Rent Officers (Housing Benefit and Universal Credit Functions) (Modification) Order 2023

Debate between Lord Shipley and Baroness Lister of Burtersett

Wednesday 22nd March 2023 Lords Chamber

[Lord Shipley (LD)]

My Lords, I move this Motion on behalf of my noble friend Lady Thornhill, who cannot be here today because she tested positive for Covid last night. She sends her apologies to the House, and I am sure we all wish her a speedy recovery. I draw the House’s attention to the wording of the Motion. Special attention is drawn to the instrument in the Secondary Legislation Scrutiny Committee’s 27th report.

No one in our society should be without a home but, due to successive freezes in local housing allowance, more and more people are being pushed into homelessness. This evening I will challenge the Government to reconsider urgently the decision to impose further real-terms cuts on local housing allowance this year. Last week the chief executive of Crisis described this decision as

“nothing short of crushing for people who rely on this vital lifeline”.

More than 1.87 million private renters on low incomes rely on local housing allowance to help pay their rent —this is more than one in three private renters.

It was right for the Prime Minister to act to protect these households during the pandemic, when as Chancellor he invested in the local housing allowance so that it would cover the cheapest 30% of rents in a local area. That meant that people were able to sustain tenancies during a period of hardship, and it also helped people who had been trapped in homelessness into tenancies. It is worrying that this progress has not been sustained. Despite inflation and rising rents, local housing allowance remains at the same cash level as three years ago, based on rent levels from four years ago. As the report by the Secondary Legislation Scrutiny Committee highlights, the Explanatory Memorandum did not “explain the policy objective” of the Rent Officers (Housing Benefit and Universal Credit Functions) (Modification) Order 2023 or explain what its effects would be on the recipients of local housing allowance.

However, the Government’s own figures show how severe the consequences are. Landlord repossessions increased by 98% at the end of last year. For every household facing eviction or rent rises it cannot afford, moving house is incredibly difficult to afford; for some, it is impossible. Advertised rents have risen at record rates since 2020, with Zoopla estimating an increase of 12.1% in the last year alone. Some areas have seen particularly high increases: rents are up 15.6% in Manchester, 14.1% in Glasgow and 17% in London.

In recent weeks, DWP Ministers have said that local housing allowance is not intended to cover all rents in all areas—nobody is calling for that, but surely the Government agree that it should cover some rents in all areas. Dataset after dataset shows that, in significant parts of this country, a household would simply not be able to find any properties to rent at local housing allowance levels. In July last year, the Bureau of Investigative Journalism found that only seven properties were advertised at local housing allowance levels across Wales. More recently, in February, the Bevan Foundation found that 16 local authorities in Wales did not have a single property advertised that was affordable on local housing allowance. Last autumn, Crisis and Zoopla found that only 8% of properties advertised across England over the previous 12 months were affordable on local housing allowance. In Watford, only 4% were affordable on local housing allowance. Overall, nearly a quarter of local authorities had fewer than 20 properties available at local housing allowance rates, and more than 100 local authorities had 3% of properties or fewer affordable on local housing allowance. For context, 38% of private renting households rely on local housing allowance to help pay their rent.

With an acute shortage of social housing, we need far more housing for social rent. As Members in this Chamber today have constantly pointed out over recent years, our building rate of social housing for rent has simply been far too slow. With that acute shortage of social housing, many people on low incomes have no alternative to renting in the private sector. As that becomes unaffordable, homelessness is rising. Having made progress in ending rough sleeping during the pandemic, the Government have now overseen a 26% rise in rough sleeping in England in the last year.

Investing in local housing allowance prevents people experiencing homelessness and makes it easier for people to move out of homelessness. As well as being one of the most effective ways to prevent homelessness, uprating local housing allowance would lead to savings across public services. Almost 100,000 households are stuck in temporary accommodation in England, including more than 125,000 children. Temporary accommodation costs local authorities nearly £1.6 billion a year. Staying in temporary accommodation, including unsuitable hotels and B&Bs, also has a damaging impact on people’s lives, making it harder for people to work, get their kids to school and stay healthy.

The Institute for Fiscal Studies has been clear that the choice to freeze local housing allowance is resulting in wide geographic disparities, whereby low-income renters in some areas can get the cheapest rents almost covered, whereas those in other areas must find an extra £150 a month to top up their rent, or face homelessness. Last month, Sam Ray-Chaudhuri of the Institute for Fiscal Studies said of investing to uprate local housing allowance:

“This isn’t an expensive policy”.


In a debate that can be overly focused on averages and aggregate costs, I will conclude with the experience of what it feels like for people on the brink of homelessness. One person—who it is not possible to name, but it is on the public record—has described how the rising cost of living was affecting him. He said,

“I wasn’t even earning enough money to be able to pay for the rent that I had currently for two years been paying, which was £870 a month, plus all of the other bills. And then of course when [the landlord] came back to me he said, ‘I put it up to £1200 because that is the going rate,’ and I just thought I have no hope … of being able to find that extra money, because it was hand to mouth pretty much all the time … to be able to find another £400 a month was just absolutely impossible. So, I had to tell the estate agent that I wasn’t going to be taking the lease on again and I was going to have to find other accommodation.”

There are plenty of people like that, and the other accommodation that they would like is just not there. Hostels, sofas and rough sleeping are what remains for far too many people, and the instrument we are debating does not offer them a route out. Unless the Government change their approach, thousands more people will be forced into homelessness over the coming months. With that, I beg to move.

[Baroness Lister of Burtersett (Lab)]

My Lords, I am grateful to the noble Baroness, Lady Thornhill, for tabling the regret Motion and to the noble Lord, Lord Shipley, for moving it. I hope that the noble Baroness will be better soon.

The regret Motion follows a highly critical report from the Secondary Legislation Scrutiny Committee. The importance of the issues it raises was reflected in the unusually large number of very helpful briefings I received when I tabled an Oral Question on the issue recently and the “huge amount of evidence” on the impact of the freeze received by the Levelling Up, Housing and Communities Committee recent inquiry into the private rented sector. As the Commons Library briefing on the LHA notes:

“Numerous bodies, including homeless charities, the representative bodies of local authorities and private landlords, are making the case for LHA rates to be uprated to cover at least the 30th percentile of local rents, alongside relinking rates to the real cost of renting for future years.”


According to the IFS, the freeze means that just 8% of low-income private renters now have all their rent covered by housing benefits, compared with almost half in the mid-1990s. For nearly a third of them, the amount of rent not covered eats up at least a third of non-housing benefits income, a situation faced by just 14% of the group in the mid-1990s.

This is one reason why analysis from the Joseph Rowntree Foundation indicates that the cost of housing for private tenants is a key driver of poverty today, most starkly for families with children. The more that private tenants are having to use their non-housing universal credit to meet their rents, the less that next month’s 10.1% increase in universal credit and other benefits—which no doubt the Minister will pray in aid —will help them to meet other basic costs, such as food.

A recent report by the JRF and the Trussell Trust shows how universal credit is too low in any case to meet the most basic of needs. A piece in my local paper, the Nottingham Post, just last week cited the growing gap between the LHA and increasing rents as an important factor in the worrying increase in arrears and everyday living debts seen by the local Citizens Advice.

In his helpful letter following the uprating debate, the Minister said that DWP is working closely with DLUHC to monitor rental shortfalls. Could he tell us what their assessment is of the average shortfall and of the numbers affected? Following my Oral Question, he promised to write to the noble Lord, Lord Carrington, with a reply to his question as to what proportion of those receiving the LHA are unemployed and therefore more reliant on this money to pay their rent. Could he share that information—in a letter, if necessary—with the rest of us and include other private tenants without earnings?

The other reason that this is so important is that the inability to meet the full rent can tip people into homelessness, as the noble Lord, Lord Shipley, said, and as the homelessness charities have warned. So far, the Minister has carefully avoided answering questions as to the likely impact on homelessness of freezing the LHA yet again. I cannot believe that the Government have not done some kind of assessment of the likely impact, so I would be grateful if he could share it with us.

Hitherto, whenever this issue has been raised in either House, the ministerial response has been woefully inadequate. There seems to be three stock justifications, none of which is convincing. The first is simply the cost, which, it is suggested, cannot be borne in addition to the general benefit uprating. I have already indicated why this is short-sighted from the perspective of individuals suffering the consequences, but as the noble Lord, Lord Shipley, has highlighted, it is also short-sighted from a public-spending perspective, because of the knock-on effects on public services through homelessness, short-term accommodation and both physical and mental health. Have the Government made an estimate of those knock-on costs? From last week’s Westminster Hall debate, it would appear not, which betrays a very narrow approach to assessing the cost of policies to the public purse.

Levelling-up and Regeneration Bill

Debate between Lord Shipley and Baroness Lister of Burtersett

Committee stage
Monday 20th February 2023 Lords Chamber

[Baroness Lister of Burtersett (Lab)]

My Lords, I thank the noble Baroness, Lady Pinnock, for tabling this amendment because it gives us the opportunity to pinpoint the tension at the heart of the levelling-up agenda. As the impact assessment reminds us, the problem it claims to address concerns unequal shares and opportunities, and levelling up

“is a mission to challenge, and change, that unfairness.”

It means

“giving everyone the opportunity to flourish”

and to have

“longer and more fulfilling lives”,

together with

“sustained rises in living standards and well-being”

for people everywhere. In fact, this is a statement about people, not places, as reflected in some of the missions. Yet the impact assessment states that achieving the aims of levelling up

“requires us to end the geographical inequality which is such a striking feature of the UK.”

The Minister’s levelling-up letter explains that the missions are necessarily spatial—but why are they purely spatial and geographical when inequalities of income and wealth between individuals are also striking features of the UK? A report published by the Social Market Foundation, called Beyond Levelling Up and written by a former senior adviser to recent Conservative Chancellors, argues that this approach to levelling up

“avoids the question of whether we think the gap between rich and poor is acceptable, and whether we are comfortable with the current levels of income and wealth accruing to the richest in society.”

I will leave those in poverty until a later amendment. To make matters worse, ONS data shows that inequality has worsened since he wrote the report, and it is worse still if we use alternative measures on inequality.

I ask the Minister if she thinks the gap between rich and poor is acceptable. How does she think that the levelling-up agenda’s ambitions can be achieved without addressing that gap between rich and poor?

[Lord Shipley (LD)]

My Lords, I declare, for Committee stage as a whole, that I am a vice-president of the Local Government Association and a vice-president of the National Energy Action advisory board.

I thank my noble friend Lady Pinnock for raising this issue; it is very important that we have a shared understanding of what we mean by levelling up. For me, I think it is the second option she gave, which is narrowing the gap. If we were to compare ourselves with Germany, we would find that there is a constitutional requirement in Germany for the 16 Länder to support each other, and the outcomes are assessed in terms of how well off the Länder are and using the many criteria we will be debating later today—there are so many criteria you can use. However, it is important that we understand the Government’s precise objectives with the Bill.

Social Security Benefits Up-rating Order 2022

Debate between Lord Shipley and Baroness Lister of Burtersett

Wednesday 23rd March 2022 Lords Chamber

[Baroness Lister of Burtersett (Lab)]

My Lords, I am grateful to my noble friend Lord Davies of Brixton for tabling this regret Motion, and it is very well-timed given that today was the Spring Statement.

The Chancellor promised that he would stand by people in the face of the cost-of-living crisis, but it seems that this promise does not extend to parents struggling on social security benefits. Instead, I fear it is an attitude of “Let them stand on their own two feet”, and wait a year for “smoothing”, as benefits catch up with inflation—a year when some parents could go under with the strain. For all the talk of “security” in the Chancellor’s speech, there is nothing to address the insecurity experienced by social security recipients. Additional assistance to local authorities for discretionary help is no compensation for the security provided by weekly benefits that meet people’s needs. As the Women’s Budget Group points out in its very quickly produced Spring Statement analysis,

“The Chancellor has left women in the lurch”,


and raising social security would have done much more for those on low incomes than raising the national insurance threshold.

Since we debated the uprating order in Grand Committee two weeks ago—it feels like a lifetime, but it was two weeks ago—three research reports have been published that reinforce the arguments I put then for an additional uprating to match the inflation rate. I am not going to go over everything I said then, but the Trussell Trust pointed to a

“crisis of our social security system, which is failing to support people to keep their heads above water.”

A recent Carers UK survey found that, among carers in receipt of carers allowance or the UC carer element, nine out of 10 are already stressed and anxious about their finances, and generally carers’ financial situation has worsened considerably over the six months since it last did the survey. The findings of a new Covid Realities report published this week was summed up in the conclusion that

“‘There is nothing left to cut back’ - people have reached the limits of their budgeting practices and resourcefulness.”

with implications for their physical and mental health. The report commented on the

“disbelief at the perceived lack of understanding among policy-makers of the scale and severity of the difficulties people were facing.”

I am afraid we have seen all too many examples of this in the last few weeks. When, in an OQ last week, I asked the Minister’s colleague, the noble Baroness, Lady Scott of Bybrook, what are parents on benefit, who have already cut back to the bone, supposed to do if benefits are uprated at a fraction of the inflation rate, in response she intoned what the Government are spending in total on benefits but did not answer the question. Following the very disappointing Spring Statement, I ask again: when there is nothing left to cut back, what are parents struggling on an inadequate benefit supposed to do over the coming year? How are they supposed to get by?

I believe that this Minister does understand, to some degree, the difficulties faced, and she cares. Unfortunately, she can do no more, it appears, than take messages back to the department and the Treasury. But she can at least today answer the question. Indeed, I ask her to tell us: what would she do if she had to get by on inadequate benefits that are being eaten away by inflation?

[Lord Shipley (LD)]

My Lords, I thank the noble Lord, Lord Davies, for his regret Motion, which I agree with.

It is estimated that one in five pensioners in the UK is living in poverty, that 1.3 million retirees are undernourished and that 25,000 pensioners die each year due to cold weather. As we know, the cost of energy has doubled, and older people are more susceptible to the cold, particularly if they are housebound or suffering from a disabling illness.

The Government failed to accept that inflation was going to rise at an alarming rate when benefits and the state pension were uprated for this April. They insisted on basing the uprating on September’s inflation figure of 3.1%, as usual. The Motion of the noble Lord, Lord Davies of Brixton, quotes the Bank of England’s prediction of 7.25%, but that is now being fast overtaken by events, and a figure of nearer 10% is now forecast during the year. It is unthinkable that poor pensioners, at the end of their lives, should have to experience such a sudden change in circumstances. Up to now, they have been protected by the triple lock but, because of what was seen as a one-off adjustment in incomes as a result of a recovery from the pandemic, the Government abandoned the triple lock. Had it still been in place, a rise of 8% would have equalled the predicted rate of inflation in April, when the uprating comes into effect.

Age UK has estimated that soaring energy prices will plunge 150,000 older households into fuel poverty this winter. It has said that the number of fuel poor older households could reach more than 1.1 million by the spring, unless the Government take urgent action.

We have one of the least generous state pensions of any country in Europe, and it is still below its 1979 value. The triple lock was introduced in 2010 in the light of a hugely devalued state pension. Some recovery has taken place since then, but the state pension still does not provide enough support to keep 2.1 million pensioners out of poverty.

For women pensioners, the situation continues to get worse, with one in five now in poverty. Analysis of government figures shows that, in 2012-13, 14% of female pensioners across the UK were living in relative poverty—that is, they were living in households with less than 60% of median average household income, after housing costs. By 2019-20, this had increased to about 20%. That increase comes despite increases in women’s state pension age, meaning that the number of female pensioners in the UK has fallen by about 800,000 since 2012-13.

On these Benches, we think it is essential to protect the poorest pensioners who depend on the state pension and that it is crucial to bring the value of the state pension to a realistic level in relation to earnings and living costs. It is vital to make sure that those already in poverty and dependent on benefits do not become poorer than they already are. As has been said, it is not enough to claim that an upward adjustment will be made next year, because the problem exists now.