Housing Benefit

Alex Cunningham Excerpts

Tuesday 12th November 2013 Commons Chamber

[Alex Cunningham (Stockton North) (Lab)]

Homeless people are refusing to accept a home and get their families off the street as a direct result of the Government’s bedroom tax. If they take a house with an extra room—they might not have any other choice—they believe that they cannot stretch their food budget, their energy budget or any other budget to pay the bedroom tax, so they and their children remain homeless, and it is the coalition Government who are to blame. Working families will not take on larger properties in case their circumstances change. We have examples of both councils and housing associations with houses standing empty, so we have empty houses and homeless families. It is incredible that the Government could get this policy so drastically wrong.

Let us consider the high-rise Prior and Melsonby Court in my constituency. Some £4 million was spent on improving properties there, yet 10% of them currently remain empty. The reason is that young single people cannot take on two-bedroom properties because they cannot afford to pay the bedroom tax and the properties are no use for families.

It is often said that a Prime Minister can be defined by his policies, so it is telling that at the same time as this Prime Minister gave a tax cut worth £100,000 to 13,000 millionaires, his Government introduced a measure that unfairly hit 660,000 people. It is unfair because it targets the most vulnerable, unfair because the charge is arbitrary and does not allow for consideration of the ability to pay, and unfair because it is incurred despite no smaller properties being available in the vast majority of cases. In case we are in any doubt, the Government’s own impact assessment was based on families being unable to move to avoid the bedroom tax, identifying mismatches in many areas that would result in insufficient properties being available. Put simply, the Government knew from the outset that the bedroom tax would result in families having no alternative but to pay up or face eventual eviction.

How are people advised to cope? They are told to work extra hours or take in a lodger: absurd indeed. Our people are groaning under the cosh of part-time, low-paid jobs that leave them dependent on housing benefits—if they are in work at all—and how many housing associations or local councils allow sub-letting to lodgers? I challenge Government Members to come and be a lodger in one of the council houses in my constituency for a week and find out all about the reality they need to find out about.

The largest housing association that serves my constituency, Tristar Homes, currently has 1,725 tenants classed as under-occupying their property. Almost two thirds have accrued rent arrears, with 85% being subject to increasing amounts. This means that since the introduction of the bedroom tax, tenants with Tristar Homes have amassed arrears of £100,000. However, even that is not reflective of the true cost of this Government’s policy, because it is on top of the additional costs borne by Tristar Homes in dealing with the increased levels of debt and efforts to help tenants back into work, and £50,000 that it has invested in its own money advice service. This still does not take into account the £265,000 discretionary fund established to provide some support to tenants impacted by the loss of housing benefit. In total, the cost to Tristar Homes of dealing with the bedroom tax and its effects has surpassed £500,000.

This expensive failure to address the many symptoms of the housing crisis is the reason we must repeal the bedroom tax without hesitation. We have already pledged to do so. The Prime Minister should beat us to it and end this misery for countless families.