Housing Benefit (Abolition of Social Sector Size Criteria)

John Howell Excerpts

Wednesday 17th December 2014 Commons Chamber

[John Howell (Henley) (Con)]

I am amazed that the Labour party wishes to portray the withdrawal of the spare room subsidy in the light it does. It seems to have forgotten that it introduced similar rules in the private rented sector, as was illustrated by my right hon. Friend the Member for Banbury (Sir Tony Baldry). Difficult decisions have not been made regarding the social housing stock; instead they have been ignored.

It is appropriate that tenants make a contribution towards their rent if they are living in accommodation that is too large. As I will illustrate, the majority of tenants in the district I represent agree with this change, which will bring the social housing sector into line with the private rented sector. With that in mind, I looked at how the change was affecting people in the district in which I live. This debate needs that level of analysis to show that the charge is not affecting many people and that there is widespread agreement on the need for tenants to contribute to their rent, which we are all paying for, or to move out of houses that are seen to be too large for their needs.

There are almost 7,000 recipients of housing benefit in my district, of which almost 3,000 are in the private rented sector, which leaves 4,000 in the public rented sector. At the beginning of April 2013, the total number of social tenants having their housing benefit cut by the withdrawal of the spare room subsidy came to 474. By September 2014, this had fallen by 27%. In April 2013, the numbers affected amounted to 7% of the housing benefit case load; by September 2014, this had fallen to 5%. That is not a lot, but I believe passionately that the interests of those affected should be looked after.

For that reason, I looked at the discretionary housing payments. In the first period, 212 people applied for DHP. Of these, 139 received awards, leaving a total of 79 who applied but were rejected. Of those 79, only one appealed, and the officer’s decision was upheld. This year, the number of applications dropped from 212 to 40. Awards were made to 27; 13 were refused. Of those in receipt of DHP in July 2014, more than half accepted they needed to make up the deduction, while a total of 32% had either moved to a smaller property or returned to work and were no longer eligible for housing benefit. This is in a constituency where the unemployment rate has successfully dropped to 278.

Social housing tenants accept that they need to contribute to their rent or find work. Furthermore, there has been no significant impact on homelessness, and there remains an ongoing duty to accommodate homeless people. In 2012-13, homelessness stood at 44; in 2013-14, it stood at 40; and in 2014-15, it stood at 34. By the end of 2013-14, the level of rent arrears stood at 1.7% against a target of 2%. There is no denying that the spare room subsidy has affected a number of households, but the impact has not been widespread and many are accepting that they need to share the costs of this accommodation. That is in a district that is building accommodation that is suitable for people to move to as quickly as possible.