Housing Benefit

Jeremy Lefroy Excerpts

Tuesday 12th November 2013 Commons Chamber

[Jeremy Lefroy (Stafford) (Con)]

It is an honour to follow the hon. Member for Westminster North (Ms Buck) and my hon. Friend the Member for Finchley and Golders Green (Mike Freer), both of whom illustrated the passionate arguments on both sides of the debate. On one side, there are the concerns about overcrowding, and many constituents have come to see me about that. One constituent, in particular, has been trying for 10 years to move out of her two-bedroom house with her partner and three children and into a three-bedroom house. On the other, there are concerns about people who find themselves in the position the hon. Member for Westminster North has just outlined.

Housing policy in this country has been in a bit of a mess for years, under many Governments. I remember the attempt at housing market renewal in north Staffordshire, when the previous Government tore down hundreds, if not thousands, of perfectly good houses in an attempt to boost house prices. What a misguided policy.

[Emily Thornberry]

Does the hon. Gentleman agree that it is a sensible policy to interview people in social housing as they reach retirement or as their children leave home and discuss the possibility of their moving into homes for life so that they can give up the three or four-bedroom houses in which they have brought up their families and hand them over to families who need them?

[Jeremy Lefroy]

That is an eminently sensible policy and I am glad that the hon. Lady has raised it.

The Government’s amendment

“notes the Government’s continuing commitment to monitor the effects of the policy and the use of Discretionary Housing Payments”.

I welcome that openness. Indeed, this debate is a good opportunity, about seven months into the policy, for the Minister to hear about what is taking place on the ground. Having yesterday met local authorities from the area that I represent, I want to give a few figures and describe a bit of the experience that they set out to me.

As of 30 September this year, in just a small part of my constituency and in one of the social housing providers, 371 out of 467 affected households were in arrears—over three quarters. Another provider had 19 affected households that were at “notice seeking possession” stage. That has arisen only since April, although, importantly, I understand that those 19 households are now being sorted out through the application of discretionary housing payments.

[Chris Ruane]

I believe that £100 million has been set aside for DHP, but that it is going to be cut by 33%. What impact does the hon. Gentleman think that cut will have on the tenants he is talking about?

[Jeremy Lefroy]

I thank the hon. Gentleman for his intervention. I will come to that later in my speech. Discretionary housing payments are extremely important because they provide flexibility; indeed, I would wish for a bit more flexibility.

My authority is working very hard to assist people who are in difficulties as a result of this policy. I want to draw out a number of things from its experience. First, it is vital, as the hon. Member for Islington South and Finsbury (Emily Thornberry) said, that local authorities work with social housing providers to help all those affected.

[Lilian Greenwood]

Will the hon. Gentleman give way?

[Jeremy Lefroy]

This will be my third intervention, but as it is the hon. Lady, I will.

[Lilian Greenwood]

I wonder how it will be possible for local authorities to help all those who are affected. Nottingham was allocated £696,000, and over 6,000 tenants in the city are affected. Its total missing housing benefit amounts to over £4 million. It is no surprise when Nottingham City Homes tells me that over half its tenants are in arrears. There is simply not the money to assist all those who are affected.

[Jeremy Lefroy]

I am sure that the Minister has heard that. He mentioned the extra £20 million, which I should hope that Nottingham would bid for. Perhaps that sum could be increased; in fact, that is something I would ask for.

Discretionary housing payments are extremely important, as shown by the experience of my local council. As the Chair of the Select Committee, the hon. Member for Aberdeen South (Dame Anne Begg), said, the system needs to be administered more flexibly so that, perhaps, hard cases that are currently excluded are included. Again, I am sure that the Minister is listening.

We have heard about tenants getting into debt and therefore being unable to move. That Catch-22 situation has to be dealt with. People who are in arrears must be able to move if they are in arrears as a result of this policy and not of historical arrears. The Government could consider the rates that are charged, which are set at 14% and 25% for one-bedroom and two-bedroom properties. Perhaps there could be a lower rate that was increased gradually over the years as additional appropriate housing was provided. This must not result in evictions. Some councils have no-eviction policies, and that is a very commendable approach. I would look for all possible measures to be taken prior to eviction being enforced.

Many unintended consequences of the policy were mentioned by the hon. Member for Liverpool, West Derby (Stephen Twigg) and, particularly in respect of rural areas, by my hon. Friend the Member for St Ives (Andrew George). Those need to be looked at very carefully, and am sure that the Minister will do so.

The Government could also look at the costs of administering social housing. Let me put this in perspective. In South Staffordshire, the discretionary housing payment pot is £90,000, and people are working very hard to make the system work. I was therefore a little surprised to read that the salaries and benefits of the directors of one of the local social housing providers were £223,000, £160,000, £149,000, £136,000 and £139,000. Given that those salaries are paid from the earnings and taxes of hard-working people, perhaps the Minister will look at how housing associations that pay such salaries could themselves contribute to discretionary housing payments.

The Government have committed to monitor the effects of the policy. This debate is a good chance for the Government to listen to reasonable suggestions for changes to the policy in the interests of all our constituents.