COUNCIL tenants who are most affected by the bedroom tax could be eligible for extra financial help after Swindon Council successfully lobbied the Government for the go-ahead to set up a back-up fund.

Housing Minister Mark Prisk MP has given his initial support to allow the council to use £420,000 of its housing revenue account (HRA) – the money the council receives in rent from council tenants – to help those tenants who are struggling financially due to the Government-imposed cuts to housing benefit.

In 2013/14, claimants of working age deemed to have one spare bedroom, according to a set of rules, will lose 14 per cent of their housing benefit (on average £12 a week) and those with two or more spare bedrooms will lose 25 per cent (on average £21.81 a week). This affects 1,180 council tenants in Swindon.

Under current rules, councils can only spend their rental income on housing. But Coun Russell Holland, cabinet member for One Swindon, Localities and housing, has been negotiating with the Government since October to obtain special permission to use HRA funds to create the emergency fund for council tenants only.

A total of £420,000 will be made available to those tenants in crisis, which equates to less than one per cent of the HRA.

The council envisages that help should be provided to families with someone with disabilities who cannot be expected to move, people living in rural areas who cannot downsize or other people in exceptional circumstances, such as those with caring responsibilities.

Coun Holland said: “As a Swindon councillor it is my priority to do my best for council tenants. I understand why benefits reform is necessary, but I believe it is important that the council has the ability to provide assistance for people in exceptional circumstances.

“A grant scheme funded by and for council tenants is fair and will help to avoid hardship. I’m really pleased that the Government has been willing to support this proposal.”

Mr Prisk said: “Coun Holland made a compelling case to use a small percentage of HRA funds to create this local emergency fund. I am pleased we have given this special provision so that Swindon Borough Council can help those tenants in greatest need.”

But Coun Des Moffatt, the Labour group’s finance lead, said: “This is a monster proposal. The message Coun Holland has sent is it’s all right if you don’t pay any bedroom tax because I’m going to get the other tenants to pay it for you.

“That’s just fundamentally wrong in taxation. You shouldn’t take one group of citizens to pay the social costs of a group of citizens who cannot pay their social cost.”

The council will be writing to tenants in the coming weeks to explain how the fund will work and who will be eligible. The fund will be used alongside the current £281,000 discretionary housing payments fund. To apply for a Discretionary Housing Payment, contact the housing benefits office on 0345 302 2316.