Social Housing Sector

Baroness Warwick of Undercliffe Excerpts

Thursday 14th January 2016 Lords Chamber

Asked by

[Baroness Warwick of Undercliffe]

To ask Her Majesty’s Government whether their plan to limit housing benefit in the social housing sector to the Local Housing Allowance rate will apply to those living in supported housing.

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

My Lords, the introduction of local housing allowance limits to the social sector will apply to both housing benefit tenants and recipients of the housing element of universal credit from April 2018, but only where new tenancies have been taken out or renewed after April 2016. The department has jointly commissioned an evidence review with DCLG to look at the size and scope of the supported housing sector. The research results will guide our consideration for future policy development.

[Baroness Warwick of Undercliffe (Lab)]

My Lords, I welcome what the Minister has said, but it is really not enough. Only the inclusion of specified accommodation will solve the problem and protect the most vulnerable from an unintended consequence of the proposed legislation. I cannot stress enough the need for urgency. Supported housing providers have to decide in the next few weeks whether or not to continue to support those developments, so there is a real urgency on this issue. I remind the Minister that the LHA cap was announced in the Autumn Statement without either consultation or an impact assessment. It may be an unintended consequence but, now that it has been highlighted, can the Minister please assure the House that it will be addressed quickly and before the Report stage of the Welfare Reform and Work Bill?

[Lord Freud]

The measure will come in in 2018 and there will be regulations within that timescale. As I said, we have this major review—the first really substantial review—and we have been working on that for more than a year now. That will inform our whole policy approach to what is a very important sector, and I hope it will put it on a much sounder footing than it has been.