'Bedroom Tax': Lib Dems Withdraw Support

The Liberal Democrats have set up a showdown with their Conservative coalition partners by withdrawing support for the so-called "bedroom tax".

Chief Secretary to the Treasury Danny Alexander called for fundamental reform of one of the Government's highest profile welfare reforms.

Mr Alexander told the Tories it was "clearly time to take stock and change our approach" on the controversial policy.

Writing in the Daily Mirror, he called for an exemption for disabled people and for no cuts in state help for those who could not find a suitable smaller property.

Danny Alexander revealed the Lib Dem shift in a Daily Mirror article

The Lib Dem U-turn was dismissed by a Tory source, who said the party remained "committed" to the change and said it was "imperative" for the coalition to drive forward its push to slash Britain's benefits bill.

Labour, which hopes to force Lib Dem ministers to commit to scrapping the policy in a fresh Commons vote, said Deputy PM Nick Clegg was guilty of "unbelievable hypocrisy" over the issue.

The reform has seen social housing tenants deemed to have more bedrooms than they need have their housing benefit reduced, to offset what the Government calls a "spare room subsidy".

Mr Clegg has come under pressure to oppose the policy since his party conference voted overwhelmingly to review what activists called a "reprehensible and evil" move.

Mr Alexander said the reform was made "with the best of intentions" but needed to be fundamentally changed.

He wrote in the newspaper: "Overwhelmingly, our benefit reforms are working, resulting in many more people gaining the independence and self-respect of re-entering work.

"However with only one in 20 of affected claimants having successfully downsized, it's clearly time to take stock and change our approach in this particular area.

"Our revised proposal is that new tenants in the social rented sector would receive housing benefit based on the number of rooms they need.

"But those already in the social rented sector would only see a reduction in benefit if they are offered a suitable smaller home and, crucially, turn it down.

Rachel Reeves said Labour will look to call a fresh vote on the policy

"Disabled adults should be treated the same as disabled children, by permanently exempting them. And we would introduce new measures on social landlords to manage their stock more effectively so more people get put into the right home."

In a direct message to the Tories, he added: "The Liberal Democrats will make the case for these new fairer rules, seeking to get them in place during this Parliament.

"If we can't convince our Conservative coalition partners, we will commit to these reforms in our 2015 manifesto."

The shift came after an internal government review showed almost 60% of households affected by housing benefit changes were in arrears and a shortage of smaller properties meant just 4.5% of tenants had been able to downsize.

Shadow work and pensions secretary Rachel Reeves said: "This is unbelievable hypocrisy from Nick Clegg.

"The Lib Dems voted for the bedroom tax. There wouldn't be a bedroom tax if it wasn't for the Lib Dems. And in February when Labour tabled a bill to scrap the bedroom tax, the Lib Dems were nowhere to be seen."

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