Housing: Underoccupancy Charge

Baroness Quin Excerpts

Tuesday 3rd November 2015 Lords Chamber

Asked by

[Baroness Quin]

To ask Her Majesty’s Government whether they have plans to undertake a regional study of the effects of the under-occupancy charge.

[The Minister of State, Department for Work and Pensions (Lord Freud) (Con)]

We commissioned a two-year independent evaluation in 2013, which included looking at the regional effects. The final report will be published in due course. There is already clear evidence that regions are adjusting to the policy. In the north-west, for example, there has been a 22% fall in the number of households subject to a reduction over the past two years.

[Baroness Quin (Lab)]

My Lords, I believe that recent studies show a wide variation between and, in some cases, within regions. In the north-east, in Newcastle for example, there has been no overcrowding problem—a problem that the Government said they wanted to address—but there is a huge shortage of one-bedroom flats, so that people cannot downsize but bear the full brunt of the bedroom tax. The Newcastle University study showed that many people had been forced into debt for the first time and that their health and well-being, contrary to the Government’s claims, have suffered hugely as a result. I urge the Minister—indeed, I invite him—to visit Newcastle and the north-east to meet with people directly affected and listen to their experiences.

[Lord Freud]

The noble Baroness is right that there is quite a lot of variation in the regional responses. I gave the example of the north-west, where there had been a reduction of 22%. The two regions that have reduced the smallest amount in England and Wales are the north-east, and Yorkshire and Humber. Other areas, such as London, the east of England and the north-west are the outliers on the upside. The other two have had the least-efficient response to this policy.