Housing: Underoccupancy Charge

Debate between Lord Lexden and Lord Freud

Wednesday 29th January 2014 Lords Chamber

[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.

[Lord Lexden (Con)]

My Lords, the party opposite says that it wishes to control welfare spending but believes that this policy should be scrapped. How does my noble friend think that equivalent savings could be made?

[Lord Freud]

My Lords, I have noted that the party opposite has said that it will be tougher on welfare than we are. If it is going to take £500 million of savings and put them back, and then risk matching that and paying the equivalent amount in the private sector—adding up to £1 billion a year—I do wonder where it can get that money back out of the welfare system.