Housing: Underoccupancy Charge

Debate between Baroness Quin and Lord Freud

Tuesday 24th June 2014 Lords Chamber

[Baroness Quin]

To ask Her Majesty’s Government when they expect to publish their interim review on the under-occupancy charge.

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

We expect to publish the interim report by the Summer Recess.

[Baroness Quin (Lab)]

I welcome that reply although I note that last October the Minister said that he expected the report to come out in the spring, which has now come and gone. Can he assure me that in the meanwhile, he and his colleagues will be meeting some of the many people who have indicated their willingness to downsize but for whom there is no alternative accommodation and nevertheless end up having to pay a bedroom tax that they cannot afford?

[Lord Freud]

There are some 200,000 smaller premises in the social rented sector available through each year. We are now seeing a good increase in the number of home exchanges. Some systems are going up and the housing partners’ HomeSwapper scheme, for instance, has now had a 25% increase partly because of the effect of this change.

Housing: Inherited Social Housing Tenancies

Debate between Baroness Quin and Lord Freud

Monday 24th March 2014 Lords Chamber

[Lord Freud]

My Lords, the figures show that there is a reasonable balance around the county; there is not one place with overcrowding and another with waiting lists. We are staying with the estimate of roughly £500 million a year in savings. On transitional protection, we have given even more notice on the changes coming through than we gave on the LHA changes at the emergency Budget of 2010.

[Baroness Quin (Lab)]

My Lords, will the Minister tell us when the review on the bedroom tax will be published? In the mean time, will he undertake to meet many of the people who have been personally affected by this tax, and whose lives have been turned upside down as a result?

[Lord Freud]

We are conducting a review on the spare room subsidy; those figures will be published in the final review next year, and we have an interim publication later this year. I meet a lot of people all the time on this issue—in particular, I am seeing a large number of local authorities and holding discussions with them.

Housing: Underoccupancy Charge

Debate between Baroness Quin and Lord Freud

Wednesday 29th January 2014 Lords Chamber

[Lord Freud]

My Lords, we are having an intensive review of what is happening. Clearly, there are a large number of people—1.8 million—on the waiting list who would welcome a place to live when it is vacated. We can also look to move some of the people who are living in overcrowded social accommodation; that is a large figure that I discussed with the House yesterday. That will give them some relief.

[Baroness Quin (Lab)]

Will the Minister confirm that discretionary housing payments can cover only a fraction of the losses involved for households as a result of this measure? Research shows that it is of the order of only 6%.

[Lord Freud]

My Lords, clearly people will respond in different ways, which is one of the things that this policy is intended to bring about. The area with which the noble Baroness is closely associated, Gateshead, spent roughly 69% of DHP in the first half-year and put in an application for further DHP that we were pleased to match with another £130,000. This meant that it could spend roughly the same amount in the second half of the year as in the first. That contrasts with the area that the noble Baroness, Lady Hollis, is very closely associated with. It has spent 58% of its DHP. I have not seen its application for further DHP. There is a bidding fund of £20 million that I would like to get spent. Norwich has until Monday to put in that bid, and I hope that the noble Baroness will use her very considerable energies to make sure that it does.

Housing: Underoccupancy Charge

Debate between Baroness Quin and Lord Freud

Tuesday 28th January 2014 Lords Chamber

[Baroness Quin]

To ask Her Majesty’s Government what recent discussions they have had with local authorities about the costs associated with implementing the underoccupancy charge.

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

Following discussions, we provided £4 million in 2012-13 and a further £7.5 million in 2013-14—£11.5 million in total—to local authorities for the additional costs associated with the implementation of the removal of the spare room subsidy. These figures include both the direct and consequential costs—that is, the costs of notifying claimants, collecting relevant information and changes to IT systems, and other associated costs such as administering additional applications for discretionary housing payments and the provision of housing options advice.

[Baroness Quin (Lab)]

As the Minister knows, local authorities are very much at the sharp end when having to deal with the hardship and distress caused by the bedroom tax. Has the Minister looked at the results of the survey by the Local Government Association released just three days ago? They show that local authorities may well end up picking up many of the costs associated with these welfare reforms, which in turn will be at the expense of other important local services. Will the Minister undertake to look very carefully at the results of this survey, meet local authorities and seek to tackle the problems that have been so clearly identified?

[Lord Freud]

We meet local authorities very regularly. We hold meetings with them both at my level and at official level to make sure that we understand their issues and that we deal with them. Clearly, under the new burdens doctrine we are obligated to pay them any costs associated with administering this policy.

Housing Benefit

Debate between Baroness Quin and Lord Freud

Wednesday 15th May 2013 Lords Chamber

[Baroness Quin]

To ask Her Majesty’s Government whether they have any plans to make changes in the under-occupancy rule for housing benefit.

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

My Lords, we have no plans to make changes to the removal of the spare room subsidy. As well as conducting a formal evaluation of the policy over a two-year period, we have started an outreach exercise with a number of local authorities to monitor implementation and ensure that sufficient support has been provided to local authorities and claimants.

[Baroness Quin]

I thank the Minister, but the reply was disappointing. Many people feel that this is by far the worst of the welfare changes that the Government have made. There is mounting evidence not only of financial hardship but of families and individuals coming under severe emotional pressure. A particularly sad case was reported just last week in which there was a tragic outcome. It seems that the warnings of many noble Lords in our earlier debates on this subject have been borne out. I urge the Minister to reconsider this tax and, preferably, to abandon it altogether.

[Lord Freud]

My Lords, the policy as it stands is designed, first, to save money. We are looking to save £500 million a year here, which is within the context of the overall saving of £2 billion that we are trying to make over two years. The bulk of the burden has been on the private rented sector, on the LHA basis, and that has gone through reasonably safely. We are monitoring this particular change. All these changes have to be looked at very carefully and we need to keep a very close eye on this one, and we are keeping a very close eye on it. The change is designed to make sure that people can respond by trading down, pulling in lodgers or looking for work. People can make a behavioural response here, and clearly we are looking for that response.