Oral Answers to Questions
Debate between Grant Shapps and John Leech(12 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr John Leech (Manchester, Withington) (LD)
T9. Under planned housing benefit changes, more than 2,000 of my constituents in social housing are expected to move to accommodation outside the social rented sector. They will be forced to move to smaller, more expensive accommodation in the private rented sector, thereby increasing the housing benefit bill. Is it not about time that the Minister for Housing and Local Government, along with the Department for Work and Pensions, scrapped those ludicrous plans for existing tenants?
Grant Shapps
The context of the housing benefit changes in particular need to be taken into account. The housing benefit bill was only £14 billion 10 years ago. It is now £21 billion, and left unchecked it would be £25 billion by the end of this Parliament. We propose to ensure that it does not increase to more than £23 billion. That is the scale of the changes—not £25 billion but £23 billion. Opposition Members seem to be disagreeing today. In the past week, they have agreed, then disagreed, then agreed, then disagreed. The House has a right to know where they stand on this matter as well.
Oral Answers to Questions
Debate between Grant Shapps and John Leech
Grant Shapps
We are keen to protect people on low incomes, not on high ones, as the hon. Lady suggested. The point about the housing benefit changes is that many of her constituents, along with mine and everyone else’s, will be asking how it can be fair for people in receipt of housing benefit to live in homes and streets that people on ordinary salaries cannot possibly afford to live in. That is the system that we are going to fix; when the Opposition were in government, they used to support that policy.
Mr John Leech (Manchester, Withington) (LD)
Will the Minister ensure that the revenue raised by pay to stay is ring-fenced for social housing?
Social Housing (England)
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Mr Leech
To the best of my knowledge, there are no social rented properties to share in Manchester. People under 35 in one-bedroom flats in social housing would not be able to move to other social housing. They would have to move to private sector rented property but, in Manchester, under the single room rate, that would cost more than staying in the one-bedroom flat. I urge the Minister to look at that issue. Ultimately, we will not save any money and it makes no sense to force somebody to move from a cheaper property to a more expensive, smaller property.
Grant Shapps
I will be happy to look at my hon. Friend’s comments and suggestions. The truth is that housing varies dramatically around the country. One problem with a debate such as this is that we all refer to our own constituencies and experiences. That is excellent and what Members of Parliament are supposed to do, but our experiences are rarely representative of what is going on across the country. Those of us who have spent years looking at housing and social housing realise that there is an incredibly fragmented picture across the country, and that the types of home available and rents vary, even before the introduction of the affordable rent programme. The traditions of local social housing also vary dramatically.
Mr Leech
Although I accept that every area is different, I am not aware of any local authorities that provide shared accommodation for people on a social rented basis. I suspect that all local authorities are in exactly the same boat on the issue of the single room rate, and I urge the Minister to take a proper look at the issue.
Grant Shapps
As I have said, I am happy to consider my hon. Friend’s points further. We are perhaps in danger of entering into a debate more suited to the Department for Work and Pensions than to housing, but I will follow up on those points and come back to him.
I want to ensure that we have covered the important points raised by my hon. Friend the Member for Stafford, so I will look at the issue of housing revenue account reform, which is an incredibly important subject that I picked up from where the previous Government left off. There is cross-party support for the reform, and I hope that it will be introduced by next April with the passage of the Localism Bill. It means that tens of billions of pounds will no longer return to central Government, only to be sent back out to different local authorities. I think it is an important and critical moment in self-determination for local authorities that manage their own stock and want to plan properly for their housing future over the next 25 years. On average, authorities involved in the HRA reform will have 14% headroom, meaning that they can properly invest in the future and ensure that they meet further decent home aspirations.
At the moment, 75% of receipts from the right-to-buy initiative are returned to the Treasury. As hon. Members will know, sadly we have had to leave that measure in place because of the need to reduce the country’s enormous deficit. We have, however, said that it will be up for review at the end of the spending review period, and I remind the House that—from memory—£863 million has gone into the self-financing pot. In other words, the overall debt has been reduced by £863 million, to take into account the fact that rent will no longer be collected from homes sold under the right to buy.
It is appropriate to mention the right to buy in a little more detail. I was pressed on that issue by my hon. Friend the Member for Harlow, who is clearly keen to extend the right-to-buy discount. Much as I hate to disappoint him, sadly we do not have the money to re-extend that discount. In many ways, right-to-buy arguments come from the ‘80s and ‘90s. The House will be interested to learn that there were only about 3,000 right-to-buy sales over the past year, and projections are for such sales to remain at a fairly low level. A disproportionate amount of time is spent in this House—and elsewhere—discussing the right to buy. I like the right to buy; I am keen for it to stay in place and I think that it recognises people’s aspirations. As my hon. Friend the Member for Stafford said, many people in this country still want to own their own home, and the Government should back that aspiration. However, the right to buy affects 2,000 or 3,000 homes a year, and a lot of time goes into discussing what is, in effect, a debate from 30 years ago.
Oral Answers to Questions
Debate between Grant Shapps and John Leech
Mr John Leech (Manchester, Withington) (LD)
9. What assessment he has made of the potential effect on levels of homelessness of the proposed changes to rules on the changes in the treatment of tenancies in under-occupied social housing.
The Minister for Housing and Local Government (Grant Shapps)
The security and rights of existing social tenants, including those who are under-occupying, will be protected in the reform of social housing. I have announced a £13 million scheme to help local authorities to offer tenants greater flexibility in their choices.
Mr Leech
I thank the Minister for his reply, but does he accept that the allocations policies of some local authorities, including Manchester, result in larger, hard-to-let properties being under-occupied through no fault of the new tenants? Given the one reasonable offer rule, surely some existing tenants will no longer be able to afford to stay in their property, and some potential tenants will not be able to afford to take the one reasonable offer.
Grant Shapps
My hon. Friend is absolutely right to say that there are problems with the allocation policy at the moment. One thing that we plan to do through the Localism Bill is to provide much greater flexibility to allocations. For example, if somebody is seeking to move home within the sector, they should not have to join the back of the regular queue. In addition, by the end of this year we will have set up a mobility scheme, which will cover 90% of homes in this country.
Grant Shapps
The hon. Gentleman raises a point about the abolition of the Audit Commission, which I see is still going out to promote its cause in the weekend newspapers. The reality is that we need local audit that is efficient and brings competition into the marketplace. We see no reason whatever to have the country’s fifth biggest auditor owned by this Government.
Mr John Leech (Manchester, Withington) (LD)
T7. I was shocked to hear in the media that disabled people under-occupying homes will have their housing benefit cut. Can the Minister either dispel that rumour, or at least tell the House what estimate he has made of the cost of rehousing those disabled people and then carrying out the necessary adaptations in their new homes?
Grant Shapps
Of the changes that we are making in affordable housing and social housing allocations, the most important thing is protecting the most vulnerable people. The whole House will agree that when resources are tight, paying for spare rooms—rather than paying for people to live in the homes that are available—does not make sense. In those changes, however, we will ensure that disabled people are protected in the best possible way.