Oral Answers to Questions

Debate between John Leech and Iain Duncan Smith

Monday 8th December 2014 Commons Chamber

[Mr John Leech (Manchester, Withington) (LD)]

10. What estimate he made of the potential savings to the public purse that would arise from implementation of the under-occupancy penalty; and what estimate he has made of the amount saved to date by that implementation.

[The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)]

Before our reforms, the taxpayer had been paying for 820,000 spare rooms. To date, the policy has saved about £830 million from the housing benefit bill, and the estimated savings remain the same: approximately £500 million a year in 2013-14 and 2014-15. Those figures have been ratified by the Office for Budget Responsibility.

[Mr Leech]

How many people have been forced to move from social housing into more expensive private rented accommodation, where the housing benefit bill has actually risen, and how much has it cost the Department?

[Mr Duncan Smith]

Each local authority is dealing with this matter differently. We have given a huge amount of support, through the discretionary housing payments, so some will move, some will not, and some have had their rents dealt with and have stayed in place. We have trebled the support to £345 million, and more than 392,000 DHP awards were made last year. As I said, each authority is doing it differently. For example, Sheffield city council is using DHPs to pay removal costs and provide decorating, while Southwark and Islington councils are paying additional incentives through mutual exchanging with overcrowded households. They are all doing different things, but they are basically getting it right. We were warned that arrears would rise, but actually housing association arrears are lower than they were last year.

Oral Answers to Questions

Debate between John Leech and Iain Duncan Smith

Monday 18th July 2011 Commons Chamber

[Mr John Leech (Manchester, Withington) (LD)]

T8. The overall cap on benefit will result in some larger families living in expensive rented accommodation through no fault of their own being expected to live on £100 a week. May I suggest to the Secretary of State that the solution to that problem is to have two completely separate caps—one for housing benefit and one for the rest of benefits—so that families will not be left in poverty simply because of which part of the country they live in?

[Mr Duncan Smith]

The purpose of the cap is not to make people homeless or put them in difficult situations; the purpose is to try to restore the balance, so that when people enter work they do not suddenly have to lose their house because, owing to the withdrawal of housing benefit, they can no longer afford to pay for it. It is not a kindness to leave somebody in a house that they cannot afford and then put them through all that difficulty when they go to work. We are certainly looking at all those transition issues, and we will discuss them further with my hon. Friend.