Oral Answers to Questions

Alan Reid Excerpts

Wednesday 16th January 2013 Commons Chamber

[The Prime Minister]

The hon. Gentleman must recognise that we inherited a housing benefit system in London that was completely out of control; some families were getting as much as £104,000 a year—that is for one family for one year. Even today we are still spending about £6 billion on housing benefit in London. We have to recognise that higher levels of housing benefit and higher rents were chasing each other upwards in a spiral. I do not support the idea of mass rent controls, because I think we would see a massive decline in the private rented sector, which is what happened the last time we had such rent controls. We need proper regulation of housing benefit, and we need to make sure that we have a competitive system for private sector renting and that we build more flats and houses.

[Mr Alan Reid (Argyll and Bute) (LD)]

The deficit has to be brought down, but if tax credits and benefits are capped for the next three years at 1%, people on low incomes will be left vulnerable to increases in food and energy prices. If prices go up by more than expected, what contingency plans do the Government have for benefits and tax credits?

[The Prime Minister]

The most important thing is to make sure that people are getting a good deal on energy prices, which is why we are going to be legislating to make companies put people on the lowest available tariffs. That is something the Government are doing that will help all families.