A £50 million fund will be set up to fully mitigate the impact of the so-called bedroom tax in Scotland after cross-party backing for the Scottish Government’s budget.
SNP, Labour and Liberal Democrat MSPs voted together to pass the bill after an amendment by Labour’s shadow finance secretary Iain Gray agreed by the same three parties to ensure no person is evicted as a direct result of the policy.
Finance Secretary John Swinney confirmed the widely expected additional £12m needed to offset the UK Government welfare reform policy, whereby social housing tenants with spare bedrooms lose additional benefits.
The Perthshire North MSP said UK Department for Work and Pensions (DWP) rules mean the Scottish Government is constrained in what it can legally spend.
The DWP set a cap at £22.85m for discretionary housing payments, which can be used to support tenants at risk of falling behind in rent and getting into debt.
The SNP administration said the total support that can be provided directly by councils to individuals is £38m, still short of the £50m required.
Deputy First Minister Nicola Sturgeon has written to the DWP asking for the cap to be removed, he said.
Mr Swinney added: “I give Parliament the assurance today that if the DWP says no, the Scottish Government will put in place a scheme to make this additional £12m available to social landlords so that we need not see any evictions in Scotland this year as a result solely of the bedroom tax.”
Mr Gray welcomed the announcement on the “bedroom tax” and said there are already ways round the rules. Money could be given to councils and housing associations to cover rent arrears, he said.
Mr Gray said: “We are almost there. The full £50m funding is in place and if the DWP restriction remains then a workable alternative exists and our amendment today endorses that position.”
Liberal Democrat leader Willie Rennie welcomed additional free childcare, the extension of other free school meals and extra funding for colleges.
He said: “This is a budget that I think is good enough, and it is good enough because John Swinney has engaged in the process.”
Conservative finance spokesman Gavin Brown criticised the budget and said the extra money for the “bedroom tax” would be better spent boosting economic growth and employment.
“Our party’s position has been absolutely consistent all the way down the line: we believe that where funds are available it should be invested into the economy,” he said.
After the vote, Citizens Advice Scotland wrote to the UK Government urging it to scrap the spending limits.
Chief executive Margaret Lynch said: “Those affected include some of the most vulnerable groups in our society like disabled people and separated families.”
Shelter Scotland director Graeme Brown welcomed the funding move.
He said: “Ultimately the only way to banish the bedroom tax for good is to scrap the policy.
“Until that is possible, these moves to help those affected should be seen not only as a victory for common sense, but also for social justice.”