Housing Benefit (Under-occupancy Penalty)

Debate between Cathy Jamieson and Greg Mulholland

Wednesday 27th February 2013 Commons Chamber

[Greg Mulholland]

We need to have the further exemptions that I have mentioned so that we are clear that discretion is just that, rather than for dealing with large categories of people whom many of us believe should be exempted in the first place. We can divide up the amount put forward by the Government, which is a significant sum, but it needs to be targeted at the types of matters that I have specified, and it has to be discretionary. That is why it is essential that we have the further exemptions or give councils the choice.

[Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)]

rose—

[Greg Mulholland]

I am conscious that other hon. Members want to speak, but I will give way.

[Cathy Jamieson]

I thank the hon. Gentleman; he has been very generous. Does he accept that many people are worried because they will not be able to apply for the exemption until the scheme kicks in, so by the time they are assessed they will have potentially built up rent arrears?

[Greg Mulholland]

That is not my understanding. I am encouraging people to contact their councils now, and that is the message that each and every one of us should send out. There is clearly an information problem that needs to be dealt with, because people should be applying for these exemptions now. I am encouraging them to do so, and some in my area already have.

To ensure that this policy succeeds in its twin objectives of bringing down the cost of the welfare budget and freeing up homes, it is important to allow the discretion so that people should be subject to paying the additional sum only if they have turned down reasonable smaller accommodation—because in many areas there are not enough one-bedroom properties around. Members from rural constituencies have expressed concern about people potentially being moved great distances to a house, taking them away from their communities. Again, there needs to be local discretion, and it applies even in urban areas. For example, someone in the north of Leeds, in Yeadon or in Otley in my constituency, might be asked to move right to the other side of the city. There are factors that need reasonably to be considered as part of local discretion: for example, if the person is in work and receiving housing benefit and does not have a car, it can be very difficult for them to get to work, or they may need family support for caring, for child care responsibilities or in relation to schooling.

I hope that I have made it clear that I fully support the Government’s desire to tackle the spiralling cost of welfare benefits and the reasonable and sensible measures that they have proposed that are designed to do that. I fully support their policy thrust of making sure that our welfare system is properly focused on those who most need it. The same should apply to our social housing sector. There are difficult decisions for all parties in making sure that social housing is being used by the most vulnerable and the poorest in our society, because at the moment it is not being used in that way.

On this occasion, I have to say to my hon. Friend the Minister that I will abstain on the motion because, as this policy stands, I still feel that it does not pass all the tests that the Government have rightly set themselves. I urge my hon. Friend, the Secretary of State and colleagues to look at it again. They should look very seriously at what further exemptions could be introduced to deal with the remaining issues. They should also make sure that they bring forward a full and proper programme of review so that as the policy goes forward it can be reviewed to see whether it is doing what it set out to do and is not leading to unfair and unforeseen consequences, in which case they would have to make changes further down the line. I urge them to look at the measure again now, before it is introduced, to see what can be done to show people that it is about improving the system so that it is aimed at bringing down the cost of the welfare budget and positively trying to deal with the problem of overcrowding in which many families find themselves.