Local Housing Allowance

Jim Shannon Excerpts

Wednesday 15th March 2023 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to serve under your chairmanship, Ms Elliott. I congratulate the hon. Member for Arfon (Hywel Williams) on securing this Westminster Hall debate. Northern Ireland has a totally different system, so I do not expect the Minister to answer any questions about Northern Ireland. This is a devolved matter on which the Assembly takes decisions. However, I want to support the hon. Member for Arfon by illustrating how the local housing allowance is causing similar difficulties in Northern Ireland. I put on the record that I concur with and fully support his comments on the difficulties in his constituency and in Wales, as well as remarks of the right hon. Member for East Ham (Sir Stephen Timms) on the difficulties in England.

Housing allocation is done differently in Northern Ireland. The principle of shortfall housing allowance is a UK-wide issue, which is why I am here to support the comments. Almost 30,000 private renters in receipt of local housing allowance in Northern Ireland are facing a shortfall in their monthly rents. It is having a real effect. Among the biggest issues raised with my office are those of benefits and housing. If an issue combines both benefits and housing, that causes real difficulty. That is where I am.

I read an article this week that said that almost three quarters of housing benefit claimants living in private rented accommodation in Belfast are being charged more than their housing benefit allowance. This is replicated in Newtownards, the mainstay of my constituency, with a lack of one or two-bed properties meaning that people have to rent three-bed properties, which costs a lot for those on a smaller wage. In Northern Ireland and particularly in my constituency, rental accommodation costs far outstrip income and wages.

The local housing allowance in Ards is £83.53 per week, meaning a make-up of around £300 per month for those who rent accommodation. It takes a massive effort to squeeze the shortfall at a time when price rises are putting the pressure on. It is important to say that I recognise that the Government have taken many steps to try to help with the issue of price structures and increases, and I recognise the many good things that the Government have done. However, I think there needs to be a focus on this issue in particular, and I concur with the comments made by the hon. Member for Arfon and the right hon. Member for East Ham.

It is unsustainable for my constituents to have to make up £300 when the cost of gas and electric has trebled. Further information shows that in a workgroup covering Dunmurry and Lisburn—both in Northern Ireland—89.5% of claimants have a shortfall between the rent charged by their landlord and the applicable local housing alliance for the property occupied. That massive number indicates that this is an issue. Local housing allowance is used to calculate the level of housing benefit available to those living in the private rental sector. Over half of low-income renters—some 51%—surveyed across Great Britain in November said that their rent had increased. Research by Crisis on the cost of living provides a snapshot of the devastating impact of unaffordable housing. The hon. Member for Arfon illustrated that very well and evidentially in his contribution.

It is little wonder that we are in a housing crisis. In the past year alone, rents in Northern Ireland have risen at their fastest rate in 16 years, and have increased by an average of 11% across Great Britain. In the last year, listed rents in Scotland have increased by 13%, and by 15% in Wales. These are massive increases to try to keep track with. It has led to people applying for affordable social housing, which has in turn led to the Northern Ireland housing statistics for 2020-21 showing that some 44,000 people were on the Northern Ireland Housing Executive waiting list as of 31 March 2021. Of those 44,000, just over 30,000 are in housing stress. That means that three quarters of those people are in housing stress through attempting to address the issue of rent.

I will conclude, as I want to give the hon. Member for Neath (Christina Rees) the chance to participate. For me it is abundantly clear that if we address the issue by making the local housing allowance come close to covering basic rent, we will allow those who are working and able to cover a small difference to come off the list, thereby allowing those who need full rent coverage to access social housing. Families are under pressure and inflation has risen, along with the price of groceries, energy and fuel. The price of every single item has increased. I heard on TV this morning that every foodstuff has increased by between 17% and 19% in the last few months. The rates will increase again this year. That automatically results in an increase in outgoings, but the incomings simply cannot meet the cost. That is a fact.

I agree with the assessment made by Crisis, which did a case study of a lady who could make her rent payments but could not afford to heat her home or eat three times a day. This is the depth of crisis that homelessness statistics do not show—those who have walls but do not have a home. That has to be addressed.