Housing and Planning Bill

Debate between Baroness Hollis of Heigham and Baroness Lister of Burtersett

Monday 14th March 2016 Lords Chamber

[Baroness Hollis of Heigham]

My Lords, I think we recognise that the Minister is doing her best to be helpful but does she not think that this is a little odd? She had a firm view about pensioners—that they should not be exempt from pay to stay—but she did not really have a clear view on whether any of the other groups mentioned in the amendment would be entitled to some consideration or exemption from pay to stay. We are in Committee, the Bill having gone through the other House, and the Minister still cannot help us—I am sure she would like to—as to who will be caught by this policy.

[Baroness Lister of Burtersett]

I am grateful to the Minister. She is clearly trying to be as helpful as she can be, but if we really are not going to have this information by Report, we will just go through all this again, which is in nobody’s interest. We are not asking for the actual draft regulations but the information about which groups will and will not be exempt. That is the least we can expect by Report. But on the basis that we are not going to get anything more now, I beg leave to withdraw the amendment.

Welfare Reform and Work Bill

Debate between Baroness Hollis of Heigham and Baroness Lister of Burtersett

Monday 14th December 2015 Lords Chamber

[Baroness Lister of Burtersett]

Will the Minister say when, roughly, he expects to be publishing the transitional regulations? Will he, in his normal helpful way, commit to publishing a draft of the likely contents first, so noble Lords can discuss them, rather than just be presented with the actual regulations?

[Baroness Hollis of Heigham]

Before Report.

Welfare Benefits Up-rating Bill

Debate between Baroness Hollis of Heigham and Baroness Lister of Burtersett

Tuesday 5th March 2013 Lords Chamber

[Baroness Lister of Burtersett]

I accept that, but I wrote down what the noble Baroness said. She said: “It has never been the intention to alleviate poverty through benefit payment”. I wrote it down. If she wants to retract that statement, I would be delighted.

[Baroness Hollis of Heigham]

I think it was at the point when the Minister said that unemployment benefits were only intended to be temporary while people were in between work, and that therefore they were never expected to address poverty as such. That is the problem that we are worried about.

Social Security (Payments on Account of Benefit) Regulations 2013

Debate between Baroness Hollis of Heigham and Baroness Lister of Burtersett

Wednesday 13th February 2013 Lords Chamber

[Lord Freud]

This is a fascinating area because, following the growth of the micro-loan industry particularly in Bangladesh, where it started—it has spread all around the world—the lessons on helping people to learn how to budget are very much along the lines of giving someone a loan which they pay back before they get the next loan. There is therefore a real learning process. In our approach, we are picking up this global phenomenon, whereby we will provide credit—in practice, free credit behind which there is a discipline—which has to be repaid before the next loan is available. It is very much the same thinking as that which we see globally.

[Baroness Lister of Burtersett]

If people know they can get only that amount, they will borrow more than they need at that point, knowing that that is it, whereas, as both of my noble friends are suggesting, you could have £100 here and £100 there, as you need it. I suggest that it would be good to look at this again.

[Baroness Hollis of Heigham]

I would artificially inflate my bid, knowing what you are doing to me. That would be a very foolish way to encourage me to learn how to manage credit.

Local Government Finance Bill

Debate between Baroness Hollis of Heigham and Baroness Lister of Burtersett

Monday 22nd October 2012 Lords Chamber

[Baroness Hollis of Heigham]

My Lords, I take pleasure in supporting the amendment so ably moved by my noble friend. In Committee, we asked for guidance as to who were vulnerable and what council tax benefit protection for them was appropriate. The Minister replied, correctly of course, that although there was a power under the Act for the Secretary of State to issue guidance to that effect, he did not propose to do so.

In the past week, we have had the welcome news of the £100 million transitional grant for those on benefit but, as my noble friend emphasised, it lasts for one year only. While reducing the cuts for many vulnerable people for one year, it creates the poll tax mark 2 problem of trying to collect small sums from 2 million people. The following year, vulnerable people will again be fully exposed to the cuts. This is simply not fair to local authorities or to the vulnerable people living in them, who may be facing three different schemes in each of three years—full protection this year, up to 8.5% next year, and the full cut the year after. The Government’s transitional grant reflects the fact that they now see just what localism can mean in practice, and they do not like what they see.

I am glad of the real decency that the Minister has shown, and we expect nothing less of her, but vulnerable people will still have to deal with the fallout when the transitional grant has expired unless, as the amendment argues, funding is provided on a sustainable basis. Let me take Norfolk as an example. I declare an interest as Deputy Lieutenant and a former city councillor and county councillor. There are seven district councils and these are their proposals so far: Norwich is struggling to retain the existing national default scheme and is making cuts to do so, and there is therefore no minimum contribution for people on benefit. Great Yarmouth is proposing a minimum contribution from benefit claimants of 20%. King’s Lynn proposes a figure of 25%. Breckland, Broadland and North Norfolk propose a straight 30%, even though North Norfolk and Broadland have high numbers of second homes, which one would have thought would have given them some head space to protect people against the cuts. South Norfolk proposes to compress bands down to band D and then drop below D to bands C, B and A, and then levy 20%. That means a 28% minimum contribution for benefit claimants in band A properties and potentially up to 60% for the high bands. I am very happy to share my workings with anyone who queries that.

Therefore, there are five schemes among seven neighbouring authorities in one county with different minimum payments for vulnerable people on benefit ranging from 0% to potentially 60%, to say nothing about different rules for savings, income, backdating and the second adult rebate. It is quite likely that many of these councils will take up the transitional grant—I hope that they do—but in the year after that they will be back up there with these awful cuts.

Yet we are still told, although less stridently, that this is all about appropriate local decision-making—for example, that local authorities are uniquely placed to decide that they should permit backdating, because presumably the individual local authority knows its patch and has a high proportion of people with fallible memories and slow response times, so it keeps backdating, while a neighbouring authority is scrapping backdating because it is confident that its residents are much sharper than those of the authority next door and will be quick to claim. For one to have backdating and the other not on some reading of the mentality of the residents is presumably an unusual assessment of local need. Or it may be that one authority knows that its residents need savings of up to £6,000 in total because its unique insight into local need tells it that its residents will not face divorce or disability, which makes such savings necessary, while the authority next door is less sanguine about its capacity to foretell the future needs of its residents, so it allows them £16,000 in savings. Do your Lordships really believe that all this is about unique local insight into unique local needs in the name of unique localism?

Alternatively, let us take income. Every scheme that I have seen regards disabled people as vulnerable, but some include DLA as income and others do not. As DLA—if you take the middle-rate care and higher-rate mobility components—can be nearly £100, if it is counted as income that household will make a significant contribution to council tax benefit and to council tax; if it is not so counted, it will probably be exempt. Therefore, there could be two blind people in identical circumstances but one would be made deliberately poorer than the other because, unluckily, he lives in the “wrong” authority and the value of his DLA awarded nationally is cut by local discretion. Is that what we intended when we awarded DLA? What is the point of a national benefit funded by taxpayers if it is vulnerable to local cuts made by local councillors? That is what is going to happen.

All my life I have fought for and believed in local government. Assessing and meeting housing need, for example, is a proper duty of local authorities and a proper subject for local discretion. However, what is not a proper local decision is for local authorities to determine what income vulnerable people should receive. That is and should continue to be a matter of individual entitlement, national criteria and common responsibility and not a matter for local discretion and local handouts.

Disabled people and their carers are scattered across the country. Although they may happen to live in a particular locality, their disability is in no sense local. Therefore, their income support—and council tax benefit is part of their income support—should not be a local responsibility and it is not up to the locality to meet it. Whether there are 2,000 disabled people in Merthyr Tydfil or 200 in west Oxfordshire, they are the responsibility of us all.

I do not believe for a moment that local councillors want to treat disabled people unfairly or more harshly than their next-door neighbours. They do not want to add more financial distress to the lone parent with a five year-old child, desperately searching for work. They do not want to undermine the support that a carer seeks to give to an elderly parent. However, as my noble friend has argued, without sustainable funding for their vulnerable residents, that is what they are going to be doing in 18 months’ time.

The Government have given themselves and local councils a breathing space of a year. They and we should use that year to come up with fairer, better and stable arrangements for meeting the financial need of the most vulnerable people in our society. I support the amendment.

[Baroness Lister of Burtersett]

My Lords, I will intervene very briefly. We have heard two very powerful speeches from my noble friends in support of this amendment. The more I have listened to the debate during the passage of this Bill, the more I have come to the conclusion that all the talk about protecting vulnerable groups is simply a fig leaf. The Government say that they want to protect vulnerable groups but they do nothing to ensure that local authorities do so. Indeed, there is not even any mention of vulnerable groups in the eligibility criteria for the transitional funding. They know full well, while also saying that local authorities should have regard to work incentives, that they are putting local authorities between a rock and hard place.

My own authority, Nottingham, is not going to protect vulnerable groups because it is going to spread the pain out among all working-age people. My noble friend Lord McKenzie has suggested that this is probably what many authorities are going to do. The Government can then turn around and blame the local authorities by saying that it is the local authorities that are refusing to protect vulnerable groups, having set up a scheme but not having given them enough money to ensure that they protect vulnerable groups. It really is not on. What are the Government going to do to monitor the impact of the new scheme on local groups? If this monitoring produces the evidence that vulnerable groups are not being protected, what action will the Government take? Ultimately the buck should stop with the Government, not with the local authorities, in terms of ensuring that vulnerable groups are protected.

Welfare Reform Bill

Debate between Baroness Hollis of Heigham and Baroness Lister of Burtersett

Wednesday 11th January 2012 Lords Chamber

[Baroness Lister of Burtersett]

My Lords, I want to make a very brief point in support of the amendments. The Government say that time-limiting ESA is not based on an estimate of a typical recovery time—it is not evidence-based—but on the principle that these are people who have other means of financial support, which of course is exactly the same principle that the Minister raised earlier to justify removing the ESA youth condition.

This other support is of course income-related ESA, and the Government point out that 60 per cent of people affected will be able to claim it. That means that 40 per cent of those affected—roughly one-third of men and nearly half of women—will not be able to. We are talking here about an erosion of their financial autonomy. Many noble Lords have received many letters from people saying that they are shocked and anxious at the implications of this.

An article in today’s Guardian summed up very well what this erosion of financial autonomy means. This quotation is from a man who is going to be affected by this:

“The satisfaction of being able to contribute to the family budget with a benefit that has been earned and paid for will be removed. The last shred of dignity will be stripped from people who have already lost a great deal in life and who may already feel a burden on those who care for them”.

Disabled people should never feel that they are a burden on those who care for them, and it is terrible that they are being made to feel that way by this clause.

[Baroness Hollis of Heigham]

I shall be very brief and respond, if I may, to the noble Baroness, Lady Thomas of Winchester, who over the years has been a doughty champion for disabled people. However, I have never before heard her make a speech based on the sole proposition that because the House of Commons might reject an amendment, it should not be moved in this House. That is not a sound base for policy, as the noble Baroness will accept. That does not mean to say that at Third Reading there may not be compromise or fallback amendments and so on, but this House has never walked away from its proper duty to scrutinise because it feels that the other place may not accept what we are doing. I hope that the noble Baroness will not run up that sort of argument again.

Welfare Reform Bill

Debate between Baroness Hollis of Heigham and Baroness Lister of Burtersett

Wednesday 14th December 2011 Lords Chamber

[Baroness Hollis of Heigham]

My Lords, I would prefer housing benefit to be part of UC and to be paid to the tenant, because I think that that strengthens UC and makes it easier for one simple calculation to be made for the family. However, I support the amendment because, until the Government have rock-solid arrangements in place to ensure that the rent element in UC is immediately paid to the landlord, both tenant and landlord will, as the noble Lord, Lord Best, said, suffer.

Why would the tenant suffer? He may have to pay transaction costs. If it is looped through his bank account and there are any outstanding overdrafts, debts, or whatever, his UC, including the housing element, will be top-sliced. That is when there is no temptation to spend it on other things. I checked with my housing association. Even with direct debits from tenants in work, those direct debits go astray—deliberately or otherwise—and intensive work has to be done in housing management to reconstruct them again. Tenants can risk losing their home if rent payments are not made automatically to their landlord. For some tenants, that will be a real struggle. If tenants wish to have their rent paid directly to their landlord, but that choice is being denied them, they will suffer.

Why will the landlord suffer? Arrears will undoubtedly arise. I have doubled the amount in my housing association accounts because of potential arrears that I suspect will follow from this change, as have other housing associations. We will then also have to increase staff resources to try to collect those arrears. Private landlords, already reluctant to take DWP tenants, will certainly refuse. One reason for extending direct payments in the first place was to make it a more attractive option for landlords in the private sector, who have been notoriously reluctant since the 1950s to make accommodation available. They used to say, “No Irish, no blacks, no DSS, no dogs”. Versions of that scrutiny, that winnowing out, I fear regrettably still apply.

Ultimately, landlords may need to face evicting tenants. As many of those who cannot manage their money will be vulnerable, they may or may not be regarded as intentionally homeless. If they have children, they are a real problem for all parties, including social services.

Furthermore, housing associations, including mine, are seeking to raise money from private sources, from banks—even, we hope, from pension funds, which is under negotiation at the moment—for building programmes. Our asset is the security of our rent roll. If tenants instead have money paid to them which is not rock-solidly paid immediately to the housing association or the local authority, that rock-solid asset base will no longer be as valued. We estimate that the proposal will cost us something like 50 base points extra on all the loans we raise. We become a worse risk and, as a result, fewer homes will be built. An amendment putting the decision in the hands of not the DWP or landlords but in the hands of tenants is surely the right way forward.

[Baroness Lister of Burtersett]

My Lords, I shall speak briefly in support of the amendment moved by the noble Lord, Lord Best, from a slightly different perspective, and repeat what I said in Grand Committee. In Grand Committee, I congratulated the Government on their research, Perceptions on Welfare Reform and Universal Credit, which sounded out various stakeholders about what they thought about some of the reforms. One thing that came from that from people who will be affected was that although they welcomed the one-stop shop approach of universal credit—to the extent that it is a one-stop shop—there were real fears about putting all the eggs in one basket. If all the money goes together in one lump sum, if anything goes wrong, people are left insecure—high and dry. If some of the rent payment is going to the landlord, where the tenant wishes it, that is mitigated. That is why that choice should remain

Not expressed in this research but by a number of outside organisations is the worry about what happens to the money in the family. I know that the Minister argues that budgeting accounts will sort this out. I hope that they will, but I think that he knows that I am still slightly sceptical about the magical powers of the budgetary accounts. There are fears that the money may not be paid into the account of the person responsible for paying the rent and that they may not then have control over how the money is spent by their partner. That is a slightly different perspective from that of the noble Lord, Lord Best, who understandably and powerfully is relaying some of the concerns about housing providers, but we have to think about the extra burden that this might be placing on some families.

Welfare Reform Bill

Debate between Baroness Hollis of Heigham and Baroness Lister of Burtersett

Monday 28th November 2011 Grand Committee

[Baroness Hollis of Heigham]

I support my noble friend’s amendment. Following on from what the noble Lord, Lord Skelmersdale, said, I would say that the test of fraud is normally—I think I saw a former Lord Chancellor who would know much better than I—associated with intent and ignorance of the law and is not a defence, but I think in this case it is because we are dealing with the interlocking of very vulnerable people and a new and very different system for people to understand.

There are three or four matters on which if I were asked now whether people needed to declare things, I could not guide them, and I like to think I have some nodding acquaintance with this Bill. For example, a lone parent has a boyfriend who works away. He stays with her overnight one or twice over the weekend. As a result, is she no longer a lone parent? Clearly it will not depend on their sleeping arrangements but on what contribution he makes to their financial arrangements. On a weekend basis, would that be sufficiently substantial to make her no longer a lone parent but part of a couple and therefore falsely declaring if she claims to be a lone parent? I am not clear what would happen in that situation under the Bill. Perfectly reasonably she might regard the fact that as she is getting universal credit she is not a lone parent and he is somebody who comes in as a boyfriend but not a partner.

With housing benefit, you could have a family with a student son who is living at home, going to the local university and working part-time. Should he be declared for housing benefit as a potential contributor to the rent so that non-dependent adult deductions come into play? I do not know. I think it would be quite difficult for that couple to assess.

Let me give another example that we discussed at considerable length and about which the Minister was rightly sympathetic—kinship carers. Conventionally, kinship carers are entitled to claim for child credit and so on if they have the equivalent of the child benefit book, which normally takes about eight weeks to come across. In future, given that child benefit will not necessarily be a separate benefit entitlement, if there is a rotating relationship in which the child goes back to its birth parents for a few weeks and then, because the father or the mother may be an addict of some degree, goes back to the grandparents, at what point and for how long a period of continuous care are the kinship carers entitled to claim the child elements in universal credit? I do not know.

In those three cases—and I could elaborate another six on disability benefits that are becoming clear to us—I would not be able to advise somebody on what they should declare on their forms as being relevant for the consideration of UC. It would be natural for them in those quite complicated situations not to declare things that appear to work against them. They would not be doing it with an intent to deceive. They may think it is a perfectly proper statement of their position as they see it, yet under this clause they could be caught for negligence and fined. That is completely unreasonable.

The one piece of advice I would give the Minister is that whatever he does, whether he claims that this is needed as a reserve power or not, he should not touch it for at least three years until after the Bill has come into practical effect because of the bedding-down issues that it will have. The Minister has to make only one mistake, such as his department suing somebody for penalties for negligence when the department was wrong—and there will inevitably be departmental error; there always is when you introduce new systems—and the whole of the good will behind this Bill will disappear overnight.

[Baroness Lister of Burtersett]

My Lords, my noble friend gives some very good examples of how easy it might be to make mistakes, particularly when the universal credit is quite low. I remind noble Lords that on 24 October the noble Lord, Lord Boswell, told us how easy it is to make mistakes. When he applied for his retirement pension, he got it wrong. Was he being negligent? No. It was an example of how easy it is to fill in a form wrongly. It is not necessarily negligence.

Apart from that little reminder of how any noble Lord could easily make a mistake, I also wanted to pick up a point made by my noble friend Lady Drake about the expectation that 80 per cent of claimants will be claiming online. Recently a piece of research, Increasing Digital Channel Use Amongst Digitally Excluded Jobcentre Plus Claimants, found that one group of those claimants were what the authors call the “uninterested”. The researchers said that this group will,

“require persuasion or compulsion before they will use digital services, possibly with the threat of a benefit sanction for non-use”.

I would be very grateful if the Minister could assure the Committee that there is absolutely no intention to sanction people for not using online procedures. Some people have a mental block against using computers and we do not want yet another sanction in the system. I know that it was researchers who said this, and not the department, but if he could give us that assurance now, that would be very helpful.

Welfare Reform Bill

Debate between Baroness Hollis of Heigham and Baroness Lister of Burtersett

Wednesday 23rd November 2011 Grand Committee

[Baroness Lister of Burtersett]

I do not know whether the noble Lord, Lord Kirkwood—of wherever he is of—would comment, if he were here, but he spelt out a very powerful argument of principle about entitlement. I have not heard the noble Lord address that argument and, in his absence, I would be very grateful if he could do so.

[Baroness Hollis of Heigham]

Basically, the noble Lord is constructing universal credit based on meeting several different objectives and many of us support this very strongly. However, he then artificially reduces the amount that some people will get under the very structure he has set out to meet the objectives he has outlined. It is that inconsistency of a deliberate cut to an entitlement, constructed by himself through universal credit, that we find unacceptable—so far it has not been explained to us—particularly when some of the consequences may cost us more.

Welfare Reform Bill

Debate between Baroness Hollis of Heigham and Baroness Lister of Burtersett

Tuesday 8th November 2011 Grand Committee

[Baroness Hollis of Heigham]

My noble friend’s point is entirely valid. You are nominally, on paper, entitled to 12 months of the WRAG money, but in practice it is actually 12 months minus 13 weeks—three months—because for that period you are on a benefit that for all purposes might just as well be JSA, because it is at a lower rate and therefore should not realistically count.

[Baroness Lister of Burtersett]

What is the principal reason for that? How does the Minister justify it?

--- Later in debate ---

[Baroness Lister of Burtersett]

My Lords, perhaps it is the lateness of the hour but I did not think that the Minister read his brief with his customary gusto. I hope that that reflected his embarrassment at trying to justify what I called a mean-minded measure. I did not know that the previous Government had considered this, and I am very glad that they decided not to take it further, as my noble friend said, on the basis of decency. We are talking about decency here and this is an indecent clause. The amendment is purely a fall-back amendment. It would be much preferable if the Minister simply said, “We will continue with the status quo”. Therefore, the amendment would not be necessary. It is a minimalist amendment and, if it creates new problems, they could of course be considered. However, if the clause were to be withdrawn, we would not have to worry about the amendment.

I take the point about why the Minister cannot give us an assurance now about passported benefits, but I suggest that that should not therefore be used as a justification for this measure, given that we do not know who will be receiving passported benefits under universal credit. The Minister said that no other age group has this kind of concession. Of course there is no other age group because any other age group would normally be in paid work and be able to get their contributions. The whole point is that this group cannot be in paid work to get their contributions. I have to say that I am disappointed by the Minister’s response and I hope that perhaps he will reflect on what has been said and think again about this. He then came back and said that there would be a cumulative saving of £10 million. I mean, really—£10 million is absolute peanuts in public spending terms.

[Baroness Hollis of Heigham]

It is a margin of error.

[Baroness Lister of Burtersett]

A margin of error—I thank my noble friend. We are told that this is not about saving money. Therefore, it is totally inappropriate to say what the cumulative savings will be if it is not about saving money. With a heavy heart, I beg leave to withdraw the amendment.

Welfare Reform Bill

Debate between Baroness Hollis of Heigham and Baroness Lister of Burtersett

Tuesday 1st November 2011 Grand Committee

[Baroness Lister of Burtersett]

I will just stay standing until my noble friend Lady Howe is here to move her amendment.

[Baroness Hollis of Heigham]

Perhaps we can ask the Deputy Chairman of Committees to inform the usual channels that it is not possible for us to get down to vote and back up again given the queues of people voting, as well as make oneself comfortable, in 10 minutes. I wonder whether we could ask, through the usual channels, whether 15 minutes might be more acceptable.

Amendment 52B

Welfare Reform Bill

Debate between Baroness Hollis of Heigham and Baroness Lister of Burtersett

Wednesday 26th October 2011 Grand Committee

[Baroness Lister of Burtersett]

My Lords, I would like briefly to follow up on that because this takes us into largely uncharted waters, so we have to be sure of what it is that we are doing. I was struck by the research report, Perceptions of Welfare Reform and Universal Credit, which states that:

“Many part-time workers were surprised that the Universal Credit proposition addresses them as they tended to perceive that they were already doing their bit and felt a strong sense of entitlement to tax credits”.

I think that they found the idea that conditionality was going to apply to them quite disturbing. There is a real danger here. The Government talk a lot about not wanting an overly oppressive state, but I fear that many workers will experience this as just that.

I have two questions for the Minister. First, my noble friend Lord McKenzie mentioned the equality impact assessment. I understand why the Government are using earnings rather than hours as the threshold—because they want to get away from the in-work/out-of-work distinction—but in doing that, as my noble friend said, someone who can earn more will find it much easier to meet the threshold. We know from all the evidence that men are more likely to be able to do this than women, non-disabled people are more likely to do it than disabled people, and white people are more likely to do it than minority-ethnic people.

[Baroness Hollis of Heigham]

People without children.

[Baroness Lister of Burtersett]

Yes. Is there not an issue here in terms of the equality implications? How does the department see those implications?

Secondly, I know that the Minister likes evidence-based policy-making and of course will be very aware of the research report UK Employment Retention and Advancement Demonstration, which has found that gains are made by providing support for people to advance in work through this programme. It states that,

“the evaluation found that for specific populations, gains can be achieved, even for some of the most disadvantaged job seekers, and that those gains can be sustained over a five-year period. These results suggest that the core elements of ERA offer something to build on in future post-employment interventions”.

In what way is the department building on this? To me, it seems that it is going down the in-work conditionality route instead of developing the support provided in this programme.