by a Government decision to slash housing benefit for working-age social housing tenants deemed to have a spare bedroom.

The scheme, to come into effect in April 2013, allows one bedroom for each person or couple in a household, with rules on rooms for children and non-resident carers.

Those with one “spare” bedroom will lose 14 per cent of their housing benefit – about £12 per week – and those with two or more will lose 25 per cent – on average, £22 per week.

Swindon Council’s initial estimates show that 1,353 households – or 34 per cent of working age council tenants claiming the benefit – could be affected.

The move is part of the Welfare Reform Act and aims to free-up space for the most needy and reduce welfare spending, but tenant representatives say it is more likely to increase rent arrears than lead to people relocating to smaller homes, because there is simply not enough one-bedroom properties.

Swindon Council’s own estimates show that if all 1,353 households chose to downsize, 775 would require one-bedroom accommodation. But the council only let 104 general need one-bed flats and bedsits in 2011/12.

The council says it is inevitable that arrears will increase. For example, if a tenth of affected tenants who did not downsize failed to pay the shortfall over a year, arrears would rise by £87,000. This would hit the housing revenue account, which pays for the maintenance of homes.

Martin Wicks, the secretary of Swindon Tenants’ Campaign Group, said the only solution was for the Government and council to work together to build more council homes.

He said: “The fundamental problem is they aren’t building housing. It doesn’t matter how you manage the configuration of tenants in various homes, there aren’t enough properties of the right size.

“If you are a couple in a three-bedroom house then you’re going to lose £21 a week – for people on the breadline, that’s a lot of money. It’s penalising them for something which isn’t their fault and ultimately is a propaganda tool of the Government against the picture of scroungey benefits council tenants.”

Derek Fry, of Swindon Tenants’ Voice, said: “If there aren’t enough properties for people to move into, there are only two outcomes. They either pick up the remaining tax from their other benefits or they go into arrears with the council.”

Swindon Council is considering various ideas for how to increase the number of one-bedroom properties. These include giving relocation priority to households affected by the changes, converting some sheltered housing schemes and reducing the age criteria for sheltered housing from 60 to 55.

Coun Russell Holland, cabinet member for housing, said: “This is a central government change in benefits policy so the council didn’t have any control over this. We’re looking at all the options, but I’m not going to make any decisions until we’ve consulted the tenants.”