Housing Benefit

Helen Goodman Excerpts

Tuesday 13th July 2010 Westminster Hall

[Helen Goodman (Bishop Auckland) (Lab)]

May I say what a pleasure it is, Mr Streeter, to serve under your chairmanship? I congratulate my hon. Friend the Member for Hackney South and Shoreditch (Meg Hillier) on securing this extremely important debate.

Of course, everyone agrees on the need to tackle high rents and high payments. It is clearly not right to pay people more than £1,000 a week for housing benefit. That is why, in his March Budget, my right hon. Friend the Member for Edinburgh South West (Mr Darling) took measures to strip out the top rents; that will save the taxpayer £50 million. Before considering the current Budget measures, I have one question for the Minister: will he abolish the £15 excess as well as introducing the raft of measures included in the Red Book?

It seems to me that the coalition Government have used the small number of exceptionally high benefit payments as a ruse to cut housing benefit across the land. The truth is that only 100 households in the entire country receive housing benefit of more than £1,000 a week. In the social sector the average payment is £72 a week, and in the private rented sector it is £106.

Over the last month, the Minister has refused to answer virtually all parliamentary questions about the number of people who will lose and by how much. I see that he looks puzzled, but even yesterday he refused to answer 36 parliamentary questions. I am not sure whether he does not know how many people will be affected and what the losses will be, or he is embarrassed. I am not sure, either, which is worse.

Did Department for Work and Pensions Ministers take decisions without proper analysis? Were they ambushed by the Treasury, as we suspect? Is that why Ministers are delaying giving us the information until 23 July—in 10 days’ time? How very convenient for them. The Chief Secretary to the Treasury has refused to release data that would have allowed people to analyse the impact of the housing benefit changes. That is despite the coalition agreement saying that data will be released so that we have proper transparency.

The Minister is Pensions Minister. Is he going to tell us today how the housing benefit cuts will affect the 1.5 million old-age pensioners who now receive housing benefit? Will he confirm that, in addition to the London problems that were so eloquently described by my colleagues, more than 1 million people will lose at least £500 a year? With the help of Citizens Advice, we have discovered what the cuts will be in other parts of the country. In some places, they will be huge. A single person on the lowest shared room rate in Durham will lose £700. A single person in a one-bedroom flat in St Helens will lose £800. People in four-bedroom accommodation in Nottingham will lose £1,100. Those figures are disgraceful.

It is quite wrong for the Government to have produced distribution figures in the Red Book that completely ignore the impact on housing benefit. The rents that people are expected to survive upon in the provinces are completely ridiculous. In central Lancashire, the single-room rate is down to £44 a week. In Hull, the one-bedroom rate is down to £67 a week. In Chesterfield, a family needing four bedrooms is expected to find accommodation for £138 a week. As hon. Members have said, the abolition of the housing benefit rate for five-bedroom properties will be particularly bad for large families. What will the impact be on the various ethnic and religious groups? It will clearly be discriminatory. We know that child poverty is bad for ethnic minorities and large families. It just got a whole lot worse.

I turn to the benefit cap. My hon. Friend the Member for Hackney South and Shoreditch has not been describing the problems of people who want to live in Mayfair, but the problems of people in an ordinary part of London. The Minister must explain how it will impact on work incentives. How does he expect people to travel to jobs such as cleaning our offices or working in hotels in central London? Is he trying to reproduce the apartheid conditions seen in cities elsewhere? Certainly he is not supporting mixed communities. The way to address work incentives is not to cut benefits, but to introduce run-ons and fixed-period payments—things that we were asked to do by Crisis and Shelter and others in the voluntary sector that work with the homeless. Things will get even worse in 2012-13, when the local housing allowance switches to a consumer prices index link. The benefit will then be completely disconnected from rent levels. Had that been done in 1999, by now people would be suffering a further 20% shortfall.

Will the Minister tell us what the effect will be on families? How many will have to move? What will the effect be on homelessness? What will the effect be on the number of families in bed-and-breakfast accommodation? What will the effect be on the availability of private rented accommodation? What have the responses been of private landlords to the Government? As many hon. Members have asked, what transitional arrangements will the Government introduce?

The Government have also announced a number of measures that will particularly affect the social sector. Deductions for non-dependence, as projected by the Chartered Institute of Housing, will impact on 170,000 people, who will all lose more than £900 a year. Typically, they are people whose children are aged between 16 and 24. Another measure that will affect the social sector is the proposal to limit working-age entitlements to reflect the size of family. According to the Chartered Institute of Housing, that could affect 180,000 people, to the tune of £2,300 a year. Will the Minister tell us whether he proposes that these deductions will be made when people’s partnerships break up? Will we see women with children being forced to move because the partner has left the home? None of the social implications of the measures have been considered.

Perhaps the most vicious measure is the cutting of benefits by 10% after a claimant has been unemployed for 12 months. What possible rationale can there be for punishing the victims of the recession? Does the Minister not realise that, in London, eight people are chasing every vacancy? That cut is happening at the same time as a cut in support for those who are unemployed. It is pointlessly punitive. The CIH estimates that, overall, the measure will affect between 231,000 and 375,000 people by between £400 and £580 a year.

Has the Minister thought through the impact on lone parents? Forcing mothers of five-year-olds onto JSA will, by the Government’s own estimate—it was published in the Budget policy assumptions document—result in only 10% of lone parents getting jobs within a year. That will leave 135,000 lone parents facing housing benefit cuts in 2013-14. That is utterly appalling.

The final little sop—to increase the discretionary housing payments by £40 million—is totally inadequate. It will not deal with the hardships caused by taking £1.8 billion out of the housing benefit budget. I hope the Minister will give us some answers, and that he will undertake to rethink these draconian measures.

--- Later in debate ---

[Steve Webb]

No, I will not. Hon. Members have asked about the impact assessment, statistics and parliamentary questions. The impact assessment will be published on 23 July. There was some suggestion that that had something to do with the timing of this debate. We do not control the timing of these debates.

[Helen Goodman]

But the Government control the timing of publication.

[Steve Webb]

We are publishing on 23 July to give us time to prepare the detailed statistics that the House wants to see. We know the aggregate impact, but the House wants some fine detail. I can tell the Chamber that the impact assessment will include the impact on groups at a national level, broad rental market areas, bedroom category, the availability of accommodation by broad rental market area, the households affected by caps by local authority and by Government office region, the households affected by moving to the 30th percentile and the distribution of local housing allowance and housing benefit award by case load and by housing benefit award intervals. Rather than drip-feed incomplete information, we want to give the Chamber comprehensive detailed information before the House rises for the summer recess.

One thing that is usually said in such debates is that people on housing benefit will not be able to find anywhere to rent. We have all come across anecdotal examples of that. Occasionally, landlords will not rent to people on housing benefit. [Interruption.] I hate to bring the facts to bear in this debate, but since November 2008 the number of private sector tenants on housing benefit has not fallen. It has risen by 400,000. If private landlords are not willing to rent to people on housing benefit, how come there are 400,000 more of them doing it?