Benefit Cap (Housing Benefit) Regulations 2012

Baroness Thomas of Winchester Excerpts

Tuesday 6th November 2012 Grand Committee

I know that I have not dealt with the fine detail, as my colleagues and other noble Lords have, but I thought that that was right. I have no illusions about this place. I accept that this is a revising Chamber. I accept that we do not have a democratic right—except maybe in some circumstances, as the Conservatives did during our 13 years—to defeat the Government and that we should think very carefully before we do so. On the other hand, I would not be able to face up to myself when looking in the mirror, or face many of the people I know, if I did not demonstrate my opposition to these proposals.

[Baroness Thomas of Winchester]

My Lords, I have a very simple question for my noble friend. I think that he probably gave us the answer during the passage of the Welfare Reform Bill, but I am afraid that I have forgotten what it was. Those in receipt of disability living allowance are going to be exempt from the cap. What about those who have appealed against their initial assessment? I declare an interest because, while I have never been on benefits, I have appealed against a decision, which I won, so I feel for those who may not have been successful the first time in their assessment but who have then appealed. There can be a few months between these two events and it would seem very unfortunate if someone or their family was forced to move only to find that they had won an appeal at the tribunal, with all the upheavals that that would amount to. Can my noble friend tell me about that situation?

[Lord Freud]

My Lords, as I would have expected, we have had a very knowledgeable debate, and a lot of very learned views, which I always listen to very closely, have been put forward. Clearly, I am also aware of the concerns that have been voiced in expressing the anxieties of a number of external organisations and stakeholders, some of which were referred to today. I will try to deal with as many of the questions as I possibly can, although there were a lot of them.

Let me start with support and exempt accommodation. That needs to be looked at in two periods. As I said, once universal credit comes in we are looking to keep the housing costs outside universal credit. I am looking to make some long-term arrangements for people in exempt accommodation. I am particularly concerned about people in refuges and, clearly, in hostels. I acknowledge absolutely the issue of support and exempt accommodation, which needs some quite sophisticated work. Meanwhile, we are writing very specific guidance, as these are the people for whom DHPs really are designed to prevent some effects that we do not want to see.

On temporary accommodation, a point raised by the noble Lord, Lord McKenzie, that is again an area where we will use DHP. I know that the noble Lord, Lord Best, did some sums, but clearly this will be a huge incentive to move people very quickly to something much more permanent rather than staying for the full year in temporary accommodation, which, as he rightly said, is very expensive. Under universal credit, there are likely to be changes. We are looking at how we deal with temporary accommodation—especially the division between the management costs to which he referred and the actual housing payment element. We are out to consultation on that area and there will be more developments.

On the mental health issue that the noble Lord, Lord McKenzie, raised, those who have been assessed as being in the support group under ESA will be exempt, as will those receiving DLA and, later, PIP, so they will not be affected. The reason that PIP is not specifically mentioned in the regulations is that the PIP regulations have not yet been laid, so they will be consequential.

We do not have any information about other types of income that those households have—to answer a question asked by the noble Lord, Lord McKenzie. Where they do not have any other income, a claim for DHP can be made. I have already detailed the funds available.

Several noble Lords asked about stories of local authorities sending people all over the country. I remind noble Lords that it has always been the case that London boroughs have sent people out of borough and, in some cases, many miles away. The reason is that people come from all over the country to London boroughs; it is not always appropriate to house them in those boroughs and they are sent out. There is an important distinction to be made between local people and those who arrive with a homeless obligation in a particular borough. It is important because new regulations come into force later this week, on 9 November.