Housing Benefit

Jim Shannon Excerpts

Tuesday 12th November 2013 Commons Chamber

[Nic Dakin (Scunthorpe) (Lab)]

North Lincolnshire Homes is a social housing provider for my constituency, and I wish to share some of its observations about this tax, which is bad in principle and bad in practice. First, it told me that the worst aspect of the tax is that it is retrospective and that 95% of the problem flows from its retrospective nature. There are not enough smaller properties for affected households to downsize to in our area. North Lincolnshire Homes has about 10,000 homes, with 1,500 households affected by the tax. If it were to move them to properties that became available, it would take six years to move all the households affected.

Some people are already moving into more expensive private rented properties to escape the bedroom tax. Oddly, a two-bedroom property in north Lincolnshire can rent for £92.41 and rent on a typical three-bedroom property is £78.35, so the £92.41 will be paid by housing benefit when people have moved into the private sector, rather than the other way round. The impact of this tax on the public purse is thus absurd. People are falling into arrears. Rent arrears among the 1,500 affected households have increased by about £150,000 since April. The policy is not working financially and it is not working for the people in my constituency who are suffering as a result.

[Jim Shannon (Strangford) (DUP)]

Barnardo’s today expressed grave concern about the effect that the bedroom tax is having on families and, in particular, on children. Does the hon. Gentleman agree that families and children are experiencing worse times because of the tax?

[Nic Dakin]

Many people have given examples of how families are being affected. Carers, people with disabilities and people who have access to their children overnight for short periods are all being affected. All Members on the Opposition Benches have had those people coming to our surgeries, so while listening to the contributions from many Government Members, I wondered whether they live in the same country as us. I really do not know the answer.

North Lincolnshire Homes is having to spend £200,000 a year on providing additional help to try to get people to move. That is an additional cost, and the money would be better spent on building new houses better to address the problem. North Lincolnshire Homes has seen a 150% increase in the number of properties that it is struggling to let, with many larger properties lying empty. These are the economics of the madhouse—it does not make any sense at all.

Let me highlight the case of one constituent to illustrate again, through a story, how the tax impacts on individuals. Richard lives in a three-bedroom house and has suffered a severe stroke. He is completely wheelchair-bound, has lost the use of the left side of his body and is without speech. His only means of communication are his laptop and text messages. In late 2012, £30,000 of public money was spent on converting his house to meet his needs, including a full wet room and a downstairs living area. Since the introduction of the bedroom tax in April 2013, he no longer receives full housing benefits to meet his rent and is struggling to make payments. He, like many others, has fallen into arrears. Adapting another property to meet his needs would involve a substantial cost. The situation is causing him massive stress and worry and contributing to his poor health.

I hope that the Minister is listening, as she appears to be. The sadness is that there are many Richards up and down this land who are suffering in the same way. I do not think it is proper for the situation to continue. Today has given people the opportunity to listen to the strength of the debate in this Chamber, which echoes the strength of feeling outside it, and for us to do something about the issue before it is too late.