Holyrood given power to end ‘bedroom tax’ in Scotland
Coalition hands over powers in bid to neutralise the toxic impact of the tax on the Scottish independence referendum.
The UK government has moved to neutralise the impact of the bedroom tax on the Scottish independence referendum by handing powers to the Scottish government that will allow it to mitigate the measure.
The Scotland Office has informed the Scottish government that it will transfer the power to set the cap on discretionary housing payments (DHP) to help people on housing benefit who need extra help. The change will mean the Scottish government will, in effect, be able to end the bedroom tax in Scotland. Holyrood will not receive any extra resources from London and will have to fund any changes from its budget.
The change, which was pushed strongly in London by Nick Clegg, Danny Alexander and Alistair Carmichael, is designed to undermine the claim by the SNP that the bedroom tax can only be ended by taking Scotland out of the UK.