Housing Benefit (Under-occupancy Penalty)

Hywel Williams Excerpts

Wednesday 27th February 2013 Commons Chamber

[Dr Whiteford]

The hon. Gentleman has exposed at this early stage one of the big red herrings in this debate, namely the argument that the private rented sector is comparable to the social rented sector. We already spend significantly more on supporting people in the private sector than on those in socially rented accommodation, which is significantly cheaper. I hope to return to that point later, but it is very helpful to have been able to nip that argument in the bud at the outset of this debate.

[Hywel Williams (Arfon) (PC)]

I am glad that the hon. Lady has exposed the fundamental flaw in the argument of the hon. Member for Banbury (Sir Tony Baldry). One form of accommodation is based on size and the other on price—it is like comparing apples and pears.

[Dr Whiteford]

The hon. Gentleman makes a very important point. The key thing is that the under-occupancy penalty will hit hundreds or thousands of people in every constituency. We will all meet constituents affected by it, many of them among the most disadvantaged members of the community. Let us make no mistake: the people on the front line of this policy are the disabled and those who care for them.

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[Stewart Hosie]

rose—

[Hywel Williams]

rose—

[Kris Hopkins]

I will give way, by all means.

[Hywel Williams]

rose—

[Stewart Hosie]

rose—

[Kris Hopkins]

I will give way to the one with less hair.

[Hywel Williams]

Recognition, at last!

The change is coming in in April. Is the hon. Gentleman satisfied with how the Government have publicised the very point to which he referred?

[Kris Hopkins]

Today’s debate gives us the opportunity to make that point. The Minister’s speech was excellent and clarified many of the issues, but it is appropriate that we should use all means to put the information into the public domain.

During my time as housing chair, I visited many homes in the district. The majority were in very poor condition and had been for many years. Some were built before the war. Some were sold for as little as £1; people could not live in them as they were in such a poor condition.

--- Later in debate ---

[Hywel Williams (Arfon) (PC)]

I am glad to rise to sum up on behalf of Plaid Cymru, the Scottish National party and the Green party. We have heard 26 speakers in the debate today, including the Minister of State, Department for Work and Pensions, the hon. Member for Thornbury and Yate (Steve Webb), which is ample proof that we made the correct choice in putting this subject up for debate. I will try to mention all the speakers briefly, although I am anxious to allow the Under-Secretary of State for Work and Pensions, the hon. Member for Wirral West (Esther McVey) ample time to defend her Government’s position. To that end, I might sit down a little early.

The debate was opened by my hon. Friend the Member for Banff and Buchan (Dr Whiteford), who pointed out that the proposed penalty was inherently unfair, that it had structural problems and that it would hit disabled people, foster carers, separated parents and many others. She outlined some mitigation measures that could be taken, but her choice—and that of my right hon. and hon. Friends and me—is that the Government should abandon the penalty.

The Minister of State then gave us a clear explanation, as he always does. I will not go into the details of his speech, but he made some interesting points. He stated clearly that one of the purposes of the penalty was to save money; we would argue that that is its main purpose. He also said, to some surprise, that these were Labour cuts. I thought that it was the Conservative and Liberal parties that were in government, and that Labour was in opposition, but there we are. That is what he said. He also said that there was a spare room subsidy. We have been calling it a bedroom tax. May I suggest that we all call it a penalty? It will be a penalty on ordinary people.

The right hon. Member for Birmingham, Hodge Hill (Mr Byrne) discussed the problems that will arise from the penalty, especially in a time of recession, and the problems that people would face in moving when there was no possibility of their doing so. The hon. Member for Keighley (Kris Hopkins), who is no longer in his place, talked about his constituency. The hon. Member for Glasgow North (Ann McKechin) said that the Government were unprepared, that great disruption would be caused, and that we needed solutions for housing problems as a whole, and not just in terms of the money involved.

The hon. Member for Leeds North West (Greg Mulholland) explained his position with some care and eloquence, and I hope that he might be persuaded to join us in the Lobby this evening, rather than abstaining. The hon. Member for Newport East (Jessica Morden) outlined some heartrending cases and talked about the nature of the Welsh stock. She made a point that many other hon. Members made, which was that many people have no choice. The Government might think that there is a choice, but there ain’t. The hon. Member for Battersea (Jane Ellison) called on Labour to pledge to reverse the measure if it was in government, and that reasonable request is echoed on these Benches as well. However, I do not think that she quite understood the delightful intricacies of devolution, or the fact that the SNP is actually in government in Scotland.

The hon. Member for Brighton, Pavilion (Caroline Lucas), who apologises for being unable to be here this evening, highlighted the Kafkaesque point that if the Government’s intentions are carried out, they will save no money—that is, that people would move and no money would be saved. She also talked at some length about other practical points, and ended by saying that while the banks got bailed out, the poor got thrown out. The right hon. Member for Wokingham (Mr Redwood) recognised the difficulties involved in downsizing, and emphasised the value of incentives rather than penalties. He also talked about eligibility, and I am afraid that he then strayed into the immigration debate.

My hon. Friend the Member for Dundee East (Stewart Hosie) gave the House a riveting explanation of the situation in Scotland. He also pointed out that 79% of the households in Scotland had a disabled person living in them, which is an even higher figure than for England or Wales.

The hon. Member for North East Somerset (Jacob Rees-Mogg) overstated the case. Initially, I thought he was falling into the schoolboy error of overstating people’s case in order to knock it down more easily. Then, however, I realised that he actually believes this stuff.

The hon. Member for North Ayrshire and Arran (Katy Clark) pointed out some problems that will arise and spoke about the misery that will be caused. The hon. Member for Bolton South East (Yasmin Qureshi) said that, in reality, spare rooms are not spare. My hon. Friend the Member for Carmarthen East and Dinefwr (Jonathan Edwards) outlined some of the factual background and outlined ways in which these sort of problems are tackled elsewhere—in Ireland and the USA, for example.

The hon. Member for Inverclyde (Mr McKenzie) supported the motion, and the hon. Member for Swansea West (Geraint Davies) spoke in his own inimitable style about the impact on working class people. The hon. Member for Rutherglen and Hamilton West (Tom Greatrex) talked about the problems for foster parents, which are indeed severe and need to be looked at again.

The hon. Member for Bishop Auckland (Helen Goodman) gave us a very interesting account of her attempts to live on benefit. It might well be a salutary lesson for some Conservative Members to repeat the experience she had in that respect. The hon. Member for Edinburgh East (Sheila Gilmore) outlined many of the practical difficulties, while the hon. Member for Glasgow North East (Mr Bain) talked about the macro-economic effects and the blow to local economies.

The hon. Member for Dumfries and Galloway (Mr Brown) spoke about the effects on disabled people and on the poorest, and called for ameliorating measures. The hon. Member for Bolton West (Julie Hilling) talked about the effect on local housing providers and the effect on real families—not the families of the Government’s imagination. The hon. Member for Llanelli (Nia Griffith) talked about the inflexible nature of the housing stock and the consequences from it, while the hon. Member for Strangford (Jim Shannon) gave us a welcome perspective from Northern Ireland and spoke about the problems this penalty will cause there. Last but not least, the hon. Member for Copeland (Mr Reed) said that what we have heard this afternoon is only the tip of the iceberg.

As I said, we have heard 26 speakers. However seductively the Minister will present her arguments, it is clear to the House this afternoon that the Government’s main aim is to cut the housing budget, taking money from the pockets of some of those least able to afford it. As has been said, two thirds of those affected are disabled or have disabled partners, and I point out that half the people affected have been tenants for 10 years or more. Conservative Members are fond of complaining about crime and disorder on estates. These longer-term tenants are the sort of people we want to stay on estates to give leadership to the local communities, but they are the people who will be moved on by this penalty.

As has been mentioned, 46% of housing benefit claimants will be affected in Wales compared with 31% for Great Britain in general, showing that this is a particular problem for Wales. My own local authority of Gwynedd is a case in point as 1,378 families will lose between £8 and £24 a week. If they try to follow the Government’s advice and move within the housing stock, they will encounter difficulties, especially if they try to move into the private sector. People wanting to move within the stock in Gwynedd will face competition from the tourism industry, which has proper needs that should be addressed by the local housing stock. In the city of Bangor, the people wanting to move will be competing with many thousands of students. What are they looking for? They are looking for one-bedroom or two-bedroom properties—for small places. Those will be the local effects stemming from this change.

The Government say, of course, that people could find work. Average incomes in my area are £15,000 a year, and I have no idea how people are going to find the £700 to pay this penalty when they are not able to move. I do not think that the Government have thought that through; and if they have thought it through, they do not care. I can tell the Minister that it is not just a matter of taking up a few hours of extra work serving in a shop or working in a care home. Taking more work is not a possibility when hundreds of people are chasing every job, and when disabled people always come at the end of the queue when the jobs are being handed out.

Perhaps we should be charitable to the Government. They say that they are introducing this change to improve occupancy, and—as the Under-Secretary of State for Wales, the hon. Member for Preseli Pembrokeshire (Stephen Crabb), said this morning—to alleviate homelessness. However, there are currently 19,000 homeless people in Wales, and I think that this measure will merely add to that total. Some people will say, “We will pay.” Some will say, “We will do without, and we will pay.” Some will be forced to say, “There is nothing left to do without, and we will not be able to pay.”

It seems that it is up to me, as a mere Welsh nationalist, to draw the Government’s attention to the English saying “An Englishman’s home is his castle.” They assail that castle at their peril.