Benefits Uprating

Hywel Williams Excerpts

Wednesday 8th December 2010 Commons Chamber

[Steve Webb]

I am grateful to my hon. Friend, who is right that CPI rises tend to be more stable compared with the surges and freezes that we had with the RPI. On the point about the inclusion of housing in the CPI, costs in the form of rents are in the CPI already, so that is covered for lower-income renters. The CPI advisory committee is undertaking a two-year programme to see how housing costs might be included, but it has already ruled out directly including mortgage interest payments specifically, which will help with the issue that we have raised. As and when the Office for National Statistics comes up with alternative measures, we will certainly look at them, but that is without prejudice at this stage, because the work is ongoing.

[Hywel Williams (Arfon) (PC)]

The Minister draws attention to the restoration of the earnings link and to Labour’s failure over 13 years to make that important change, but does he not feel a little uncomfortable about being in cahoots with the party that broke that link in the first place?

[Steve Webb]

What is a great source of pride to me is being part of a coalition Government who are restoring the earnings link. I assure the hon. Gentleman that, although the measure was certainly in the Liberal Democrat manifesto, if the Chancellor of the Exchequer had not been happy with the plan, it would not have happened.

Oral Answers to Questions

Hywel Williams Excerpts

Monday 22nd November 2010 Commons Chamber

[Steve Webb]

The hon. Lady is right to point out the importance of a flexible jobs market. The good news is that a large proportion of the new jobs that are being created are part-time jobs that will be of particular benefit to lone parents. The Government will consult on the right to request flexible working in the coming year.

[Hywel Williams (Arfon) (PC)]

The number of job applicants and the number of posted job vacancies varies widely from constituency to constituency and country to country. Is it fair to apply a universal rule to all claimants when their ability to comply with that rule varies so widely?

[Steve Webb]

The hon. Gentleman will know that Jobcentre Plus advisers already have a good deal of discretion in how they respond to individuals to reflect individual circumstances. We are keen to see that measures such as the Work programme are tailored to the individual so that they can address the particular problems that they face. If those problems involve transport or a lack of very local job vacancies, they can be addressed through the Work programme.

Oral Answers to Questions

Hywel Williams Excerpts

Monday 19th July 2010 Commons Chamber

[Hywel Williams (Arfon) (PC)]

16. What recent representations he has received from Citizens Advice on the employment and support allowance work capability assessment; and if he will make a statement.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

I have read carefully the report on the issue by Citizens Advice. I have had meetings with its national leadership, and have also visited local volunteers to discuss the issues with them.

[Hywel Williams]

The evidence from Citizens Advice on Labour’s work capability assessment is clear and damning. It states that

“people are being inappropriately subjected”

to the assessment, that it

“is not an effective measure of fitness for work”,

and that it is

“producing inappropriate outcomes.”

The perception among my constituents, however, is that the Government are responding by making the test even stiffer. Can the Minister assure me that he is taking that evidence seriously?

[Chris Grayling]

Absolutely. I was profoundly concerned to discover some of the things that the last Government had done. That is why we are taking steps to address some of the problems, such as the fact that people undergoing chemotherapy have been expected to go to work, which is one of the examples of actions that were completely wrong. We have also commissioned a review by a leading professor, backed up by senior figures with relevant experience of matters such as mental health. We will seek to ensure that the work capability assessment, while being right, fair and proper in the system as a whole, is judged as effectively as possible so that it does not treat unfairly people in genuine need.

Housing Benefit

Hywel Williams Excerpts

Tuesday 13th July 2010 Westminster Hall

[Meg Hillier]

There is an interesting divide in the Chamber—not on party lines, but on London and rest of the country lines. Those of us who represent London see the reality of the situation. Yes, the housing benefit bill has increased, but tinkering in such a way is not the solution. The subsidy needs reform, but it is flexible, and that flexibility is useful. In the current climate, with job losses looming, we tinker with such flexibility at our peril. If wholesale reform was being proposed, we might want to look at that, but at the moment we are talking about tinkering with the system in a way that damages London.

[Hywel Williams (Arfon) (PC)]

We have a history of using market forces to force down rents, which clearly has not worked, as the riposte by the hon. Member for North East Hertfordshire (Mr Heald) showed.

[Meg Hillier]

One reason why that has not worked is housing shortages. However, the self-denying ordinance that I set out at the beginning of my speech means that I cannot talk about wider issues.

Flexibility is important, but it is being abused by the Government, who are proposing changes overnight that might be in place from this autumn—I look to the Minister to give me guidance about that. People who have signed a six-month tenancy or a tenancy with a six-month break clause, for example, will have little option but to fund that shortfall somehow, as I shall address in more detail in a moment.

There is also a proposal to link housing benefit to consumer price index inflation, which will have a big impact on tenants and landlords. Research by Shelter has shown that CPI increased by 15% between 1999 and 2007, while there was a 44% increase in average rents. Had the local housing allowance been set to increase in line with CPI in 1999, it would now be 20% below the level needed to rent the average property. Whichever way the cut is made, people on low incomes—those people are often working—or on benefits are expected to fund the shortfall from their income to stay living in their own homes.

The impact on children and families is pertinent in my constituency, because some 22% of residents are under 16 and a lot of families need homes. People often come to my surgery because they are unable to access social housing. They are advised that they should look at what can be provided in the private rented sector, and I am sure that colleagues are in a similar position. More than one million children—a third of them in London—are living in overcrowded conditions. The cap will only exacerbate that problem because families will be forced to move into smaller, cheaper properties, and perhaps to push out their teenage children as they get older so that they can afford the rent.

I need to touch on a problem in the north of Hackney—not in my constituency, but in that of my hon. Friend the Member for Hackney North and Stoke Newington—where orthodox Jewish families will be severely hit. Such families typically have more than four children, and many of them live in the private rented sector, so the limit on benefit will have a devastating impact. The council and social landlords in Hackney will be unable to take the strain, so I need answers from the Minister on how councils will be supported in dealing with that.

Of the nearly 40,000 people in Hackney currently in receipt of housing benefit, just over 9,000 live in the private rented sector. Two thirds are in receipt of benefit, but one third are working tenants, many of whom would like to continue to work but, as a result of the proposals, will find a serious shortfall between their rent and the benefit provided for it, and will have very little income to make up the difference. In the three bands for the broad rental market areas that operate in my constituency—inner east, inner north and London central—all properties with more than two bedrooms are above the Government’s proposed cap. That is ludicrous. It means that those in Hackney living in a two, three or four-bedroom property—or a larger property—will have nowhere to go. They could go out of Hackney, but there are not many boroughs they could go to. I am not entirely clear how the Government propose to ensure that people can stay living in London—and, crucially, working in London and supporting its economy—because many people need that benefit to subsidise their rent so that they are able to live locally to their jobs.

--- Later in debate ---

[Hywel Williams (Arfon) (PC)]

I congratulate the hon. Member for Hackney South and Shoreditch (Meg Hillier) on securing this debate. This is not just a London problem. Most, if not all, housing policy for Wales is devolved to the Welsh Assembly Government, with the obvious exception of housing benefit. The current system of housing provision clearly fails to provide for the warm, dry, clean spaces that most people would like to live in—MPs have recently had the experience of looking for rented properties—and that has been the case for decades. I do not want to enter into a history lesson, but I became interested in housing in the ’70s and ’80s, and there is a clear contrast between housing policy in the ’40s, ’50s, ’60s and ’70s, and recent policy with its emphasis on profits, ownership and selling off assets.

There are particular circumstances in Wales. In my part of Wales, the question of housing is exacerbated by the huge number of second homes. In my constituency around Caernarfon there are enough empty properties to rehouse every homeless person and nearly everybody who lives in substandard housing. However, those houses stand empty.

The Welsh Assembly Government have been trying to do something about that problem, and in the last Parliament a legislative competence order on housing was discussed. Three Conservative MPs on the Welsh Affairs Committee turned up expressly to vote the order down—I see that they are not present in the Chamber today. They took the opportunity to vote down that provision, and the transfer of powers over this vital issue to the Welsh Assembly Government was blocked. There has now been a U-turn. The Welsh Assembly Government lack overall control over housing benefit and work on only part of the jigsaw. They work effectively and have a well-thought-out policy, but the part of housing provision that is a mess—housing benefit—is controlled from this place.

If we are to reduce the housing benefit bill in the long term, we must plan to provide proper homes of a good standard to the people who need them, and not depend on the vagaries of the market. We must build more affordable homes, and in Wales we must change the VAT system so that houses that are clearly substandard are brought up to a proper standard. VAT is charged on repairs to houses whereas it is not charged on new build. In Wales, we need to devolve power so that the Welsh Assembly Government can take full control of the issue. My question to the Minister is this: what discussions on housing benefit took place with the Welsh Assembly Government before the announcement of this policy?

Oral Answers to Questions

Hywel Williams Excerpts

Monday 14th June 2010 Commons Chamber

[Mr Speaker]

Order. May I congratulate the hon. Member for West Worcestershire (Harriett Baldwin) on her ingenuity? I mean that genuinely. However, we will now focus specifically on people who are not associated with or linked to, but resident in, Wales.

[Hywel Williams (Arfon) (PC)]

Can the Minister assure me that the Government are doing their utmost to protect existing jobs in small companies, for example by encouraging Departments not to take peremptory action on, say, unpaid tax or regulation matters?

[Chris Grayling]

The hon. Gentleman is absolutely right: it is necessary for us to support employment in the private sector, particularly among small employers; that is why I made particular reference to our plans regarding national insurance contributions for small employers. I know, because we in the Department for Work and Pensions have already looked, that we have a good record on paying small employers, and I hope that my colleagues across Government will do everything that they can to support those small businesses, as they will provide the jobs of the future. It is not Government schemes that will create wealth and employment in future, but real business people, building real businesses.