Housing Benefit

Ian Swales Excerpts

Tuesday 12th November 2013 Commons Chamber

[Ian Swales (Redcar) (LD)]

I previously opposed this policy not because I think we should necessarily pay money for spare bedrooms, but because the consequences that we have heard about today were highly predictable, and I shall speak about some of them. It is no wonder that we have a crisis in rents and social housing availability when 421,000 social houses were lost under the Labour Government—a truly shameful record.

We have also heard about the different effects of the policy in different parts of the country, and I find myself identifying most with the hon. Member for Liverpool, West Derby (Stephen Twigg), given the characteristics of my constituency. Social housing is in reasonably plentiful supply and regeneration is required in many areas, but we are now getting housing blight because of the availability of three-bedroom houses that people do not want to take. Previously, smaller family units were put into those houses, but people will not take them now.

As most hon. Members have said, there is a suitability of stock problem. My constituency made the front page of the newspapers after a calculation that said it would take 37 years to make available one-bedroom accommodation to all those who need it.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

The hon. Gentleman is making some interesting points. I recognise that situation in Newcastle. Given that Government policy is punishing people for a problem—the stock available—not of their making, will he vote with the Opposition?

[Ian Swales]

I worry that housing policy tends to be dictated from inside the M25. It becomes less appropriate the further away from the M25 that we go.

My constituency has a discretionary housing payments problem. The last figures that I have seen show that there were 1,307 applications, but that only 358 awards were made. That happened because the money ran out, not because the applications were inappropriate.

We also have a one-size-fits-all penalty in the calculation for the amount of the spare room subsidy. In my constituency, the cost of an extra bedroom is about £7, but people are penalised by about £11. Therefore, people who should move from a three-bedroom property to a two-bedroom property get less housing benefit than they would get if they were in a two-bedroom house, which is deeply immoral.

Like many hon. Members, I have campaigned on various issues. I am pleased to welcome the Government’s concessions on foster parents, serving military personnel and disabled children. I also welcome the trebling of discretionary housing payments, but there is a lot of unfinished business. The hon. Member for Aberdeen South (Dame Anne Begg), the Chair of the Work and Pensions Committee, made some good points. I would make a plea for the exemption of disabled adults. Children are exempt when they need separate bedrooms for medical reasons. Let us do that for adults, instead of making people go through the demeaning process of applying. In my local council, people have to apply every quarter, and the application form is deeply intrusive.

As the hon. Member for South Derbyshire (Heather Wheeler) has said, many people are perfectly willing to move to right-size accommodation, but it simply does not exist anywhere in their area. In the north of England, we have a shortage of one-bedroom accommodation. In fact, some one-bedroom accommodation is being demolished in my constituency.

[Steve Webb]

My hon. Friend is making a thoughtful speech. I assume that he has a Labour-run local authority. If it has told him that the money for discretionary housing payments has run out, will he ask it why it has not applied for our additional funding? It appears not to have done so.

[Ian Swales]

I thank the Minister for that response. His announcement of that extra funding is the first I have heard of it. I will ask my local authority why it has not applied.

We need to recognise that some people simply cannot afford right-size accommodation and that it does not exist in their area. The Government should seriously consider a policy of treating those people as willing but unable to move and give them concessions in the system.

In my area, there have been some helpful consequences. I have been thanked by a number of families who have managed, owing to the policy, to get a bigger house in the area where they want to live. One social housing provider I met was surprised by the number of large families moving into their houses from overcrowded private rented accommodation. I do not know why that provider was surprised; surely, we ought to have expected that. Only the week before last, I was in an excellent hostel run by Coatham House, a charity in my constituency for homeless young people. It has said that it has seen a dramatic fall in the number of homeless young people. It put that down to the policy. Hon. Members might think there are bad reasons for that—I can think of those, too—but there might also be good reasons.

Many points have been made in the debate. The hon. Member for Gateshead (Ian Mearns) mentioned the financial stability of some of the stock transfer social housing providers. Some of them are highly leveraged and threatened by arrears, which will increase when direct payments begin. They could find themselves financially unstable.

I welcome the Government’s efforts to free up the system. One of the first cases that I dealt with as an MP was that of a single man living in a three-bedroom house. He wanted to downsize, but the system was so rigid that he was told that he would be moved to the bottom of the waiting list, with no guarantee of how and when he would get his next social house. Guess what? He did not move. I welcome that the system has, to an extent, been freed up and that exchanges are happening more often.

I welcome the continued commitment to review the policy, as it does need continual review. Despite the views that I have expressed in my speech, it is hard to welcome the hypocrisy evident from the Labour party on this issue. I look forward to the Minister’s response.

[Mr Speaker]

Order. I am sorry to disappoint the House, but speeches have tended to be at the limit, with lots of interventions taken. I have to reduce the time limit with immediate effect to four minutes, otherwise colleagues will not get in. People do not have to take the full time, but they can.

--- Later in debate ---

[Kate Green]

My hon. Friend is absolutely right. Let us remember that disabled people’s options are more limited. A number of hon. Members have said that people should work, or work a few more hours a week. Often for disabled people it is particularly difficult to work or to do extra hours, and as my hon. Friend the Member for Worsley and Eccles South (Barbara Keeley) pointed out, that is a particular challenge for carers. One point that I do not think has been made, but which is extremely concerning for disabled people, is that many local authorities are treating disability living allowance as income when calculating someone’s entitlement to discretionary housing payment. That is a disgrace. I have challenged the Minister on that before, but he has declined to take action to ensure that all local authorities of whatever political colour have clear guidance on how they should treat the DLA.

As colleagues have pointed out, the policy will not achieve the savings that have been expected and scored by the Government because of the extra cost of having to adapt, readapt or undo adaptations to homes and, as my hon. Friend the Member for Hammersmith (Mr Slaughter) pointed out, because of the extra high cost of rent and therefore housing benefit in the private rented sector. There are the implications of higher levels of arrears and the extra cost of advising people in arrears, and of collecting and managing arrears. There is also, of course, the impact on the financial standing of housing associations. The policy is damaging their credit rating and cash flows, and makes it more difficult for them to undertake the new builds we desperately need.

As colleagues have said, we will see extra costs for local authorities, children’s services, the health service and so on, and we also highlighted the utter perversity of the fact that being in arrears means someone will not get another tenancy in a small property unless and until those arrears have been cleared. That is simply not possible for many families.

We were pleased—surprised, I think—to hear the Minister of State say at the beginning of the debate that if it turned out that the discretionary housing pot in a local authority was fully committed, more money would be made available. That was encouraging, and we would welcome his colleague repeating that commitment. Let us remember, however, that the discretionary housing payment is temporary, transitional and—as its name suggests—discretionary. In many cases, we have instances of local authorities denying people access to that pot of funding, and actively discouraging people from going to appeal.

The most cruel part of the policy is the lack of suitable alternative homes for people to move to. There is a lack of one-bedroom properties in certain parts of the country and, increasingly, three-bedroom properties are left lying empty. How can that be sensible? People are being forced to leave sheltered accommodation that, by definition, cannot be taken up by families who do not have the special needs or meet the criteria to live in those homes.

Hon. Members on both sides of the House have rightly said that the answer to the problem is to build more housing. I am proud that Labour has committed to building 1 million new homes—[Interruption.] Let me address Labour’s record on housing. Between 2000 and 2007, the Labour Government increased the number of additional net new homes in every single year. The Department for Communities and Local Government figures from last week prove that. The number of net new homes has declined in every year since 2007, including under this Government.

[Ian Swales]

rose—

[Kate Green]

I will not give way.

In 1997, when Labour returned to power, the Labour Government inherited an urgent priority to deal with the appalling quality of the housing stock. Our priority was to bring it up to decent standards. Of course, it would have been good to build more homes, but we had to bring existing homes up to a decent standard.

It is time to call a halt on the Government’s policy. A review in 2015 is too late. Labour will act as soon as it comes to power to abolish the policy, but I hope the Government commit to abolishing it now.