Housing Benefit

Frank Dobson Excerpts

Tuesday 13th July 2010 Westminster Hall

[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.

--- Later in debate ---

[Frank Dobson]

Will the hon. Gentleman give way?

[Steve Webb]

I will not. I want to respond to the debate in the short time that is available to me. If we allow rents to go on rising as they are doing, how can we expect people to find the work that will enable them to pay those exorbitant rents? There are not the jobs that will enable people to afford to pay those rents. If we can do something about the rents that landlords charge, more people will find it worth working. At the moment, people get no return for work.