Housing Benefit (Under-occupancy Penalty)

Guy Opperman Excerpts

Wednesday 27th February 2013 Commons Chamber

[Dr Whiteford]

I say to the hon. Gentleman that perhaps those people in Reading would like to look north of the border, where building social housing has been the long-term solution to tackling the lack of affordable housing. This problem will not be solved by taking housing away from one needy group and giving it to another. As I have said, there will be a disproportionate impact on disabled people and most of the people affected by this policy are already among the most disadvantaged in our communities.

[Guy Opperman (Hexham) (Con)]

Will the hon. Lady give way?

[Dr Whiteford]

No, I want to make some progress. I say to the hon. Member for Reading East (Mr Wilson) that the real challenge for local authorities is how to house people who are likely to be on very low incomes. If people who are older or who suffer from ill health are moved out of their homes, that will create another headache and push people into more expensive private rented accommodation.

--- Later in debate ---

[Dr Whiteford]

It is clear that rents in Scotland are not out of control as they are in London. Many of the problems with housing benefit have been fuelled by the vast over-inflation of the rental market in London and the south-east.

It is important that we remember that some of the disabled people who are subject to the bedroom tax are the same people who will lose their disability living allowance when it becomes the personal independence payment or whose support will be reduced significantly, and that some may lose their employment and support allowance, particularly if it is time-limited. Nevertheless, all those people will still have to deal with the same impairment or long-term health condition that they had before, and will still face the same physical, economic, attitudinal and communication barriers when they attempt to access the labour market and get on with their daily lives.

The Government have paid no heed to the cumulative impact of their measures on disabled people—a cumulative impact that will have disastrous consequences for thousands of people.

[Guy Opperman]

I am most grateful to the hon. Lady for giving way. May I draw her back to fundamental principles? I am listening to the argument that she is making with interest, but there is one fundamental point that the architects of the motion do not address. Is it accepted that the housing benefit bill, which is rising, needs to come down—yes or no?

[Dr Whiteford]

The reason that the housing benefit bill is so high is that we have had a recession that has pushed people out of employment. One of the trite suggestions that we have heard repeatedly from the Government in trying to defend this indefensible tax is that people should just pick up a few extra hours’ work here or there to meet the bedroom tax. Since the start of the financial crisis, underemployment has soared. Millions of people have seen the prospect of overtime vanish and their working hours cut. According to the TUC, there are 3.3 million people across the UK who are working part time, but who want to be working full time. That is twice the pre-recession level. When we look at the steep rise in housing benefit, we therefore have to look at the inflation in the housing market in some parts of the country and at the underlying economic drivers of unemployment and poor economic performance.