Welfare Reform and Work Bill

Debate between Lord Freud and Baroness Warwick of Undercliffe

Wednesday 27th January 2016 Lords Chamber

[Baroness Warwick of Undercliffe]

Might I press the Minister for a moment on the LHA cap issue? I am not quite clear about what he means. He said that he could not be specific, and I understand that, but I am very conscious of the uncertainties that boards now face as regards the decisions they have to take in the next few weeks. Do we take it from what he said that the slate is clean as far as they are concerned, there is no assumption that the LHA cap will be applied and that the outcome of the review will look at this afresh?

[Lord Freud]

There will be a review, which will look at how we fund. We have given ourselves a year to come up with that, so clearly they can look to that in the medium term. However, I have already said that we accept that it is urgent to make sure that their immediate concerns are taken off the table, and we are working to make sure, as we look forward to a more fundamental review, that those protections in that short-term period are in place.

Housing Benefit: Social Housing Units

Debate between Lord Freud and Baroness Warwick of Undercliffe

Monday 25th January 2016 Lords Chamber

[Lord Freud]

We inherited a system under the local housing allowance which was based at 50% of the average rate. Clearly, that was too high and encouraged some landlords to move up to that central rate, even though their houses were not worth that amount. We have now put a series of controls on how the LHA works.

[Baroness Warwick of Undercliffe (Lab)]

My Lords, can the Minister comment on the changes in housing benefit in respect of supported housing for the most vulnerable people? Can he confirm that the Government’s plan to limit housing benefit in the social housing sector to the local housing allowance will only apply to tenants of working age in general needs housing and not to the homes of the most vulnerable?

[Lord Freud]

We are having a very substantial study done on the supported housing sector. That will come out later this year and we are looking at what our policies should be to support that sector.

Social Housing Sector

Debate between Lord Freud and Baroness Warwick of Undercliffe

Thursday 14th January 2016 Lords Chamber

[Baroness Warwick of Undercliffe]

To ask Her Majesty’s Government whether their plan to limit housing benefit in the social housing sector to the Local Housing Allowance rate will apply to those living in supported housing.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Lord Freud) (Con)]

My Lords, the introduction of local housing allowance limits to the social sector will apply to both housing benefit tenants and recipients of the housing element of universal credit from April 2018, but only where new tenancies have been taken out or renewed after April 2016. The department has jointly commissioned an evidence review with DCLG to look at the size and scope of the supported housing sector. The research results will guide our consideration for future policy development.

[Baroness Warwick of Undercliffe (Lab)]

My Lords, I welcome what the Minister has said, but it is really not enough. Only the inclusion of specified accommodation will solve the problem and protect the most vulnerable from an unintended consequence of the proposed legislation. I cannot stress enough the need for urgency. Supported housing providers have to decide in the next few weeks whether or not to continue to support those developments, so there is a real urgency on this issue. I remind the Minister that the LHA cap was announced in the Autumn Statement without either consultation or an impact assessment. It may be an unintended consequence but, now that it has been highlighted, can the Minister please assure the House that it will be addressed quickly and before the Report stage of the Welfare Reform and Work Bill?

[Lord Freud]

The measure will come in in 2018 and there will be regulations within that timescale. As I said, we have this major review—the first really substantial review—and we have been working on that for more than a year now. That will inform our whole policy approach to what is a very important sector, and I hope it will put it on a much sounder footing than it has been.