Housing Benefits (18 to 21-year-olds)

John Healey Excerpts

Tuesday 7th March 2017 Commons Chamber

[John Healey (Wentworth and Dearne) (Lab)]

(Urgent Question): To ask the Minister if she will make a statement on the impact on homelessness of the Government’s plans to remove automatic entitlement to housing benefit for 18 to 21-year-olds.

[The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)]

From 1 April, automatic entitlement to housing costs will be removed for some 18 to 21-year-olds. This is a Conservative manifesto commitment and it was formally announced as a Government measure in summer Budget 2015.

This policy removes a perverse incentive for young adults to leave the family home and pass the cost on to the taxpayer. This is about stopping young people slipping straight into a life on benefits, and it brings parity with young people who are in work but who may not be able to leave the family home, while an unemployed young person can do so.

We have always been clear that this policy will have a comprehensive set of exemptions, to make sure that the most vulnerable continue to have the housing support that they need, so the policy will affect only those who have no barriers to work and who are unable to return safely to their parental home. In addition, there is a time-limited exemption for those who have recently been in work. The policy will apply only to those in universal credit full service areas who make new claims or whose earnings drop below the in-work threshold after that date.

The policy will be implemented at the same time as the new youth obligation, an intensive package of labour market support for young people from day one of their claim. With new support available under the youth obligation, more young adults will move into work, significantly improving their current living standards and future prospects.

[John Healey]

My urgent question—this concern is shared by Members on both sides of the House—was: what assessment has been done of the impact of the cuts on homelessness? With respect to the Minister, she has made a statement but she could have given a one-word answer, which is “none”. No impact assessment was published with the regulations on Friday. Why not? How many young people will now be denied all help with housing benefit? There are 1,741 18 to 21-year-olds in the Minister’s county of Hampshire claiming housing benefit. How many of them will still get help next month, and how many will get nothing?

The Minister may not have done an assessment, but the charities that work day in, day out to help the homeless in all our constituencies have done so. Centrepoint says that 9,000 young people will be put at risk of homelessness. Shelter says that

“there is no way this isn’t going to lead to an increase in rough sleeping.”

Crisis, which drafted the very important Homelessness Reduction Bill promoted by the hon. Member for Harrow East (Bob Blackman), says that the policy “runs entirely counter” to the aims of that Bill, and that it

“could spell disaster for the many vulnerable young people rightly entitled to help.”

Surely the Minister does not think that those charities are wrong. If she knows they are right, surely the Government are not going to go ahead with these cruel and counterproductive cuts.

Members on both sides of the House have deeply held concerns about the rapidly rising level of homelessness in our country. Will the Minister accept that none of the arguments that she has made today or previously really stack up? She says that this is about levelling the playing field, but these young people, who are old enough to marry, work, pay taxes and fight for our country, will now be denied the same right as other British adults to basic help with housing costs.

Ministers have said that the exemptions will protect the vulnerable, but the National Landlords Association declares:

“Never mind the nuances, all landlords will hear is that 18-21 year olds are no longer entitled to housing benefit…they just won’t consider them as a tenant.”

Ministers have said that this will save money, but once the knock-on costs to other services are taken into account the saving will fall to only £3.3 million.

The Minister talked about the manifesto; it contained a commitment to remove the “automatic” entitlement. Claimants already have to pass multiple checks and tests, so there really is nothing automatic about young people getting housing benefit. Will the Minister recognise that the Government have the opportunity in tomorrow’s Budget to reverse this counterproductive policy? Will she leave the House this afternoon and tell the Chancellor that if he does so, he will have the fullest support not just from Opposition Members but, I suspect, from Members across the House?

[Caroline Nokes]

The right hon. Gentleman raised the issue of those across the country—he specifically mentioned Hampshire—who are already in receipt of housing benefit. They will have transitional protections and will not be affected. So when he asks how many in the county of Hampshire will have their housing benefit withdrawn, the answer is none, the same as for every county. He also raised the case of those who are serving in the armed forces, of taxpayers and of couples who have children. If he looked at the list of exemptions that was published on Friday, he would see that those are all included.