Housing Benefit

Lord Palmer of Childs Hill Excerpts

Monday 4th March 2013 Lords Chamber

[Lord Freud]

My Lords, we are expecting a number of responses by people affected by what is effectively the removal of a spare-room subsidy. Clearly some will find that they are capable of paying to retain that extra room, some will look to work, some will look for lodgers and some will look for shared tenancies. Where the options are more limited than that, apart from downsizing, we have had substantial discretionary housing payments transferred to local authorities in order to ameliorate those situations.

[Lord Palmer of Childs Hill]

My Lords, has the Minister considered the effect that these cuts are having on people? For instance, within the ward that I represent on Barnet council, one person in a two-bedroomed flat in a high-rise block will, because of the changes, have to pay an extra £14.50 per week from the beginning of April out of the very small amount of benefits they receive. This also applies to people on low working wages. This may be all right in principle and on paper but does my noble friend believe that it is possible where there are no one-bedroomed flats for those people to move into?

[Lord Freud]

My Lords, I said that people will make a range of responses. Some will decide that the best thing they can do is to downsize and they will be supported in that. Clearly, in areas where there is no appropriate social housing, there is the option of moving into private rented housing. However, the essential point is that there is a limit to what the state can afford. We have had quite a lot of changes in the private rented sector, and this brings the social rented sector into line.