Welfare Reform Bill

Debate between Baroness Thomas of Winchester and Baroness Lister of Burtersett

Monday 23rd January 2012 Lords Chamber

[Baroness Lister of Burtersett]

I will speak briefly in support of Amendment 60A. The noble Baroness, Lady Hollins, has probably not had a chance to see the latest impact assessment, which hit our e-mail accounts only a few hours before this debate. There is now a section in it about carers and I would like to add to what she said. The assessment said that 5,000 carers are expected to be affected by the cap. It is a small number but it is 5,000 too many, in my view. The mean reduction in benefit as a result of the cap is £87 a week; the median is £65 a week. That is a lot of money for carers to lose. Can the Minister tell us what behavioural change the Government are looking for among carers?

[Baroness Thomas of Winchester]

I have a more specific question about disability living allowance and I think this may be the right place to ask it. If someone living in a high-cost rental area on local housing allowance has a serious accident or is diagnosed with a serious long-term condition, perhaps next March, and is placed in the ESA work-related activity group, they might apply for disability living allowance. They might have had a stroke that was not bad enough to take them out of the jobs market for a very long term but that would require them to take a long period of recovery, and they might have been quite badly affected. This person will have to be assessed and then wait for a qualifying period of three months. If during those three months the person in the household falls foul of the benefit cap, will they be penalised immediately or will their application for DLA be taken into account, which of course will then exempt them from the cap? This is an important matter which we have not heard anything about. It might be part of the transitional arrangements that we hope we will hear about, but I would hate that person, with all their difficulties, to have to think about having to look for another place to live when they are trying to recover from quite a serious illness.

Welfare Reform Bill

Debate between Baroness Thomas of Winchester and Baroness Lister of Burtersett

Monday 24th October 2011 Grand Committee

[Baroness Lister of Burtersett]

I have a quick point to make in support of the very strong case made by my noble friends Lady Sherlock and Lord Knight, even if he does not want to be thought of as an expert. If the money for free school meals is paid through universal credit, could the Minister explain how families will know what part of the universal credit is supposed to be for school meals? We know from research that money that is clearly labelled for a particular use is more likely to be spent on that use, but if it is swallowed up in the universal credit, that credit may not be paid to the person responsible for ensuring that the child has money for a school meal or a packed lunch. The danger is that the money will not be spent on the school meal, with all the consequences that my noble friend Lady Sherlock has pointed out.

[Baroness Thomas of Winchester]

A long time ago, during the last welfare reform Bill, when the noble Lord, Lord McKenzie, was the Minister, I moved an amendment in favour of free school meals full stop. I think it was the highest kite I have ever flown. I was very much in favour of the benefits that it had. One of them is the startling fact that research has borne out that children concentrate far more in the afternoon if they have a good hot meal inside them, which may be the only meal of the day. This is an extremely important issue.

The other day I discovered that some boroughs are giving children free school meals in primary schools and I think that Suffolk is one of them, so good for it. I shall be interested to hear the Minister's reply.

Housing Benefit (Amendment) Regulations 2011

Debate between Baroness Thomas of Winchester and Baroness Lister of Burtersett

Wednesday 12th October 2011 Grand Committee

[Baroness Lister of Burtersett]

My Lords, I support the noble Lord, Lord Kirkwood of Kirkhope, and I am grateful to him for giving us the opportunity to discuss these regulations. I shall speak briefly, which I am sure will be of great relief to the Minister.

I am very concerned about the potential implications for homelessness and rough sleeping that the noble Lord referred to, and also about the wider poverty implications, including food poverty. I have been catching up on my press cuttings while I have been away and there is information that more and more people are having to turn to charities for food. I fear that regulations such as this could exacerbate that situation. It is horrifying that in a welfare state we now have so many people turning to charity for their food needs.

Like the noble Lord, I welcome the fact that the Government have responded to some of what the Social Security Advisory Committee said with regard to exemptions, but I agree with the noble Lord that that does not go far enough. What he said about complex needs is worth exploring further. I want to draw attention particularly to some of the gender implications of the regulations, some of which the noble Lord touched on. The equality impact assessment shows that women are a minority of those affected. However, the SSAC makes it clear that there are issues here for women. It states:

“Women are specifically affected in two important ways. Pregnant single women”—

to whom the noble Lord referred—

“are restricted to the shared accommodation rate until they give birth, and face one of three undesirable situations. They can move home twice at a time when they may be financially, emotionally and physically ill-equipped to do so”—

we will be talking about the needs of pregnant women in the Welfare Reform Bill Committee tomorrow—

“into shared accommodation and back to self-contained accommodation when the baby is born. They can decide to move into shared accommodation and remain there after the birth of their child. Or they can try to make up the shortfall in their rent. The second group of women who are likely to be disadvantaged by the proposals are those escaping domestic violence, who may well find themselves having to live in insecure accommodation, putting them at risk of further abuse by their estranged partner”.

With regard to that, earlier research by the Joseph Rowntree Foundation showed the real concerns that younger women have about the prospect of having to share accommodation with strangers. Clearly, that is particularly the case where there has been domestic violence. It said that the prospect of having to share with older people was noted to be particularly daunting, especially for female claimants.

The Merits Committee had a subheading in its report entitled “Evidence-based Policy?”. The question mark says everything. I do not think that this is evidence-based policy-making. The Social Security Advisory Committee report, which is such a bible on these occasions, stated:

“The proposals that have been presented to us are essentially cuts to the Housing Benefit budget and we do not find the rationale for the change to be either convincing or compelling when set against the potential negative impacts. There is no evidence that these measures will improve work incentives or that those under the age of 35 have similar patterns of housing to those under the age of 25. The evidence from private landlords is that the market for private rented accommodation is buoyant, that few landlords will reduce rents as a result of these proposed measures and that many are increasingly excluding Housing Benefit claimants”.

It is not surprising, therefore, that the Merits Committee states:

“DWP has offered surprisingly little evidence to demonstrate the feasibility of its proposal, in particular whether the rental sector has capacity to accommodate the change”.

Given what the Merits Committee and the Social Security Advisory Committee have said, I agree with the noble Lord that we should think very hard before introducing such regulations. I remind the Committee that the Merits Committee suggested to us that it may want to press the DWP for further information on how the policy will work in practice and on its wider consequences. I hope that the Minister will be able to provide us with that information before the regulations go ahead.

[Baroness Thomas of Winchester]

My Lords, I, too, am grateful to my noble friend Lord Kirkwood for tabling the take note Motion. On the face of it, the proposal to extend the age range for single people who receive local housing allowance from 25 to 34 seems entirely reasonable. I, myself, lived in shared flats or houses at that age, as I could not possibly afford a flat or house in London on my salary from the Liberal Party. However, although my fellow housemates and I tried to be careful when interviewing potential new sharers, we did not expect them to belong to particularly vulnerable groups or be on housing benefit. The only tension came when boys wanted to get girlfriends in, or vice versa.

The Government, to their credit, have, as we have heard, made two exemptions. I shall mention the exemption for homeless people who have spent more than three months in a hostel, which is particularly welcome because of the difficulty of moving those in hostel accommodation on. Here I declare an interest as patron of the Winchester Churches Nightshelter, which has an especially impressive record of moving clients on to suitable accommodation.

However, even with those two exemptions, there is a great deal of concern among all the stakeholders who were consulted about the policy. In fact, we see from the consultation outcome that none of the respondents supported the proposed changes and the majority questioned the rationale for them. The $64,000 question is whether the proposals will save the taxpayer money or cause even more to be spent by local authorities having to find extra emergency accommodation. The SSAC report answers that in clear terms. Thank goodness, I have a different sentence to cite from that quoted by the noble Baroness, Lady Lister. The report states:

“The evidence we have seen points to this being a high risk approach to cutting costs that does not take account of potentially negative impacts on other areas of public policy and potential increases in other areas of public expenditure”.

The Government’s solution is to increase discretionary housing payments to local authorities to support those in the most vulnerable situations who do not fit the exempted categories, but the discretionary housing payments will be spread extremely thinly across a lot of housing hotspots because of the changes to the 30th percentile. Such payments can be regarded only as a temporary sticking plaster. An awful lot is being asked of this particular pot of money, which will not go very far when spread across the poorer boroughs of London, not to mention those of all the other large conurbations. In Winchester, homelessness is increasing dramatically, with evidence from letting agents suggesting that fewer than 10 per cent of properties are affordable. As I have said before, Winchester is a very expensive place in which to be poor.

As my noble friend said, are there really enough houses and flats available for multi-occupation in areas where there are likely to be jobs, particularly low-paid jobs? In a buoyant market, will landlords really be willing to reduce their rents to let properties to what could be a potentially unstable cohort of people, when landlords will have no difficulty finding tenants who will pay the market rent?

In my view, this is a worrying experiment. The Social Security Advisory Committee report states that,

“the Department knows very little about either the shared accommodation market”,

or those who live in that sector. As we have heard, that committee recommends that the Government should gather evidence as a matter of urgency with the proposals introduced gradually and evaluated. That sounds like a very good idea to me.