Housing: Underoccupancy Charge

Baroness Hollis of Heigham Excerpts

Thursday 12th December 2013 Lords Chamber

Asked by

[Baroness Hollis of Heigham]

To ask Her Majesty’s Government how they will achieve the predicted savings from the underoccupancy charge if affected tenants move into the private rented sector.

[Baroness Hollis of Heigham (Lab)]

My Lords, in asking the Question standing in my name on the Order Paper, I declare an interest as chair of a housing association.

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

My Lords, moving into the private rented sector is one of a number of options available to people affected by the removal of the spare room subsidy. The published impact assessment considered tenant responses, including moves. Savings from the policy are expected to be around £500 million a year. There is currently no reason to amend this assessment. The independent evaluation that is currently under way will provide more detail of the individual behavioural responses that are being made.

[Baroness Hollis of Heigham]

My Lords, the Minister wants social tenants with a spare bedroom to free up their homes for the waiting list by moving to smaller flats, mostly in the private rented sector, where rents and therefore housing benefit will be £50 a week or more higher. If they move, the Minister will not make his savings. If they do not move and are fined, the Minister will not make his policy of helping those on the waiting list. The Minister can have his savings or he can have his policy, but he cannot have both. Which does he want?

[Lord Freud]

My Lords, you have to look at the whole transaction, a bit like a housing chain. If a single person moves into the private rented sector out of a large social sector home, clearly that frees up room for people to move into that home from the private rented sector. That is where either you get a much more efficient allocation or you get the savings.