Welfare Reform and Work Bill

Lord Bishop of St Albans Excerpts

Tuesday 17th November 2015 Lords Chamber

[The Lord Bishop of St Albans]

My Lords, I will pick up on some of the themes that have been raised by some of my noble friends who have spoken today, particularly on the area of vulnerable adults and those who are disabled. I invite the Government to think about two issues in particular. The first relates to the clause in the Bill legislating for a mandatory 1% annual reduction in social housing rents over the next four years. I, like other noble Lords, understand that the Government have their reasons for introducing this mandatory reduction, not least the considerable savings on housing benefits that such a rate reduction would deliver. I welcome the discretionary power that the Secretary of State will have to waive the requirement for rent reductions. This will go some way to protecting those housing associations which find themselves financially exposed due to circumstances outside their control.

What concerns me most about these measures is the direct and indirect effect that they might have on the supported housing sector, which provides vital accommodation and a degree of independence for vulnerable groups such as the mentally and physically handicapped, the homeless, those with addiction issues and those fleeing domestic violence. While I welcome the DWP’s indication that there will be an exemption from the rate reduction for specialised housing support, that constitutes only a very small subset of the supported housing sector, and I do not believe that the exemption goes far enough.

Because of the various needs of the tenants, supported housing is far more expensive to maintain than standard social housing, creating an extra cost burden on supported housing that is inevitably reflected in smaller operating margins. One supported housing provider has pointed out that its housing is on average 64% more expensive to provide than standard housing, while one large, mixed-sector housing association has calculated that the proposed rent reduction would leave one-third of its supported housing stock making a loss. Given the small margins involved, it seems highly likely that a forced rent reduction in supported housing will endanger the supply of supported social housing in this country. Smaller housing associations which are devoted to the supply of supported housing might be simply unable to absorb the rate cut, while larger housing associations with a variety of housing stock might find themselves forced to get rid of their most unprofitable supported housing. New supported housing developments would inevitably be postponed and, even where supported housing remains viable, it is likely to face staff cuts that would lead to a drop in the standard and provision of care for some of the most vulnerable people in our society.

Any of these outcomes would not only be bad social practice, but be bad economics. Any measure that increases the number of vulnerable people in unsuitable accommodation, or the number of those experiencing homelessness, is only going to increase the wider financial burden on the state. Given that other measures in this Bill are liable to increase the pressure on the social housing sector, such as the benefit cap as applied to homeless households and the proposed changes to the support for mortgage interest scheme, it seems ill advised to place this vital service under undue pressure.

There is, of course, a simple solution to all this, which is to exclude supported housing from the measures in this Bill. Given that supported housing forms only a small proportion of wider social housing—estimates put it at around 4%—the cost of such a measure would be relatively small, and would certainly not prevent the Government from making significant savings on housing benefits. That is one way in which we can seek to ensure that the most vulnerable in our society are properly protected, and I urge this House, and indeed the Government, to consider any such amendments if and when they are brought forward.

I also want to raise a more general point of concern about how this Bill impacts vulnerable disabled adults. The Government have rightly given some protection to the most vulnerable disabled people in protecting the current employment and support allowance support group component from cuts. Yet even this group, which the Government have promised to protect, will face a cut in real terms through the freeze on the basic ESA allowance. The Motor Neurone Disease Association has estimated that the freeze will leave those suffering from terminal and degenerative illnesses over £250 a year worse off by 2020, when the projected rise in prices is taken into account. This is deeply problematic, both in that it is liable to put an extra burden on those who might be nearing the end of their life—and something like motor neurone disease hits people with incredible speed—and in that it sends the wrong message to those who should have our fullest support. I would welcome a comment from the Minister about whether Her Majesty’s Government would consider measures to mitigate the impact of the rate freeze on those in the support group.

I also find myself deeply concerned about the substantial reductions in benefits for those in the ESA work-related activity group. This issue has already been discussed by those far more knowledgeable than me, but I want to make one point before I finish. The work-related activity group is formed of half a million people who, as has already been said, have been medically assessed as not fit for work. This includes those with cancer, mental health issues, musculoskeletal diseases and even progressive and incurable diseases. They are people who are in a deeply vulnerable position. Those who have had members of their own family hit by these illnesses realise just what a huge and devastating impact they make—and how quickly they can hit. In no way should they be treated as your average jobseeker, just because there is a hope that with the right training and support they might one day be able to re-enter the world of work, yet that is exactly what this Bill is in danger of doing. I urge the Government to reconsider this aspect as we go through to the next stage.

Housing: Underoccupancy Charge

Lord Bishop of St Albans Excerpts

Tuesday 3rd November 2015 Lords Chamber

[Lord Freud]

Yes, the current plan is to publish the report before the end of the year. It does incorporate the regional effects, and I will take the noble Lord’s points about how thoroughly it does so when I go back and talk to the team. For very obvious reasons, I have not seen what is inside that report before it is published, but I will transmit those thoughts to the team.

[The Lord Bishop of St Albans]

My Lords, back in 2013 the Environment, Food and Rural Affairs Committee urged that social housing in rural areas should be excluded from the underoccupancy charge, because of the near impossibility of finding alternative accommodation in many rural areas, where it simply is not available for people to downsize. Already people in rural areas have higher social and housing costs, and there is some evidence that the underoccupancy charge is pushing some families further into debt. Will the Minister tell the House whether Her Majesty’s Government would be willing to undertake a reconsideration of their policy and exclude social housing in rural areas from this measure?

[Lord Freud]

We are actually sympathetic to that point about rural communities, and we ramped up the amount of discretionary housing payments which were particularly targeted at the most remote rural areas, so that the policy could be dealt with by that route.

Disabled People: Access to Work Fund

Lord Bishop of St Albans Excerpts

Monday 29th June 2015 Lords Chamber

[Baroness Altmann]

I agree with my noble friend, and that is why the Government’s campaign to make Britain disability-confident is so important. For individuals with mental health conditions, we provide a wide range of support across our programmes—and there are many such programmes—targeted at supporting work for both employers and individuals. We are very conscious that all disabled people who wish to work have a right to support from the Government to help them to do so.

[The Lord Bishop of St Albans]

My Lords, perhaps I may press the Minister a little about the very real concerns of many people in the deaf community about the use of British Sign Language, not least because currently four-fifths of the highest-value awards are paying for BSL services. Indeed, the DWP’s own figures show that almost 90% of the users who will be affected by the cap that is to be brought in are deaf. How do the Government plan to continue to support and encourage deaf professionals on a par with the hearing community in the light of this cap?

Universal Credit

Lord Bishop of St Albans Excerpts

Monday 24th November 2014 Lords Chamber

[Lord Freud]

The poverty figures show that we are making really good progress in tackling poverty, with 600,000 fewer people in poverty through this Government. We are ensuring that housing costs are covered within universal credit and that people can take control of their lives in that way.

[The Lord Bishop of St Albans]

My Lords, the House will be aware that the Chancellor has announced that the working allowances for universal credit will be frozen until April 2018. There is a real danger, if there is no lift in those allowances—at least in line with inflation—that that will significantly reduce the real net incomes of low earners. Could the Minister tell your Lordships’ House what assessment Her Majesty’s Government have made of the impact of these measures on the level of poverty among those who are already in work, especially for those families who are earning too little to benefit from further rises in the personal tax allowances?

[Lord Freud]

The working allowances in universal credit are much greater than under the legacy system, so there is a freeze that will have a small effect. Nevertheless, the poverty impacts are to take 300,000 children out of poverty.

Work Capability Assessment

Lord Bishop of St Albans Excerpts

Wednesday 5th November 2014 Lords Chamber

[Lord Freud]

We have seen 116,000 disabled people return to the workforce this year. That is a 4% increase and is faster than the 2.6% rate of increase which is the average.

[The Lord Bishop of St Albans]

My Lords, great concern has been expressed by some people about how work capability assessments are being carried out and whether those undertaking them have the right skills and expertise. Indeed, in one anecdotal case, the health professional who undertook a complex mental health assessment was a physiotherapist. If that is the case, surely it cannot be right. What are Her Majesty’s Government doing to ensure that those undertaking the assessments have the right skills and experience to be able to do them properly?

[Lord Freud]

The important thing about doing these assessments is that someone assesses correctly in terms of capability of performing functions and capability of working; that is, what people are able to do. As I said earlier, we have more specialist professional support going into the system to make sure that those assessments are done accurately.

Unemployment: Young People

Lord Bishop of St Albans Excerpts

Tuesday 28th October 2014 Lords Chamber

[Lord Freud]

My Lords, when the noble Lord says that youth unemployment is very high, it may be higher than we would like, but if you look at the record, it is now at very low levels. If you look at the real figures, which I have used in this House for the last four years, for all workless youngsters who are not in full-time education—that captures the unemployed and the inactive—that figure is now at 14.9%, or just over 1 million. That figure has only been lower in one year since records began—in 2001. You can see that all the measures we have been taking to get youngsters into the workforce are really beginning to achieve results.

[The Lord Bishop of St Albans]

My Lords, I congratulate Her Majesty’s Government on these figures, which are very encouraging, not least in London where the number of unemployed young people has declined by 57,000, which is significant. However, the figures also reveal that in the north-east of the country, the figures have declined by only 8,000. There, the levels of unemployment among young people remain stubbornly high. Can the Minister tell us what Her Majesty’s Government are doing to help in these areas, where the problem is much worse?

[Lord Freud]

My Lords, we have a number of programmes aimed at getting youngsters into the workforce all around the country. There is a mixture of the Work Programme, the flexible support scheme, the sector-based work academies and work experience. We are using a whole range of programmes to help youngsters into the workforce. They are working not just in London but right around the country. Clearly, we just have to stay on the issue and make sure that we get everyone in every part of the country into the workforce.

Youth Employment

Lord Bishop of St Albans Excerpts

Wednesday 30th July 2014 Lords Chamber

[Noble Lords]

Bishop!

[The Lord Bishop of St Albans]

My Lords, a significant part of the problem is that there are some posts suitable for young people, but they are often in parts of the country where accommodation is prohibitively expensive or the cost of commuting simply precludes them from taking those jobs. In the light of that, have Her Majesty’s Government considered embracing the concept of the living wage for all people of working age?

[Lord Freud]

Obviously we have looked at the living wage. If the figure suggested for the living wage were to be adopted, we would have to consider the impact on unemployment and the particular impact on youngsters, who would be hit worst. The NIESR estimated that adopting the living wage as opposed to the minimum wage would knock 300,000 youngsters out of work.

Housing: Underoccupancy Charge

Lord Bishop of St Albans Excerpts

Tuesday 24th June 2014 Lords Chamber

[Lord Freud]

We are encouraging people to take in lodgers when appropriate for them. Housing associations and local authorities are looking at that and tend to accept that that is a way of doing it. There is some confusion between strictures against subletting, which is a different matter entirely, but lodging tends to be accepted around the country.

[The Lord Bishop of St Albans]

My Lords, the Ipsos MORI report, undertaken by the National Housing Federation in February this year, looked at 183 housing associations. It found that two-thirds of tenants affected by the underoccupancy charge were in rent arrears and 38% indicated that they were in debt. That is the equivalent of 72,000 tenants in housing associations in debt in England alone, which seems to be allied in some way to the underoccupancy charge. What assessment have Her Majesty’s Government made of the impact on housing associations of rent arrears because of the underoccupancy charge?

[Lord Freud]

We have a general look at the level of arrears through the Homes and Communities Agency, whose statistics show that arrears have fallen—not risen—for the past two quarters in a row. The average rent collection rate for associations remains at 99%, a very high figure, which is very much at variance with some of the stories that we hear and the data that the right reverend Prelate referred to.

Housing: Underoccupancy Charge

Lord Bishop of St Albans Excerpts

Wednesday 29th January 2014 Lords Chamber

[Lord Freud]

My Lords, clearly people will respond in different ways, which is one of the things that this policy is intended to bring about. The area with which the noble Baroness is closely associated, Gateshead, spent roughly 69% of DHP in the first half-year and put in an application for further DHP that we were pleased to match with another £130,000. This meant that it could spend roughly the same amount in the second half of the year as in the first. That contrasts with the area that the noble Baroness, Lady Hollis, is very closely associated with. It has spent 58% of its DHP. I have not seen its application for further DHP. There is a bidding fund of £20 million that I would like to get spent. Norwich has until Monday to put in that bid, and I hope that the noble Baroness will use her very considerable energies to make sure that it does.

[The Lord Bishop of St Albans]

My Lords, with the Cambridge Centre for Housing and Planning Research showing that 42% of tenants in some parts of Wales, north-east England and north-west England think it unlikely that they will be able to pay their rent in full, what assessment have Her Majesty’s Government made of the implications of the introduction of the charge? In particular, what contingency plans do they have in case that research proves to be true?

[Lord Freud]

My Lords, the way in which we are handling the transition is to make sure that there are adequate discretionary housing payments. That is why we raised that figure. We know that people are making adjustments, which will take time and need funding.

I am very pleased to see some of the innovative ways in which local authorities are responding to the challenge. Places such as Warrington and Salford are converting empty office space. They are purchasing and improving long-term empty two-bedroom homes. Derby has a home-release scheme that provides tenants with money to move—£500 for removal costs, for example. Many local authorities have revised their strategies to allow people with arrears to move, which was a block for some people. We are getting the kind of creative response from local authorities for which this policy asked.

Housing: Underoccupancy Charge

Lord Bishop of St Albans Excerpts

Tuesday 28th January 2014 Lords Chamber

[Lord Freud]

My Lords, we have a high level of discretionary housing payments, running at £180 million. More importantly, £20 million of that is to be bid for. I have currently had 67 bids and we are paying out. I am not sure whether local authorities will actually be using up all the discretionary housing payment at their disposal. As noble Lords know, a review is going on. I will be able to publicise the interim findings in the spring and the final version will appear next year.

[The Lord Bishop of St Albans]

My Lords, as affordable rental properties in rural areas are in such shortage, will the Government extend the scheme, which currently applies only to the 21 most sparsely populated districts, and allow more local authorities to use discretionary housing payments to help retain more couples and families in their homes?

[Lord Freud]

My Lords, that is exactly what the discretionary housing payment is for. It is for local authorities to take decisions, based on their local knowledge, so that they get the funds to the right people. The emerging signs are that we will not spend all the discretionary housing payments this year. I am, however, making sure that a substantial amount of discretionary housing payment goes out next year, for which the total figure will be £165 million.