Holyrood given power to end ‘bedroom tax’ in Scotland

1 May 2014

The UK government has moved to neutralise the impact of the bedroom tax on the Scottish independence referendum by giving the Scottish government powers to mitigate the measure.

The Scottish government have been transferred powers to set the cap on discretionary housing payments (DHP) to help individuals on housing benefit who need extra help. This change will mean that the Scottish government will, in effect, be able to end the bedroom tax in Scotland. However, Holyrood will not receive any extra resources from London and will have to fund any changes from its budget.

The change was strongly favoured in London by Nick Clegg, Danny Alexander and Alistair Carmichael, and it is designed to undermine the claim by the SNP that the bedroom tax can only be ended by taking Scotland out of the UK.