Street Democracy UK

The devastating impact of the Bedroom Tax has been laid bare in a report sneaked out by the Government today.

A study found 59% of those hit by the tax – 300,000 tenants – are in rent arrears.

And only 4.5% of the 570,000 victims of the hated tax have moved to a smaller property.

The findings – released as the political news agenda was dominated by the Cabinet reshuffle – blow apart the main justification for bringing in the policy in April last year.

Work and Pensions Secretary Iain Duncan Smith, who kept his job in the Cabinet reshuffle, argued that it would free up space in social housing for families on the waiting list.

But his own department’s analysis showed only 19% of those affected had applied to move and even fewer were able to find a smaller property.

The tax docks housing benefit by around £14 a week for anyone in a council or housing association home deemed to have a spare room.

And 26% had borrowed money from friends, taken out loans or racked up credit card debts.