Enterprise and Regulatory Reform Bill

Lord Bishop of Hereford Excerpts

Monday 4th March 2013 Lords Chamber

[Lord Mackay of Clashfern]

My Lords, I fully support this amendment because it deals with a problem which ought not to disfigure our national life. My only point is somewhat technical. I notice that in one of his quotations, the noble Lord, Lord Avebury, mentioned race, of which he said caste is a subgroup. I believe it is quite reasonable to suppose that the definition of race in the Equality Act, including ethnic considerations, will include caste. The fact that an additional power was taken to make orders in relation to caste puts that, in the context of the Equality Act, in a certain amount of doubt. However, it is quite important that we recognise that “ethnic” is a broad consideration and idea. According to the Shorter Oxford English Dictionary, which I suppose has a special authority in some parts of the House, “ethnic” means,

“relating to national and cultural origins … denoting origin by birth or descent, rather than by present nationality”.

It also has the definition of pertaining to or designating a,

“population subgroup (within a larger or dominant national or cultural group) with a common national or cultural tradition”.

In effect, that is what caste is. In the context of the 2010 Act, the fact that a separate order-making power was introduced may have been unnecessary. However, it is worth recognising, as the quotation used by the noble Lord, Lord Avebury, shows, that caste can be regarded as a subgroup of race which, of course, is a characteristic that is at present the subject of antidiscrimination provision.

It looks to me as though we have here the necessary push behind this, but I would like the Government to consider it. It may be a reason for reconsideration at Third Reading, separate from other things that have been said, but it is important for a view to be taken about this matter.

[The Lord Bishop of Hereford]

My Lords, I pay tribute to the noble and right reverend Lord, Lord Harries, and others proposing this amendment, to which I give my full support. I do not want to delay this debate too much because it is quite clear what many of your Lordships think. However, I will make three brief points. First, I go back to the theme touched on by the noble and right reverend Lord, Lord Harries, and others about the Government’s plans to address this underlying issue by way of education. We have just been reminded about dictionary definitions. Education is from “educere” to lead us out; to lead us out, surely, into greater truth and the fullness of that truth; for us to flourish as human beings; and to become the best human beings we can be. Within that, I believe, the spirit of God leads us into the fullness of that truth of all being valued in the sight of God.

Secondly, we need consistency in how we approach these issues. Yes, there should be education but not only education. As we have been reminded by the noble Lord, Lord Deben, where does that lead? If it does not lead to the possibility of those who are being educated to treat others equally, to have the law support that as well, we let them down and fail them. Surely, our law is but the right ordering of our society. As we have been reminded by the noble and right reverend Lord, Lord Harries, this issue is about the public arena.

Thirdly, and to which the noble Lord, Lord Alton, has drawn our attention, having had this debate, if we should turn away and not support this amendment, we are giving a worse signal than if we had never had the debate. We need the debate and we need it to be in the open. Having got to this point, we cannot let ourselves turn away. That would cause more harm, more damage and more discrimination. I hope very much that the Minister will accept this amendment and, if not, that it will have the support of all the Benches.

[Lord Lester of Herne Hill]

Perhaps I may follow especially what was said by the noble and learned Lord, Lord Mackay of Clashfern, with which I agree. However, first, I recall that the previous Government, led by the noble Baronesses, Lady Royall and Lady Thornton, met with a large group of Dalits, introduced by my noble friend Lord Avebury and the noble and right reverend Lord, Lord Harries of Pentregarth. As I recall, they listened to them for the best part of three or four hours and were deeply affected by what they learnt from them. It was decided to include a power in the 2010 Act precisely to deal with the problem about which they had heard and to get the necessary research, which they did, and then to deal with the problem of legal uncertainty. As I understand it, the whole reason for the power was because it was necessary to deal with the problem of legal uncertainty if the Government were satisfied that there was evidence of discrimination.

During the debates that then took place, the noble Baroness, Lady Warsi, played a conspicuous role. I was looking back to some of the things that she said. She referred to a study, Hidden Apartheid—Voice of the Community—Caste and Caste Discrimination in the UK. She said that the study,

“illustrates that there is a real and widespread problem, whereas that does not appear to come back from the Government's consultations”.—[Official Report, 11/1/10; col. 340.]

She also referred to a “serious problem”. I pay tribute to her for that.

The noble and learned Lord, Lord Mackay, rightly suggested that it is strongly arguable that the concept of race, notably of ethnic origins, might be capable of being extended to cover caste. I agree with him that that might be possible, especially when one considers the position of Jews and Sikhs. In the Jewish free school case, the Supreme Court had to deal with a dispute between orthodox Jews and Jews outside the United Synagogue. The Supreme Court interpreted the notion of ethnicity to include descent and held on the fact that a school was discriminating on the basis of descent as part of race.

Many years before, in the Sikh Mandla v Lee case—in which representation was made by an extremely able young advocate, now the noble and learned Lord, Lord Irvine of Lairg—a school refused to allow a Sikh boy to be a member of the school if he wore a turban. The House of Lords decided that the word “descent” as part of ethnic origins was capable of being construed to treat Sikhs as being protected by the Racial Discrimination Act.

We are in the position in which some 300,000 Jews—as the noble Lord, Lord Deben, indicated in his extraordinarily powerful speech—and 300,000 Sikhs in this country are protected against race discrimination as ethnic groups, but Dalits are not yet protected. It would take a case all the way to the Supreme Court to try to prevail in the way that Sikhs and Jews have done.

Noble Lords will have read in the newspapers that there was indeed a test case brought in an employment tribunal by Vijay and Amardeep Begraj. After a 36-day hearing, the judge recused herself on the application of the defendant after a visit from two West Midlands Police officers. As a result, there is no determination of their complaints of caste-based discrimination, caste-based victimisation and caste-based harassment. They ran out of money, and I cannot imagine how it would be possible for anyone in the Dalit community to be able now to bring a case that could go before a tribunal, the Employment Appeal Tribunal, the Court of Appeal and the Supreme Court. It would cost hundreds of thousands of pounds for the costs of both sides.

Therefore, one of the overwhelmingly strong reasons for supporting this amendment is not, as was suggested by the noble Lord, Lord Alton, that it is declaratory. The whole point is that it is not declaratory: it would bring the Dalits within legal protection. They would at last have effective remedies.

Housing Benefit (Amendment) Regulations 2010

Lord Bishop of Hereford Excerpts

Monday 24th January 2011 Lords Chamber

[Lord German]

My Lords, I thank the noble Lord, Lord Knight, for his agreement that he is not going to pursue the annulment and also for his support of the noble Lord, Lord Best. The Motion will meet the problem we are all facing—what might happen in the future. In some ways, it is like trying to judge between those who know the next winner of the Grand National and those who believe that it is an art form to study the form and decide which direction to take. Essentially, this whole issue rises or falls on an assessment of how the market will behave.

I want to consider the agreement between the former Labour Government and what the Government are trying to do today. The noble Lord, Lord Knight, said that we should go ahead with the £15 that was made available to people who could negotiate a smaller rent and we should take that away. That was a proposal that he quite rightly made while in government. There is a general agreement that the costs of local housing allowance and housing benefit must be reduced and contained. There is a question which we are all struggling with about the speed with which we do it. There probably will be a consensus in the overall ambition but a difference in the speed by which we achieve that.

There is an agreement that the current expenditure trends, as shown in the impact assessment by the DWP, are unacceptable and unsustainable. Continuing as we are from the evidence that we are given, private sector rents will be driven up, the gap between housing benefit paid in social housing and in the private housing sectors will be extended, and the difference between average earnings and private sector subsidised rents will be widened. That is unacceptable. We know from the figures that the average impact of these measures on households in the private sector will be £12 a week, but of course there are great disparities in that. The figure is £12 a week across the whole of Great Britain but if you look at the difference between Blackpool and London, you get a huge variation. That was a figure which the previous Labour Government alighted on as one of the reductions they would make, but for a much smaller group of people than that which is proposed now. So it sounds remarkably like we are moving in a direction in which people want to travel but not necessarily at the speed at which everybody wants to go.

There has been the critical Social Security Advisory Committee report and its priority is the impact of the regulations. That is its job, not dealing with deficit reduction. Nevertheless, the report quite rightly said, “Do not implement this, but if you are choosing to implement it, here is a range of things you should do to make these changes work”. I am pleased that the Government have accepted the majority of these, in particular the delaying and phasing for current recipients of housing benefit.

There is a quite distinct issue relating to London in this variation. One in four of housing benefit households in London is affected by these measures and the primary impact in London is that the average figure across London for the change in rent to be paid by these allowances is £22. However, 17,000 of the 21,000 losers as a result of a cap on the rent are located in London, so there is a London issue which is almost unique within Great Britain. I read in the other place the evidence given in the form of the committee report and the committee discussion and there was a sense that people were seeing the whole of Great Britain through the prism of London. That is a dangerous process and we may have to look at London separately because in the rest of Great Britain the average impact of these changes on rents is £9.84 a week. In a period when landlords have low interest rates on mortgages, this may be the right time for them to absorb this change.

I will return to the London problem later. First, I would like to look more closely at the impact this figure of £9.84 will have on household rentals around the rest of Great Britain. Essentially, the difference of view which I hear on this issue is around this central question. The noble Lord, Lord Best, said it just now. Will landlords reduce their rents to meet the new levels set by Government? This is fundamentally an issue about the operation of the private rented sector market.

The Government essentially influence about 40 per cent of rents in Great Britain. In terms of pure economics, the state must surely have a prime influence on the level of general rents because it pays the rents of 40 per cent of the properties. It is not quite a monopolistic situation, but the Government are a major purchaser of tenancies in the country.

How has this market operated until now? On the one hand, it seems that tenants have found properties for rents at levels which they know the Government will pay; on the other hand, landlords have set their rents at the level which the Government will pay. There is no incentive on either side to adjust or to deal with this matter. In straightforward terms, it is a market in which the principal and largest purchaser has not really had much influence over the price paid.

Will the changes make a difference? I sincerely hope so, but we are talking of market behaviour. It cannot be an exact science. That is why it is essential that the spirit of the Motion of the noble Lord, Lord Best, is followed and a full evaluation and measurement of the impact are carried out just as soon as the first complete annual cycle of the new regime has ended. We need to know whether the desired changes which it is assumed will be brought about as a result of the measures have taken place.

The market is more likely to work in the direction that the Government want if the state enters the market as a negotiator. Currently, there is no incentive for the state to get the best rental price. We are talking about an incentive that is, first, a copper-bottomed guarantee of rental income, which the Government can provide—the Government are backing the money being provided—and, secondly, a direct payment to the landlord if they accommodate the changes. That is an important concession which the Government have made as a result of the report by the Social Security Advisory Committee.

I welcome the additional funding for housing benefit specialists to intervene in negotiations with landlords, but I have to ask the Minister two questions. First, do those people have the right skills to enter a negotiation market where previously they dealt with a different set of criteria and a different environment? Secondly, is the funding which they are making available to enable the negotiation to take place sufficient?

The big question for London is: is there a ready supply of non-housing benefit tenants ready to fill the properties if landlords are not prepared to reduce their rents? That is why I suppose that such a huge portion of the new funding for discretionary housing benefit and assistance is going to London. Will the Minister confirm that the Government will ensure that the most vulnerable are protected and recognise the distinct market pressures which make London so different?

I accept, of course, that there is mobility of tenancies in London. As a relatively new Member here who has had to seek to rent a property in London during the week, I have found that tenancies move very quickly—you will not expect to take a long time looking over a property as you might normally do in other parts of the country. A quarter of a million moves take place each year in inner London alone, which demonstrates to me that people seem to want to move rapidly. Having moved several times in my life, I must say that it has been the most horrendous part of my life that I can remember; I would prefer not to move at all because it is such an unpleasant exercise. I suppose that there is a different quality to life in London which means that people like to move around more rapidly.

However we judge this matter, we have to recognise that the reason for pressure on the funding of private sector rents is a shortage of social housing in this country. I hope that the Government’s ambitions for the net number of new properties in the social sector will be achieved, but much more can be done in this field by way of other arrangements with private funding. Much more imaginative use of private funding can be made to create more units of social sector housing. We need to dwell on that matter because this is an equation. If we want to make sure that the balance of the equation is right, we need more social housing in our country. We must remember above all else that people need and deserve a proper roof over their heads. In all the initiatives that we take to keep public expenditure under control, we must not lose sight of this fundamental aspect of a decent society.

[The Lord Bishop of Hereford]

My Lords, I recognise with others who have spoken a need to reform the present arrangements for housing benefit but I also express my concern about the measures that are before us. The noble Lords, Lord Best and Lord Knight, presented some alarming figures which, even if we perhaps dismiss the more extreme end, nevertheless give rise to considerable grounds for concern.

The noble Lord, Lord Best, referred to a number of charities that have supplied him with briefing papers; I have been involved with a number of others. Housing Justice expresses fear that the arrangements being proposed would significantly increase the number of homeless people, particularly within London but elsewhere in the country as well.

A reduction in housing benefit at a time when we are facing all the uncertainty and the outworking of the comprehensive spending review compounds the complications of the system and risks therefore greater harm being done to those who are most vulnerable. It is so difficult, as I think everyone who has spoken already acknowledges, for us to assess the outcomes of the proposals both for those on housing benefit and for others in the system.