NEARLY 2,000 households in mid Essex are affected by the so-called 'bedroom tax' – introduced by Chancellor George Osborne as part of sweeping changes to the welfare state.
Councils across Braintree, Chelmsford and Maldon estimate 1,986 homes have had their housing benefit slashed as a result of the changes introduced on April 1. Those with one spare bedroom will lose 14 per cent of their payment, while those with more than two spare rooms will lose a quarter.
Local authorities have moved quickly to mitigate the potential damage, with Chelmsford City Council making £1.6 million available to buy homes in case families are made homeless by the cut.
The reductions in housing benefit form a package of cuts introduced this month to trim the welfare bill, including changes to the Disability Living Allowance, council tax benefit and an overall benefit cap.
Critics of the changes say the reforms will be felt by the poorest in society. On Saturday, Chelmsford Against The Cuts and local members of protest group UK Uncut held a demonstration against the housing benefit reductions, by setting up a fake bedroom in the High Street.
"The harsh consequences of these reforms will be seen most of all by those affected by them," said Rev Raymond Draper, an economic adviser to the Diocese of Chelmsford. "We will certainly see more suffering amongst the poorest and most vulnerable sections of our communities.
"The challenge to the churches will be greater than ever," he added.
The Government estimates that 60,000 of claimants in the East of England will be affected, with 31 per cent of all working-age people facing cuts and an average weekly loss of £13.
In Chelmsford, 771 households are affected by the tax, with the average home losing £18 per week. The city council says 625 households, including 246 with dependent children, face the lower reduction – an average loss of £15.23 a week.
While a further 146 homes, six with dependent children, face a 25 per cent cut to their housing benefit and stand to lose an average of £28.59 per week.
"It looks as though those facing the largest cut will be older people, but not pension age, whose children have grown up and moved away," a spokesman for Chelmsford City Council said.
Braintree District Council, meanwhile, estimates that a quarter of all social housing tenants in their area will be forced to downsize to smaller accommodation. "We cannot stress enough how important it is for all residents who will be affected by the new scheme to look at their finances and plan ahead," said Braintree councillor Lady Patricia Newton, Cabinet Member for Planning and Property.
"We are working hard to ensure that everyone affected will have the opportunity to receive financial advice to help them budget for the changes."
In Maldon, 277 households are affected, with 69 "under-occupying" by two or more bedrooms and 208 by one spare bedroom.
Unsurprisingly, the three district councils have moved quickly to mitigate the potential damage of each benefit cut.
Chelmsford City Council, for example, is using cash from its reserves to buy property for use by residents forced from their homes, in an attempt to reduce its reliance on expensive B&B accommodation.
In addition, the authority has hired two members of staff to support residents affected by the council tax changes.
Braintree, on the other hand, has set aside £50,000 for the Citizen Advice Bureau and a £150,000 'Housing Needs Fund'.
Paul Hart, from the district's CAB, said: "We advise that people, regardless of circumstances, are financially prepared."
