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Published on:July 5, 2013Author:The Debt Advisor

A new study by the National Housing Federation claims that thousands of Merseyside residents have “spiralled into debt” in the 100 days since the government introduced cuts to housing benefit.

In April, ministers introduced changes to the housing benefit system which affected tenants with spare rooms. This was dubbed the “bedroom tax”.

Those of working age who were in a council house with a spare bedroom had their benefit cut by an average of £14 from April 1st.

These changes were introduced in order to tackle overcrowding and to free up larger homes by encouraging those with spare rooms to move to smaller properties.

According to the National Housing Federation, these changes have pushed 14,000 tenants in Merseyside into rent arrears.

The Federation have estimated that nearly 26,500 households have been affected by the change. However, due to a shortage of smaller homes, only 155 were able to downsize.

Due to this, many families will have to reduce the amount they spend on daily necessities to get by.

With these changes affecting family’s disposable income, issues with debts can arise.

If you’re struggling with your debts, speak to us to discuss the best course of action to take.

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