MSPs reject plea for national bedroom tax no eviction policy

They also voted against writing to the Scottish Government to explain its opposition to a statutory ban but the committee will write to UK Work and Pensions Secretary Iain Duncan Smith to ask what financial support will be available for "bedroom tax" cases next year.

Discretionary housing payment (DHP) applications have soared by up to 900% in the last year and councils may have to ask more tenants to cut down on "luxuries" if funding for DHPs is reduced next year, the committee heard.

The petition, by Mike Dailly of the Govan Law Centre, has been criticised by housing bodies, who fear it could boost arrears and foster a widespread culture of rent avoidance.

The substance of the petition has been adopted by Labour health spokeswoman Jackie Baillie for a possible Member's Bill, so the committee clerk proposed closing the petition down.

Labour MSP Ken Macintosh said: "Member's Bills are bit of a lottery, to put it mildly, and there are many reasons why they do or do not get taken forward, and are certainly no substitute for executive or committee action.

"I am confused as to what is the difference between the petitioner's call for a piece of legislation that guarantees no eviction from the bedroom tax and the Scottish Government's support for councils with a no evictions policy. I am entirely baffled as to the difference between the two."

Convener Michael McMahon, also a Labour MSP, proposed writing to the housing minister to explain the difference but was outvoted by the SNP and Mr Johnstone.

Ms Ewing said: "I'm not baffled. I thought the evidence was very clear on that point of proceeding in the way that the petitioner has suggested."

Mr Hepburn said: "We are not relying on the Member's Bill. We can incorporate the useful and helpful evidence that we took as part of the petition into the work we are doing on an ongoing basis."

The SNP and Mr Johnstone subsequently voted to end the committee's consideration of the petition and refer it back to Holyrood's Petitions Committee for a final decision on its fate.

Ms Fabiani said: "Can I just clarify that we are not closing the petition - we are closing our consideration."

Earlier, the committee heard from South Lanarkshire, Dumfries and Galloway, Aberdeenshire and Edinburgh council officials on their management of DHPs.

Annette Finnan, head of housing services at South Lanarkshire Council, said: "We have experienced a significant rise in DHP applications so far this year from 396 to over 2,000, an increase of over 400%."

Lorna Campbell, benefits manager at Dumfries and Galloway Council, said: "We have seen something like a 900% increase in applications. We were averaging 30 to 40 applications this time last year, whereas this month alone we have received over 500 applications."

Cliff Dryburgh, benefits manager at Edinburgh Council, said applications have risen by "just over 500%".

Councils have called on the UK Department of Work and Pensions to reveal its DHP budget for next year to help them plan ahead, following months of financial upheaval as UK and Scottish government assistance programmes have come on stream.

Mr Dryburgh said: "We had put in six-month reviews because we were trying to educate, if you like, or guide people, perhaps, to change what they spent some of their money on, particularly around luxuries.

"We still have in our policy today that we reserve the right to advise the claimant to reduce expenditure if we think it is unreasonably high. That can be a difficult subject to broach."

These expenditure reviews will become more frequent if DHP funding is cut in future, he said.

Ms Campbell added: "We will look at expenditure where it is deemed to be a luxury item or an expenditure where it is perceived something could be done about.

"It's not an easy conversation to have with anyone. It's quite invasive and not particularly palatable for our staff or the client."

Mr McMahon said: "The demand on DHPs is becoming astronomical and I just wonder how widespread that is known.

"We have to make sure we're asking questions around that and write to Iain Duncan Smith to make him aware of what we have heard this morning and ask him to respond."

Scottish Anti-Bedroom Tax Federation secretary Gail Morrow said: "With the SNP just last week accosting the Labour party for 47 MPs missing the vote in the commons, it is quite shameful that they blocked with the Tories here in Scotland to kick out the Govan Law Centre petition.

"It is disappointing that the petition has been dropped, given that we have supported it since day one, helping it gain almost 5,000 signatures before being presented.

"We must now call on the SNP to back the proposed bill being put together by Jackie Baillie if they are to save face in any way from the role they have played so far.

"Each and every time we have put forward a concrete proposal for them they have ignored it and blamed 'the big boy down the road', but today they sided with the architects of the bedroom tax rather than act to prevent evictions."

Mr Macintosh added: "At their party conference, SNP members lined up to claim they supported a no eviction policy, but when asked to use the powers of the Scottish Parliament they dodge and squirm. Scotland deserves better than this."

Speaking after the committee, Mr McMahon said: "To hear of 400-900% increases in applications for financial support for housing costs from councils is shocking.

"To then hear that up to 50% of those facing the bedroom tax have yet to apply makes these statistics all the more alarming.

"Iain Duncan Smith has to pay attention to the evidence from today and we will write to him telling him how hard our councils are working to support local tenants, but have no idea what financial support there is for next year.

"The minister needs to show some respect and announce the support and timetable for further benefit reform before the year's end. Christmas is going to be bleak enough for so many without the additional pressure of future financial uncertainty."