Mark Tami MP supports Repealing the Bedroom Tax

Mark Tami MP has welcomed Labour’s decision to repeal the Bedroom Tax. The Bedroom Tax hits over 650,000 people nationwide, and 40,000 people in Wales. For the vast majority of those affected, there is nowhere smaller to move to, hitting vulnerable people with an average bill of £720 a year through no fault of their own. Instead of reducing the housing benefit bill, there is now a real risk the Bedroom Tax will cost more than it saves.

Mark Tami MP said: “I completely support the decision to repeal the Bedroom Tax.”

 “Tough choices will have to be made on spending and a Labour Government would not borrow more to pay for social security but we can and will do things differently.”

The next Labour Government will repeal the Bedroom Tax without extra borrowing.  To cover the £470m cost of repealing the Bedroom Tax, funds have been earmarked from:

  • reversing George Osborne’s recent tax cut for hedge funds announced in Budget 2013;
  • reversing George Osborne’s shares for rights scheme which has been rejected by businesses, has opened up a tax loophole and will lead to £1bn being lost to the Exchequer according to the Office for Budget Responsibility; and
  • tackling disguised employment in the construction industry.

Mark Tami MP said: “I think most ordinary people will think Labour’s plans to repeal the Bedroom Tax are sensible and fair. 

“The tax cuts for hedge funds introduced earlier this year cannot be a priority when people are being plunged into debt. The Bedroom Tax is a cruel and unfair policy that hits the vulnerable and what’s more risks costing more than it saves.