Housing Benefit (Abolition of Social Sector Size Criteria)

Lilian Greenwood Excerpts

Wednesday 17th December 2014 Commons Chamber

[Mr Slaughter]

rose—

[Lilian Greenwood (Nottingham South) (Lab)]

rose—

[Mr Harper]

Let me make a little more progress and then I will give way again.

Labour’s motion says nothing about the costs of its proposal. That is not really a surprise. It is, of course, a fact that the removal of the spare room subsidy is saving money: £490 million in 2013-14; £525 million in 2014-15; and £830 million to date, with savings increasing in future years. Abolishing this reform would cost over £500 million a year. The shadow Work and Pensions Secretary has made an “absolute pledge” to do so, but she has no idea of how she is going to fund it.

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[Yvonne Fovargue]

Absolutely, and that is the problem with a discretionary payment. Do we really want people to move every time their circumstances change? Let us look at it logically. A young couple move into a one-bedroom flat. They have a child so they move to a two-bedroom flat. Then they have another child. The children start school and can share a bedroom for a certain time, but when the first child is older the family move again to a three-bedroom property. Then, when the eldest child is 18, they move back to the two-bedroom flat. Then they go to a one-bedroom flat. Is that not a sure way to break down communities, take away social cohesion and spoil children’s education just when they need it? However, that point is academic, because, as I said, there just are not the properties available for people to move around like that. People are not chess pieces.

Perhaps the Government know that. This is not really about overcrowding, but saving money. Even by that yardstick, however, it still does not work. The Department for Work and Pensions assessment has been downgraded a number of times. It now appears that the cost of dealing with the debt, eviction, abandonment of properties and widespread misery and mental health problems caused by this pernicious tax might mean that cash savings are minimal or non-existent.

[Lilian Greenwood]

Will my hon. Friend give way?

[Yvonne Fovargue]

Not at the moment.

Debt, eviction and widespread misery are what we are talking about. They are the result of the Government’s reform. People have not been given a choice. If they cannot move to a property with fewer bedrooms, they have to make up the rent difference themselves. For tenants in Wigan, the financial impact ranges from nearly £10 a week to nearly £25 a week, or £1,273 a year. That is a lot of money to find on a low income. As I said, they cannot move because there is a shortage of housing, so they have nowhere to go, are staying put and building up debts. One clear consequence of the policy is the build-up of rent arrears. Figures from my constituency demonstrate that 44% of under-occupation households were in arrears in March 2014. The amount of arrears from the 3,319 households was £381,000, with £225,000 solely attributable to the under-occupation charge. That is not a good outcome for a local authority trying to balance its budget, and it is not good for the people themselves, who are at risk of being evicted because they simply cannot find the extra money to pay their rent. It is bad for tenants and it is bad for the councils that are trying to balance compassion with getting the money in. The only alternative to building up debts is to cut down on essentials, such as heating and food. I think we can certainly conclude that the bedroom tax has played its part in pushing people towards food banks, which have surely become the defining image of the Government in their dying days.

It is not too late for the Government to do the right thing and scrap this cruel and unfair tax. It has not given them what they wanted—budget savings—and has not helped to end overcrowding or make our housing system fairer. All it has done is to make poor people more stressed and desperate, living with the constant uncertainty of discretionary housing payments. I stress the word “discretionary”, because there is nothing certain about them at all. The human cost of the policy does not justify any savings that may have been made. I urge Government Members to look at that at Christmas and vote with the Labour party.

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[Lilian Greenwood (Nottingham South) (Lab)]

In March 2013, two weeks before the bedroom tax came into force, I secured an Adjournment debate to highlight the problems that this cruel and unworkable policy would create for some of the people in my city—those who were least able to afford it. I highlighted which households would be affected, with two thirds including someone with a disability, one third being families with children, more than a fifth being working households on low wages, and many having no spare room at all. They were families where older children needed their own room and a quiet place to do their homework, couples who needed to sleep separately because they were caring for a disabled partner, or separated parents who wanted to have their children to stay at weekends. For people in Nottingham, the bedroom tax would mean having to find, on average, an extra £11 a week if they had one more room than they were allowed, or £22 a week if they had two. Perhaps that is not much to a Government Minister, but for someone on low pay or out of work it is the difference between eating or going hungry, turning on the fire or sitting in the cold, borrowing money to pay the rent or going into arrears.

Back in March 2013, I was conjecturing about what would happen to those affected by the bedroom tax—but now we know. My local Labour council and its arm’s length management organisation, Nottingham City Homes, have worked hard to try to support those hit by the bedroom tax. However, by June 2014, 2,046 of the 3,445 Nottingham households hit were in arrears, owing an average of £218.71. This year, 1,393 tenants have been awarded discretionary housing payments, but they live in anxiety, worried that it could be withdrawn. The council is drawing on its own financial resources to support those affected because the allocation of £965,000 is not enough to meet the level of need.

The Government argue, as did the Lib Dem Minister who replied to my debate 21 months ago, that these people should simply move into smaller properties, but his own impact assessment said that tenant mobility was limited—as was the Government’s intention. His plan—their plan—to cut housing benefit relied specifically on the inability of tenants to move, balancing the books on the backs of poor and vulnerable people.

Nottingham City Homes has worked with tenants affected by the bedroom tax, but only 97 tenants—2.9%—were able to downsize in the year to April 2014. That compares with 81 homes freed up for families in the previous year under the Right Size project. So this flagship policy has made no difference to tackling under-occupation. The truth, as we know, is that it was never about that. It is about cuts and taking money from the households least able to afford it, at the same time as handing out tax cuts to millionaires.

People in Nottingham—people across this country—know that we cannot trust the Lib Dems, who are now wringing their hands having supported the Tories’ legislation every step of the way. Only a Labour Government will scrap this wretched tax. Next May cannot come soon enough.

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[Steve Webb]

Case studies were mentioned, including one from the shadow Secretary of State who then forgot to tell the House that discretionary housing payments were covering the shortfall. Let me share an example of a previously overcrowded family. Suzanna lived in a four-bedroom home in south Yorkshire when this measure was introduced, and decided to downsize. She joined the HomeSwapper scheme to find a more appropriate property and said:

“I was impressed with the quantity of matches that HomeSwapper provided…the lady I swapped with…had needed to move for a long time but her landlord had been unable to move her. She desperately needed the space for her overcrowded family.”

That is the sort of thing this policy is helping to achieve, but the voice of overcrowded tenants is not being heard in this debate.

[Lilian Greenwood]

rose—

[Steve Webb]

I will give way to the hon. Lady because she mentioned the situation in her constituency. Perhaps she will explain why Nottingham applied for extra cash from the Government, was given an extra £0.5 million, and did not spend it.

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[Lilian Greenwood]

The Minister is wrong. Nottingham city has spent the whole allocation that it was given by the Government, and is having to find extra resources to help people. The Minister mentioned HomeSwapper, but that existed before the bedroom tax was introduced. His Government cut money and funding for local authorities that were pursuing projects to encourage people to downsize, including £75,000 that supported Nottingham’s projects.

[Steve Webb]

Nottingham was allocated discretionary housing payment and was given an additional £0.5 million, and of that combined amount it spent 78%. On the question of HomeSwapper, this policy has prompted more people to look to downsize and swap. That is an entirely good thing, as it makes better use of the housing stock.

I want to respond briefly to some of the contributions to the debate. The Chair of the Select Committee, the hon. Member for Aberdeen South (Dame Anne Begg), initially made the claim that the spare room subsidy measure was forcing people into the private rented sector. When my hon. Friend the Minister for Disabled People pointed out that the rate of moves into the private rented sector had fallen, she then said in response that people are not moving to the private rented sector because rents are unaffordable. Well, it cannot be both. It has to be one or the other.

The hon. Member for Makerfield (Yvonne Fovargue) referred to the position of foster carers, but we have recognised this particular need and provided an exemption for foster carers. The hon. Member for Glasgow North West (John Robertson) referred to his constituents as the most affected by the policy, whereas the policy—

Oral Answers to Questions

Lilian Greenwood Excerpts

Monday 3rd November 2014 Commons Chamber

[Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)]

7. What the average waiting time is for an assessment for personal independence payment.

[Lilian Greenwood (Nottingham South) (Lab)]

14. What the average waiting time is for an assessment for personal independence payment.

[The Minister of State, Department for Work and Pensions (Mr Mark Harper)]

When I was asked this at the last departmental questions, I said that the straightforward answer was that PIP claimants were having to wait too long and we are putting that right. I am pleased to say that since I answered that question we have made considerable progress; both the assessment providers have significantly increased the number of claims they are processing. That is good, and we will meet the Secretary of State’s commitment that nobody would be waiting 16 weeks by the end of the year. On the statistics, we will pre-announce the publication in due course, in line with the UK Statistics Authority code of practice.

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[Mr Harper]

Nobody will be waiting longer than 16 weeks by the end of the year. One area where we are performing better is Scotland; the contract Atos runs in Scotland has some of the best performance we are seeing, so I hope that if someone were to make that claim now they would get a decision much more quickly than the hon. Lady might expect.

[Lilian Greenwood]

My constituent Ian Want has severely painful osteoporosis. Having already waited three years for a decision on his claim for disability living allowance, he applied for PIP. Capita rang him at 10.30 pm on a Wednesday to tell him that his medical assessment appointment was at 8.10 the following morning— 50 miles away, in Stoke-on-Trent. Will the Minister apologise to Ian and to the many other disabled people who are being let down by his Department?

[Mr Harper]

I do not know the specific circumstances of that case. If what the hon. Lady describes is the case, it is clearly not acceptable to expect somebody to travel at such short notice and I will look into the matter for her. As I said, however, both the assessment providers are making considerable progress in the number of assessments they are making and communicating to the Department, and departmental decision makers are making considerable progress in making decisions.

Parliamentary Under-Secretary of State for Welfare Reform (Disabled People)

Lilian Greenwood Excerpts

Tuesday 28th October 2014 Commons Chamber

[Kate Green]

Of course, I welcome any initiatives such as those that the hon. Gentleman describes. I am looking forward to hosting a Disability Confident event shortly with my hon. Friend the Member for Wythenshawe and Sale East (Mike Kane) in our local authority. However, I think that we need to look a little more broadly than just at what we all do as individuals. It is the collective responsibility of Ministers and the collective policies of the Government that are under examination this afternoon.

When the Under-Secretary of State for Welfare Reform questions whether disabled people are worth a full wage, does he forget that under his Government, hundreds of thousands of disabled people are right now sitting in queues, waiting to be assessed for the financial support that they should be receiving from the Government? More than 300,000 people are awaiting an assessment for personal independence payment, which is the Government’s replacement for disability living allowance.

Can Members imagine what it must be like to become disabled as a result of a catastrophic event such as a stroke or a terrible accident; to have to spend a fortune on adapting your home, on transport to get to appointments, on new equipment and on adjusting to your new life; to have to give up work and to have less money coming in; for your partner to have to give up work as well to care for you; and then for your PIP award, which should be helping with the additional costs associated with your impairment, to become stuck in an enormous backlog?

[Lilian Greenwood (Nottingham South) (Lab)]

Will my hon. Friend give way?

[Kate Green]

No, I will make some progress.

We heard again this morning in Westminster Hall that the Minister of State, Department for Work and Pensions, the hon. Member for Forest of Dean (Mr Harper), is determined to bring down the waiting times for PIP assessments to 16 weeks. That is welcome, but he should acknowledge that it is a less ambitious timetable than the 12 weeks from application to decision that the Government initially suggested in the PIP toolkit. Meanwhile, disabled people are left high and dry for months. I have constituents who have waited almost a year for an assessment. My constituent, Mr W, has even received compensation for the delay that he has experienced. I was shocked when I asked the Minister how much compensation payments had cost the taxpayer. In a written answer on 20 September, he told me that the Department for Work and Pensions is not bothering to keep a record.

Most pertinently, when the Under-Secretary of State for Welfare Reform says that the way to get more disabled people into employment is to cut their pay, I point to the failure of a raft of Government policies. The work capability assessment, which was introduced by Labour in a staged manner, was then pushed through by this Government in a botched rush. There is now a backlog: 600,000 cases are awaiting a first assessment. Reassessments have been put on ice altogether. People are waiting for weeks, in some cases with no money at all coming in, for mandatory reconsideration. There is a terrible record of poor-quality decision making and a huge number of cases have been appealed successfully. Just last week, The Independent reported that thousands of people with degenerative conditions are being put in the work-related activity group and denied the support element of employment and support allowance. Can Members imagine the anxiety that that must cause, not to mention the waste of resources?

At the same time, the number of people being put into the support group overall is rising rapidly. Far from getting people into work, more people are being cast aside by the coalition Government. People are being abandoned, exactly as happened under Mrs Thatcher, when incapacity benefit was used as a means of massaging down the unemployment figures. Of course disabled people who are not able to work must get the support to which they are entitled, but many disabled people could work and would love to work, and they are being truly failed by the Government.

The hon. Member for Beverley and Holderness (Mr Stuart) highlighted the number of people who have moved into work, but he should also acknowledge that the gap between the employment rates of working-age disabled and non-disabled adults remains at a stubborn 30%.

DWP: Performance

Lilian Greenwood Excerpts

Monday 30th June 2014 Commons Chamber

[Emily Thornberry (Islington South and Finsbury) (Lab)]

I had a six-minute speech prepared, but I fear that I may need to ditch part of it to deal with some of the extraordinary points raised by the hon. Member for Fareham (Mr Hoban) who, until recently, was in the Treasury. To hear him allow no facts to get in the way of a good party political slogan is really very depressing.

Let me deal with the four worst points of the hon. Gentleman’s speech. First, he said that, under Labour, work did not pay and that people were better off on benefits. He needs to understand what tax credits and in-work benefits are. The whole point was that people would work. They would not be paid very much and, instead of paying tax, they would be able to get tax back. The idea was that it was worth working and that was the entire purpose behind in-work benefits. That is why we introduced them and why it is such a shame that they are being undermined by this Government.

Secondly, the bedroom tax has not been introduced by this Government in the same way that the previous Government introduced a bedroom tax for the private sector. The difference is that when a private sector tenant moved from one private rental place to another, he or she would not get housing benefit at a level for a flat that was far too big for them. When we introduced it, we were not going to say to them, “You are in a two-bedroom flat, so we will not give you all your rent”. We were going to wait until they had moved into a new flat and then say, “I am sorry, but you have to move into a flat that is appropriate to the size of your family.” That is the difference. Now the Government are saying to people in social housing, “You must move, and if you don’t and you can’t, because there isn’t social housing available for you of an appropriate size, we will not give you all your rent. You will continue to be charged all your rent, and out of the tiny amount of money that you get on welfare, you will need to pay that towards your rent or you will be evicted.” That is a big difference. [Interruption.] It is such a shame that the hon. Member for Fareham is not listening, because if he were, perhaps he would stop making such comments.

[Lilian Greenwood (Nottingham South) (Lab)]

On the bedroom tax, Advice Nottingham provided me with a case study: Arthur, who was living alone in a two-bedroom council property, had rent of £70 a week. He moved to private rented accommodation to avoid the bedroom tax, and is now being paid £88.85 a week in housing benefit and still has a spare bedroom. Does that not show the ridiculous nature of this Government’s housing benefit reforms?

[Emily Thornberry]

I could not have put it better myself. I do hope that the hon. Gentleman was taking notes.

Long-term youth unemployment eats into people’s souls. It eats into their future, their ambition and their very character. Worryingly, under this Government, long-term youth unemployment is going up. That is a fact that the hon. Gentleman really should have at the forefront of his mind and that the Government should be thinking about as an entire generation are losing their chance of life.

Let me touch on my last point before I move on to the speech that I had intended to make—[Interruption.] No, no, let me make my fourth point, which is that it is not fair that people on an average income should be getting less money than people on benefits. Let me explain this to the hon. Gentleman. If someone is on an average income in central London, they cannot live. They get in-work benefits, their rent paid or some assistance with their rent, and tax credits—as long as the Government continue to pay them out—because it is not possible to live in certain areas on an average income. We are in favour of caps on benefit, but we are in favour of them on a regional basis, because that is fair. The reason why the benefit bill is higher in certain areas is that property is more expensive. I do not know whether the hon. Gentleman has noticed this, but it is more expensive living in London and the south-east, or even the south, than it is in other areas. These people on benefits are not getting the money themselves; their landlords are getting it because the rents are so high. For that reason the benefit bill continues to go up. What is Labour’s solution? We will build 200,000 homes and that is the radical politics that is necessary to be able to address the problem of the cap.

In the two minutes I have left of my speech, I will talk about the problems with work capability assessments. The difficulty lies in the enormous delays in the system. Until recently, I had constituents who were waiting for an age to get their work capability assessments. I have a number of cases, which I now cannot read out, of people who have been waiting for more than six months for their work capability assessment to be done. Once it is done, it may be unfair, so they will have to appeal, and the appeals are taking a year. To get around that, the Government have introduced a mandatory reconsideration. The problem with that is that they are also taking an age. I have asked the Department how many claimants are left without any income during the reconsideration process. The Department cannot tell me. I have asked the Department what is the longest period that people have had to wait for their mandatory reconsideration. It cannot tell me that. The Department cannot tell me how mandatory reconsideration is going, so how can it know whether it has been a success?

People now have to wait for the work capability assessment, the mandatory assessment and then the appeal, 45% of which, even after jumping through all of those hoops, are successful. Is this a Department that is working properly? No, it is not. It has a new baby—the personal independence payment, which is supposed to work. In my area, we have only new claimants on PIP. The PIP assessment is also a nightmare. I have a constituent who, as a result of being in the war in Helmand, cannot stand or sit, and he has been waiting since 9 July 2013 for his assessment. How can that be? The reason is that he cannot move, so cannot get out of his home. He has been applying for PIP, but he cannot get his assessment. The latest letter from the Department, which has not been signed by a Minister, says that it cannot give me a time scale for how long he needs to wait for his assessment. Is that fair? It is not. Is this a Government who care? They do not. Can it be right that a Department allows seriously disabled people to be without any source of income for extended periods, and is still able to look itself in the mirror? I fear that it does, and it should be ashamed.

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[Lilian Greenwood (Nottingham South) (Lab)]

Our welfare state was established to protect the most vulnerable in society, and to protect us all with support in times of need, so that whether we are young or old, sick or unemployed, we are not reliant on charity. I am incredibly grateful for the work of Nottingham’s churches, faith groups and voluntary organisations, which are seeking to mitigate the worst impacts of the Government’s welfare changes, but their work in trying to meet unmet need is no substitute for citizens’ rights.

We need a social security system that is fair and affordable, and one that supports those who need help while tackling the underlying causes of that need, be it worklessness, low pay or lack of affordable housing. The Government have launched a series of reforms that are failing to deliver. Key programmes are behind schedule and over budget. Taxpayers’ money is being wasted and those who need support are being left to rely on food banks or, worse still, to go hungry.

My constituents deserve so much better. Alex McEwan became ill in May 2013 and applied for personal independence payment in September. His claim was referred to Capita for assessment. Twice, visits from Capita were arranged, and twice they were cancelled at the last moment. It was not until mid-January that Alex’s assessment was carried out. It was almost a further three months before Capita provided sufficient information for the DWP to reach a decision. It took precisely seven months for Alex to receive the help he needed.

When I raised Alex’s case with the Minister, he said that his officials had looked into it, but that

“unfortunately there have been quite significant delays with this case.”

I am not sure whether the Minister believed that to be an adequate explanation. It seemed to me and my constituent that it was nothing more than a statement of the blindingly obvious. Alex told me that the delays had caused him great inconvenience and financial hardship when he simply wanted to get a semblance of his life and independence back. The Government let Alex down, and he is not the only one.

Pamela Brown suffers from multiple sclerosis and her husband Mike has given up work to care for her. She applied for PIP in July 2013 and faced numerous difficulties just to secure an assessment. Finally, the Browns succeeded in booking an appointment in October, only to arrive at the assessment centre to find that Capita had cancelled the appointment without notifying them. Pamela’s next appointment was a home visit three and a half weeks later. Capita failed to turn up and, when challenged, said that it had cancelled the appointment. It again failed to notify Pamela and Mike. It took more than five months for that couple to get the support they needed. They asked me to raise their case because they wanted others who apply for PIP in future not to suffer the same troubles.

Pamela suffers from a progressive neurological condition for which there is no cure, and yet five months later, she has to undergo reassessment. The last process was extremely stressful, and Pam and Mike believe it made her MS symptoms even worse. Mike described Pamela as being in tears at the thought of having to go through it again. The Minister of State, Department for Work and Pensions, the right hon. Member for Hemel Hempstead (Mike Penning), who has responsibility for disabled people, has agreed to meet me to discuss the case. I hope he can provide answers on why my constituents are treated so badly, and more importantly on how he is seeking to fix the problems. Unfortunately, my constituents are not the exception, but the norm.

Advice Nottingham advisers met the DWP recently to discuss some of the issues they face. They face delays and cancellations of assessments and decisions; clients waiting more than six months simply to be reassessed; and delays to mandatory reconsideration requests. How can it be right that claimants have only 28 days to seek mandatory reconsideration, but there is no time limit for the DWP to respond, despite people waiting with no benefit while appeals are ongoing? It is no surprise that people have to turn to food banks, but in the 21st century, it really should not be necessary.

Independent Living Fund Recipients

Lilian Greenwood Excerpts

Wednesday 18th June 2014 Westminster Hall

[Nic Dakin]

That is why I keep repeating my question to the Minister. This is happening on his watch; he is a good Minister, and he is a man who, I believe, cares, but he cannot wash his hands, like Pontius Pilate, of the future of these individuals. He needs to nail his colours to the mast, and today he has an opportunity to do that by guaranteeing that, as a result of the Government’s decision, there will be no detriment to people currently receiving ILF. My hon. Friend is right to emphasise that people have been living with this worry and concern for the past four years, which has affected the health and well-being not only of ILF recipients, but their families, friends and carers.

[Lilian Greenwood (Nottingham South) (Lab)]

My hon. Friend is making a powerful case on behalf of all users of the ILF. Does he agree that it is not surprising they are concerned about the impact of the closure, given that the Department’s own equality impact assessment says it will be for individual local authorities

“to determine how to allocate the funding transferred to them…This is likely to have an adverse effect on ILF users because of monetary reductions in the amount of support a person receives and because of changes in how that support is delivered”?

When the Government’s own equality impact assessment tells them the closure will have that impact, they must surely respond.

[Nic Dakin]

That is deeply worrying, as my hon. Friend says. That is why it is good the Minister has the opportunity today to give people those guarantees and reassurances and to address the concerns raised by the Government’s own impact assessment.

Disabled People Against Cuts points out that, for the 17,500 people in receipt of ILF,

“the closure of the Fund will have a devastating impact on the lives on these individuals and their families. It also has a much wider significance because at the heart of this is the fundamental question of disabled people’s place in society: do we want a society that keeps its disabled citizens out of sight, prisoners in their own homes or locked away in institutions, surviving not living or do we want a society that enables disabled people to participate, contribute and enjoy the opportunities, choice and control that non-disabled people”—

like us—“take for granted?”

Housing Benefit

Lilian Greenwood Excerpts

Wednesday 26th February 2014 Commons Chamber

[Rachel Reeves]

Let us see where Bradford is by the end of the financial year, not just six months into it.

Many of those who are moving because of the bedroom tax are ending up in private rented accommodation which, though smaller, is more expensive. Analysis by the university of York suggests that this could mean the Government paying out £160 million more in housing benefit than had been budgeted for.

Ministers have also been forced to admit that 35,000 of the disabled people affected have had their homes specially adapted for them with, for example, wheelchair ramps, wider doors, stair lifts and accessible bathrooms. If they are forced to move, it has been estimated that the costs of repeating those adaptations in new properties could be as much as £234 million.

According to the latest numbers from the National Housing Federation, two thirds of the households hit by the bedroom tax have already fallen into arrears, hitting the finances of the very housing providers we need to be building more homes to deal with overcrowding, and a staggering one in seven of the tenants affected have already received eviction warning letters.

[Lilian Greenwood (Nottingham South) (Lab)]

Does my hon. Friend share my concern that in Nottingham more than 2,000 City Homes tenants are falling into arrears totalling more than £286,000—money that should be spent on refurbishing existing homes and building new ones? The fact that they are in arrears means that even if there were somewhere for them to downsize to, tenancy restrictions would prevent them from doing so.

[Rachel Reeves]

In my hon. Friend’s local authority area—Nottingham city council—200 people have been wrongly paying the bedroom tax because of this Government’s mistakes. She is absolutely right to mention the number of people in her area who are in arrears and the difficulties they will have in moving.

The eviction warning letters that have gone to so many people raise the threat of millions more being wasted in eviction proceedings and the emergency accommodation that will be needed for those who are made homeless. What a shambles.

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[Lilian Greenwood (Nottingham South) (Lab)]

Today we are hearing Government Members defend a bad policy that just gets worse: a policy that is hitting thousands of disabled people, causing arrears and debt, and leaving vulnerable families in despair.

Nearly 5,000 households in Nottingham are affected by the bedroom tax, and the vast majority are tenants of the city’s arm’s length management organisation, Nottingham City Homes. Since the introduction of the tax in April 2013, over 2,000 of those tenants have fallen into arrears totalling more than £250,000, and our ALMO has been forced to spend an additional £300,000 on staff and resources to deal with the extra demands on rent arrears teams. That adds up to more than £500,000 that could and should have been spent on refurbishing or building new homes.

As we have heard, two thirds of the households affected by the bedroom tax simply cannot find the money to pay their rent, and are accumulating ever-increasing arrears. We have heard heartbreaking stories about how the policy is wrecking lives, contributing to a growing affordable housing crisis, and wasting millions. It must be scrapped.

The Government pretend that people can downsize, but in reality that is nonsense. People who are in arrears often face tenancy restrictions that bar them from applying for new, smaller properties, and in any case there simply are not the homes for them to move to. In my constituency there are just 16 one-bedroom social homes available, and not a single two-bedroom home—in a city where 1,161 tenants are waiting to move to one-bedroom properties, and 1,083 are waiting for two-bedroom properties.

Most tenants are loth to give up secure social tenancies and downsize to smaller properties in the private sector, and the Government’s projected savings rely on their not doing so. The average social rent for a two-bedroom property in Nottingham is £64.02, but the average private rent for a one-bedroom property is £88.85. Do the maths! If tenants did move, the housing benefit bill would rise substantially.

The truth is that the Government know that most people cannot afford to pay the bedroom tax. Trapped with nowhere to go and facing an increasing cost of living, more and more poor and vulnerable families in Nottingham are turning to food banks and payday lenders simply to pay for basic essentials such as food, children’s clothing and fuel bills.

My local homelessness charity, Framework, has been recording the experiences of some of its service users who are affected by the Government’s policy. One of them, who lives in a two-bedroom property, has become disabled and cannot use the stairs, but she cannot move to a one-bedroom, single-floor property because she has rent arrears as a result of the bedroom tax. Another is a 60-year-old man who suffers from agoraphobia and panic attacks and finds new places and changes stressful. He is lucky enough to have a support network of family and friends in his neighbourhood, and, understandably, he does not want to move. Now he has arrears of hundreds of pounds, and could not move even if he wanted to.

Do Ministers really think that this is the way to treat vulnerable people with complex needs? It is clearly not the best way to tackle the shortage of larger council homes, or the problem of overcrowding. The latest loophole will add to the burden borne by hard-pressed local authorities, and it could affect as many as 40,000 households, but Ministers continue to claim that it will affect only a few. Ministers ignored social housing providers when they warned that the bedroom tax would be a disaster. How bad do things have to become before they actually start to listen?

The Government are in utter denial about the impact of their cruel and iniquitous policy. Tory and Liberal Democrat Members arrogantly dismiss those who dare to highlight the damage that it is doing to the lives of our constituents. Well, if they will not do the right thing and scrap it, the next Labour Government will.

Oral Answers to Questions

Lilian Greenwood Excerpts

Monday 24th February 2014 Commons Chamber

[Mike Penning]

As we bed down the new benefit and the new policies, there will be issues within the Department, issues with the contractors and issues not only with people giving advice to claimants, but with claimants themselves. I am not blaming claimants. What we are saying is that there are delays in the forms coming back and delays because they are not filled in correctly. That is something that we need to work on. We need to be more informative about how those forms are to be filled in, and we are working on that. On the terminal illness side, we are working with Macmillan so that it works closely with those claimants.

[Lilian Greenwood (Nottingham South) (Lab)]

My constituent Pamela Brown applied for her personal independence payment in July last year, but the persistent failures by Capita meant that she faced a delay of more than three months just to get an assessment. She had numerous appointments that were cancelled and Capita did not even tell her. It was only after she put in numerous formal complaints that Capita addressed the matter. Pamela’s case is clearly far from unique, so can the Minister say a little more about what he is doing to sort out the mess at Capita’s end?

Oral Answers to Questions

Lilian Greenwood Excerpts

Thursday 30th January 2014 Commons Chamber

[Maria Miller]

My hon. Friend, who speaks with passion about this subject, will know that we have already committed ourselves to spending an additional £250 million on starting to address that last 10%, and to an additional £10 million budget for the hardest-to-reach areas. We must of course ensure that the money is used wisely, but I agree with the hon. Gentleman that we need to use it to fill the gaps that the commercial providers simply cannot reach.

[Lilian Greenwood (Nottingham South) (Lab)]

The outstanding Nottingham Playhouse faces threats, if not to its whole future, to its ability to commission and stage new work as a result of the Government’s local authority cuts. What is the Secretary of State doing to support councils such as mine which want to promote new work and new talent in our region?

[Mr Vaizey]

I know that the hon. Lady will welcome the Chancellor’s announcement of a theatre tax credit for new work, which is aimed at precisely such organisations as the Nottingham Playhouse.

Food Banks

Lilian Greenwood Excerpts

Wednesday 18th December 2013 Commons Chamber

[Neil Carmichael]

Absolutely. Fuel poverty is an issue, and I fully accept that, but I think the greatest issue is the need for people to recognise that there are opportunities in the work force—opportunities to seek employment and opportunities to fulfil their lives. That is where we need to go.

[Lilian Greenwood (Nottingham South) (Lab)]

Of course, finding a job should be the way out of poverty. Is that not why it is so shocking that the majority of working-age people living below the poverty line are now in working households and that two thirds of all children living in poverty are living in working families? What should the hon. Gentleman’s Government be doing about that?

[Neil Carmichael]

The Government are ensuring that more people are in work and we have discovered today just how that policy is working. The opportunity we must give all people, including young people, is the ability to engage in a working life.

Housing Benefit

Lilian Greenwood Excerpts

Tuesday 12th November 2013 Commons Chamber

[Jessica Morden]

I thank my hon. Friend for that intervention. That is not the only process they have to go through, either. The cumulative effect of the Government’s different benefit changes, particularly on disabled people, makes things all the more arduous for them.

The warning from Opposition Members was that far from saving money, this policy could end up costing money. The warning was that the very notion of tenants moving to smaller homes was clearly absurd, as there were nowhere near enough smaller properties for them to move into.

[Lilian Greenwood (Nottingham South) (Lab)]

Does my hon. Friend recall the Government’s 2012 impact assessment, which said:

“Estimates of Housing Benefit savings are based upon the current profile of tenants in the social rented sector, with little tenant mobility assumed. If a significant number of tenants wished to move, this would reduce direct savings and place extra demands on social landlords.”

Does she agree that this confirms that the Government’s real intention was to balance the books on the backs of the poor and vulnerable?

[Jessica Morden]

I thank my hon. Friend for that intervention. It is clear that the Government will save money only if people stay put and pay up, which is the fundamental point.

The shortage of housing is no more acute than in Wales, where traditional three-bedroom properties predominate and there is a huge shortage of smaller social properties. Again, the warning back then was that discretionary housing payments were not enough to help the disabled and that housing associations would be left with a burden of debt, and unenviable choices.

All those warnings were ignored by the Government coalition parties. Government Members said that debates such as this one were characterised by exaggeration, that we were painting too bleak a picture and that our predictions were inaccurate. Tragically, those predictions were not wrong.

All Members have constituency cases to quote, so here are just a few of mine from the last couple of weeks. The mother of a disabled child who up to now used the third bedroom as a sensory room for her autistic son, as recommended by a paediatrician, is now struggling to find the extra rent. A divorced father whose two sons normally stay with him during the summer months has had to move because he cannot afford to keep his current home and will no longer have that access to his children. The largest group is the numerous families with disability adaptations to their properties who have no prospect of being moved to smaller accommodation that fits their needs because it would cost far too much to adapt the new properties. It is now clear that the financial “assistance” provided to already cash-strapped local authorities is not enough, as I see every day in my case work.

--- Later in debate ---

[Jeremy Lefroy]

I thank the hon. Gentleman for his intervention. I will come to that later in my speech. Discretionary housing payments are extremely important because they provide flexibility; indeed, I would wish for a bit more flexibility.

My authority is working very hard to assist people who are in difficulties as a result of this policy. I want to draw out a number of things from its experience. First, it is vital, as the hon. Member for Islington South and Finsbury (Emily Thornberry) said, that local authorities work with social housing providers to help all those affected.

[Lilian Greenwood]

Will the hon. Gentleman give way?

[Jeremy Lefroy]

This will be my third intervention, but as it is the hon. Lady, I will.

[Lilian Greenwood]

I wonder how it will be possible for local authorities to help all those who are affected. Nottingham was allocated £696,000, and over 6,000 tenants in the city are affected. Its total missing housing benefit amounts to over £4 million. It is no surprise when Nottingham City Homes tells me that over half its tenants are in arrears. There is simply not the money to assist all those who are affected.

[Jeremy Lefroy]

I am sure that the Minister has heard that. He mentioned the extra £20 million, which I should hope that Nottingham would bid for. Perhaps that sum could be increased; in fact, that is something I would ask for.

Discretionary housing payments are extremely important, as shown by the experience of my local council. As the Chair of the Select Committee, the hon. Member for Aberdeen South (Dame Anne Begg), said, the system needs to be administered more flexibly so that, perhaps, hard cases that are currently excluded are included. Again, I am sure that the Minister is listening.

We have heard about tenants getting into debt and therefore being unable to move. That Catch-22 situation has to be dealt with. People who are in arrears must be able to move if they are in arrears as a result of this policy and not of historical arrears. The Government could consider the rates that are charged, which are set at 14% and 25% for one-bedroom and two-bedroom properties. Perhaps there could be a lower rate that was increased gradually over the years as additional appropriate housing was provided. This must not result in evictions. Some councils have no-eviction policies, and that is a very commendable approach. I would look for all possible measures to be taken prior to eviction being enforced.

Many unintended consequences of the policy were mentioned by the hon. Member for Liverpool, West Derby (Stephen Twigg) and, particularly in respect of rural areas, by my hon. Friend the Member for St Ives (Andrew George). Those need to be looked at very carefully, and am sure that the Minister will do so.

The Government could also look at the costs of administering social housing. Let me put this in perspective. In South Staffordshire, the discretionary housing payment pot is £90,000, and people are working very hard to make the system work. I was therefore a little surprised to read that the salaries and benefits of the directors of one of the local social housing providers were £223,000, £160,000, £149,000, £136,000 and £139,000. Given that those salaries are paid from the earnings and taxes of hard-working people, perhaps the Minister will look at how housing associations that pay such salaries could themselves contribute to discretionary housing payments.

The Government have committed to monitor the effects of the policy. This debate is a good chance for the Government to listen to reasonable suggestions for changes to the policy in the interests of all our constituents.