Under-occupancy Penalty

Debate between Clive Betts and Justin Tomlinson

Thursday 28th January 2016 Commons Chamber

[Justin Tomlinson]

I thank my hon. Friend for that. That is why it is so important that we are increasing housing starts. Landlords are already changing the way in which they bring new housing stock on, which is welcome news.

[Mr Clive Betts (Sheffield South East) (Lab)]

Have the Government effectively abandoned the principle of a benefits system that properly assesses people according to their needs and circumstances and pays them a benefit while those circumstances last? The answer to everything seems to be discretionary housing payments. They are discretionary, they are paid on a case-by-case basis, 75% of people paying the bedroom tax do not get them and they are time-limited. Does the Minister recognise the enormous uncertainty that that creates, and the hardship for people in very real housing need?

Housing Benefit and Supported Housing

Debate between Clive Betts and Justin Tomlinson

Wednesday 27th January 2016 Commons Chamber

[Justin Tomlinson]

For new tenants, the change comes into effect in 2016; for existing ones, it will come into effect in 2018. The delay on the 1% is just for supported housing, so I am afraid that I cannot give that commitment.

[Mr Betts]

The question is this: will the Minister defer the change in housing benefit related to LHA for supported housing from April this year so that it does not apply to new tenancies until the review has been completed?

[Justin Tomlinson]

The changes do not come into effect at that point. That is why we said that we will urgently take forward the review based on the points that have been raised.

I can assure Members that DWP and DCLG will work closely together to ensure that the appropriate protections are in place for those in supported housing.

[Mr Betts]

I am sorry, but the changes do come into effect for new tenancies in supported housing from April this year, so will the Minister please defer them?

[Justin Tomlinson]

I have made it clear that, for those in supported housing, the change will be delayed for a year as we conduct the urgent review.

On the rationale for changes in the social rented sector, we will stick to our principles of protecting the most vulnerable. However, these are important reforms. We inherited a burgeoning housing benefits bill that we had to get control of. We have started to do that, but we need to go further. The housing benefit bill for England has risen by over 20% during the past 10 years, as my hon. Friend the Member for Bexhill and Battle (Huw Merriman) said. Part of the reason is that the rises in social rents have outstripped those in the private sector, as highlighted by my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake). Social rents are up by 60% compared with 23% in the private sector. In the private sector, the local housing allowance curbs the spiralling housing benefit bill, but there is no similar restraint in the social sector. That is why we are going to cap social sector rents in the same way as in the private sector, thereby reducing rents in the social sector. We should remember that this will help the one third of people in this sector who do not claim any housing benefit and whose rents will come down. However, we will continue to protect the most vulnerable.

This is just part of our wider housing reforms. We are improving access, creating more choice and building more affordable homes. We are doubling the housing budget to more than £20 billion over the next five years to help to ensure that housing is prioritised for those who need it most.