Mesothelioma Bill [Lords]

Andy Slaughter Excerpts

Tuesday 7th January 2014 Commons Chamber

[Kate Green]

The Opposition welcome this opportunity to put a scheme into law that will provide a measure of payment to victims of what we are all agreed is a most horrific and terrible disease. I pay tribute to Ministers in this Government and past Governments who have worked over many years to bring us to the point we reach today, and also to Members of all parties who have been so determined to fight for the best possible deal for victims of this terrible disease. May I also place on record my thanks to the campaigners who have been actively and determinedly lobbying for many years for justice for victims, including trade union campaigners and especially the victim support groups around the country who I know have been in contact with many of us about the very complex and technical details of this Bill? I also want to echo the Minister’s thanks to his officials, who have been extremely helpful, in this Chamber and the other place, and to both Opposition and Government spokespeople, in ensuring that we all have a full understanding of the often complex and technical analysis of the likely consequences of different scenarios, which we sought to test as we considered the Bill.

The Minister said a few moments ago that the Bill is not perfect and we concur. We are pleased to have made the progress we have, but we regret that there have been some missed opportunities which many of us feel did not need to be missed. There was scope to have gone at least a little further than we have managed tonight. The Bill could be so much better than it is and, in the House of Lords, in Committee, on Second Reading and again this afternoon and this evening, Members on both sides of the House have highlighted its deficiencies and have suggested very constructive, practical—and affordable, where cost implications have been involved—ways to remedy them. It is disappointing that the Minister has felt under such pressure from the deal that has been done with the industry that he has been unable to accept any of the amendments, which I think have been brought forward in a very constructive manner. I think the Minister himself said that that has been the spirit in which we have sought to make the changes we have advanced.

However, we welcome the promise that the regulations that we will shortly be studying will provide for a review of the operation and effects of the scheme in four years’ time. We are determined to see that provision appearing in the regulations, and Members across the House will be equally anxious in four years’ time to hold Ministers to a full, meaningful and effective review that genuinely addresses the operation and consequences of the scheme and the potential for its expansion and extension.

It is a matter of concern that we are passing legislation today that we already think will need improvement in four years’ time. I hold the rather old-fashioned view that we ought to try to get legislation right first time, and it is a shame that we already know that Parliament will want to come back to certain areas of this Bill after four years. Mention has been made repeatedly during the passage of the Bill of the areas involved. They include: eligibility; access to the scheme; the cost of running and administering the scheme; the processes surrounding the scheme; the funding of research into the treatment and cure for mesothelioma; and, of course, the generosity of the scheme. There is a clear need for us to make progress in the development of each of those areas, and I believe that the Bill should have been used to ensure that progress.

On the question of generosity, it is widely agreed that there is no moral case whatever for sufferers to receive a pay-out of less than 100%. Even if we accept that there is a constraint on 100% pay-outs that is dictated by affordability—the industry has suggested that that affordability is restricted to an amount set at 3% of gross written premium—I suggest that that figure is laughably small in the context of a multibillion pound industry that has been collecting premiums and avoiding pay-outs for decades. There should have been some scope for pushing the industry for more.

Regrettably, the amendments to introduce an earlier start date, to increase the level of pay-outs and, crucially, to protect the 3% levy were all rejected by the House. The Minister was reluctant to accept them, and the House did not vote for them. Those amendments would have meant: more money for victims; more victims benefiting; the possibility of more asbestos-related diseases being covered; more funding for research; and the inclusion of the self-employed and those who are currently forced to access less generous schemes.

On research, the Government’s response, as articulated by Lord Howe in the House of Lords, has been welcome as far as it goes. We very much hope that it will bear fruit in bringing forward more, better-funded and more fully developed research proposals. However, we really cannot overlook the moral responsibility of everyone involved in the sorry history of asbestos exposure to invest now in the best quality research that we can possibly promote to tackle this horrible disease. It was pointed out earlier that our obligation is not just to sufferers who are experiencing and dying of the disease now, and not just to sufferers in the UK. Developing economies mean that exposure rates around the world will rise for many years to come. Good research programmes and proposals exist, and more will come forward. Ministers have given a welcome indication of what they intend to do to galvanise and support such proposals, but we will want to keep a close watch on the practical consequences and effects of the guarantees that have been given. Unless they turn into properly funded, meaningful research programmes, I fear that we will have heard little more than warm words.

We very much look forward to seeing the draft regulations, which the Minister has indicated will be available tomorrow. I hope that will give us the opportunity to see some of the details of how the scheme will be run, which remain to be teased out, even after our debates. We particularly wish to scrutinise the detailed operation of the scheme, because we know that the insurance industry hopes to create a vehicle that can bid to administer the scheme. Understandably, there is a certain amount of suspicion among victims’ groups about the industry, which has so wronged them over so many decades, now becoming the vehicle responsible for operating the scheme that is to give victims some level of financial satisfaction.

I have to say that the representatives of the Association of British Insurers who have discussed the Bill and the scheme with me have given me an encouraging impression of how committed they are to operating an effective and well-run scheme that will get funds moving swiftly to victims. However, as I am sure the Minister will expect, it is not enough that we have a scheme run wholly in the interests of victims; the scheme must also be seen to be run in that way. That requires a tendering process that is entirely transparent. It requires transparency about the costs of running the scheme and who is recouping what payments for running the scheme, including details on a range of costs and fees that we are still unclear about: the legal fees, the arbitration costs, and the set-up and running costs. Those simply must not deplete resources that ought to be available to make pay-outs to victims. I hope that when the regulations are introduced, much more financial and operational detail will be given about the running of the scheme.

I am pleased that the Minister is working with colleagues in other Departments to sort out some difficulties that lie outwith his control but which, none the less, threaten either to derail or to have an adverse impact on this scheme. He said that he was working collaboratively with colleagues—I hope he will be a little more assertive than that. We urgently need a resolution to the difficulties created for us by Her Majesty’s Revenue and Customs’ new interpretation of disclosure rules in relation to employment records. I hope, too, that he will continue the dialogue with the Ministry of Justice about the baffling correlation it makes between the Legal Aid, Sentencing and Punishment of Offenders Act 2012 provisions on mesothelioma and this scheme, which is, of course, designed entirely for victims who cannot access civil justice through the courts.

[Mr Andy Slaughter (Hammersmith) (Lab)]

Has my hon. Friend had a response yet to the request in the letter she wrote to the Justice Secretary, which I believe was brought up in the Justice questions before last, about exactly this point? If so, will she enlighten us as to what the connection is between that Act and this Bill?

[Kate Green]

I am pleased to tell my hon. Friend that I have had a response. In fairness to the Justice Secretary, I should say that a response was received before Christmas. Clearly, he took note of the debates that were happening in our Committee, and the Minister of State, Department for Work and Pensions, the hon. Member for Hemel Hempstead (Mike Penning) was extremely helpful in expediting a response to a query that I had first raised in Justice questions on 11 November. I would be lying, however, if I said that I could now answer my hon. Friend’s substantive question as to what that connection is. It is not for me to put words into the mouths of Ministers or to suggest what Ministers think the connection is, but let me roughly paraphrase the letter. It said, “We think the two are connected because we are going to do them at the same time.” If I am doing wrong to the Minister’s colleagues in the Ministry of Justice, I am sure that they will want to make it clear how I am being unfair to them—

--- Later in debate ---

[Andrew Percy]

It is a pleasure to follow the hon. Member for Strangford (Jim Shannon). I am also pleased to speak so soon after my hon. Friend the Member for Chatham and Aylesford (Tracey Crouch), who has done a fantastic job in highlighting this issue and fighting for her constituents, not just on this Bill but on the Bill that became the Legal Aid, Sentencing and Punishment of Offenders Act 2012, when we had a rebellion in this House which, I am proud to say, led to changes in the other place as well. I was happy to be part of that.

This is a big issue for my constituents and for those of my neighbour, the hon. Member for Scunthorpe (Nic Dakin), who is on the Opposition Front Bench as a Whip today and so cannot speak. We have a mix of industries across our region, including the steelworks, which are largely in his constituency but also in mine. We have a shipbuilding past, particularly in Goole, and I have in my constituency a number of former coalminers and a lot of power station workers who, even today, are affected by this.

[Mr Slaughter]

I entirely agree with the hon. Gentleman about the debate on LASPO in which Government Members played a strong part, as did Members in the other place. It is regrettable, though, that the Government are not going ahead with any changes to the provisions in LASPO, as was announced just before Christmas.

[Andrew Percy]

Indeed. My hon. Friend the Member for Chatham and Aylesford just whispered to me that new clause 3, tabled in the name of the right hon. Member for Wythenshawe and Sale East (Paul Goggins), who obviously, very sadly, cannot be here, would have progressed that matter as part of this Bill.

I will comment more on my unhappiness with some aspects in a moment, but I was regaling the House on the importance of this issue for constituents in my area, several of whom have been to see me. They do not just come from the traditional industries. Very sadly, a lady who is a former schoolteacher recently came to see me who has the difficulty of having worked for a number of different education authorities and suffers from this terrible disease. It is very sad when we meet these individuals because, as hon. Members have said, a diagnosis of this disease is a death sentence. That should not be forgotten in any of our debates, and I do not think it has been.

I am proud that the Government have introduced this Bill. Members in all parts of the House recognise that we now have a scheme that will provide for hundreds of people who otherwise would not have been provided for, and that is certainly progress. I am a little saddened that some of the debate turned into an attack on insurance companies, although I understand that there is legitimate cause for concern about the behaviour of some of them. I voted for the 80% compensation amendment because I felt that the extra £6,000 was significant and deliverable, and, like other Members, I could see no reason why insurance companies would walk away from such a deal. That £6,000 would have made a very significant difference to people in my constituency who suffer from this disease and who often live in some of the poorest areas.

I pay tribute to the Government for introducing this Bill and getting the scheme in place. I am sad that the Bill is not as good as some of us would have liked it to be, and I hope that that will be considered when it is reviewed. The hon. Member for Stretford and Urmston (Kate Green) said that we would rather not pass legislation and then have to review it, but would rather it were perfect from the start. I suspect that there are very few pieces of legislation where that is the case, and this will clearly not be one of them.

I just want briefly to say, on behalf of my constituents who will benefit from this Bill, how pleased I am that something is in place. It may not be exactly what we wanted—some of us have tried to make it better and I am sorry we have not succeeded in doing so—but the scheme is to be welcomed and I hope we can all now support the Bill. I hope there will not be a Division, but if there is I shall be more than happy to support the Bill.

[Mr Slaughter]

I am grateful for the opportunity to speak in this Third Reading debate. I have not taken part in the Bill’s previous stages, but I have followed it very closely and I will confine my comments to one specific point. It was raised in Committee on 13 December and was the subject of new clause 3, which was not selected for debate on Report.

[Madam Deputy Speaker (Dawn Primarolo)]

Order. I am sorry to say to the hon. Gentleman that this is the Third Reading debate. It is not a debate about amendments that were not selected or a Second Reading debate. The Third Reading debate is about the Bill as it now exists. I am afraid that the hon. Gentleman will be out of order if he tries to make a speech that goes beyond the contents of the Bill as it appears now before the House. The hon. Gentleman is experienced in this House and I know that he will stick closely to that.

[Mr Slaughter]

I will indeed, Madam Deputy Speaker. I referred to new clause 3 simply because it was tabled by my right hon. Friend the Member for Wythenshawe and Sale East (Paul Goggins). I was present when the Minister paid tribute to him earlier and I just wanted to add my voice to that, because my right hon. Friend has been of great assistance to me on this issue elsewhere. I think he would have wanted to address the issue.

If the shadow Minister, my hon. Friend the Member for Stretford and Urmston (Kate Green), was right to say in her response to my earlier intervention that the Bill no longer gives recourse to the matters dealt with under sections 44 and 46 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012, it would be helpful if the Government could make that clear. The Bill has received qualified support from Members on both sides of the House and it would be helpful if those outstanding matters could be satisfactorily addressed.

There is an outstanding consultation or review to be had; the Government have not been clear about exactly what it will be. My right hon. Friend the Member for Wythenshawe and Sale East raised matters of serious concern. There has not been a proper consultation so far with regard to LASPO. The hon. Member for Brigg and Goole (Andrew Percy) has just alluded to the fact that when the issue was debated in both Houses there was a very strong feeling that mesothelioma should be exempt, but that is not being honoured by the Government.

[Madam Deputy Speaker]

Order. [Interruption.] The hon. Gentleman will sit down. I spoke to him very gently earlier. He has been in this House a long time and we all hold the right hon. Gentleman to whom he is referring in the very highest regard, but, frankly, the hon. Gentleman is now drifting considerably from this Bill and I now want him to refer only to the Bill or to conclude his remarks. I do not want him to refer to justice or other things; I want him to refer to this Bill and its contents.

[Mr Slaughter]

I am grateful for that guidance, Madam Deputy Speaker. I have made the point that I wanted to make. I simply say to the Minister that, as this Bill stands on Third Reading, it would be helpful if the outstanding matters connected with mesothelioma could be dealt with properly and the Bill was not used as a way of occluding them.

Question put and agreed to.

Bill accordingly read the Third time and passed, with an amendment.

Food Banks

Andy Slaughter Excerpts

Wednesday 18th December 2013 Commons Chamber

[Mr Andy Slaughter (Hammersmith) (Lab)]

My hon. Friend is right. I have an excellent charity, the Irish Youth Foundation, in my constituency. It is using its capital money to set up emergency food banks, and to provide emergency aid and relief for desperate young people who are going without food. That has happened as a consequence of this Government’s policies.

[Jonathan Ashworth]

My hon. Friend makes his point with great eloquence.

Sadly, too many areas of my constituency appear too high up in the various deprivation statistics, and we have had an increase in demand for food banks. The Open Hands food bank in Highfields says it is doubling the number of food parcels it hands out. In the Saffron Lane area, there is an increase in the number of women going to food banks. Primary schools hand out food parcels to parents who are too ashamed to go to the food banks on their estates.

Housing Benefit

Andy Slaughter Excerpts

Tuesday 12th November 2013 Commons Chamber

[Kate Green]

That may be the case, but as my Opposition colleagues have repeatedly shown, in many areas there is a mismatch of suitable properties for people to move into. The hon. Gentleman is absolutely right to acknowledge, as we have said, that expecting people to move up and down the country would not command the same popular support.

As many of my colleagues have pointed out, the policy is especially cruel towards those affected, including 220,000 families with children, lone parents and separated families and, as my hon. Friend the Member for Plymouth, Moor View (Alison Seabeck) has said, those fleeing domestic violence. As my hon. Friend the Member for Halton has said, some pensioner couples will be affected under universal credit if they are not both over state pension age. Most crucially, two thirds of those affected are disabled—420,000 disabled people are affected by the bedroom tax.

Contrary to what Government Members appeared to believe at the beginning of the debate, not all disabled people are protected from this policy. Adults with an overnight carer are protected, but children who need an overnight carer are not. Children with medium and high-level care needs will now be protected—following the Government conceding that they need to take action in light of the Burnip and Gorry cases—but children with higher rate mobility needs are not protected, contrary to the advice of the Social Security Advisory Committee, let alone there being protection for all disabled children.

As my hon. Friend the Member for Aberdeen South (Dame Anne Begg) pointed out, and many colleagues reinforced, there is no protection for a couple if they are unable as a result of health or disability to share a bed or bedroom. My hon. Friend the Member for Bolton South East (Yasmin Qureshi) highlighted to me the case of her constituents, Mr and Mrs Wilkes, who have been particularly harshly hit by this measure.

There is no protection if someone needs extra space for equipment or because they have had their home adapted, as was the case for the Rutherford family who were required to install a hoist, wider doors and a wet room for their 13-year-old son, Warren, yet are not protected from the bedroom tax. Mr Randall from Basildon has been told by his council that it will not move him to a smaller property as it has not been and cannot be adapted, yet he is being hit by the bedroom tax in his current property on which adaptations have been made.

[Mr Andy Slaughter (Hammersmith) (Lab)]

My hon. Friend is making a very good case. As I understand it, the Government have two arguments, the first of which is that the policy will relieve overcrowding. When larger properties are freed up in my constituency, they are sold on the open market. If families move into private rented accommodation, that costs five times as much as social housing. Neither argument works.

[Kate Green]

My hon. Friend is absolutely right. Let us remember that disabled people’s options are more limited. A number of hon. Members have said that people should work, or work a few more hours a week. Often for disabled people it is particularly difficult to work or to do extra hours, and as my hon. Friend the Member for Worsley and Eccles South (Barbara Keeley) pointed out, that is a particular challenge for carers. One point that I do not think has been made, but which is extremely concerning for disabled people, is that many local authorities are treating disability living allowance as income when calculating someone’s entitlement to discretionary housing payment. That is a disgrace. I have challenged the Minister on that before, but he has declined to take action to ensure that all local authorities of whatever political colour have clear guidance on how they should treat the DLA.

As colleagues have pointed out, the policy will not achieve the savings that have been expected and scored by the Government because of the extra cost of having to adapt, readapt or undo adaptations to homes and, as my hon. Friend the Member for Hammersmith (Mr Slaughter) pointed out, because of the extra high cost of rent and therefore housing benefit in the private rented sector. There are the implications of higher levels of arrears and the extra cost of advising people in arrears, and of collecting and managing arrears. There is also, of course, the impact on the financial standing of housing associations. The policy is damaging their credit rating and cash flows, and makes it more difficult for them to undertake the new builds we desperately need.

As colleagues have said, we will see extra costs for local authorities, children’s services, the health service and so on, and we also highlighted the utter perversity of the fact that being in arrears means someone will not get another tenancy in a small property unless and until those arrears have been cleared. That is simply not possible for many families.

We were pleased—surprised, I think—to hear the Minister of State say at the beginning of the debate that if it turned out that the discretionary housing pot in a local authority was fully committed, more money would be made available. That was encouraging, and we would welcome his colleague repeating that commitment. Let us remember, however, that the discretionary housing payment is temporary, transitional and—as its name suggests—discretionary. In many cases, we have instances of local authorities denying people access to that pot of funding, and actively discouraging people from going to appeal.

The most cruel part of the policy is the lack of suitable alternative homes for people to move to. There is a lack of one-bedroom properties in certain parts of the country and, increasingly, three-bedroom properties are left lying empty. How can that be sensible? People are being forced to leave sheltered accommodation that, by definition, cannot be taken up by families who do not have the special needs or meet the criteria to live in those homes.

Hon. Members on both sides of the House have rightly said that the answer to the problem is to build more housing. I am proud that Labour has committed to building 1 million new homes—[Interruption.] Let me address Labour’s record on housing. Between 2000 and 2007, the Labour Government increased the number of additional net new homes in every single year. The Department for Communities and Local Government figures from last week prove that. The number of net new homes has declined in every year since 2007, including under this Government.

Budget Resolutions and Economic Situation

Andy Slaughter Excerpts

Friday 22nd March 2013 Commons Chamber

[Mr Andy Slaughter (Hammersmith) (Lab)]

The average price of a house in Hammersmith and Fulham is £653,000. The average price of a flat is £493,000. If costs £770 a week to rent a three-bedroom house, and a one-bedroom flat costs £335 a week. At the same time, according to the most recently published census data, 45% of my constituents live in some form of overcrowding, while 62% live in some form of deprivation. Market rents are four or five times what social rents are, so one can imagine how my constituents greeted the Chancellor’s most recent, desperate attempt to do something with the economy—fuel a house price boom. This is what the Financial Times said about it today:

“The government is encouraging people to leverage themselves up to the hilt in order to buy what is already likely to be overpriced property and, as a result of this policy, is likely to become still more so. This is irresponsible enough. But worse, the government will probably…find itself permanently using its balance sheet to support risky housing finance, as the US has done.”

There is indeed a revolution in housing, welfare and planning in this country, but it has very little to do with the Chancellor’s tinkering earlier this week. It is the actions of the Secretary of State for Work and Pensions, who opened today’s debate, and the Department for Communities and Local Government, along with many Conservative councils, that have made rents unaffordable for 540 households in my constituency on the local housing allowance. Some 2,700 households will be affected by the bedroom tax from next week, and as soon as the benefit changes come in another 800 households will be affected.

[Michael Ellis]

Will the hon. Gentleman give way?

[Mr Slaughter]

We have probably heard enough from the hon. Gentleman today. His temporary attendance in the debate and his whipped speech did not do him any credit; I do not think we want any more of that drivel, frankly—[Interruption.] If I need another minute, I might give way later.

The 1% cap and the restriction on crisis loans will make my constituents more dependent on payday loans or pawnbrokers. That is no way to solve the economic crisis that the Government have got themselves into.

House building is at an all-time low. According to figures from the TUC, only 10% of the money from the increase in right to buy has gone back into house building. Only 384 council homes were built in the last three quarters of last year. At the current rates—given the so-called investment in social house building in the Budget, which meets about 1% of demand—it would take more than a century to address demand. At the same time, changes through the Localism Act 2011 mean that we no longer have secure tenancies and that affordable rents in housing associations are now up to 80% of market rents—completely unaffordable. On 1 April, my local authority will abolish 90% of its waiting lists and sweep away almost 10,000 people in housing need, some of whom have been waiting for years. The local authority accepts only 6% of the people who apply to it as homeless.

On planning policy, we have plans that allow for the conversion of much-needed employment land to luxury residential use. We have a policy that says that no additional social housing must be built in my constituency and existing social housing can be demolished for development as luxury affordable housing. As the shadow Secretary of State said earlier, there will be costs through the bedroom tax and through evictions, which are going on daily and weekly. There is an opportunity cost in that people are being forced to move from west London to places where there are fewer jobs and there is a huge social cost to the poorest people, who are being dislocated from their communities.

That is who is losing through the Government’s economic and other policies, but who is benefiting? We heard at the beginning of the debate from my hon. Friend the Member for Eltham (Clive Efford), who said that the majority of new properties are being built by foreign investors. About 70% of such properties in the richer parts of London are going to foreign investors and are being used as second properties, rather than first properties.

The people who are benefiting are developers. I note from today’s edition of The Daily Telegraph that

“the planning minister, attended a meeting with some of the country’s biggest property developers hours after”

the Chancellor’s

“speech on Wednesday”

and:

“Property developers have been privately promised that planning laws will be liberalised again”.

Developers are making money out of this—the same people who are the friends of those on the Government Front Bench and the donors to the Conservative party.

The same is happening in health. Hospitals in my constituency are being shut so that private providers can come in and clean up with inferior services, as shown today by the 80% of people who do not support the out-of-hours care they are being offered in exchange for the closure of accident and emergency departments. In my area of justice, cuts in legal aid and restrictions on access to justice have been made to benefit the insurance industry, another major funder of the Tory party. It is in those interests that the Government act. It would be polite to call it a class interest, as it is actually a mate’s interest. It is an act of cronyism.

The Budget does nothing to support poorer people or people on middle incomes and it does nothing to help people in crisis in my constituency. The only people it supports are those who fund the Conservative party and those who already are or soon will be millionaires.

--- Later in debate ---

[Dr Offord]

I can assure that hon. Gentleman that in my experience it certainly has not. I certainly would never wish to impugn his reputation, or indeed the work he has done over the past 20 years on the housing authority. I only wish that some of my Labour councillors had the credibility that he has.

[Mr Slaughter]

Will the hon. Gentleman give way?

[Dr Offord]

I can only extend to the hon. Gentleman the same courtesy he extended to my hon. Friend the Member for Northampton North (Michael Ellis) and say, “I think we’ve heard enough from you today, thank you.”

All those schemes in my constituency will allow my constituents to get a home near their family and friends, which can only be a good thing. I urge the Government to agree on those proposals as quickly as possible so that my constituents can start buying their first homes. That is a good thing that we can agree will emerge from the Budget.

The Budget rewards those who aspire to work hard and get on. It is for those who want to own their own home in Hendon, or indeed in Easington. It is for those who want to get their first job, to start a business or to save for their retirement. It is a Budget for people who realise that there are no easy answers to our financial problems but that we are on the right track, so let us get on with it.

Housing Benefit (Under-occupancy Penalty)

Andy Slaughter Excerpts

Wednesday 27th February 2013 Commons Chamber

[Jessica Morden (Newport East) (Lab)]

I want to begin by talking about the impact of the bedroom tax on Wales and my local area. I say “bedroom tax”, but I note that the Minister has renamed it during the course of this debate as the “spare room subsidy”. That sounds a lot better, and I am sure that that will be of great comfort to those facing it in April.

The hon. Member for Banff and Buchan (Dr Whiteford) described in her excellent contribution how this provision is just part of an accumulative effect that is hurting the vulnerable. I want to mention the case of a couple I met during the recess when I was knocking on doors in my constituency. They have been hit not only by the bedroom tax, but by other things as well. They had worked all their lives. The husband used to be a driver, but he was hit by rheumatoid arthritis and had his driving licence revoked. He has, therefore, been unable to work, not least because, as he showed me as I sat in his kitchen, he cannot hold a mug for any length of time. He was moved off incapacity benefit on to employment and support allowance, and was then incorrectly put in the work-related activity group on reduced benefit.

The husband’s benefit and that of his wife were reduced as he waited for his appeal, which took eight months to come through. He won it, then two days later he received another letter from Atos telling him to go back for a work capability assessment. In the meantime, because the couple’s income had dropped, they were forced to claim housing benefit and received a letter telling them that they would be liable to pay the bedroom tax in April. Luckily, the husband had won his appeal after an eight-month wait, so he thought that that might help but, on top of everything, his wife, who had worked in a manual job, was diagnosed with myelopathy. She had hoped to retire this year, but will now have to work another three years because of the Government’s changes to women’s pensions. To cap it all, this couple’s experiences with the work capability assessment mean that they are now absolutely terrified of the personal independence payment, particularly the mobility component, which may lead to them losing their mobility vehicle.

I hope that the Minister does not in any way underestimate the palpable fear and anxiety among the disabled community. This couple worked all their lives until illness hit them later in life and they now find themselves hit on all fronts when they need a safety net. The Government’s replies are doing nothing to allay their fears.

Advice services, which are themselves being hit hard and cut, are also experiencing anxiety, as are housing associations and local authorities, which in my experience locally are working extremely hard to try to mitigate the profound effects of the bedroom tax.

Nationally, as we have heard, 31% of housing benefit claimants of working age in the social rented sector will be affected. As the shadow Welsh Secretary, my hon. Friend the Member for Pontypridd (Owen Smith), has said, in Wales that figure is 46%, with the Department for Work and Pensions estimating that 40,000 tenants will be affected. Newport city council in my area has calculated that 2,455 households will be affected. Newport City Homes housing association says that 1,794 of its tenants will be affected and Monmouthshire Housing Association, which covers parts of my constituency, notes that it has 421 such tenants. What choices do those people face? They can move to a smaller social housing property, pay up or move into private rented accommodation.

Turning to smaller social housing—to give an idea of the real impact in my area—there are 4,220 people on the common housing register in Newport and 2,500 in Monmouthshire. There is not enough social housing available. For example, of those affected in Newport, 916 will be looking for one-bedroom houses or flats, and 823 for two-bedroom properties.

In total, Newport City Homes has only 1,264 one-bedroom properties and 2,600 two-bedroom properties. Today on the common housing register website—Newport housing options—only 32 properties are advertised. There are very few smaller properties. The point has been made that whole estates in Wales have very few one or two-bedroom properties. In the past we needed larger properties, so that is what councils built. The scarcity of larger properties may be a problem in big cities in England, but in Wales there is a scarcity of smaller properties. There is simply nowhere to move to. As Community Housing Cymru has said,

“the option of tenants downsizing would prove difficult in almost all cases”.

The other option is to pay more. As the excellent report by the Bron Afon housing association in Torfaen highlights—I hope that the Minister has looked at it—many of those affected consider themselves to be just surviving already. Many are like the man I met on an estate last week, who said that he left the heating off until tea time because the price of food was going up every week and he did not want to go into debt. A family in the Bron Afon study, which surveyed all its tenants, concluded that the only solution was to eat two fewer meals a week.

As the study showed, people want to stay in their own homes, not least because they are the homes in which they brought up their children, where they may have lost a partner and where they have memories and have lived for years. They may have had them adapted and they may also have family ties and help with child care. These are their homes. In Community Housing Cyrmu’s survey of people affected, 13% said that they would consider downsizing, 8% that they might consider a lodger and 79% that neither of those options was suitable and that they would apply for the discretionary housing payments, which is where the problems arise.

[Mr Andy Slaughter (Hammersmith) (Lab)]

My hon. Friend is making the case well that this is a tax on the poorest. It is not about freeing up housing or downsizing. In my local authority, 824 tenants are affected but just 48 may be rehoused. Despite that, the Government describe this decision as morally right. But it is about punishing the poor.

[Jessica Morden]

I agree with my hon. Friend’s excellent and powerful point.

According to the Trussell Trust, the huge increase in the use of food banks is due in no small part to the benefit changes. Some 42% of those who turn up for their three-day supply of food are not able to balance their budgets because of benefit delays, mistakes, sanctions or reviews. Front-line professionals have to give a reason for a referral to a food bank and problems with welfare are increasingly being cited.

With food inflation above 4% and increases in energy and petrol costs, it will be impossible for many people on low incomes to absorb the additional housing costs. Rent arrears will increase and housing associations might struggle to deal with that. The Welsh Tenants Federation estimates that 10% of tenants are already in debt to their social landlord and that a rent increase on top of those rent arrears could result in 4,000 people presenting themselves as homeless. Newport city council in my area estimates that there will be a 5% increase in homelessness next year.

The Government’s answer to those who cannot move is that the discretionary housing payment will deal with all the issues. Newport is getting £343,000 of discretionary housing payment and Monmouthshire £121,000.

--- Later in debate ---

[Jane Ellison]

I am glad the hon. Lady has given me an opportunity to respond on that point. It was always predicted that debt would rise for most of this Parliament. It is true that that period has had to be extended, but that is not a surprise. The structural deficit is being reduced. To return to an intervention I made on the right hon. Member for Birmingham, Hodge Hill, who spoke for Labour, if Labour had begun to address some of the structural deficit problems when the financial crash hit in 2008, the current Government might not have had to take some of the difficult decisions they are taking now. Housing benefit is a classic example.

[Mr Slaughter]

rose—

[Jane Ellison]

I will be delighted to give way to the hon. Gentleman if he can tell the House why the Labour Government did not introduce measures to bring the housing benefit bill down from 2008 onwards.

[Mr Slaughter]

I understand the hon. Lady’s point—she, like the Conservative party, believes that the poor should pay and the rich should get away with it. Like me, she represents an inner-London constituency. More than 2,000 families in my constituency will be unable to pay their rent because of the measure. At the same time, councils such as Wandsworth and Hammersmith are refusing to build social housing and are selling it off. What is that if not destroying communities? How does she defend it?

[Jane Ellison]

I do not know how the hon. Gentleman can begin to criticise Wandsworth council, which has just set the lowest council tax in the country—it has done so for many years in a row. The difference between Wandsworth council’s band E tax and that of many surrounding councils, and particularly that of many high-spending Labour councils, is enormous—it is the equivalent of a family holiday, a new car or a new three-piece suite. That illustrates the benefit of low tax and leaving people with more of their own money to spend on what they will. I am glad the hon. Gentleman gave me the opportunity to pay tribute to Wandsworth council’s low council tax policy.

Some of my constituents will be affected by the measure—[Interruption.] I realise that other hon. Members want to speak, but if Labour Members want to make every general economic point and make endless reference to tax cuts for millionaires and that sort of thing—[Interruption.] Well, I made the point earlier that the Labour Government had several years after the financial crash and after financial reality had dawned to do something about the upper rate of tax, but they did nothing. The higher rate was in effect for, I believe, 37 days before the election. A lot of nonsense is spoken about that.

As I have said, we could look at aspects of the measure. The Minister’s speech was helpful because he clarified concerns and misunderstandings. The measure draws attention to the fact that subsidised social housing is a scant and important public resource. The fact that subsidy is built in to the rent for social housing means that social housing is often not appreciated as a valuable resource, and we should aim to provide access to it for as many taxpayers as possible.

I would like to make a point on behalf of the many people who come to see me who are over-occupying. No one claims that this policy will free up all of the 1 million rooms, but it might well encourage people to look at being in appropriate-sized accommodation. Many housing directors tell me that if they could match people to the correct-sized accommodation, they could resolve much of their waiting lists—that is what I have been told by people with many years’ experience in this field. This is not a panacea, but there are people in wrong-sized accommodation. If this measure starts to get people thinking and encourages them to move into right-sized accommodation where it is available, that is a good thing.

Jobs and Social Security

Andy Slaughter Excerpts

Wednesday 28th November 2012 Commons Chamber

[Mr Byrne]

My hon. Friend is exactly right. Many of our communities throughout Britain are being hit from all sides, and the Government simply do not seem to understand the combined impact of what is happening. We can only hope that next week’s autumn statement will contain a proper plan to get us back to growth and to get our country back to work.

[Mr Andy Slaughter (Hammersmith) (Lab)]

No group is being hit harder than the homeless, or the most recently homeless. I do not know whether my right hon. Friend has had a chance to read “The Programme’s Not Working”, a report published yesterday by Homeless Link, St Mungo’s and Crisis about the experience of homeless people on the Work programme. It states that 58% of them were not even asked whether homelessness contributed to their difficulty in obtaining a job, and that the same number said they were not treated with dignity or respect. People who are losing their benefits are also being victimised by this dreadful scheme.

[Mr Byrne]

I am grateful to my hon. Friend for bringing that report to the House’s attention. I have not seen it, but yesterday’s announcement made clear that for the groups who need extra help, the Work programme is failing particularly badly. I was extremely disappointed to learn, for example, that those receiving employment and support allowance were getting the toughest deal. Fewer than 1% of them were being helped into sustainable jobs. That is not a record of which any Member in the House can be proud.

Welfare Reform Bill

Andy Slaughter Excerpts

Tuesday 21st February 2012 Commons Chamber

[Mr Speaker]

Before I call the next speaker, let me point out to the House that the Minister is being asked quite a lot of questions—which is absolutely fine—and if the House wants to hear the answers, I think he will need five minutes to provide them.

[Mr Andy Slaughter (Hammersmith) (Lab)]

I agree with all the right hon. and hon. Gentlemen who have spoken, with the exception of the Minister.

As I understand it, the Government’s justification for prosecuting the bedroom tax against even very vulnerable people is that it will free up social housing and relieve the shortage. If that is the case, someone in a constituency such as mine—where 8,000 people are on the waiting list with no possibility of being housed in the private sector because of costs—should welcome such provisions. However, we know, because no alternative properties are available, that this is in fact simply a cost-saving measure. As for the idea of a property being empty for 20 years, as the hon. Member for Brigg and Goole (Andrew Percy) described, properties are not empty for 20 minutes in Hammersmith before they are snapped up.

Everything that this Government are doing, whether it be the cuts to the social housing grant, the changes to affordable rents—I should say that the affordable rent at 80% of the open market value of a four-bedroom property in Hammersmith would require an income of £96,000 a year—the changes in homelessness legislation or the provisions of the Localism Act 2011, weakens the security and provision of social housing. What we are discussing is another measure to make social tenants second-class citizens and social tenants on benefit third-class citizens.

If I may do so in just one minute, I would like to give as an example my own local authority—a Conservative-controlled local authority and the favoured local authority of the Secretary of State for Communities and Local Government. In the last two weeks it has given approval for more than 3,000 new houses to be built. Not one of those 3,000 properties will be a new social home for rent; rather, they are replacing 750 good-quality homes, which are in the process of being demolished, so we are already seeing downsizing at work. The authority received £100 million for that demolition from the property developer and another £100 million was received for selling off 300 good-quality social homes on the open market by auction, and it is building 25 new council homes. However, even though those council homes are on estates and will be low-cost homes that therefore could be rented, they will all be for private sale.

[Mr David Ward (Bradford East) (LD)]

Does the hon. Gentleman agree that the Government are failing to understand the sheer scale of this matter? The largest social landlord in Bradford has 3,800 under-occupied households, and it would take three years with no re-lets or new lets to house people there under the proposals.

[Mr Slaughter]

As always, the hon. Gentleman is right on this issue.

The point has been made by those on my Front Bench many times that we are talking about people’s homes. This proposal is cynical not only because it runs completely in the face of Government policy in every other area, which is to reduce affordability and the quantum of available social housing, but because it is about persecuting people in social tenancies and making them feel that their home is no longer their own. For that reason above all, I urge the House to support the Labour Front Bench in supporting the Lords amendment.

[Chris Grayling]

I will probably not be able to cover all the questions that have been raised, but I shall pick out some of the key points.

The right hon. Member for Birkenhead (Mr Field) made a passionate defence of the spare room, referring back to the days of Macmillan and to the principles of the welfare state. I know that he is often a champion of welfare reform, and I listen carefully to what he says, but I find it difficult to justify maintaining 1 million spare rooms in the social rented sector when large numbers of families are living in temporary accommodation and in accommodation that is too small for them. I do not believe that the spare room is a luxury that the social rented sector can afford at the expense of children living in temporary rented accommodation. Fundamentally, that is what this change is about.

Welfare Reform Bill

Andy Slaughter Excerpts

Wednesday 1st February 2012 Commons Chamber

[Chris Grayling]

My hon. Friend is absolutely right. As I have said, we have to seek to replicate the realities of working life as closely as possible in the benefits system. If we are paying for people to live in a part of town that they could not afford to live in if they were in work, we are trapping them in a way that will prevent them from getting back to work.

[Mr Andy Slaughter (Hammersmith) (Lab)]

More than 1,000 households in my borough will be affected, as in that of the hon. Member for Cities of London and Westminster (Mark Field). Does the Minister realise the implications of what he is saying? It is easy to score political points, but more than 1,000 children will be taken out of their communities and sent not necessarily to other parts of London but to other parts of the country. That is happening now, and the Minister is complacent about it. Is he prepared to see the dislocation of whole communities in order to make a political point?

[Chris Grayling]

I am afraid that the hon. Gentleman is simply out of touch with the reality of what is happening in our country. He talks about the impact of the cap on children. But children are already having their life chances and opportunities damaged by growing up in households and communities in which no one is working. That is what we are seeking to change. The former Archbishop of Canterbury, Lord Carey, said last week:

“If we cannot make the rewards of hard work more appealing than a life spent on the dole then we will have failed a generation of children.”

That is the reality that we face today and it is why we seek to change the way in which our welfare state operates. The Government clearly have the support of the British people on the cap. If we do not reject the Lords amendment, the public will not understand why. This is a reform that is long overdue and the Government are determined to deliver it.

--- Later in debate ---

[Jenny Willott]

I am grateful to the Minister for clarifying those points.

Finally, the Harrington process that has been put in place to review the work capability assessment has been an extremely effective way of getting outsiders to take an independent look at how Government policy is working. It has made significant improvements. I hope that we can learn from that process for the review of this policy to ensure that we are doing what is in the best interests of those who are affected by the cap and of taxpayers.

[Mr Slaughter]

This is how the benefit system works in high-rent areas. If someone with four children goes to Hammersmith council and asks to be placed, they will not be given a permanent home and will be told that they have no prospect of ever getting one, because Hammersmith council is demolishing, not building, social housing. They will not even get temporary accommodation. They will be put in a direct let property under the relationship that the council has with some of the seediest landlords going. They will be charged market rents, but will be living in appalling conditions.

Let us take a real example of a family with four children who live in an ex-council property—these slum landlords go around buying up such properties—on a council estate in the poorest ward in my constituency. They currently get £450 a week in housing benefit for a four-bedroom flat. That will of course be reduced to £400, so they will slowly but surely get to the point of being evicted.

On the day when they are evicted, those people will go back to the town hall with their children. They may then be accepted as non-intentionally homeless, and they might be put into accommodation in Croydon. However, Croydon council says that when the overall cap comes into effect, it will move its families to Hull. That family will therefore face the prospect of a double move.

[Mike Gapes (Ilford South) (Lab/Co-op)]

Will my hon. Friend give way?

[Mr Slaughter]

I will not.

I end by asking the right hon. Member for Wokingham (Mr Redwood), who talked about how people should work, how much more likely it is that that family will be in work when they are in Hull. I mean no disrespect to Hull or its Members, but that family will have been taken away from the schools and community network in Shepherd’s Bush, where they have lived for generations and where there are employment opportunities.

This is about not just intolerance or inhumanity but incompetence. The Government are sundering communities and sending people away from their families and communities, and giving them no prospect of either a decent life or employment.

[Richard Graham (Gloucester) (Con)]

It is an absolute delight to join the debate, which is of key interest to my constituents.

I first wish to talk about the people who have had the least said about them today. Indeed, I do not think any Opposition Member has referred to them. They are the people who pay the £175 billion benefits bill that the Government run up each year on behalf of the people of Britain. I wish to speak for some of the taxpayers in Gloucester.

I have done some research on average earnings in my constituency. The figures are not complete, but I think it will be of interest to Members, and relevant to their own constituencies, that of some 20,000 public sector workers in Gloucester, I estimate that 90% have pre-tax salaries of less than the £35,000 that is equivalent to the £26,000 benefit cap that the Government propose. That figure of 90% means that 18,000 people working in my constituency of 100,000 people are in that position

It is harder to get the same figures for people working in the private sector, but based on a straw poll of three companies employing more than 400 workers, I estimate that some 87% are on pre-tax salaries of less than £35,000 a year. I believe that the vast majority of workers in my constituency would be astonished that Labour proposes that there should be no cap on the benefits that people get.

Oral Answers to Questions

Andy Slaughter Excerpts

Monday 13th June 2011 Commons Chamber

[Mr Duncan Smith]

I am glad that my hon. Friend has raised this matter. The reality about universal credit is that it is aimed at those who cannot take on full-time work, or those who are transiting back to full-time work having been out of work for a little while. It will help everybody take up work for a number of different hours that suit their own particular conditions. It is particularly good for lone parents, and they will benefit for each hour they take better than they do at present.

[Mr Andy Slaughter (Hammersmith) (Lab)]

The Government’s benefit cap will force many of my constituents to leave their home of many years, uprooting families, jobs, schools and communities. According to the right hon. Gentleman’s colleague, the hon. Member for Chelsea and Fulham (Greg Hands), on LBC just now, such people are making lifestyle choices. Is that the Government’s view?

[Mr Duncan Smith]

The position on the benefit cap is very straightforward and simple: those who are on benefit should not receive more money than those who are working and paying their taxes. There are exemptions, of course, such as for those who are making the right efforts to get back to work—those on working tax credit, for instance—and those who are disabled, as well as for widows and war widows. They are exempted from this, but for the rest of them the following simple principle holds: “If you can, you should be helped into trying to work”, and £26,000 a year seems a reasonable sum of money to me.

Welfare Reform Bill

Andy Slaughter Excerpts

Wednesday 9th March 2011 Commons Chamber

[Mr Duncan Smith]

I would like to make a bit of progress, if the hon. Lady does not mind. I think I have been pretty generous on that aspect. I will return to it.

The key is that I hope the Bill in general—we shall get to the more specific elements later—represents a whole new concept: a contract with people who are in need of support. For those who are able to work, work should pay, and for the most vulnerable in society we will continue to provide the support that that they need. I think it is our duty to do so. We can debate the levels of that support, but it is our duty none the less.

The Bill says to the taxpayer, “Your hard-earned money must be spent responsibly.” We sometimes forget, in our debates on welfare, that the taxpayer is also a player in this, because taxpayers—many of them on low and marginal incomes—are constantly being asked to pay in taxes towards support for others. That is fair, but we have a responsibility to ensure that taxpayers too are properly supported. I shall now outline some of the principles of the Bill, and then I will try to get through the various clauses.

[Mr Andy Slaughter (Hammersmith) (Lab)]

Will the right hon. Gentleman give way?

[Mr Duncan Smith]

Forgive me; I want to make progress before I take more interventions, but I certainly will not shy away from interventions.

I note the comments by my opposite number, the right hon. Member for Birmingham, Hodge Hill (Mr Byrne), that his party agrees with more than

“three quarters of the principled and burden-sharing”

changes that the Government are making. Obviously, in his interventions he will make clear what he does not agree with. I have read his amendment and there will be some questions about some of that; I am sure we will get to that in a minute.

I intend to take the House through the Bill stage by stage. Let me start with universal credit. I shall begin with an overview, and then consider some of its detailed aspects. The universal credit obviously sits at the heart of this welfare reform. I do not think I would want to embark on this process if that were not the case. I believe it is a commitment to the public that work will always and must always be made to pay, particularly critically for that group of people who are probably the most affected—the bottom two deciles of society—who have too often found it really difficult to establish that work does pay.

I am pleased to say that those principles seem to have received support from a number of stakeholders, including Citizens Advice and the Institute for Fiscal Studies. The IFS said that by and large the measure was a progressive change. We anticipate that the universal credit will make some 2.7 million households better off. Over 1 million households will be better off by more than £25 a week—clearly, those will be down in the bottom deciles—and 85% of that increase will go to households in the bottom 40% of the income distribution.

We have agreed a package of transitional protection which will ensure that there are no cash losers as a direct result of the migration to universal credit, where circumstances remain the same. The universal credit should also start making inroads into the couple penalty. Members on both sides of the House agree that that is necessary. I know that the right hon. Member for Birkenhead (Mr Field), who is in his place, has made great play of that over the years, and many of us have agreed with him.

[Mr Duncan Smith]

I was coming to that, but I shall touch on it now; I may make some further comments later. The principle is that people who are unemployed and on benefits should not be receiving more than average earnings. It is a matter of fairness, so that those who are working hard and paying their taxes do not feel that someone else will benefit more by not playing a full part in society. We recognise that there must be transitional arrangements. We will work intensively with the families affected once the cap comes in. We will help them move into work, to change their circumstances so that they are not affected. We will make sure that families who need transitional support will receive it. We will make more detailed statements about that later.

The idea is that we should encourage people back into work, and most of all that people who are in work and paying their taxes should feel that it is fair that while they earn and they work hard, others realise that the best way to increase their income is through work, not through benefits. That is a great principle.

[Mr Slaughter]

According to the right hon. Gentleman’s Department, 70% of those affected by the benefit cap live in social housing. The Housing Minister is building only unaffordable housing, because of the rent levels set. Is not the cap just a crude piece of social engineering, forcing people not to live in expensive areas, such as the constituency that I represent? Is it not directed at vulnerable people and the poorest in society, making it possible for them to live only where the Secretary of State chooses for them to live?

[Mr Duncan Smith]

With respect to the hon. Gentleman, it is not about where I choose for them to live. As with everybody else, it is about where their income and their ability to earn allow them to live. There are many people in London, for example, who work hard and who commute well over an hour to get to jobs because they cannot afford to live in parts of central London. We may argue that the cost of living in London is too high. One of the arguments that I would make is that the way that the previous Government’s local housing allowance was set drove up rents in both the private and the social housing sector. The hon. Gentleman should consider that what we are doing is reasonable. What we are trying to do is not to damage people, but to get them in locations where they can afford both to live and to work. I will return to that.

--- Later in debate ---

[Mr Duncan Smith]

That is exactly what we plan to do, but, because of the universal credit, we will have to be a little more specific, and we will be so in Committee. We are still looking at the best approach to take, but that is exactly what we plan to do. We do not want—the purpose is not—to disadvantage anybody who receives such support, but, because of the way the universal credit works, we will have to think through carefully how we achieve that. The principle behind the measure will remain that we want to support those who are in difficulty and receive support as it stands.

[Mr Slaughter]

Will the Secretary of State give way?

[Mr Duncan Smith]

I think that the hon. Member for Banff and Buchan (Dr Whiteford) was before the hon. Gentleman, and he has had a shot.

--- Later in debate ---

[Mr Byrne]

That was an extraordinary contribution. Of course we believe that extra help—for example, the future jobs fund, which the hon. Gentleman’s party closed down—should be given to get people back to work.

In looking at this Bill over the past few weeks, I could not but remember Lord Birkenhead’s description of Baldwin’s method of Government:

“He takes a leap in the dark, looks around, and takes another.”

That is the approach that this ramshackle Bill proposes for millions of people in our country—a leap in the dark. I hope that we can begin to sort out, as is appropriate on Second Reading, where the Government have got their principles right—some of their principles are right—and where they have got them wrong. The Secretary of State says he wants to set a new course. The problem is that we are not quite sure where it will lead.

[Mr Slaughter]

Did my right hon. Friend notice that almost every time the Secretary of State was asked a question on free school meals, housing benefit or disability living allowance, his answer was, “I’ll get back to you.” There are no answers to those points. I have here a few of the letters from my worried constituents, just on disability living allowance. Thousands or millions of people are worried that they will not be able to make ends meet, and the Secretary of State has no answers.

[Mr Byrne]

The purpose of this House, when it gives new powers to the Executive, is to have at least some idea of what they will do with them. I hope that a bit of enlightenment will come from this debate, but we have not heard much yet.