Grandparents lose judicial review challenge over impact of 'bedroom tax'

Two grandparents caring for a severely disabled child have lost a judicial review challenge over the impact on them of the spare room subsidy or ‘bedroom tax’.

The relevant regulations require a deduction in housing benefit from those deemed to have an excessive number of bedrooms in their home.

Paul and Susan Rutherford care for their 14-year-old grandson Warren in a specially adapted home that includes a room for professional carers to stay overnight.

Their housing benefit has been cut, as this room has been judged ’spare’, although Pembrokeshire County Council has awarded them a discretionary housing payment (DHP) to make up the difference for a year.

Supported by the Child Poverty Action Group (CPAG), the couple argued that bedrooms for overnight carers of disabled children should be exempt from the tax in the same way as are those for carers of adults.

Mr Justice Stuart-Smith dismissed their claim, saying that the discretionary payment meant the Rutherfords had not suffered financial detriment.

The judge said: “Pembrokeshire does not include the claimants' disability living allowance when looking at their household income, it knows that Warren is disabled, the claimants have been successful in their applications, and Pembrokeshire has awarded DHPs for 12 months at a time.

“In the context of a scheme that was introduced to meet a compelling social and political objective at a time of extreme national financial austerity, the need to make an application for a DHP is not a substantial detriment.”

CPAG solicitor Mike Spencer said: “The Rutherfords are understandably very disappointed. The court has at least indicated that the local council should help pay the shortfall in Warren’s rent, but ultimately families with severely disabled children should be entitled to the same exemption as disabled adults and not have to rely on uncertain discretionary payments. “

Meanwhile, the National Housing Federation has said that people who lose money through the reforms are cutting back on spending on food and heating.

An Ipsos MORI survey for the NHF found 32% of respondents had economised on food and 26% on heating, while 46% needed to borrow money to help pay their rent.

Federation chief executive David Orr said: “People stung by the bedroom tax are being forced to make difficult choices on which bills to pay and which essentials to go without.

“They are living in fear that they will lose their homes and have resorted to borrowing from friends and family to try and get by.”

Mark Smulian