Housing: Under-occupancy Charge

Baroness Hollis of Heigham Excerpts

Monday 21st October 2013 Lords Chamber

Asked by

[Baroness Hollis of Heigham]

To ask Her Majesty’s Government what advice they give to social landlords whose tenants have fallen into arrears as a result of the under-occupancy charge.

[Baroness Hollis of Heigham (Lab)]

My Lords, I declare an interest as chair of a housing association and I beg leave to ask the Question standing in my name on the Order Paper.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Lord Freud) (Con)]

My Lords, social landlords had more than a year to design, develop and deliver strategies to mitigate the effects of under-occupancy and were advised to start building responsibly to avoid driving people into arrears. Prior to implementation, the Government, working collaboratively with the Chartered Institute of Housing, produced specific guidance for landlords, Making It Fit, and continue to fund its Making Best Use of Stock team, which assists landlords to find suitably sized accommodation for tenants. Fact sheets containing advice on home swaps, money management, payment options and how to look for and find work have also been issued. To be clear, 60% of those requiring social housing are single or couples without children, but over the last decades landlords have ignored this fact, resulting in larger homes being built, even though the greatest need is for smaller properties. Finally, £190 million has been provided this year to help vulnerable claimants.

[Baroness Hollis of Heigham]

My Lords, a recent sample shows that half of all affected tenants are in arrears and that three-bed houses are now hard to let. Do we move tenants to smaller accommodation? It cannot be done because there is none. Do we increase income with discretionary payments? For the 90% who are ineligible, it will not be done. Do we allow arrears to soar? As this could send us into the red, it should not be done. Or do we evict vulnerable families from their three-bed homes into temporary accommodation, back into an unwanted, hard-to-let, three-bed house? That can be done if we ignore the futility, misery and cost. Which of these options does the Minister favour?

[Lord Freud]

My Lords, it is simply premature to come to any conclusions as to the level of arrears. We will, of course, provide that information when we have the kind of reliable information that this House requires me, as a Minister, to deliver. There have been various surveys, but the samples are just too narrow. There are 1.4 million one-bedroom properties in the social rented sector and we are looking to have those managed more efficiently. I remind noble Lords that the scare stories about what would happen to our LHA reforms were very similar to the kind of stories that are being propagated now and we have not seen any poor reaction in terms of homelessness as a result of those reforms.