Housing Benefit

Lord Campbell of Alloway Excerpts

Monday 4th March 2013 Lords Chamber

[Lord Freud]

My Lords, there were concerns ahead of our changes to the local housing allowance that private rented accommodation would not be available. I was pleased to learn that that in contradiction to this, in the key London area, where some of the pressures have been greatest, availability in the private rental sector for benefit recipients has actually gone up 5% since we introduced the LHA changes.

[Lord Campbell of Alloway]

My Lords, this is a sad affair. Would the Government possibly have another look at it?

[Lord Freud]

My Lords, when we introduced the local housing allowance changes in the private rented sector a year and a half ago, there were real concerns about homelessness, just as there are now. I stated to the Select Committee that we did not expect any significant increase in homelessness as a result of these changes. We have now run through the LHA changes—they were completed last December—and I am pleased to say that while there have been some modest increases in homelessness in London—it is up 600-odd households—that compares with predictions put out by Shelter and the Cambridge group that up to 134,000 people could move or be made homeless as a result. Your Lordships will understand that it is important to see what the results of some of these changes are, just as much in the social rented sector as we have seen in the private rented sector.