Rent Officers (Housing Benefit and Universal Credit Functions) (Modification) Order 2026
Baroness Pinnock Excerpts(2 weeks, 5 days ago)
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Baroness Pinnock (LD)
My Lords, my noble friend Lady Thornhill set out the case for the Government to rethink their decision to freeze local housing allowance. She set it out superbly, with all the consequences that will occur as a result of a further year’s freeze on local housing allowance. I want to paint a picture of what that means to families in the small town in Yorkshire where I live and where I am an elected councillor.
You would not say that where I live is the richest of places on the planet; all the information indicates that some parts of my town are in the bottom 10% of the deprivation scores and most of the town is between 30% and 40% in the deprivation scores. That is the general picture of the town. It is a Victorian town with lots of Victorian terraces, two-up, two-downs, some back-to-backs—if anybody in London knows what that means—and the sort of places that open straight on to the street.
I looked this afternoon at a private-rented two-bed property—that means a two-up, two-down—and it is £750 per calendar month, or £173.05 per week. What is the local housing allowance for that part of Kirklees Council? It is £120.82. What that means is that families are having to find £50 a week extra. If they qualify for LHA, they are already not well off, and they are having to find £50 a week for that property. That is the cheapest I could find. I found another one, also a terrace, slightly larger but still a two-bed, and the rent is £825 a month, or £190 a week, so there will be a much bigger difference.
I understand where the Government are coming from, because the housing benefit bill has zoomed upwards. What my noble friend and I are arguing is that it needs a total rethink. I know that the Minister would not want what I have just described to be the case, and that equally, the country cannot keep spending billions of pounds on housing benefit. Some of us round this table in the Grand Committee know that this is one of the consequences of right to buy. If you live in a council property or a housing association property, the difference will not be as high, and most council house rents match local housing allowance. That is the background problem. How we solve it, I do not know, but the Government need to put their mind to it.
Baroness Pinnock (LD)
I am sorry to interrupt the Minister, but I feel very strongly about the use of the phrase “affordable housing”. Affordable housing is, by definition, not affordable. The broad definition of affordability for rent is 80% of the market rent, which, for most people, is not affordable—but social housing at social rents is. I would love the Government to erase “affordable” and just talk about 300,000 homes for social rent. That would make a difference; I hope the Minister will agree.
Baroness Sherlock (Lab)
The 300,000 target is for both social and affordable housing. I would be very happy to share the noble Baroness’s views with my colleagues at MHCLG to make sure that they reflect on them, if that is okay with her, as that policy is probably above my pay grade.
On the question asked by the noble Viscount, Lord Younger, the real challenge is that, if we do not get a whole-system approach on this, we are never going to unblock the barriers to building and addressing the productivity issues in the housebuilding sector. We are, therefore, working really closely with industry—including developers, housing associations and local authorities—to try to get a step change in this area. We have already taken some significant steps to address the planning issues that were holding back the supply of housing. Within months of coming into government, we published our revised National Planning Policy Framework, and, in December, we launched a consultation on further reforms to the framework to unlock additional housing supply.
The noble Viscount also asked about what will happen to vulnerable people. Let me explain what is happening there. At the moment, there is something called the household support fund, and, separately, there are discretionary housing payments. Both of these are short-term funds; the DWP gives the money to local authorities to pay them out. The household support fund was only ever done for six months at a time, and it was never clear that it would be done again for the following six months. DHPs, however, were set for a year at a time. There were, therefore, two separate, short-term discretionary schemes with different purposes and different sets of rules. Just to complicate things, they also often went to different tiers of local government.
Instead, we are creating the crisis and resilience fund, which is a single, multi-year, streamlined fund. It will eventually replace both the household support fund and DHPs in England from 1 April 2026. The key is that people can plan for crisis and resilience support longer down the line. To ensure that there is a transition from where we are now to where we are going, discretionary housing payments will be replaced by the housing payment strand of the crisis and resilience fund, which will, for the first two years, simply mimic what discretionary housing payments do now; it will carry on in the same way. In Wales, DHPs will continue to be maintained and delivered, while Scotland has developed its own alternative for that—as this is a devolved issue—which it launched in 2024. So our intention is that that is what will happen.
The £1 billion includes the element for the housing strand but we are working closely with local authorities so that, by the time we get to year 3, we can look at how that can be done. Also, they will be able to top this up if they want. I recognise, in the context of all the challenges they have faced, that some local authorities do this at the moment because they want to put more into housing.
I hope that that is helpful. I would be very happy to answer any other questions.
Household Support Fund
Baroness Pinnock Excerpts(1 year, 7 months ago)
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Baroness Sherlock (Lab)
My Lords, I thank my noble friend for that question and for the warmth of her welcome. We appreciate very much the crucial role that local authorities are playing in providing crisis support to vulnerable people in their areas. Indeed, my department is engaging closely with each local authority in England to make sure that we understand the ways in which they are using the household support fund.
She mentioned that it is not the only source of support; some local authorities still have local welfare assistance schemes and there are other forms of localised support. But the Government are very conscious of the financial pressures facing local authorities and we are committed to ensuring that councils have the resources they need to provide public services to their communities. As I say, the policy is under review but my noble friend’s points are well made and I will take note of them.
Baroness Pinnock (LD)
My Lords, I have relevant interests recorded in the register. Prevention is better than cure, for the reason that it can improve lives at a lower cost. Does the Minister agree with that and will she consider working with councils and the Local Government Association to develop a scheme that enables preventive work, rather than the existing household support scheme?
Baroness Sherlock (Lab)
I am grateful; that is a really important point and I thank the noble Baroness for making it. Prevention is always better than cure, even if it is not always possible to replace cures entirely with prevention. There may always be the need for some support locally. The way that the fund runs has been designed deliberately so that every local authority can choose how it spends it; and they have chosen to do it in different ways. DWP has given guidance about the nature of the groups that need supporting, and it is for essential support. Some authorities have given grants to third parties; others have given money directly to people and some have even given food. But her broader point is well made. I certainly know that my colleagues in the Ministry for local government—MHCLG—are talking closely with local authorities about how we can get better at doing multiyear funding, giving stability to local government and engaging more effectively in the way that we spend this money.
Housing Benefit: Temporary Accommodation
Baroness Pinnock Excerpts(2 years ago)
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Viscount Younger of Leckie (Con)
Absolutely. Although I do not have a particular answer to the noble Lord’s question, I have certainly been reading about some innovative programmes to reinvigorate properties and give them different uses, not only in high streets but in more central areas. This is just the sort of creative thinking that is required to produce more housing, which of course then leads to people moving out of poverty.
Baroness Pinnock (LD)
My Lords, I have relevant interests in this issue. Does the noble Lord agree that it is not just the excessive cost of temporary accommodation that we should be thinking about but the huge disruption to family life and children’s education when they have to move into temporary housing? At the heart of it is the huge loss of social housing; in my own council, there are 20,000 fewer houses for social rent than there were 20 years ago. The Government’s proposals will not address this huge issue. When are they going to up their game to provide the social housing that is desperately needed?
Viscount Younger of Leckie (Con)
Again, I can say that quite a lot of action is going on this field. The noble Baroness started off by talking about families, and we know that children—who have been a theme of today’s questions—can be affected by living in temporary housing, particularly poor-quality housing. The £1.2 billion local authority housing fund enables councils in England to obtain better-quality temporary accommodation for those owed a duty to be found a home. We want children in particular to grow in a safe and secure home and are committed to a strong welfare system to support those most in need.
Kinship Carers: Two-child Limit Policy
Baroness Pinnock Excerpts(8 years, 3 months ago)
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Baroness Buscombe
My Lords, I think the noble Baroness opposite is aware that we are very much cognisant of this particular case. Indeed, my honourable friend in the other place who is the Minister responsible for this area, Caroline Dinenage MP, has responded with considerable sympathy with regard to this particular case. However, the Government believe all children should be treated equally and encourage parents to take the decision to have more children based on whether they can afford to support additional children.
Baroness Pinnock (LD)
My Lords, do the Government understand and accept that the callous restriction of this policy penalises children by putting a further 300,000 of them into poverty by 2022? Is that government policy?
Baroness Buscombe
My Lords, the Government are looking at this policy at the moment, as I have already said. We do not believe we are being callous. The Government’s view is that providing support for a maximum of two children in universal credit and child tax credit will ensure fairness between claimants on the one hand and, on the other hand, those taxpayers who support themselves solely through work.
Child Poverty
Baroness Pinnock Excerpts(9 years, 4 months ago)
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Baroness Pinnock (LD)
My Lords, I thank the noble Lord, Lord Bird, for initiating this very important debate. I agree with him that we need a strategic approach to tackling child poverty. However, I disagree with him on this point. Not everyone is endowed with the characteristics that can get them out of poverty by their own endeavours.
I will describe a local picture of child poverty. Kirklees Council, where I live and where I serve on the council, serves 420,000 people. It produced a report on poverty in the district this year and these are some of the facts included in that report. There are 20,840 children living in poverty in Kirklees—one in five—and almost two-thirds of those live in lone-parent households. Some 24% of all households have an annual income of below £10,000. That describes the scale of poverty in the district where I live.
The impacts on people’s lives are profound and long-lasting. The inequalities in their lives start at birth, when babies whose mothers are poor tend to have a low birth weight, which can lead to preventable physical and mental health disabilities. Poor health for children growing up in poverty is also a feature. They are more likely to be taken to A&E before they are three years old than their peers. They tend to suffer more persistent, frequent and severe health problems throughout childhood. At school, deprivation tends to result in lower levels of attainment at both key stage 2 and key stage 4. The quality of housing that they live in is also often poor. In Kirklees, over one-third of the properties do not meet modern standards and can be damp and difficult to heat. The result is children suffering from respiratory problems. Often, too, their homes are overcrowded, which adds to family stress and restricts the ability of children to do homework. Statistics show that children who grow up in poverty tend to have poor outcomes in life. They tend to die at a younger age, suffer from chronic ill-health, end up as unskilled workers and have long periods of unemployment. Their aspirations are limited.
The question that we should be asking ourselves today is what can be done to break this cycle of deprivation and stunted life chances, so I have a few suggestions. Housing desperately needs to be improved. Our existing housing stock will be where millions continue to live and some will have their lives blighted by its poor quality. Perhaps the Government could consider measures to cut the cost of home improvements for poor-quality housing. Perhaps they could give grants for housing improvement. That would be novel. In Kirklees, when I was council leader, we introduced the warm zone scheme, which offered free loft and cavity wall insulation to every home. It was mainly funded by an energy company. The result was warmer homes and consequent health improvements. Perhaps the Government would consider replicating that scheme.
The cost of childcare is a huge impediment to adults taking low-paid work. Continuing the funding for childcare of two year-olds in poorer families and not diverting it, as some media reports have suggested might happen, to support the more recent universal childcare offer, would demonstrate the Government’s commitment to supporting families out of poverty.
Another action would be to ensure that the pupil premium is spent on improving outcomes for these children. First, libraries should remain open. Too many are closing—21 of the libraries in my own district have closed, have restricted hours or are run by volunteers. They need to remain open and be available for children in overcrowded homes to do their homework, and to widen their learning and aspirations about what is possible. Above all, we need to raise the sights of young people who have had a poor start in life. They can be the first in their family to go to university, but only if the Government provide financial support for them to do so.
There is much that we can do to help children to have a fair start in life and help all reach their potential. There is a financial reason for doing so, because poverty is a cost on the national purse. Above all, there is a moral imperative.