Welfare Reform Bill

Debate between Bridget Phillipson and Jim Shannon

Wednesday 15th June 2011 Commons Chamber

[Jim Shannon]

I thank the hon. Gentleman for his comments. Many Members in all parts of the House know how the system works and the importance of a crisis loan system operating through the social fund.

My final point relates to the appeals system. The proposed changes will do away with the independent appeals system or at least make it unnecessary. I fought a number of appeals for people who had applied for crisis loans through the social fund. Having the appeals system in place is critical. If they are turned down the first time, it may be because they provided the wrong information, or because all the necessary information was not available. An appeals system allows a review to take place. It is crucial that the independent appeals system is retained.

The system of crisis loans through the social fund is a crucial aspect of life in Britain today for the people who come to my office and for those I meet. It gives people hope and an opportunity to get out of sometimes dire financial circumstances. The Government, the House and we as elected representatives have a duty to make sure that the social fund and the crisis loan are retained.

[Bridget Phillipson]

I am grateful for the opportunity to speak to this important group of amendments concerning the discretionary social fund, particularly amendment 39, which calls on the Government to bring forward detailed proposals for the replacement scheme.

Discretionary social fund payments, such as crisis loans and community care grants, provide an essential safety net for some of the most vulnerable people in our communities who, at times of extreme hardship or disadvantage, need financial support. One such group I wish to talk about in detail are women fleeing domestic violence who, through no fault of their own, are forced out of their own homes and have to seek shelter elsewhere. It is because of my experience working with women affected by domestic violence and their families that I am so concerned about the Government’s proposals and what they could mean for those women.

A woman fleeing domestic violence often must leave her home with nothing more that the clothes she is standing in, without money or access to money, but she still needs access to vital items for herself and her children, from food and nappies to children’s clothing. The social fund provides a vital lifeline for those women. Although far from perfect—I admit its shortcomings—it gives reassurance to the woman that help is available should she need it so that she does not feel pressured to return home to violence simple because she has no access to money. Community care grants allow women to start afresh, with a new life and a new home, by covering some of the costs attached, such as a washing machine or a cooker.

Housing Benefit

Debate between Bridget Phillipson and Jim Shannon

Tuesday 9th November 2010 Commons Chamber

[Bridget Phillipson]

I respectfully suggest to the hon. Gentleman that had he been here earlier, he would have heard some of the arguments articulated by my right hon. Friend the shadow Secretary of State. I also respectfully suggest that I am not referring to the cap. That is not the issue that I am discussing in relation to Sunderland; I am discussing the changes in respect of the 10% and the 30th percentile. That is my concern, and that is why this debate has to be on issues broader than London. I understand the concerns of my hon. Friends with London constituencies about the impact there, but the impact it will have in Sunderland will be different.

On average, claimants of local housing allowance in the north-east will see a cut of about 10% a week, or £468 a year, in what they receive. That will have a massive effect in the region, and in Sunderland it will affect more than 4,500 households. Furthermore, those out of work on jobseeker’s allowance for more than one year will be hit particularly hard, with a cut of 10% in their housing benefit. Currently, 2,500 of my constituents are claiming jobseeker’s allowance in an area of ongoing deprivation, where jobs are increasingly hard to come by. That will simply drive people into further poverty and drive up homelessness at a time when, no matter how hard people try, it is often difficult to find a job.

Sunderland city council prevented homelessness for 157 households in 2009-10, helping people to find accommodation, often in the private sector. Overall, the changes made in the comprehensive spending review will make it even harder for Sunderland city council to prevent homelessness. In the long term, the use of temporary bed-and-breakfast accommodation will inevitably drive up housing costs for local councils and have massive social consequences.

Changes in the calculation of housing benefit—pegging it to the consumer prices index—will lead to a dramatic rise in rent arrears, contributing to increased use of temporary accommodation and increased homelessness. It is not yet clear to me whether those who fall into arrears because of the cuts will be deemed to have made themselves intentionally homeless, which would mean that councils would not have a duty to house them. I would be grateful for some clarity from the Government on that issue.

Before I was elected, I managed a refuge for women and children fleeing domestic violence, and the city council supported these homeless families and got them rehoused, often in the private sector. The women would often pay a small top-up to their housing benefit, often to be near supportive family who could help with child care so that they could undertake training or return to the workplace. Such women will be doubly hit, and at the point when they are trying to get their lives back on track.

It is clear that the Government have failed to come up with an acceptable plan for housing benefit. They fail to recognise the long-term solutions to the underlying causes, and they are certainly not progressive.

[Jim Shannon (Strangford) (DUP)]

Does the hon. Lady agree that for a great many people the purpose of housing benefit is to get them out of low-income housing? The changes that the coalition Government are proposing will keep those people in poverty and low-income housing for the rest of their lives. That is my concern. Does the hon. Lady share it?