Housing Benefit (Amendment) Regulations 2010

Baroness Sherlock Excerpts

Monday 24th January 2011 Lords Chamber

In conclusion, I recognise the wisdom of the proposal and am grateful for it, and I hope that it will find favour because it will help us to address complex issues. We must let our judgment be driven not just by the finances but by the family and social needs, and we must emphasise the need for an increase in the supply of housing.

[Baroness Sherlock]

I shall pick up precisely where the right reverend Prelate the Bishop of Hereford left off in looking at the impact on children and communities. In preparing for this debate, in common with other noble Lords I read briefings from a wide range of charities and was very grateful for them. I also read the excellent report from the Social Security Advisory Committee, but probably the single most informative document that I have read so far has been the impact assessment from the DWP. I even thought of simply reading out sections of it in place of a speech, until it occurred to me that noble Lords might have read it already, but it is probably the most damning impact assessment that I have ever read.

Rather than repeating the comments that other noble Lords have made far more eloquently—my noble friend Lord Knight did a beautiful job of setting out the detail on this—I want only to look at what that might mean for a family, because it is very easy for us to consider the policies without understanding the impact on individual families.

I spent some time running a charity that worked with single parents. A lot of the single parents who came through the door would phone up when their world had suddenly fallen apart. Perhaps the husband had left, or something had happened and the marriage or family had broken up. Often, a pattern would follow from that. Usually, the mother would end up with the children. She would often have been working, as would the father. When she had to do the childcare alone she would find that she could not manage it and do the same job, because that simply did not work, so she would often then give up the job. The pattern would be that she would often move to be closer to her own family—perhaps her own mother or father—who would help to share the childcare. Over time, she would rebuild her life and often end up getting a part-time job with childcare and being helped by the family and friends in the neighbourhood. She was usually able to do that only because of tax credits and housing benefit. Suddenly, the family would begin to be back together again.

Imagine what happens to that lone parent in that situation if she suddenly finds that the rent on the family home which she has managed to establish can no longer be met by the local housing allowance. What does she do? The landlord might be kind enough to drop her rent, but what if he does not? She then has two choices. Should she try to stay put and make up the difference, when we already know from Crisis that 48 per cent of people on the local housing allowance already face a shortfall? She might already be trying to top up the rent as it is. Even if the difference is only the £12 a week which the noble Lord, Lord German, mentioned, that is a lot of money to someone on that kind of income. If you shop around, £12 a week can buy a pair of children's shoes or put a lot of food on the children’s table. At that level, £12 a week might simply be beyond her reach; it might as well be £1,200.

What does that lone parent do? Does she decide to move to a different area? In doing so, if she moves from inner to outer London, for example, the children will certainly have to change schools, if they can find a place. In doing that, their schooling is disrupted and they lose contact with their friends. In many cases, the woman loses contact with her family. She might then not be able to travel back to the job. The travel costs might be too great or her own mother cannot mind the children, which means that she cannot risk being late back as she has to be there in time to pick the children up from school. We can end up in a situation where the children's lives have been disrupted, the mother might be forced back on to income support, the family has been fractured and the children will suffer. The consequences are potentially significant.

I do not want to wave a shroud; that is not my intention. I want to try to dismantle a policy from its larger scale to see what the impacts might be on an individual set of families. In fact, the impact assessment makes it very clear what the consequences are of some of that dislocation. It talks about the evidence of what happens to the educational attainment of children who are moved—about the impact on the GCSE points of those who are moved at key stages. It talks about the dangers of overcrowding, because the alternative for our lone parent is to stay put or perhaps to go to a smaller house, squeezing a family into a tiny flat. But then where do the children do their homework, as the impact assessment points out? What are the consequences for that family?

The other issue is the other wider impacts of a choice such as this. What happens to the families who have traditionally lived in a very mixed area, in the way that the right reverend Prelate described? I visit people who live in Islington—I went to a church there—and have always been hugely impressed that in so much of London there are such areas, where rich and poor live side by side. But where do they mix in practice? I remember the vicar of Islington walking me down a street to show me a beautiful Georgian terrace on one side and an interesting and challenging 1960s council block on the other. He said, “You know, the joy is that the people in the Georgian terrace look out on the council block and the people in the council block look out on the Georgian terrace”. The real joy was in fact that their bins were emptied by the same council service, that they went to the same GPs and that they shopped in the same local neighbourhood stores when they needed to. In other words, they shared local services. One thing that has long been observed is that services for poor people become poor services, while one thing about having people in mixed areas is that you have what I think a government Minister memorably described as the sharp-elbowed middle classes, who are there to make sure that those shared services are available to all and are protected and developed.

The case that I have described might be just one family, but the impact assessment says that 450,000 of the households affected contain children. If 450,000 households with children are affected by these changes, I very much hope that the Minister will be able to consider the sensible suggestion from the noble Lord, Lord Best, and take his time to consider the impact of two things. First, what will the impact be on families with children? He should track what has happened to some of those families and look at how their lives have changed. Secondly, I strongly urge him to consider how this interacts with the many other measures that the Government have taken through.

That single parent will already be facing cuts from the Government in her childcare help and in the amount of money that she is allowed to earn on her tax credits. She could already be facing a range of other cuts and benefits. She is already in a context in which inflation is rising and the local housing allowance will be uprated only in line with the CPI, while VAT and fuel bills have just gone up. These families are much squeezed already. The very least we owe them is to make sure that we do not take a step such as this without properly understanding the implications.

Housing Benefit

Baroness Sherlock Excerpts

Monday 6th December 2010 Lords Chamber

[Lord Freud]

My Lords, I thank my noble friend for that question, which gets to the heart of the issue. There are three reasons why we think there will be an adjustment in the marketplace. First, we as taxpayers represent 40 per cent of the private rental market. Secondly, there have been some surveys of landlord attitudes; roughly half say that they are prepared to reduce rates. Obviously, they are sending a message back to the main buyer. Thirdly, last week we put in place a mechanism to help that adjustment process. We are prepared to pay direct rents to landlords where they are prepared to show flexibility in helping people to stay in their homes.

[Baroness Sherlock]

Will the Minister comment on the concern expressed by charities that families may be forced to move repeatedly? In particular, can he comment on the fact that all the evidence shows that families at risk who move repeatedly can be put out of the reach of the social services? What steps will the Government take to protect vulnerable families in that situation?

[Lord Freud]

My Lords, one of the points that was raised by SSAC, the advisory committee, was that by having two sets of changes in April and October we were potentially making people make two sets of adjustments. That is why we fine-tuned our arrangements, as we announced last week, so that they come into effect in April, but there is a nine-month period for people to make an adjustment. We have also put in £50 million to help local authorities deal with the transition—some of which will be difficult—to make sure that it goes as smoothly as possible.