Indeed they did, the coalition extended it to where it should be, in social housing, if your living off the state and have empty room then it's right you should give that room to a more needy family and downsize or pay a penalty which is effectively an incentive to downsize.
It's Harsh, I most certainly agree, but ultimately there for a good reason.
It's actually fine in theory, but not fine when there's no stock of smaller accommodation to downsize into.