Oral Answers to Questions

Jeremy Corbyn Excerpts

Wednesday 16th January 2013 Commons Chamber

[The Prime Minister]

I am very happy to discuss this issue with my constituency neighbour, who rightly praises the fantastic work carried out by the National Star college. It does an excellent job in improving the life chances of young people. I know that the college has concerns about the new funding system and that my hon. Friend has contacted the Minister responsible. We are changing the way in which funding is allocated, but that does not necessarily mean that the funding will be cut. I am very happy to discuss this with my hon. Friend, but the new funding system does allow local authorities to have more say in how the funding is distributed, and I am sure they will want to recognise excellent work, including from this national college.

[Jeremy Corbyn (Islington North) (Lab)]

Q6. Is the Prime Minister aware of the trauma facing thousands of families, particularly in London, who live in private rented accommodation, where the housing benefit payments do not meet the rapidly increasing rents? These people are then forced out of their homes and out of their boroughs, and the community suffers as a result, as does the children’s education. Does he not think it is time to regulate private sector rents and bring in a fair rents policy in this country, so that families are not forced out of the communities where they and their families have lived for a very long time?

[The Prime Minister]

The hon. Gentleman must recognise that we inherited a housing benefit system in London that was completely out of control; some families were getting as much as £104,000 a year—that is for one family for one year. Even today we are still spending about £6 billion on housing benefit in London. We have to recognise that higher levels of housing benefit and higher rents were chasing each other upwards in a spiral. I do not support the idea of mass rent controls, because I think we would see a massive decline in the private rented sector, which is what happened the last time we had such rent controls. We need proper regulation of housing benefit, and we need to make sure that we have a competitive system for private sector renting and that we build more flats and houses.