DWP: Performance
Emily Thornberry Excerpts(9 years, 10 months ago)
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Rachel Reeves
What I know from my business experience—I am sure the hon. Gentleman knows it as well—is that writing off and writing down £131 million of expenditure is not good value for money. It is good to test things, but I do not see this Government doing much learning from the mistakes they are making.
The evidence is now clear that the Secretary of State’s record has been a complete car crash.
Emily Thornberry (Islington South and Finsbury) (Lab)
On the point about learning lessons, is my hon. Friend aware that I have been making freedom of information requests to the Department in relation to mandatory reconsiderations? When people get their work capability assessment, and it has failed, before they can appeal there has to be a mandatory reconsideration. The Department does not know how many cases have been overturned, how many claimants have been left without any money and how long the longest period is for reconsideration. It cannot answer a single one of those questions under a freedom of information request.
Rachel Reeves
That links in with what I was saying earlier. If the Government do not learn from their mistakes, how can they make improvements?
Universal credit is widely off track; the work capability assessment has almost completely broken down; personal independence payments are a fiasco; the Work programme is not working; the Youth Contract is a flop; support for families with multiple problems are falling far short of its target; the jobmatch website is an absurd embarrassment; the unfair and vindictive bedroom tax is costing more money than it saves; and the Government cannot even agree on a definition of child poverty let alone take action to deal with it.
To paraphrase Oscar Wilde: to fail to deliver on one policy might be considered unfortunate; to miss one’s targets on two has to be judged careless; but to make such a complete mess of every single initiative the Secretary of State has attempted requires a special gift. It is something like a Midas touch: everything he touches turns into a total shambles.
Meanwhile, the Secretary of State will spew out dodgy statistics, rant and rave about Labour’s record, say “on time and on budget” until he is blue in the face and, in typical Tory style, blame the staff for everything that goes wrong. We have all long given up hope on the Secretary of State ever getting a grip on his Department. The real question today is when will the Prime Minister learn and take responsibility for the slow-motion car crash he has allowed to unfold? The DWP has the highest spending of any Government Department, and the responsibility for handling some of the most sensitive situations and some of the most vulnerable people in our country. We will all be paying a price for a long time to come for this Government’s failure to get a grip, and the lives of too many people, such as Malcolm Graham who is still waiting for his personal independence payment, have been irreparably damaged. It is clear that this Government will never take their responsibilities in this area with the seriousness that is needed. Let me pledge today that a Labour Government will. They will help those thousands of families who have been let down by the system and the millions of taxpayers who are seeing their money wasted. That change cannot come soon enough.
Mr Duncan Smith
I want to make a little more progress and highlight a couple of programmes. First, let me deal with the issue that shows the cynicism of the Opposition more than anything else—the issue that the hon. Member for Leeds West (Rachel Reeves) did not want to raise, child maintenance, the enforcement commission and the Child Support Agency, on which the Opposition have remained silent. When we came into office, £500 million had been wasted on scrapped IT, including £120 million on a botched rescue scheme. I notice that the Opposition now want a rescue scheme for universal credit. At that rate—£120 million lost—we do not need any of their rescues.
On child maintenance, 75,000 cases were lost in the system. There were no effective financial arrangements at all for more than half the children. The IT system cost £74 million a year in operating costs alone, even as the number of expensively managed clerical cases hit 100,000. [Interruption.] Instead of becoming his party’s megamouth, the hon. Member for Rhondda (Chris Bryant) needs to keep a little quieter and listen to reality. It was his party that made a shambles of the IT introduction when it was in government.
As the NAO has confirmed, our phased roll-out is ensuring that we have a new, efficient system that works: 60% more parents than we expected are paying directly; processing procedures are down, from an overall 21,000 to 450; and we expect savings of £220 million a year once it is complete.
Emily Thornberry
I just want to make sure that I understand correctly what the right hon. Gentleman has said. I believe that he has just given an undertaking to the House that work capability assessments will be done in 10 days. [Interruption.] He has not given that undertaking. I wrote to the Department about a constituent who applied for PIP on 19 November, and I received a letter on 18 June telling me that it did not have a time scale for when he would get his work capability assessment.
Mr Duncan Smith
I was referring to PIP and the fact that the terminally ill will not have to wait longer than 10 days to be seen. I think that the hon. Lady is referring to WCA. They will go straight to the support group. [Interruption.] Well, I have given an undertaking that they should not have to wait more than 10 days to be dealt with.
Emily Thornberry (Islington South and Finsbury) (Lab)
I had a six-minute speech prepared, but I fear that I may need to ditch part of it to deal with some of the extraordinary points raised by the hon. Member for Fareham (Mr Hoban) who, until recently, was in the Treasury. To hear him allow no facts to get in the way of a good party political slogan is really very depressing.
Let me deal with the four worst points of the hon. Gentleman’s speech. First, he said that, under Labour, work did not pay and that people were better off on benefits. He needs to understand what tax credits and in-work benefits are. The whole point was that people would work. They would not be paid very much and, instead of paying tax, they would be able to get tax back. The idea was that it was worth working and that was the entire purpose behind in-work benefits. That is why we introduced them and why it is such a shame that they are being undermined by this Government.
Secondly, the bedroom tax has not been introduced by this Government in the same way that the previous Government introduced a bedroom tax for the private sector. The difference is that when a private sector tenant moved from one private rental place to another, he or she would not get housing benefit at a level for a flat that was far too big for them. When we introduced it, we were not going to say to them, “You are in a two-bedroom flat, so we will not give you all your rent”. We were going to wait until they had moved into a new flat and then say, “I am sorry, but you have to move into a flat that is appropriate to the size of your family.” That is the difference. Now the Government are saying to people in social housing, “You must move, and if you don’t and you can’t, because there isn’t social housing available for you of an appropriate size, we will not give you all your rent. You will continue to be charged all your rent, and out of the tiny amount of money that you get on welfare, you will need to pay that towards your rent or you will be evicted.” That is a big difference. [Interruption.] It is such a shame that the hon. Member for Fareham is not listening, because if he were, perhaps he would stop making such comments.
Lilian Greenwood (Nottingham South) (Lab)
On the bedroom tax, Advice Nottingham provided me with a case study: Arthur, who was living alone in a two-bedroom council property, had rent of £70 a week. He moved to private rented accommodation to avoid the bedroom tax, and is now being paid £88.85 a week in housing benefit and still has a spare bedroom. Does that not show the ridiculous nature of this Government’s housing benefit reforms?
Emily Thornberry
I could not have put it better myself. I do hope that the hon. Gentleman was taking notes.
Long-term youth unemployment eats into people’s souls. It eats into their future, their ambition and their very character. Worryingly, under this Government, long-term youth unemployment is going up. That is a fact that the hon. Gentleman really should have at the forefront of his mind and that the Government should be thinking about as an entire generation are losing their chance of life.
Let me touch on my last point before I move on to the speech that I had intended to make—[Interruption.] No, no, let me make my fourth point, which is that it is not fair that people on an average income should be getting less money than people on benefits. Let me explain this to the hon. Gentleman. If someone is on an average income in central London, they cannot live. They get in-work benefits, their rent paid or some assistance with their rent, and tax credits—as long as the Government continue to pay them out—because it is not possible to live in certain areas on an average income. We are in favour of caps on benefit, but we are in favour of them on a regional basis, because that is fair. The reason why the benefit bill is higher in certain areas is that property is more expensive. I do not know whether the hon. Gentleman has noticed this, but it is more expensive living in London and the south-east, or even the south, than it is in other areas. These people on benefits are not getting the money themselves; their landlords are getting it because the rents are so high. For that reason the benefit bill continues to go up. What is Labour’s solution? We will build 200,000 homes and that is the radical politics that is necessary to be able to address the problem of the cap.
In the two minutes I have left of my speech, I will talk about the problems with work capability assessments. The difficulty lies in the enormous delays in the system. Until recently, I had constituents who were waiting for an age to get their work capability assessments. I have a number of cases, which I now cannot read out, of people who have been waiting for more than six months for their work capability assessment to be done. Once it is done, it may be unfair, so they will have to appeal, and the appeals are taking a year. To get around that, the Government have introduced a mandatory reconsideration. The problem with that is that they are also taking an age. I have asked the Department how many claimants are left without any income during the reconsideration process. The Department cannot tell me. I have asked the Department what is the longest period that people have had to wait for their mandatory reconsideration. It cannot tell me that. The Department cannot tell me how mandatory reconsideration is going, so how can it know whether it has been a success?
People now have to wait for the work capability assessment, the mandatory assessment and then the appeal, 45% of which, even after jumping through all of those hoops, are successful. Is this a Department that is working properly? No, it is not. It has a new baby—the personal independence payment, which is supposed to work. In my area, we have only new claimants on PIP. The PIP assessment is also a nightmare. I have a constituent who, as a result of being in the war in Helmand, cannot stand or sit, and he has been waiting since 9 July 2013 for his assessment. How can that be? The reason is that he cannot move, so cannot get out of his home. He has been applying for PIP, but he cannot get his assessment. The latest letter from the Department, which has not been signed by a Minister, says that it cannot give me a time scale for how long he needs to wait for his assessment. Is that fair? It is not. Is this a Government who care? They do not. Can it be right that a Department allows seriously disabled people to be without any source of income for extended periods, and is still able to look itself in the mirror? I fear that it does, and it should be ashamed.
Independent Living Fund Recipients
Emily Thornberry Excerpts(9 years, 11 months ago)
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
John Robertson (in the Chair)
Order. Opposition spokesmen are not allowed to take part in a half-hour debate, whether intervening or making speeches.
Nic Dakin
My hon. Friend is right. She speaks with a lot of experience and insight into the issue, which she has campaigned on for a long while. She is right that the other group of people who might find themselves under significant pressure are the family carers of those now in receipt of ILF.
The worry, as my hon. Friend has indicated, is that the continued underfunding of social care will mean that the care system will simply not be able to support disabled people to live independently. The lack of reference to independent living in the definition of the well-being principle in the Care Act 2014, which local authorities will need to take into account when providing care, further fuels that anxiety.
Emily Thornberry
I am grateful to my hon. Friend for giving way. The point that I wanted to make is that, in Islington, 100 people are dependent on ILF. Although the local authority has undertaken to continue that support next year for those currently in receipt of ILF, the authority cannot give any guarantee that that funding will go on in future, in particular given that Islington council is facing 40% cuts over the year. Discretionary funding such as for independent living will be difficult to find.
Nic Dakin
My hon. Friend is right. Interestingly, we have cases coming in from all parts of the United Kingdom, which illustrate that the issue is deep-seated in all our communities.
Not only are people in receipt of ILF worried, but their friends, carers and families are too. The cases of two of my constituents illustrate that well. Ashley Harrison, for example, is a Scunthorpe United fan, like me cheering on the Iron at Glanford Park. At 10 months old, he was diagnosed with cerebral palsy; he will turn 30 this year. Ashley has lived in his own bungalow since 2006. The ILF allows him to employ his own team of carers. Ashley is an inspirational man, a fighter, but he is worried about the control over his future being taken away from him. His mother says:
“The closure of the ILF would be nothing less than devastating for us as a family. Since Ashley was awarded his ILF allowance the whole family’s lives have changed for the better. ILF understands Ashley’s needs and always do everything they can to constantly improve Ashley’s life and enable him to live independently.
As a family naturally all we have ever wanted is the best for Ashley, which the ILF has helped us achieve. The ILF has always seemed to be the leading and positive force at meetings ensuring that social services match and meet Ashley’s needs. Without the ILF we all face a very uncertain future. The uncertainty that Ashley faced in his early years prior to receiving his ILF award have been daunting, frustrating and of course a constant battle with social services.
The alleged ‘smooth transfer’ over to social services is already proving to be nothing of the sort. Each and every meeting we hold (which are incredibly frequent) leave us having to justify Ashley’s needs as a disabled person. The assessments they ask us to complete are totally unsuitable for the severely disabled.
All of the disabled people living independently with the help of ILF are living their lives to the full. The fear is that if ILF closes these people will lose their human rights and dignity to live their lives as they should.
As a mother who has fought the last 30 years for Ashley to have the life he wants and of course deserves, I dread to think what the next generation of disabled people will have to endure without the positive support of the ILF.
I beg you to listen to myself as a mother of a disabled son and also listen to all those disabled voices who deserve to be heard.
Give each and every person the ability to live and achieve their dreams just as you and I can.
The Paralympics just proves how amazing disabled people can be!”
Oral Answers to Questions
Emily Thornberry Excerpts(10 years, 6 months ago)
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Emily Thornberry (Islington South and Finsbury) (Lab)
11. When he expects all new claimants to be on universal credit across the UK.
Nick Smith (Blaenau Gwent) (Lab)
16. When he expects all new claimants to be on universal credit across the UK.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
Within the time scales set out, our priority is to deliver universal credit safely and securely, and we will set out our plans in more detail in a couple of weeks.
Emily Thornberry
Why did the Secretary of State tell the House last month that his plans for universal credit were on track?
Mr Duncan Smith
As I said in my earlier answer, I ordered a reset so that we do not have difficulties when we start to roll out the scheme. We have rolled out the pathfinder already. It is important to note that there have been at least six sites from October, and there will be many more around the country when we expand that. As I said, I will make clear to the House the plan and programme for the full roll-out, all the way through to complete delivery, in detail in the next couple of weeks.
Housing Benefit
Emily Thornberry Excerpts(10 years, 6 months ago)
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Rachel Reeves
I thank my hon. Friend for that contribution. Surgeries can be difficult when we discuss these issues with constituents and they break down in tears. It is people who have done the right thing, gone out to work and tried to support their families, but who have fallen on difficult times, done nothing wrong and whose children have left home or gone to university who will be saddled with this tax. I pay tribute to them for sharing their stories and to those who came to London this morning to tell us their heart-breaking stories.
Emily Thornberry (Islington South and Finsbury) (Lab)
Is my hon. Friend aware that, in Islington borough, 3,100 families will be affected by the bedroom tax? The local authority is making a stupendous effort to build as much social housing as possible—the joke is that if someone moves their car, they will return to find that a flat has been built in its place—but even it has been able to let only 1,600 flats in the last year and it cannot keep up with the demand of people who need to move because of the bedroom tax, let alone because of the general housing crisis.
Rachel Reeves
I thank my hon. Friend for that intervention.
We say that it is time to stop this cruel and mad policy. It is time for Members on both sides of the House to take a stand. It is time to stand with the desperate families who are being forced out of their homes or forced into debt, and time to stand with anyone who knows anything about housing or homelessness, the plight of disabled people or the lives of children in poverty, who are all warning that this policy is fast becoming a fiasco. Indeed, it is time to stand with the father of the Chief Secretary to the Treasury and chair of the Lochaber housing association, Mr Di Alexander, who says that the policy is
“particularly unfair in that it penalises both our tenants and ourselves for not being able to magic up a supply of smaller properties.”
It is a shame that the Chief Secretary listens to the Prime Minister instead of to his father.
It is also a shame that the pensions Minister does not listen to his own party, which only last month, at the Liberal Democrat party conference, voted overwhelmingly against the bedroom tax, saying that it is
“discriminating against the most vulnerable in society”,
and noting that the Government have shown
“a lack of appreciation of the housing requirements of children and adults with disabilities and care needs”.
I am afraid that that is what we get with the Liberal Democrats: they say one thing at their conference and when they are out on the doorsteps, but they vote another way here when it really counts. When they could make a difference, they turn the other way. While the Secretary of State scuttles off to Paris, he gets his Liberal Democrat pensions Minister to defend a policy that is not even part of his brief and that is in contradiction with his own party’s policy. I say shame on him and shame on his party.
We know that tough decisions are needed to build a social security system that is fair for all and to bring the benefits bill down, but this policy does neither. It may well cost more than it saves, but to be absolutely certain that its reversal will require no extra borrowing we have identified the funds that could more than cover the costs. They will be raised by cracking down on bogus self-employment in the construction sector, reversing the tax cut for hedge funds announced in this year’s Budget and cancelling the Chancellor’s failed shares for rights scheme, which according to the Office for Budget Responsibility has opened up a tax loophole of up to £1 billion.
The Labour party is committed to reversing the bedroom tax, if elected in 2015, but we know that for many families that is too long to wait, so I hope that Members on both sides of the House will vote with us tonight. If the Government stick their heads in the sand, let no one be in any doubt that this will be the beginning, not the end, of our campaign to cancel this unjust and unworkable tax. If this Government do not repeal it, the next Labour Government will.
Steve Webb
My hon. Friend is right. The level of new housing association properties built was well below 25,000 in 2000, 2001, 2002, 2003, 2004, 2005 and 2006. The Government are already building well over 25,000 social houses a year, and have further plans for expansion.
Emily Thornberry
The hon. Gentleman began his contribution by talking about overcrowding, which is something Labour feels very strongly about, certainly in my borough. Part of the problem, however, is empty nesters—elderly people whose families have grown up. If the principle behind the bedroom tax is to free up homes and move people to smaller units, why does it not apply to pensioners?
Steve Webb
I am not sure whether the hon. Lady is encouraging us to apply the policy to pensioners.
Emily Thornberry
The hon. Gentleman will be surprised to hear that I am doing my job and probing the Government to find out the purpose of this policy. He began with the justification of dealing with overcrowding—something I feel very strongly about after what I have seen in my surgeries—but my borough authority has always had a policy of speaking to people as they retire, and encouraging them to move onwards, not doing this.
Steve Webb
At least an Opposition Member is talking about overcrowding, which is a start—we might be making progress. The hon. Lady is right that we need to do more to assist and support older tenants to move into more suitable accommodation. One thing we have discovered in the course of doing that work is how little many social landlords knew about their tenants. We were shocked to discover that. Part of the process is social landlords engaging with their tenants and helping them to move to the right sort of accommodation.
Mrs Main
As I was about to say, unicorns do not exist, fairies do not exist and—it does not matter how often Opposition Members say it—a bedroom tax does not exist. I found it very interesting when we all looked at our Order Papers yesterday and there it was: we were going to discuss a bedroom tax. Funnily enough, however, we are not discussing a bedroom tax, because it does not exist and it would be procedurally out of order for us to debate it. The mishmash of today’s debate has been rushed through because the Opposition realise that by closing their eyes and saying the wishful words “bedroom tax” they cannot conjure one up—it does not exist. If they consult Tolley’s tax guide, they will see that they are being financially illiterate—
Mike Freer
My hon. Friend is right. My casework is about families living in overcrowded accommodation who cannot get into the right accommodation. That is what we need to put right.
With reference to London, as that is the most populous part of the UK, let us not forget how Labour’s Ken Livingstone destroyed social house building at a stroke when he was Mayor. His arbitrary thresholds ground social house building to a halt because builders built to the threshold and then they stopped.
Mike Freer
No, I am sorry. I have given way once and I am running out of time.
Under that policy, we got no social housing at all on smaller developments because builders built to the threshold. That was Labour’s legacy in London. Of course there are difficulties, as the population makes the transition to the new arrangements, but, as I mentioned, I cannot be alone in the Chamber in having to deal with constituents in accommodation that is too small for them, where children and parents are sharing bedrooms, where children of different sexes approaching puberty have to share bedrooms, or where living rooms are doubling up as bedrooms.
What about the families consigned to emergency accommodation? We do not hear much about that from the Opposition today. That is a problem forgotten by Labour and being dealt with by the Government. It is argued that it is cheaper to subsidise spare rooms than to move people or adapt homes, yet the overall costs of converting larger properties to smaller accommodation would be repaid by the savings on emergency accommodation alone.
Jeremy Lefroy (Stafford) (Con)
It is an honour to follow the hon. Member for Westminster North (Ms Buck) and my hon. Friend the Member for Finchley and Golders Green (Mike Freer), both of whom illustrated the passionate arguments on both sides of the debate. On one side, there are the concerns about overcrowding, and many constituents have come to see me about that. One constituent, in particular, has been trying for 10 years to move out of her two-bedroom house with her partner and three children and into a three-bedroom house. On the other, there are concerns about people who find themselves in the position the hon. Member for Westminster North has just outlined.
Housing policy in this country has been in a bit of a mess for years, under many Governments. I remember the attempt at housing market renewal in north Staffordshire, when the previous Government tore down hundreds, if not thousands, of perfectly good houses in an attempt to boost house prices. What a misguided policy.
Emily Thornberry
Does the hon. Gentleman agree that it is a sensible policy to interview people in social housing as they reach retirement or as their children leave home and discuss the possibility of their moving into homes for life so that they can give up the three or four-bedroom houses in which they have brought up their families and hand them over to families who need them?
Jeremy Lefroy
That is an eminently sensible policy and I am glad that the hon. Lady has raised it.
The Government’s amendment
“notes the Government’s continuing commitment to monitor the effects of the policy and the use of Discretionary Housing Payments”.
I welcome that openness. Indeed, this debate is a good opportunity, about seven months into the policy, for the Minister to hear about what is taking place on the ground. Having yesterday met local authorities from the area that I represent, I want to give a few figures and describe a bit of the experience that they set out to me.
As of 30 September this year, in just a small part of my constituency and in one of the social housing providers, 371 out of 467 affected households were in arrears—over three quarters. Another provider had 19 affected households that were at “notice seeking possession” stage. That has arisen only since April, although, importantly, I understand that those 19 households are now being sorted out through the application of discretionary housing payments.
Margot James
I thank the hon. Lady for that intervention and I agree with much of the principle behind it. Of course, some people will never be able to afford to buy their own homes—although this Government are intent on helping as many people as possible to own their own homes—and that is the purpose of social housing and housing benefit. There is no argument with that principle, but we must be cognisant of the number of people who, at the moment, cannot even get council housing or privately rented social housing. That is one of the driving purposes behind the reform.
The subsidy has become something of a totemic issue for the Opposition. They want to position the end of the subsidy and the creation of a level playing field between all recipients of social housing support as a modern day poll tax. Whatever the merits or otherwise of different systems of raising taxes locally, there is no doubt that the poll tax lacked public support. That is the difference, and it is worth exploring why the policy we are debating today enjoys public support.
The MORI poll that my hon. Friend the Member for Meon Valley (George Hollingbery) mentioned found that 78% of respondents supported the need to reduce under-occupation and overcrowding in social housing, whereas 54% of them agreed that people of working age who live in social housing should receive less housing benefit if they have more bedrooms than they need. Some 60% of those polled believed that those affected should seek work or work longer hours if they could.
Emily Thornberry
The hon. Lady drew a parallel between the bedroom tax and the poll tax, and said that the difference between the two was that the poll tax was not popular. Does she therefore accept that the bedroom tax is a tax?
Margot James
I certainly do not. It is not a tax. A tax is a Government levy on somebody’s income, whereas we are clearly talking about reducing a subsidy.
Let me return to the subject of work. Many groups are exempt from the measure, including people in receipt of state pensions, families with disabled children, foster carers and other groups. Those who are in a position to seek work or extra work should either do so or try to swap their property for accommodation that meets rather than exceeds their needs. If their accommodation exceeds their needs, that is not a tenable or fair position for the long term. We are talking about only a few extra hours of work a week at the minimum wage. Instead of conducting a campaign of misinformation against the reforms to housing benefit—reforms that Labour accepted were necessary at the last election—local authorities should instead be helping people to downsize to accommodation that meets their needs, freeing up much-needed housing stock for the 2 million families on housing waiting lists.
I commend the Government for taking the tough decisions and, moreover, for their commitment to build 170,000 new social houses by 2015. In addition to this measure, that will help to ease overcrowding in many homes. I also hope that the Government will take a lead in encouraging housing associations and local authorities to convert some of the excess of large properties at their disposal so that we can begin to meet the needs of the 60% or so of people applying for social housing for single occupancy. I hear far more complaints from constituents who endure overcrowded accommodation than I do about ending this spare-room subsidy. I find the contents of my postbag quite instructive in that regard, so I shall support the Government amendment.
Emily Thornberry (Islington South and Finsbury) (Lab)
Let me begin by informing Ministers here that Islington borough council used all its discretionary housing payment last year and will certainly use all its discretionary housing payment this year. People are under attack not only from the bedroom tax but from the limits on housing benefit, and a large number of those in private accommodation can simply no longer afford to live where they live at the moment. While we try to find them somewhere else to live, they need assistance with their rent, which is paid through the discretionary housing payment. I know that that was a point of debate earlier and I want to ensure that if there is any discretionary housing payment going for a song it is given to us, because in Islington we could certainly use it.
I ask the Minister to imagine living as part of a family of four in a three-bedroom flat. She is unemployed and living on about £240 a week. Her benefits went up 1% this year, and she is now paying council tax for the first time because of changes to the rules. The prices of food, heating, fares and clothing have gone up, and she has the disadvantage of a son who is nine and a daughter who is seven. She had been in a three-bedroom flat, but now she has to downsize; if she does not, she will lose £18 a week out of her £240 benefit. Such people exist: they come to my surgery and ask how they can economise. I would be grateful to hear from the Minister whether she has any ideas.
The bedroom tax affects 3,100 families in Islington. In 2012-13, despite the frenetic building attempts by the borough council, only 609 two-bedroom flats were let through the waiting list, which is already under huge pressure with 19,000 families looking for accommodation through it. Now, many more people need to be moved very quickly as they are being attacked by the bedroom tax. Islington tenants with an additional room, as the Government would say, pay £14 to £20 a week because of the high rents, which causes great hardship, and they face the disruption of moving, which is expensive and stressful.
A fifth of those 3,100 social housing tenants are sufficiently disabled to receive disability living allowance—not the higher-rate DLA awarded for overnight care but the lower-rate DLA. They have special equipment such as hoists and wheelchairs, or they are couples who cannot sleep together because one of them has a condition such as anxiety or some form of disability—it is difficult to sleep with that partner—or perhaps one of them wets the bed.
Barbara Keeley
Does my hon. Friend agree that one of the most invidious things about this tax is that couples have to declare whether they sleep together? How invasive is that?
Emily Thornberry
In Islington, given how small the flats are, people simply cannot put two single beds in one room, which makes it difficult in those circumstances for couples to be able to cope. One of the unintended consequences of the bedroom tax is additional pressure on the tribunal service. People who appeal their benefits have to wait a year, and another 30 tenants from Islington are appealing the bedroom tax. Our housing system is under huge pressure, and we can do without this.
Of course, people under-occupy—I fully acknowledge that. I was brought up in a council house. When we all moved out, my mum was under-occupying, and she had the great benefit, frankly, of having a professional daughter who bought her a flat. That house was given back to the stock. Many elderly people are under-occupying, and, as I have said throughout the debate, I do not understand why the Government have not augmented the plans of many local authorities. In my local authority, people about to go into retirement are interviewed and are asked whether they would like to move somewhere else, like a flat that is available to them for the rest of their life and that would be appropriate for them. Even though, strictly speaking, they are entitled only to a one-bedroom flat, the council will give them a two-bedroom flat so that they can move out of a house and a family can move in. Indeed, they might be given compensation if they wish to move.
Why not work it that way? If this is really about under-occupancy and over-occupancy and getting people into the right flat, we should work with them. We should not just punish them, which is what the Government are doing. Why does the nation need to wait? We need to build more. Why should the nation wait for my right hon. Friend the Member for Doncaster North (Edward Miliband)? Why should the nation wait for a Labour Government in 2015, because when we are elected we will build 200,000 homes every year, and we will really begin to address this problem?
Housing Benefit
Emily Thornberry Excerpts(13 years, 6 months ago)
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Mr Alexander
The cumulative impact of Lady Porter’s measures was in the hundreds or the few thousands. The impact on people being removed from their homes if the current proposals pass unchecked will extend significantly beyond that.
Emily Thornberry (Islington South and Finsbury) (Lab)
Has my right hon. Friend discovered which Conservative Minister described the measures as having such a high social impact in terms of moving people out of London that it would be greater than the highland clearances?
Mr Alexander
Alas, I cannot answer that question, but I hope the Secretary of State for Work and Pensions will do so.
Mr Duncan Smith
I agree with Boris Johnson. What he said is that there will be no “Kosovo-style cleansing” of London. Quite right. He was responding to the scare stories and the scaremongering of all those on the Opposition Benches, because that is exactly the phraseology that they were using.
Emily Thornberry
Will the right hon. Gentleman help us now? Which Front Bencher has been scaring my constituents by saying that the policy will be worse than the highland clearances? Which shameful Front Bencher has been telling the press that?
Mr Duncan Smith
I think that that is the case on the Opposition side. The reality is that they have been scaring the public, and they know it. I detect just a little dog whistle blowing from those on the Labour Benches, freezing and frightening everybody out there in the socially rented sector.
Steve Webb
I am sure that he inadvertently forgot, Mr Speaker.
The impact of the cap, the impact of the 30th percentile and the impact of the removal of the £15 excess have been elided in the debate. The hon. Member for Houghton and Sunderland South (Bridget Phillipson) mentioned the figure of 20,000 pensioners in her constituency—most of whom will not be affected by any of the changes. As I was explaining, less than 10% of people receiving housing benefit in the area most likely to be affected—inner London—will experience shortfalls of more than 10%.
The exaggerated impact has been made clear. However, one point has not been made clear. It has been suggested that the private rented sector is somehow an oasis of stability and settled communities, but there is massive churn in that sector. I want to give an example of that. The people affected by the caps and the 30th percentile are on local housing allowance. Local housing allowance was introduced in April 2008, so pretty much all those people did not even move into their current properties until April 2008; in the vast majority of cases they have lived in them for less than three years. The idea that we are suddenly churning up some settled permanent community is complete nonsense.
Emily Thornberry
The hon. Gentleman is saying that a huge proportion of people will not be affected, but let us say, for example, that we are doing our best to move a woman in Islington from a three-bedroom house into a smaller flat. Would she lose her secure tenancy if she moved?
Steve Webb
When there are specific instances of vulnerable people about whom local authorities have concerns, those local authorities have discretion to do something about the situation. But when people might reasonably be expected to move, that, of course, is part of the equation. If everybody went on staying exactly where they were at the same rent, there would have been no point to the policy.
On the basis of the debate so far, Mr Speaker, you would imagine that this year’s £21.5 billion housing benefit budget was about to be slashed. [Interruption.] Labour Front Benchers are saying that it is.
Housing Benefit
Emily Thornberry Excerpts(13 years, 7 months ago)
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Emily Thornberry (Islington South and Finsbury) (Lab)
Given that we are talking about intent, does my right hon. Friend agree that it is possible that the Government’s intent is not fairness and that, instead, as we are told a senior Minister has said, this is all about highland clearances?
Margaret Hodge
I agree entirely. There are several quotes in the press from senior civil servants demonstrating that they think the proposal will create the greatest dispersal of families that has been witnessed probably since the 19th century. Perhaps that is part of the political intent of the Government.
In my view, the litany of cuts that I have outlined—all of them, not just the housing benefit cuts—represent an historic assault on the poorest families in the poorest communities, which I think even Baroness Thatcher would have considered to be a bridge too far.
Bob Russell
Let us put on the record that there are some very good landlords. Good landlords would endorse the points that have just been made. It is the rogue landlords—those who exploit their fellow human beings—who we need to deal with. Successive Governments have failed to address that matter.
I come back to the question of supply and demand. Thirty years ago in Colchester, there was no such thing as homelessness. People could be guaranteed a council house within six months to a year, depending on their location of choice. The right to buy was not the real problem; the real problem was the failure to replace with new stock the houses that had been sold. Successive Governments failed to deal with that.
It has been said that we must not use extravagant language and say that the proposals will result in the biggest forced social movement of people since the highland clearances because that is emotive and there is no comparison with that situation. I do not wish to give any comparisons of that sort; it would be wrong to do so. However, it is a fact that if there are benefit changes and the housing cap goes through, the forced migration of whole communities—or a large number of people from a particular community—will take place. Families, pensioners and children will be removed from the communities in which they grew up. That will have a devastating effect on their lives. I want to concentrate on the effect on children because, as I am sure colleagues have realised, I have been picking up on that angle since the general election.
Emily Thornberry
I agree with the hon. Gentleman that it is unfortunate when extreme language, such as the reference to the highland clearances, is used. However, did he read in the papers at the weekend that a senior Conservative Minister in the Government described the policy as exactly that? They said that we will not have seen anything like it since the highland clearances. Such references are emotive, but they may be entirely descriptive.
Bob Russell
I do not think that our Scottish colleagues would accept that comparison, but the point being made is that people will be forced from their homes against their will. In the previous debate that I secured, I referred to that as economic cleansing. Of course, those families that stay put in their houses and struggle on with higher rent will have less disposable income to spend in local shops and on local services, which will have an impact on their local economies.
Children will be forced out into the suburbs or elsewhere, and it is important to remember that this is not just a city phenomenon, but one that can have an impact in rural areas. It will also have an impact on schooling, as there will be depopulated schools in some areas, because of the forced removal, and overcrowded schools in others, assuming that parents can find the places.
I know that other Members wish to speak so I conclude by quoting from one section of the excellent briefing that I was sent by Scope:
“An unemployed or low-income lone parent or couple with one child (or two children who share a room) is likely to lose around £500 a year once this reform takes effect…These reductions are likely to have a disproportionate impact on disabled people…those living in cities and urban centres with higher property costs—especially London—will be particularly affected…a reduction in the financial support that Housing Benefit provides will further reduce the number of suitable properties disabled people can afford, increasing the risk of them having to live in inappropriate housing, exacerbating their social isolation and dependence on other forms of support.”
I recognise that the coalition Government inherited serious financial problems that they need to tackle, but nowhere in the coalition agreement does it say that poor families should be forced out of their homes or that children in disadvantaged families should be further disadvantaged.
Jeremy Corbyn (Islington North) (Lab)
Thank you, Mr Gray. I will be brief so that everyone can contribute to the debate.
I welcome the debate and congratulate my right hon. Friend the Member for Barking (Margaret Hodge) on securing it, on what she said this morning, and, in particular, on her successful annihilation of the British National party in the general election, which she did on behalf of all of us.
As Members know, I represent Islington North, which is an inner urban constituency. It is perceived by the Daily Mail and Daily Express to be the fountain of all things that are bad in our society. The perceptions are of liberal intelligentsia, cappuccino society and restaurants where new Labour used to meet. I personally have never had anything to do with new Labour whatsoever, so I take no responsibility for that.
Unfortunately, that image has placed itself in the public eye as being fact but, in reality, it is not. My hon. Friend the Member for Islington South and Finsbury (Emily Thornberry) and I represent a borough which is the eighth poorest in the country. It has a large number of people living in council or housing association accommodation, a large number of people living in private rented accommodation, and probably one of the lowest levels of owner occupation in the country. I believe it is now down to about 30%, which is less than half the national average. The number of people living in private rented accommodation has gone up by a huge amount and now represents more than 30% of the population. They are not all on housing benefit, but some are.
The local authority has a huge housing problem to deal with, but, in the long term, it can be addressed only by purchasing existing properties and converting them into flats, where appropriate, and by building new properties where land becomes available, which is a huge problem in inner London. Indeed, during an earlier incarnation as chair of housing in Islington, my right hon. Friend the Member for Barking managed to secure the purchase of a large number of street properties which were then converted into flats and remain so, so Islington has many street properties. Also, she presided over a considerable level of council house building in the early 1980s, despite huge opposition from the then Conservative Government, so it is not that enormous efforts have not been made to try to address the issue of housing stock.
However, as in every other borough, nothing had been done in the way of major repairs before 1997 because of central Government cuts, as my right hon. Friend the Member for Greenwich and Woolwich (Mr Raynsford) said. The council was reduced to doing repairs only if tenants took legal action against it to get them done, and that was normal throughout London at the time. I accept the criticisms made by the hon. Member for Colchester (Bob Russell) about the lack of new house building, but he should recognise the enormous repair problem that was left to the incoming Labour Government in 1997, and also recognise that decent homes standards have made a difference.
I have discussed the problems of housing benefit in countless debates; indeed, many Members in the Chamber today have taken part in them. This nation spends a vast amount of money on housing benefit, but I have no problem whatsoever with the principle of it. I absolutely support it, and where housing benefit is paid to people living in council or housing association accommodation, it is all straightforward.
What annoys me beyond belief is when two successive families come into my advice surgery—I shall not reveal names, as that would not be appropriate—family A lives in a council flat and gets housing benefit for the full rent, which is around £100 per week, and family B, who could be living next door in an identical flat with identical social conditions, receives housing benefit of £250, £300 or £350 a week. Why the difference? It is because family B’s flat was bought from the council under right to buy, possibly with a large discount. Someone is able to live off the private rent paid for by housing benefit. That is wrong, and the Government must deal with it, but the problem cannot be addressed by punishing the tenant or attacking people who are in receipt of housing benefit, which is exactly what the Government are trying to do by introducing a housing benefit cap.
What is likely to happen in my community and in the communities of others here today, particularly inner-London Members, is that large numbers of our constituents on a low wage, income support or jobseeker’s allowance and in receipt of housing benefit, will be faced with a horrible choice. The housing benefit will be cut, but the landlord will refuse to lower the rent. They will then be faced with a terrible choice. Do they take the children out of school? Do they move away from the area where their family live, where they may be caring for an elderly relative, where they have community links, where they have their general practitioner or local hospital? They have that kind of social support network, but they will have to try to find a private rented flat somewhere else, some distance away.
Emily Thornberry
My hon. Friend speaks extremely well on behalf of Islington, but may I chip in with this? One argument put forward is that the housing benefit cuts will result in rents dropping, but may I point out to the Minister, who may not know this—I know that my hon. Friend does—that only 12% of Islington’s private rental sector receives local housing allowance? Therefore, if the benefit were cut, the market would simply move on to other people. If we wish to push down rents in the private rented sector, we cannot do it by cutting housing benefit. I would suggest that the Minister listen carefully to my hon. Friend, because the points that he is making are extremely valid, particularly in respect of Islington.
Jeremy Corbyn
Absolutely. My hon. Friend understands the borough very well. That is the situation, and I suspect that it is exactly the same in Hammersmith and Fulham, Westminster and many other inner-London areas. There is enormous demand. This is a fast-growing, vibrant city where there is huge demand for private rented flats. The effect of the proposals will be social cleansing of the poorest people out of what are perceived to be high-cost areas. Like other boroughs, Islington is subject to the peculiar combination of being high cost but poor at the same time. That does not apply in the whole country, but it certainly does in London, and I hope that the Minister will at least begin to understand that.
Islington council cannot house all the people on the waiting list by any manner of means. There are 8,000 families on it at present, and serious overcrowding problems in existing council and housing association accommodation. A small amount of building has been started—I wish it well and welcome it—but I suspect that, after the Chancellor makes his statement, there will be an end to all council house building in this country, unless I have been misled by the media, which, of course, is possible.
I ask the Minister to look at the issue and deal with it in an intelligent, rational and humane way. He should not place a cap on housing benefit but instead look at the exorbitant private sector rents that are charged and introduce at least some form of appeal system against excessive rents. As my hon. Friend the Member for Islington South and Finsbury said, if people are moved out of private rented accommodation, somebody else on housing benefit or housing allowance will not be moved in. The property will be filled by someone from the open market, because that is the reality of the situation.
James Murray, the executive member of Islington council who deals with housing, made an excellent submission to the Work and Pensions Committee, in which he states:
“Islington is a high demand area, with some of the highest private sector market rents…With over 8,000 people on its housing register, and demand for social housing far outstripping its supply, the borough relies heavily on the private rented sector to help house its residents.”
Islington has placed, through the rent deposit scheme, large numbers of people in the private rented sector on an agreed rent, but all those arrangements will disappear. Islington has tried to co-operate with the private sector in doing that and calculates that,
“Over the past 18 months 228 of the 422 households placed through the rent deposit scheme will be adversely affected by the caps.”
The answer is to recognise the housing needs of people in London and the social damage of overcrowding and homelessness, not punish the tenants and victims, and instead—I agree with the hon. Member for Colchester —build as many properties as rapidly as we can and deal with excessive rents, bad conditions and bad landlords, of whom, unfortunately, there are still far too many all over London. It breaks my heart when people living in vermin-infested flats, which we the public are paying several hundred pounds a week in rent for, come to see me. Such tenants feel that they have no rights and feel excluded. Their children are suffering educationally, from overcrowding and everything else.
We need a decent, fair society. The Prime Minister claims that we are all in it together, but I do not believe that he really thinks that, because if he did he would be doing something about the disgraceful way that many private sector tenants are treated. Support the tenants; do not bail out the landlords.
Steve Webb
Like the right hon. Lady, I am keen to have a sensible debate on this subject. She mentioned the evidence that the Mayor of London has produced. The Mayor met my right hon. Friend the Secretary of State towards the end of September, and we are in close dialogue with London local authorities and others so that we do understand the implications of the changes.
With regard to turnover in the private rented sector, the local housing allowance scheme only came in just over two years ago, in April 2008, and 75% of private rented sector cases are now within the scope of that scheme. There is huge turnover of people. People are making decisions about new—
Steve Webb
No. People are making decisions about new tenure choices all the time, and we are saying this: why should those whose rents are wholly paid by the taxpayer not face the same constraints as those who are in low-paid work? I take the point made by the hon. Member for Westminster North that the two are not distinct categories; there is movement between the two. However, people in low-paid work are not choosing to live in the most expensive parts of the city, because they know that they would have to be able to pay those rents out of their wages. Why should people on benefit be in an advantageous position, in terms of their housing choice, compared with those in low-paid work? That simply is not right.
I am convinced that nothing in my language or my ministerial colleagues’ language is about clearances or scroungers. That is not what we are talking about. We are talking about value for money for the taxpayer, including the low-paid taxpayers in the constituencies of each hon. Member present, whose taxes are going to subsidise those exorbitant rents. Although we have heard that those very high rents are exceptional, I was appalled when I discovered that the 5,000 families to whom we pay the most housing benefit cost the taxpayer an annual £100 million—5,000 families receive £100 million a year just in housing benefit, leaving other benefits aside. It cannot be right that low-paid workers in our constituencies, people dealing with child poverty and disabled people are paying taxes to pay those rents.
My hon. Friend the Member for Colchester asked about the position of disabled people. One of the changes that has not been reported is the improvements to the system of housing benefit for disabled people who need a non-resident carer. We are spending an extra £10 million on writing off that extra bedroom in the housing benefit assessment, because we recognise the particular needs of disabled people.
These are huge issues and it is disappointing to have only a few moments to respond to them. The crucial consideration is to be fair—yes, to people on benefit, but also to the low-paid taxpayers whose taxes are paying for these things. If we simply pay the full, very high rents, we make it very difficult for people to take work, which will ultimately be the best antidote to child poverty and the best long-term prospect for people. That is the goal of the reforms.
Housing Benefit
Emily Thornberry Excerpts(13 years, 10 months ago)
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Mr Mike Hancock (in the Chair)
More than you could have hoped for, I think.
Emily Thornberry
Much more than I could possibly have hoped for, although I have to say that most of my speech will appear on my website.
[Mr Gary Streeter in the Chair]
In some areas of the country—my constituency is an obvious example—there is a serious mismatch between earnings and housing costs. The average worker in my constituency earns £20,000 a year and pays tax on that. The average rent for a two-bedroom flat in inner north London, which is not the most expensive part of my constituency, is more than £17,000 a year. That leaves an average working parent with less than £60 a week for food, clothes, travel and council tax. It is clear, therefore, that there has to be some form of intervention in areas where the rent is so high. Either we build more affordable housing—I am sure that everyone here knows and agrees that that is exactly what we should do with the money—or we intervene to subsidise rents and put people in the private market.
Mr Mark Field
This lack of building has been a problem not only over the past 13 years. Does the hon. Lady not recognise, however, that there has to be some sharing of the blame? During the past 13 years of the Labour Government, there was no substantial building, and that is the nub of the problem, particularly in central London.
Emily Thornberry
Many of us in the Chamber have been major campaigners on that issue, and I know that the hon. Gentleman is, too. I was completely outraged that the Lib Dem council in my area, which was in power for 10 years, built only one flat for social rented housing for every seven new flats that were built, which is completely inappropriate in a constituency such as mine, given the needs that it has.
Of the 850 Islington families in flats with two or more bedrooms who are claiming LHA, or housing benefit in the case of private landlords, more than half—more than 500 families—will lose benefits under the new capping rules, and some will lose more than £100 a week. Where will they go? Is there room for them in Thornbury and Yate? Will they move into cars? Where do the Government expect them to go when they lose all that money? They certainly will not be able to keep their flats.
To make an obvious point, expecting housing benefit claimants to live in the cheapest 30% of private rented flats will cause real hardship in areas such as London, where housing is already in short supply. The differential between the median and the 30th percentile might be small in some areas. For example, in central Lancashire—perhaps in Thornbury and Yate—there is less than £6 difference between a two-bedroom flat on the median and one on the 30th percentile, and people can get a family home for less than £120 a week. However, in my constituency, in Islington, the difference between the median and the 30th percentile for a two-bedroom flat is £40 a week—the difference between £330 and £290 a week. Where will people get that money? What will happen? It is fundamentally unfair to expect claimants in my constituency to make up a housing benefit gap of £40 a week when claimants elsewhere will be expected to find only £6 a week.
Frank Dobson (Holborn and St Pancras) (Lab)
Does my hon. Friend agree that officialdom clearly accepts that the cap is not fair? It suggests a cap of £340 for a three-bedroom flat, whereas the Independent Parliamentary Standards Authority allows Members from outside London £340 for a one-bedroom flat. We are being told that the going rate for a three-bedroom flat is the same as that for a single-bedroom flat.
Emily Thornberry
On a much less serious level, the representations that London MPs are making about the money that we need to run offices rely on exactly the same argument that we are putting today on behalf of the poorest and most vulnerable of our constituents. Although we all need help, they need it a great deal more.
It is unfair to expect all private tenants to compete for the cheapest properties, because private landlords will simply take the easiest families, rather than the difficult kids or the people on unemployment benefit. Where will the other families go? Will they live in cars?
I am appalled by the suggestion that the long-term unemployed should have their housing benefit cut by 10%. I am sorry to sound like a stuck record, but the effect of a 10% cut on families in London will be much more than that on families in Bradford. A 10% cut in benefit may mean £25 a week for someone in a one-bedroom flat in London, but it will be £8.60 in Bradford. It is not fair, and it is not right. The rules will affect a large number of people in the most deprived areas of London. At the moment, 1,200 Islington residents get jobseeker’s allowance or incapacity benefit for more than a year. What will they do to make up for the loss of that benefit? The idea is that they are on jobseeker’s allowance because they want to be—that they are malingerers and do not want to work. I invite the Minister —and, indeed, his boss—to come to some of my surgeries to see the reality of how people live in London.
We should build more affordable housing, provide sensible pathways to work and support families through child tax credits and child benefit. Yes, it is social engineering, but it is positive and sustainable.
Capital Gains Tax (Rates)
Emily Thornberry Excerpts(13 years, 10 months ago)
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Emily Thornberry (Islington South and Finsbury) (Lab)
The right hon. Gentleman talked about making sure that the most vulnerable did not pay disproportionately. Is he aware that in Islington, 2,154 families are in private accommodation on housing benefit and a third of them will be affected by the new caps on housing benefit? If and when they face eviction, what help will the Government give to stop hundreds, if not thousands, of Islington families being made homeless? If they are made homeless, what help will he give to get them somewhere to live?
Mr Duncan Smith
The hon. Lady is looking at things in a rather doom-laden way. The reality is that the changes to housing benefit will assist people into the right level of home. At the moment, through local housing allowance, we are paying vast sums of money to people who would not be able to get the same money if they were in employment. For example, in south-east London, which is similar to the hon. Lady’s area, people on low incomes living in private rented accommodation would still—even with the caps in place—be nowhere near the level of money that somebody on local housing allowance receives. That is not fair on those who are striving and working, but having to struggle to live in a house. Before the hon. Lady carps too much, she should recognise that we have also increased the discretionary payment, trebling it to £60 million. If there are specific difficulties there will be money for local councils to help and assist.
Yvette Cooper
My hon. Friend is right to raise concerns, particularly as many people who receive housing benefit are in work. They work hard, are in low-paid jobs and cannot afford to pay their rent without the extra help that housing benefit brings. So, the Government’s measures will hit people who work hard to support their families and make ends meet. They will find the rug withdrawn from under them.
I am particularly concerned about the combined proposals for lone-parent families, and I ask the Secretary of State to look at them, because he says that lone parents with five and six-year-olds will move on to jobseeker’s allowance and have to look for work. However, his own documents, which were provided at the same time as the Budget, assume that only 10% of those lone parents will leave benefits because of the risk they might be less work ready or need more time to find a suitable job that fits with their caring responsibilities.
Many lone parents need additional support to find work that fits school hours, but as a consequence of these proposals about 90% of them will still be on jobseeker’s allowance one year later, at which point they will suddenly be hit by the right hon. Gentleman’s 10% cut in housing benefit. Lone parents with young children might work really hard to find a job that fits school hours, but suddenly an average of £500 a year will be taken from their incomes because they cannot find work and because, as a result, he wants to cut their housing benefit. That is deeply unfair on families who might work really hard to try to make ends meet. What does he expect people to do? Hundreds of thousands of people will struggle to pay their rent, and parents will have to move house, shift their kids out of school, move long distances and break up communities in order to try to find an affordable home.
Emily Thornberry
Given that the Secretary of State seems to think that we are exaggerating the position, does my right hon. Friend agree that it might be a good idea if he spent a morning with me visiting some of the Islington families who will be profoundly affected by those changes to housing benefit?
Yvette Cooper
That is a very generous invitation, which I shall pass on to the right hon. Gentleman.
Where are the figures for the analysis of the impact of those proposals on homelessness? Where are the figures for their impact on families who will not be able to pay their rent? Does the right hon. Gentleman have any idea how expensive it is to keep a family in temporary accommodation? That is the problem. That proposal is just like the proposal on unemployment. If the Government do not provide the support up front, it will cost them more later on in terms of dealing with homelessness.
As for supporting families, not even in the worst of the Thatcher years did the Government ever introduce a Budget that hit children so hard. Of the £8 billion that this Budget raises from direct tax and benefit changes, however, £3 billion directly hits children: cutting the child trust fund and the value of child benefit, and overall cuts in child tax credit. That is even before we add the cuts that families face in housing benefit, free school meals, free swimming, the future jobs fund and university places. This is a savage Budget for children. The Government claim that it will be all right because there is not a measured increase in child poverty as a result of this Budget. Of course there is not, because the Treasury model will not measure the impact of changes to VAT or housing benefit, and it will not look ahead any further than 2012-13, before many of the cuts bite.
Look at the people the Secretary of State is hitting hardest—the very youngest children of all. Gone is the baby tax credit, so some mums will now find they cannot afford to stay at home for as long as they want with their little babies. Gone is our plan for a toddler tax credit, gone is the pregnancy grant, and cut is the Sure Start maternity allowance. Has he no idea at all that supporting a family and getting the children out of poverty when the babies are born can save money from the public purse for years to come? Instead, he wants to cut support from the babes in their mothers’ arms. At least Margaret Thatcher had the grace to wait until the children were weaned before snatching their support.