Housing Benefit

Alasdair McDonnell Excerpts

Tuesday 12th November 2013 Commons Chamber

[Dr Alasdair McDonnell (Belfast South) (SDLP)]

I rise to support the motion, but before I do so, I would like to express my deep appreciation to all hon. Members who have expressed their condolences on the death of Eddie McGrady; their sympathy is deeply appreciated, and I thank them for it.

The bedroom tax is a pernicious and cruel tax that is causing untold hardship to the most vulnerable in our society. This crude and ill-thought-out levy is perhaps the least palatable part of the Government’s welfare reform programme. Only parties so detached from the lives and struggles of ordinary people could be so heartless as to inflict this tax, which is causing so much hurt to people whose only crime seems to be that they cannot afford to buy their own home. The fact that the Government—or, more correctly perhaps, the Deputy Prime Minister—have been dragged kicking and screaming into undertaking independent research into the impact of it all tells its own story; in his heart, he must know that this tax is wrong.

[Mrs Anne McGuire (Stirling) (Lab)]

While recognising that the Deputy Prime Minister has been dragged kicking and screaming into this, does the hon. Gentleman find it regrettable that the review of the bedroom tax will not come through until 2015?

[Dr McDonnell]

Yes, I do, and I am deeply concerned about that. However, we do not need any more research to tell us that this tax is wrong and that it will inflict an inordinate degree of hardship that shames us all, and the Government in particular. Those who are suffering from the impact of this tax—they are some of the very weakest in our society—do not want research on how it will affect them; they want these cruel deductions in housing benefit stopped, and stopped now.

I represent a constituency in Northern Ireland where the bedroom tax has not yet been introduced, and my colleagues in the Northern Ireland Assembly and I are fighting tooth and nail to prevent it from happening. That is because more than 32,500 households in Northern Ireland are bracing themselves for the pain and suffering this tax would cause. They look at what is happening on this side of the Irish sea and they are deeply fearful. A couple of aspects of this bedroom tax make it an even crazier proposition for us in Northern Ireland: we quite simply do not have the required housing stock for people to downsize, and the stock we do have is, sadly, segregated.

[Mr Tom Clarke (Coatbridge, Chryston and Bellshill) (Lab)]

I welcome everything that the hon. Gentleman has said. Does he agree that there are times in this House when things are so profoundly wrong that those on both sides of the House recognise it, but the trouble is that some cannot get around to admitting simply that they were wrong? Will he urge those who have not yet been convinced to say exactly that?

--- Later in debate ---

[Dr McDonnell]

I agree entirely with the right hon. Gentleman The point about this tax is that when it was introduced it looked bad, but with every week that goes past it looks worse. We have to do what we can. With all honesty and all integrity, I can say that I think it is damaging, and I will come on to say why.

Given the number of people on disability payments in Northern Ireland, the lack of alternative housing and the complicated matter of segregated housing, which I have mentioned, the bedroom tax poses us unique challenges that are currently being overlooked here. These issues do not particularly affect this side of the Irish sea, so let me go into them in some detail.

The Northern Ireland Housing Executive manages mainly three-bedroom homes that were built 20 to 30 years ago, because that is what we needed then, and it is facing unique pressures because of these benefit reforms. Even if some of the 32,500 households affected request to be rehoused in smaller properties, the smaller properties they require simply do not exist at this stage and it will take us 10 years at least to get them built. Northern Ireland does not have enough small homes to cater for people forced to downsize.

The unique and sensitive situation of segregated housing in Northern Ireland makes things even worse and needs to be taken into consideration. The Northern Ireland Human Rights Commission has come out against the bedroom tax, highlighting the pockets of deep poverty and the fact that more than 90% of public housing is segregated along religious lines—that is a hangover from the troubles, whereby people are segregated for safety. Northern Ireland is facing unique, exceptional challenges that would be severely worsened by the tax. It is failing the most vulnerable in society and no Government could or should be very proud of that.

Not only would the bedroom tax be cruel and savage in Northern Ireland, but it would be illogical. Research has shown that implementing the bedroom tax in Northern Ireland would cost more than it would save or was designed to save. The Northern Ireland Federation of Housing Associations and the Chartered Institute of Housing have published figures showing that implementing the tax would cost the housing associations and the Northern Ireland Housing Executive £21 million per year, but would save only £17 million per year, so the mathematics of this brutal tax do not make sense either. I draw the House’s attention to the following words from Cameron Watt, chief executive of the Northern Ireland Federation of Housing Associations:

“It’s clear that the numbers don't add up on bedroom tax. Northern Ireland cannot afford the human or economic damage this policy would inflict.”

The Social Democratic and Labour party, which I represent, has social justice as a core pillar of its purpose and its existence as a political organisation. The bedroom tax is a clear assault on social justice, as was demonstrated clearly by the Housing Rights Service, which provides independent housing advice and training in Northern Ireland. The HRS has told us how it is already being contacted by many social housing tenants who are living in fear and dread of the bedroom tax. Many of those tenants have lived in the same home, as secure tenants, for a lifetime and cannot understand why they should suddenly be asked to pay more or get out. The HRS has told us about

“clients with disabilities who need an additional bedroom to store medical equipment”,

and we have heard about that again today. The HRS has also spoken of

“single fathers who require more than one bedroom to facilitate overnight access to children.”

The introduction of a bedroom tax and the implementation of the under-occupancy penalty can only result in increased hardship, confusion and the erosion of community cohesion. This is a bad tax, a pernicious tax, and it is my fervent hope that, like the poll tax, it is consigned to the dustbin.