Welfare Reform Bill

Joan Ruddock Excerpts

Wednesday 1st February 2012 Commons Chamber

[Chris Grayling]

Indeed, and what my hon. Friend says makes all the more extraordinary the flip-flopping position that we have seen from the Opposition in the past few weeks.

A recent YouGov poll showed 76% support for the cap, confirming what all of us will know from our mailbags—that the vast majority of the general public agree with the Government. It is not just the general public as a whole who agree with us, it is Labour voters as well. More than two thirds of them support the principle of a benefit cap. They agree with us that it is wrong to pay people who do not work more in benefits than people earn on average when they do work.

The cap will set a firm upper limit on total benefit entitlement, which for families and lone parents will be equivalent to the average wage for working households. We estimate that to be about £500 a week or £26,000 a year, which is equivalent to gross earnings of £35,000 a year.

[Dame Joan Ruddock (Lewisham, Deptford) (Lab)]

I would support entirely what the Minister says but for the fact that in my constituency, rents are so high and housing shortages so great that people do not have a choice. They are obliged to rent properties that entitle them to higher housing benefit, which costs more than the cap. That is the fault of landlords for the rents that they charge, not of the poor people who have no choice and will become homeless under the cap provision.

[Chris Grayling]

The right hon. Lady uses the evocative word “homeless”, but what happens to people in her constituency who are bringing up a family and earning a salary of £35,000 a year? Should they pay for those who are not working to have a home at the taxpayer’s expense?

[Dame Joan Ruddock]

As the Minister will know perfectly well, families in work are entitled to housing benefit, and approximately half of housing benefit recipients in my constituency are working families.

--- Later in debate ---

[Mr Byrne]

They should be back in work, which is why we are so angry that unemployment is set to rise, rise and rise again over the course of this year.

[Dame Joan Ruddock]

Let me remind my right hon. Friend and, through him, the House that we are talking about benefits and caps that are completely and utterly inappropriate in London where many people in receipt of housing benefit because of high rents are in work. When they are told to move, as the hon. Member for Broxtowe (Anna Soubry) suggests, there is nowhere for them to move to. Our constituents are being told to move to outer boroughs, but Conservative Members know perfectly well that moving to Croydon, Bexley or Bromley is no solution for people who live in Lewisham, where rents are lower. Let me make a further point. I am told on good authority that Croydon, where it is suggested my constituents could move, is now looking to towns in the north of England to house its homeless.

--- Later in debate ---

[Richard Graham]

My hon. Friend raises a key point, and I will come on to the definition of “homeless” in a moment, as it is of significant interest.

[Dame Joan Ruddock]

We all appreciate that the hon. Gentleman’s constituents who are in work are hard-working and may be getting less than the national average wage, but will he acknowledge that they may well be entitled to a raft of in-work benefits such as working tax credit, child tax credit, child benefit and housing benefit? It is not a case of saying that people in work have only a certain amount of money and others should not have so much. There is a real difference between people’s overall entitlement and the simple figures about their wages.