Local Housing Allowance and Homelessness

Karen Buck Excerpts

Wednesday 24th July 2019 Westminster Hall

[Ms Karen Buck (Westminster North) (Lab)]

It is a pleasure to speak in this important debate under your chairmanship, Mr Bailey.

Central London, which includes my constituency, is the largest private rental market in the country. There is not one property for rent in the entire borough available to people on the local housing allowance rate. That includes not only some of the high-value property in Knightsbridge and Belgravia, which I would not expect to be accessible to those on local housing allowance, but some of the poorest wards in the country, such as Paddington. It includes hundreds—probably thousands—of properties that were council flats, have been sold under the right to buy and are now rented back to private tenants. Flat 3, say, which is socially rented, costs £150 a week, yet the property next door, which is privately rented, costs £500 a week.

What does it mean that not a single person in my constituency can afford to rent in the private rented sector? It results in cases, such as one I received the day before yesterday, of a mother who has been privately renting for many years and whose landlord has evicted her through a no-fault procedure—no doubt, they will get more money from another tenant. The local authority has put her in emergency accommodation on the other side of London, as is often the case. That rent for emergency accommodation, incidentally, will be around £500 a week.

That woman has a child with a statement of special educational needs in the borough. The borough has now said that the care plan cannot be moved to another borough, so her child cannot get the 20 hours of educational support that they need in the borough where she is currently in emergency accommodation. She has to go through the whole statementing process again, but she will not be able to do that before September. Her child is clearly in need. I would say the local authority is in breach of its statutory duties. The mother is totally desperate.

Another mother has two children who are blind. She has been in the private rented sector a long time. She wanted to stay in the same area, because her two blind children know their routes to their school and college. However, the shortfall in her benefit payments is now so severe that she has to use all her children’s disability allowance to meet the shortfall. That is probably legal, but it is clearly not what that benefit is intended for.

The situation is even worse for young people: under-25s can only get a single room and under-35s are also constrained. I am currently dealing with the challenge of trying to get a number of young people away from serious gang violence. One young man was sleeping with a machete under his pillow, because he was so terrified. For seven months, we have been trying to find somewhere he could afford to rent in London—in London, not just in the borough. There was not one property available in my constituency that was affordable, and only 0% to 15% of properties in the whole of London are affordable.

I am sure the Minister will refer to the targeted affordability fund, which has, thankfully, stood between us and total meltdown, but those complicated additional top-ups into schemes are not the answer. They are bureaucratic and complex, and they do not last. Similarly, discretionary housing payment is cited, as if it could plug the gap. Arithmetically, we know that it does not. DHPs are intrusive and complex. One woman was absolutely howling with grief to me because when she was filling out the form for a DHP, to fill the gap on her private rented property, she was told by the officer that in her budget breakdown she could not include taking her disabled child to the cinema—that expenditure was considered to be unacceptable if she was going to make a discretionary housing payment. I am sure we all have many examples of such untenable situations.

We know that for the foreseeable future we have to place in the private rented sector people whose incomes are too low to pay the rents and who will not be able to get into the social rented sector because there is such a catastrophic shortfall of socially rented properties, given that the right-to-buy scheme was not replaced and new building has not happened. It is all very well talking about meeting new targets, but we know that there has been a 90% fall in construction of social housing in the last nine years.

If people will be in the private rented sector, we have to act on quality and security. The Government are making some noises on that, which is good. We also have to act on affordability. I have been working with Sadiq Khan; I am pleased that the Mayor is bringing forward proposals to look at rent control. For the foreseeable future, we cannot just pour public money into supporting rents, which are rising again after a short levelling off. We cannot just expect public money to fill that gap, so we do need that. In the meantime, while we are trying to build and while we are waiting for the Government to act on control of rents, we urgently have to close that gap.

That means ending the freeze and restoring the housing allowance, so that at least the 30th percentile of renters in every single rental market, not just a few, can afford housing—and we need to keep it there. Without that, we will find more and more people, such as my constituents, swelling the ranks of the homeless—we already have 58,000 homeless families in London alone. They will be driven deeper and deeper into poverty, which will scar their lives forever and from which it will take them many years to recover.

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[Alex Cunningham (Stockton North) (Lab)]

It is a pleasure to serve under your chairmanship this morning, Mr Bailey. I congratulate my hon. Friend the Member for Ealing, Southall (Mr Sharma) on securing this important and timely debate and on spelling out the reality for so many of our people. I also congratulate him on the 12th anniversary of his election to Parliament yesterday, which we were pleased to celebrate last evening.

As my hon. Friend said, we know that rough sleeping in London has hit a record high with an 18% rise on last year, but it is not limited to London. Since 2010, when the Conservative-Lib Dem coalition Government came to power, rough sleeping has more than doubled across England, and there is no one reason for that. There are ways that it could have been prevented, but successive Governments since 2010 seem to have been content to allow the numbers to escalate. Even when they have admitted that there is an issue, the Government have failed to act. Two Prime Ministers have seen the numbers grow on their watch. I wonder what the new one, due to be installed later today, will make of such a terrible legacy and what he will do to sort it out.

Our Governments and Prime Ministers have been too preoccupied with Brexit and internal warring, meaning that people across this country have been let down and forced on to the streets because they simply have no other option. It is not that the Government do not know what is happening to people who are being made homeless. Ministers are quite happy to turn up and spout at events like the recent one hosted by Crisis, but we know that for all their rhetoric and plans, rough sleeping has dropped by less than 2% in the past year. If it is to be eradicated, at that rate it will take 50 years to sort it out, so I am left with no other conclusion than to ask whether they simply do not care enough to act.

Let us look at what the Conservatives have done—the decimation of social housing up and down the country over recent years, a failure to build the social housing needed, and the erosion of the welfare state. Such failures have been major factors in generating a worrying rise in homelessness, and it is across the piece. The hon. Member for Strangford (Jim Shannon) is always in his place speaking up for the people of Northern Ireland. He made it very clear that the crisis here in the UK is reflected in Northern Ireland, too, and it is families that suffer as a result.

There is ultimately one root cause that must be tackled if we are serious about ending homelessness. We need to increase the availability and affordability of housing. Stable and secure homes will give people the best chance of moving on from homelessness, or preventing it altogether. Unfortunately, we are in a position where having housing for every person is seen as an ambitious goal when it should be the standard and the bare minimum. The Government have moved the goalposts of what is seen as reasonable and turned adequate housing for all into the unachievable.

We know that many people live on low incomes. A person could work 40 hours a week on the minimum wage and not be able to afford the cost of renting privately in some places in this country, especially if they have children. We should not have a race to the bottom where only those with higher incomes can afford adequate housing. Those on lower incomes deserve secure, decent living conditions with affordable rents, but that is not the situation in Westminster North, as my hon. Friend the Member for Westminster North (Ms Buck) said. Not a single home is available for low-income families and we have the lamentable situation where former council homes are now out of reach of the poorest people because of rents of as much as £500 a week.

On the need for social housing, the hon. Member for South West Bedfordshire (Andrew Selous) spoke of the need to build more homes more quickly. He talked about energy-efficient and bill-free homes, and he is entirely correct about that—no doubt about that—but the Government have built fewer than 7,000 new homes provided at social rent in England in 2017-2018, when what we need is 90,000 each year for the next 15 years just to tackle the backlog of housing need. People are being forced to turn to private rented housing. Although some positive moves have been made regarding tenant fees, affordability is still a major problem, even if people can find a property in the first place.

My hon. Friend the Member for Stroud (Dr Drew) spoke of private landlords refusing to take people on benefits. What does the Minister have to say about that? Is he surprised that private landlords are not always accommodating and understanding when their tenants are late with their rent payments? The reality is that families are being evicted because they cannot keep up with rent payments, and they enter undesirable living arrangements—sleeping on the floors of other family members, at best, and sleeping in cars and on the streets. We have heard other examples as well. Often it means that families are split up, leading to more pain and suffering.

Research from Crisis—we have heard much about its research—and the Chartered Institute of Housing has shown that cuts to local housing allowance rates mean that in 92% of areas in Great Britain, single people and couples or small families who need local housing allowance to pay their rent will struggle to find somewhere to live that they can actually afford. Until social housing can meet demand, people on low incomes must be able to find secure and stable housing in the private rented sector. Shelter has said that targeted affordability funding is not alleviating the problem. The top-up grant for areas most affected by the freeze in local housing allowance—just a 3% increase—has not worked.

[Ms Buck]

Will my hon. Friend join me in congratulating London Councils, which has been doing some excellent research? It found that, even over the period of targeted affordability funding, single rooms had declined in affordability by more than 10% since 2015.

[Alex Cunningham]

Yes, and what is happening in response? Very little. So much more needs to be done. The housing allowance is not allocated or based on how many areas are in need, just distributed to areas in a ranked order until there is no more money. In Shelter’s words, the affordability funding is

“not even close to plugging the gap.”

My hon. Friend the Member for Ealing, Southall proved that the housing crisis is very real with a series of case studies of real people and families in crisis. They are not just numbers in a table of statistics. My right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne) told us that we need to remember the names of some of the people who never found a home, and spoke of the memorial to Miguel in his constituency. He also spoke of children in his area who are taking their GCSEs while accommodated in the local Travelodge. I understand why he is asking the new Prime Minister to take action on that systematic failure.

I hope that the Minister remains in post, and can do something. As I mentioned, we will get a new Prime Minister today, and there will be a lot of shuffling around, but whether the Minister remains or provides a handover to his successor, I urge him to work to restore local housing allowance rates back to the 30th percentile of the market, as others have called for. We need to address homelessness with immediate effect, and provide a lifeline to people on a low income. We simply cannot afford not to.

I know that it can be easy to sit in opposition and criticise those making the decisions, but Labour has made some bold pledges that we will deliver when we win a general election. We will define affordable housing as linked to local income, and scrap the Conservatives’ so-called affordable rent home price, at up to 80% of market rates. We will stop the sell-off of 50,000 social rented homes a year by suspending the right to buy—I am pleased that the Scottish Government have done that already—ending all conversions to affordable rent, and scrapping the Government’s plans to force councils to sell their best homes.

We will back councils and housing associations with new funding, powers and flexibilities to build at scale. While we work to provide 8,000 homes for rough sleepers, we will provide local authorities with £100 million to deal with winter pressures and ensure that no one sleeps rough. We will also tackle the scandal of empty homes, many of which need upgrading to be habitable, and many more of which investors simply buy and leave empty, believing that the value will go up and they will make a financial killing.

The crisis is leaving families homeless because of the Government’s failure to act. Successive Conservative, and Lib Dem coalition, Governments have failed on housing and failed to end homelessness—no wonder people have no confidence in their housing policies. There is no doubt in my mind that it is time to act on house building and, in the meantime, on the local housing allowance, before even more families are shown the door and thrown out on to the streets.

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[Will Quince]

I have been a Minister for only three months and I keep all the policies in my remit at the Department under very close review. I regularly meet and have conversations with key stakeholders in policy areas such as this, to ensure that we are aware where policies are and are not working, and that we are alive to the issues. It will not come as a surprise to the hon. Lady that stakeholders in this area have flagged LHA rates as an issue. That is why we are looking at it very closely indeed.

The additional funding enabled us to increase 213 LHA rates—there are 960 rates in total—by 3% last year. This year, a total of £210 million has been made available: the highest amount of targeted affordability funding since its introduction in 2014. That has enabled us to increase 361 LHA rates by 3%. As a result, it is estimated that 500,000 households this year will benefit from an increase of around £250 a year.

In addition to that targeted affordability funding, the Government have provided more than £1 billion in discretionary housing payments to local authorities since 2011, which the hon. Member for Westminster North referred to. Discretionary housing payments allow local authorities to protect the most vulnerable claimants and support households affected by different welfare reforms, including the freeze to the LHA.

[Ms Buck]

The whole point of discretionary housing payments is that they are temporary, so they do not provide a solution to any of these problems.

[Will Quince]

Discretionary housing payments are a tool that is available—

[Ms Buck]

A temporary one.

[Will Quince]

Not necessarily. They have been available since 2011, and more than £1 billion has been made available to local authorities. Quite intentionally, we allow local authorities discretion on how it is used, and they use that money and use it well. There is an underspend in a number of local authorities, but it is a tool used by many local authorities to prevent homelessness. Where individuals or families are at risk of homelessness, local authorities will use DHPs to protect tenancies.

The hon. Member for Stroud (Dr Drew) has raised the point about broad rental market areas a few times; I note his concerns about the broad rental market area boundaries in Stroud and the wider area. As with all policies, we keep that under review, and I am looking at this very closely. I hope the hon. Gentleman will appreciate that any reform of the policy would be a significant and complex undertaking, given that there are 192 broad market rental areas across England, Scotland and Wales. We should be aware that any changes to the BMRAs and their boundaries are likely to create both winners and losers, so I have to give very careful consideration to the potential impact.

The hon. Gentleman also raised a point about “No DSS”—landlords not renting to those in receipt of benefits. The Prime Minister and No. 10 have taken that issue very seriously. I attended a recent roundtable with a number of stakeholders and we are working very closely with the Residential Landlords Association. Part of the issue is mortgage lenders and insurers. More and more mortgage lenders are now reducing or removing their restrictions on renting to those in the receipt of benefits—Metro Bank is the most recent addition to that list. There are a few still to go, and we still have to tackle the insurance market, as some insurance policies still do not allow people who buy to let to rent to those in receipt of benefits. We are looking at that area closely and are working with key stakeholders, because we very much want to fix this—to break the myth and challenge the ignorant belief that those in receipt of benefits are riskier tenants than those who are not, because it is absolutely untrue.

The hon. Member for Ealing, Southall also raised temporary accommodation. With other Government Departments, we are working to assess what more can be done to address the number of people in temporary accommodation. Time spent in temporary accommodation means that people are getting help and ensures that no family is without a roof over their heads. The Government have targeted funding streams focused on reducing the number of households in temporary accommodation as part of our £1.2 billion spending plan.

Workplace Deaths: Scotland

Karen Buck Excerpts

Wednesday 24th July 2019 Westminster Hall

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

Does the hon. Gentleman share the concerns expressed by National Farmers Union Scotland that the number of deaths in the agriculture sector increased by five to 13 in 2018-19? That happened despite the best efforts of the Farm Safety Foundation, the Health and Safety Executive and the NFU itself. In the UK as a whole, agriculture, forestry and fishing have the worst fatality figures of the main industrial sectors. Does he agree that the UK and Scottish Governments need to assist—

[Ms Karen Buck (in the Chair)]

Order. Interventions should be short.

[Hugh Gaffney]

I thank the hon. Gentleman, who makes the point very clearly. A lot of migrant workers come over to work in the agriculture business. One death is too many, never mind five.

There has not been a single prosecution in Scotland under the UK Corporate Manslaughter and Corporate Homicide Act 2007. It is clear that it is not fit for purpose. It has failed to make our workplaces safer, as highlighted by the increase in workplace deaths in Scotland last year. My colleague Claire Baker MSP presented a Bill in the Scottish Parliament that seeks to strengthen the law. It would create two kinds of statutory culpable homicide—where death is caused “recklessly” or by “gross negligence” on the part of an employer. That is the kind of change in the law we must seriously consider if we are to deter employers from action that may jeopardise the lives of their workers.

Households Below Average Income Statistics

Karen Buck Excerpts

Thursday 28th March 2019 Commons Chamber

[Amber Rudd]

The best way for poverty to be solved for families is for parents to be able to access full-time work. I know that the hon. Lady is referring to the fact that some of the people have access to work, but it is more important that they are also able to get into full-time work, which will help them reduce the poverty in their families.

[Ms Karen Buck (Westminster North) (Lab)]

The Secretary of State may talk of her compassion, but the facts are brutal, with rising poverty levels and the experience of children who live in poverty. Does she find it awkward that last week a report commissioned by the Government on the causes of homelessness found that among the key drivers were “reduced welfare and benefits” and “rising levels of poverty”? If she does find that awkward, what is she going to do about it?

[Amber Rudd]

As the hon. Lady will be aware, we have now seen a plateauing in the number of homeless people. We have a successful homelessness reduction strategy. I acknowledge that the number had gone up, but we are now seeing it come down, which shows that the homelessness strategy is working. We are committed to making sure that we continue it so that there are fewer homeless people across the country.

Oral Answers to Questions

Karen Buck Excerpts

Monday 18th March 2019 Commons Chamber

[Amber Rudd]

We have acknowledged that issue. I have announced that work coaches now have access to the flexible support fund so that they can give that money in advance and do exactly what the hon. and learned Lady is suggesting—giving that money to the people who need it when they are ready to pay for childcare to get into work.

[Ms Karen Buck (Westminster North) (Lab)]

10. What assessment she has made of the financial effect of the benefit cap on claimants who are not required to undertake a work search.

[The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)]

An evaluation of the cap, covering these groups, is expected to be published in spring 2019. Some claimants might not be required to look for work, but they are expected to undertake activities designed to help them prepare for and move closer to the labour market. Those needing additional help adjusting to the cap can apply for discretionary housing payments.

[Ms Buck]

But this is really missing the point. As the Work and Pensions Committee report made absolutely clear, the benefit cap should not apply to people who are not required to undertake a work search. Why are constituents such as mine having to find £50 out of their child benefit and child tax credits when they are in homeless accommodation and have no say over where they are accommodated and how much rent they are paying, or when they are exempted from a work search, including, in one case, when a mother had been fleeing domestic violence?

[Justin Tomlinson]

There are automatic exemptions for claimants on DLA, PIP, carer’s allowance, guardian’s allowance, working tax credits when working over 16 hours a week, universal credit when earning over £542, ESA support or the UC higher rate. Where they are not covered by that, discretionary housing payments can be used, and in that case they certainly should have been looked at favourably.

Universal Credit: Managed Migration

Karen Buck Excerpts

Tuesday 8th January 2019 Commons Chamber

[Alok Sharma]

I would like to think that I have a good working relationship with my opposite number in the Scottish Government and of course we will continue to work with them on a range of issues. It is important that we get this process right for everyone and that is our intention.

[Ms Karen Buck (Westminster North) (Lab)]

I served in 2011 on the Welfare Reform Bill which paved the way for UC, and it is clear that the questions the Government could not answer then about UC they still cannot answer now, eight years later—and a little humility on the part of the Minister would be very welcome. Does he recognise that managed migration clients will not for the most part be the same as roll-out clients? There will be a higher level of vulnerability, with many people unable—and will continue to be unable—to work because of sickness and disability? What extra provision is he building into the system to make sure even this pilot does not leave people with a debt crisis and at risk of losing their home?

[Alok Sharma]

The hon. Lady gets to the point of the pilot phase, as that is precisely what we want to make sure happens: we want to get this right particularly for the most vulnerable. We are working with a range of stakeholders. I set out in an earlier answer the work-streams we are working on, and we will continue to do that until we get this right.

Oral Answers to Questions

Karen Buck Excerpts

Monday 19th November 2018 Commons Chamber

[Guy Opperman]

If the individual claimant is vulnerable, there can be backdating, but for those who need extra support, there are advances of 100% from day one and also budgeting support. We are creating a brand new partnership with Citizens Advice to deliver a better universal support service.

[Ms Karen Buck (Westminster North) (Lab)]

New figures confirm that one in five jobs in London is now low-paid—below the London living wage. That is the highest proportion there has ever been, so working people are also in poverty and need the protection of universal credit, yet the qualifying period is casting many families into very severe hardship. What action will the Minister take to deal with that problem so that people can understand that work will pay, rather than casting them further into hardship?

[Guy Opperman]

The hon. Lady will be aware that the Government introduced the living wage, which is enhanced annually, and that we raised the tax threshold, which assisted individuals. She will also be aware that there is child support for education and that we are freezing fuel duty. All these cost-of-living measures have been of assistance to local people.

Universal Credit

Karen Buck Excerpts

Tuesday 16th October 2018 Commons Chamber

[Alok Sharma]

On rent arrears, the hon. Lady may have seen the report produced by the National Federation of ALMOs—I believe it came out in July—which stated that, of their tenants moving on to universal credit, 76% were already in arrears. That was before they moved on to universal credit. We introduced changes with the extra £1.5 billion to help people moving from housing benefit with their cash flow, giving them a two-week run-on, which does not have to be repaid. It is possible under universal credit to have alternative payment arrangements with payments made directly to landlords.

[Ms Karen Buck (Westminster North) (Lab)]

Has the Minister also seen the research that was published yesterday by the Residential Landlords Association, which found that two thirds of private landlords are concerned about universal credit tenants falling into arrears and that the average arrears owed has doubled in the last year? What urgent action will he take to resolve that problem?

[Alok Sharma]

As I said, we are rolling out the landlord portal for social housing, which is working. It is also possible for alternative payment arrangements to be put in place for tenants of private landlords—that is part of the system.

Oral Answers to Questions

Karen Buck Excerpts

Monday 15th October 2018 Commons Chamber

[Ms McVey]

I thank my hon. Friend for her question. I know how important youth employment is to her, and I know that she has visited her local jobcentre. She is quite right in saying that since 2010, youth unemployment is down by 48%. I remember when we brought in work experience, the Opposition were saying how awful it was and that it was slave labour and people did not want to do it—how wrong they were and have proved to be. We will be bringing more schemes forward, to make sure that we have record low unemployment for young people. That is what this party is about—youth and the future.

[Ms Karen Buck (Westminster North) (Lab)]

The growth in jobs is very welcome news, but at the same time, we have to tackle the rise in in-work poverty. For the first time in modern history, there are more families in poverty in work than out of work. The benefit freeze is a key part of that, and there is another £1.9 billion to come off working-age benefits in April. Will the Secretary of State be making representations to the Treasury to ensure that that does not go ahead?

[Ms McVey]

As I said earlier, I will not say exactly what I have been saying in private conversations, but the hon. Lady can be sure that I will be championing our claimants and making sure that what we do is fair to claimants and the taxpayer.

Oral Answers to Questions

Karen Buck Excerpts

Monday 21st May 2018 Commons Chamber

[Kit Malthouse]

It is typical of my hon. Friend that the welfare of children in his constituency should be uppermost in his mind. As I said previously, we are putting significant extra resources into the financial investigations unit and into making sure we are able to track down as much of the income as possible of parents who should be paying for their children. I am pleased to tell my hon. Friend that I recently instituted monthly meetings with the Child Maintenance Service to ensure that it lives up to the high standards of customer service that we expect.

[Ms Karen Buck (Westminster North) (Lab)]

T8. This morning I was contacted on behalf of a constituent who has an inoperable tumour on her spine all the way down to her pelvis, leaving her unable to walk and compounded by arthritis and severe depression. Her ESA has been suspended, her housing benefit has been suspended and she is now threatened with the possibility of eviction. Can the Minister help me make sure my constituent is protected? Can she also help me understand why so many disabled people feel they are living in a hostile environment?

[Sarah Newton]

Of course I would be more than happy to meet the hon. Lady urgently, because she raises a terrible case. [Interruption.] Let us remember that the vast majority of people claiming ESA or PIP get a really good service and get the benefits to which they are entitled.

Child Poverty: London

Karen Buck Excerpts

Thursday 22nd February 2018 Westminster Hall

[Ms Karen Buck (Westminster North) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Henry. I congratulate my hon. Friend the Member for Mitcham and Morden (Siobhain McDonagh) on introducing the debate so powerfully.

There is more than enough challenge to go around without us having to worry too much about the pressures between inner London and the suburbs, which we have already heard enough about. There are real and growing challenges in suburban London, but child poverty remains acute in inner London, and it is worsening. If London has something of a reputational challenge as a wealthy city, I assure hon. Members that the City of Westminster has an acute reputational challenge. The borough, which contains Mayfair and Knightsbridge, is one of the poorest in the country. It has the sixth highest level of child poverty in the country after housing costs are taken into account, and my constituency has the 15th highest; well over half the children in wards such as Church Street live in poverty.

As Londoners, we must rise to that challenge and recognise that people in other parts of the country struggle to understand that a city with such extraordinary wealth—a city that contains the City of London and the iconic tourist attractions that are so familiar to everyone—is also the region with the highest poverty. It has more children in poverty than Scotland and Wales combined. As Members of Parliament, we have to try to explain that and help people understand it. We must ensure that the specific drivers of poverty in London are understood, and that we get our fair share of resources.

Let me add to the comments by my right hon. Friend the Member for Enfield North (Joan Ryan). Poverty is not an act of God, but is brought about by a failure by the Government and by market forces to ensure that incomes are sufficiently high to lift children out of poverty, that housing is available at a reasonable cost, and that there are adequate services to support intervention for low-income families and children. I, too, am extremely proud that a Labour Government, although they were not perfect—no Government are—were able, though a mixture of the tax credit system, benefit changes and service delivery, to lift 1 million children out of poverty. That has gone into reverse: according to households below average income statistics, an extra 400,000 children have fallen into poverty since 2010. That was an absolutely foreseeable and deliberate consequence of Government policies, including the freezing and cutting of benefits, the two-child policy, benefit caps and the rents policy, which I shall come on to.

I am also proud of the children’s centres—500 have closed as a result of Government cuts to early intervention and local government funding—and national childcare strategy that a Labour Government set up. Under the previous Labour Mayor, Ken Livingstone, there was a London childcare affordability programme, which did so much to make childcare accessible to lower-income working families. So many of those measures have gone into reverse in the past few years.

As all Opposition Members have generally stressed, housing costs lie at the heart of poverty in the capital. It is housing costs that eat so much of people’s income, and it is housing costs that are driving a crisis of homelessness and housing insecurity. The interface between low-paid work, particularly when that work is insecure, the freeze and in some cases cuts in social security—particularly housing support—and high housing costs is a particular stress point.

Two important reports were published today, including another very important one by Citizens Advice, which found that one in 10 adults in this country has an income that varies from month to month. Someone who lives on a variable income, particularly when that income is low, but has high fixed costs—particularly high housing costs—is likely to find themselves in difficulty. That in turn feeds the epidemic of evictions, which we have heard are happening particularly in outer London, and high debt. That feeds the crisis of mental ill health—anxiety and depression—which is a real challenge for families who are struggling to get by on low incomes and in so many cases see their homes at risk. The pressures of housing and poverty are literally making people sick in their tens, if not hundreds, of thousands. That often drives people to seek advice and help, which are less available than they have been for a great many years.

It has already been said that the most vulnerable and most acutely disadvantaged families in the capital are those who are either in the homelessness system or at risk of homelessness. After many years of decline, the number of families in homelessness accommodation has risen significantly. Some 45,000 children in the capital now live in temporary accommodation, up from 28,000 when the Conservatives came into government in 2010. Those families often live in deeply substandard accommodation—unfortunately, temporary accommodation offers some of the worst conditions any of us have seen—yet they pay excessive rents. As a deliberate consequence of Government policy, those families also find themselves subject to rent restrictions and a benefits cap, even though no family that is accepted as homeless has any say whatsoever in the accommodation they receive, or the price they pay for it.

[Joan Ryan]

I wonder whether my hon. Friend has the same experience in her surgeries as I have in mine. Constituents come to see me who pay extortionate rents in the private sector for disgraceful property that is below habitable standards—it is damp, perhaps does not have hot water or heating, or has an out-of-date boiler—yet when I complain and try to get enforcement, they get what is called a revenge eviction and find themselves out on the streets. They have to go into temporary accommodation, they might be moved out of London, and their children might have to change schools. They continually suffer massive disruption to their lives.

[Ms Buck]

I totally agree. The Government will have to rise to the challenge of revenge evictions. That is well overdue. As was said, particularly by my hon. Friend the Member for Mitcham and Morden, that challenge is in part down to the fact that the face of poverty in London is increasingly in the private rented sector. We have seen a shift of low-income households from social rented accommodation into private rented accommodation, where rents are higher, insecurity is a constant problem and, because people on low incomes have so little choice in accommodation, people find themselves in the worst conditions.

[Siobhain McDonagh]

My hon. Friend is making her erudite, detailed knowledge obvious to everyone. Does she know that the Trust for London identified that the average family in poverty 10 years ago lived in inner London on welfare benefits in social housing, and today the average family in poverty in London live in outer London, are in work, and live in the private rented sector?

--- Later in debate ---

[Ms Buck]

That is absolutely right. That paints a picture of change, which, as a deliberate policy, has been into the private rented sector. The private rented sector is shifting further out, to outer London, and as has been said, the changing face of poverty is a working face: the number of families in poverty in work has risen sharply in the last decade. We all recognise that work is integral to getting out of poverty and to people’s sense of purpose and wellbeing in life, but work is not sufficient to lift people out of poverty. Above all, it is not sufficient for people faced with high housing costs.

Now, 43% of poor children in the capital are in private rented accommodation; that has increased from a third 10 years ago. The shift into the private rented sector is happening in large part because the social rented sector is in decline and no longer available for people to live in. People are being diverted into the private rented sector, even though their needs for security and affordability would be addressed far better in the social rented sector.

It gets worse: there has also been a deliberate policy of raising social rents above inflation, and shifting properties that were once attached to a social rent to a higher, “affordable” rent. In recent years, we have seen 100,000 properties converted from social rents to this Orwellian concept of an affordable rent, which traps even families who live in social rented accommodation into paying a much higher proportion of their income as rent than they were. That in itself is a reason why even in the social rented sector an additional 40,000 children now live in poverty.

A second report was launched today by Shout, the campaign for social housing, written for it by Capital Economics. It found that the policy of raising social rents is bad economics, as well as being bad for low-income families, because it reduces people’s ability to earn, and even families in homes for social rent are finding themselves unable to cover their housing costs. They will also increasingly be subject to the caps that flow out of the £25 billion taken out of social security expenditure by the Government.

We know, from the lived experience of British poverty in the last few years, that measures cutting social security, raising housing costs, reducing the availability of social rented housing and cutting vital support services do not work. We know that because poverty is going up, and it is predicted by the Institute for Fiscal Studies to rise sharply by 2021. As a consequence of those policies, we anticipate the first sustained increase in inequality in this country since the 1980s. We know from experience abroad that a policy that drives low-income families into high-rent accommodation does not work; it is bad for work incentives, and bad for those families.

The answer to all that—apart from unfreezing benefits, tackling the structural problems with universal credit, and dealing with issues such as the million children who, under universal credit, will lose entitlement to free school dinners—is to tackle the rent burden on families. That is best done by ensuring that low-income people have the opportunity to live in the social rented sector.

This was uttered today by the Conservative chair of the Local Government Association, in endorsing the Capital Economics report on the problem of high social rent:

“We have to let the state build and dispel the myth that state intervention is subsidy. It’s not. It’s investment in an asset”.

I do not often agree with leading Conservatives, but I firmly concur with that statement. As a famous song from New York City a few years ago stated, “The rent is too damn high”. Until we can tackle this problem, I am afraid we will be struggling with the problem of rising poverty in London.

[Several hon. Members rose—]

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Work and Pensions (Kit Malthouse)]

It is a great pleasure to appear before you, Sir Henry. I begin by congratulating the hon. Member for Mitcham and Morden (Siobhain McDonagh) on securing this important and very relevant debate, not least because I spent 16 years as a representative in central London, both as a councillor and as a London Assembly member—where I shared a constituency with the hon. Members for Westminster North (Ms Buck) and for Hammersmith (Andy Slaughter)—so I am well acquainted with some of the problems. Indeed, I started my career as a councillor as deputy chairman of the housing committee on Westminster City Council, dealing with the heavy investment that we made in the Mozart estate in Queen’s Park at the end of the 1990s, as the hon. Member for Westminster North may remember. This issue has been of importance to me in the past and remains so.

I emphasise from the outset that the Government are committed—the hon. Member for Mitcham and Morden referred to this—to building a country that works for everyone, where no one and no community are left behind. I completely agree that we must continue to provide appropriate support for the least well-off and the disadvantaged in our society, so that we can make a meaningful and lasting difference to their lives and outcomes and those of their children.

However, I was disappointed to hear the hon. Lady say, as I think she did on the record, that work is no longer the route out of poverty. The Government believe that work offers families the best opportunity to get out of poverty and become self-reliant. That is why we are undertaking the most ambitious reform to the welfare system in decades—so that it supports people to find and stay in work.

The evidence about the impact of worklessness on children’s outcomes, in both the short and the long term, is clear. In 2014-15, 75% of children in workless families failed to reach the expected standard at GCSE, compared with 39% for all working families and 52% for low-income working families.

[Ms Buck]

Will the Minister give way?

[Kit Malthouse]

No, I am short of time. As adults, children who grow up in workless families are more likely to be workless themselves, compared with children who grow up with working parents, which creates an intergenerational cycle of disadvantage. It is therefore vital that we continue with our policies to encourage work and to address the often complex employment barriers faced by many disadvantaged families.

A number of hon. Members raised concerns about working families who are in poverty. However, the evidence is clear. Adults in workless families are four times more likely to be in poverty than those in working families. Children living in workless households are five times more likely to be in poverty than those in which all the adults work. Children in lone-parent families are three times less likely to be in poverty if their parent is in full-time work. And the chances of a child being in poverty if one parent works full time and the other part time is one in 20.

We are making good progress. Nationally, there are 954,000 fewer workless households and 608,000 fewer children living in such households now, compared with 2010. In London, there are 197,000 fewer children in workless households than there were seven years ago. By 2016, the number of children in long-term workless households in London was less than half what it was in 2010. The latest data shows that the London employment rate has increased by 7.1 percentage points since 2010. Comparable national figures show a slightly lower increase of 5 percentage points, so London is doing better.

Universal credit is at the heart of the reforms and the positive change that the Government are committed to driving. Through universal credit, the welfare system is, for the first time, providing working people with the opportunity to progress in work and to work more hours so that they can increase their earnings and become financially secure. Once fully rolled out, it will boost employment by about 250,000 and generate £7 billion in economic benefits a year.

We are also committed to tackling poverty by helping people with the cost of living. The national living wage, rising to £7.83 an hour in 2018-19, has given the UK’s lowest earners their fastest pay rise in 20 years. The right hon. Member for Enfield North (Joan Ryan) referred to the London living wage in glowing terms with regard to the current Mayor, but of course that project was started well before he came to office. Indeed, I am pleased to say that the largest expansion of the London living wage came when I was responsible for it at City Hall, between 2012 and 2016. However, that is not the only measure that we have taken. We have cut income tax for more than 30 million people and taken 4 million low earners out of income tax altogether. A typical basic rate taxpayer will now pay £1,000 less in tax compared with 2010.

Universal credit, with its generous childcare offer, has been designed to support parents to work after the birth of a child. Working parents on universal credit can have up to 85% of their childcare costs reimbursed, which is worth up to £1,108 a month for someone with two or more children. That is in addition to their entitlement of up to 30 hours of free childcare a week.

Hon. Members have raised serious concerns about child poverty rates, including the key findings in the End Child Poverty report, which came out a couple of weeks ago. Let me take this opportunity to emphasise that whichever way we look at child poverty rates—relative or absolute, and before or after housing costs—the headline national statistics published by the DWP show that in London all are lower than they were in 2010. Across the country, 600,000 fewer people are in absolute poverty now, compared with 2010—the figure is at a record low—and 200,000 fewer children are in absolute poverty.

Let me turn to the figures used by End Child Poverty. Those are projections based on Her Majesty’s Revenue and Customs data from 2014, and even the academics who produced the analysis have pointed out the limitations in the method. More recent data, published by Her Majesty’s Revenue and Customs since the report, shows that rather than rising, the proportion of children in low-income families in London fell in 2015 to an estimated 19%, compared with 24% in 2014. Indeed, every parliamentary constituency saw falls between 2014 and 2015. That includes some of the areas highlighted by the report. For example, in Bethnal Green and Bow there was a fall of 12 percentage points and in Poplar and Limehouse a fall of 11 percentage points. There was a fall of 6 percentage points in Hackney South and Shoreditch, as there was in Westminster North and in Enfield North. The data and the projection from the data in 2014 were immediately contradicted by the data subsequently published for 2015.

Let me deal quickly with some of the specifics that were raised. The hon. Member for Barnsley Central (Dan Jarvis) raised the issue of child poverty targets. Some hon. Members will remember that there was recognition by the Government in the past that making a long-term difference to the lives of disadvantaged children required an approach that went beyond a focus on the welfare system. That is why the Government repealed the income-related targets set out in the Child Poverty Act 2010 and replaced them with new statutory measures of parental worklessness and, critically, as my hon. Friend the Member for Hornchurch and Upminster (Julia Lopez) mentioned, children’s educational attainment. That is vital; all the evidence points to its being critical to long-term welfare and prosperity. Those are the two areas that can make the biggest difference.

A number of hon. Members raised issues about housing. The Government have recognised that there is an issue with the housing market, and a huge amount of work is going on at the newly named Ministry of Housing, Communities and Local Government. On standards, we agree that everyone deserves a decent home. That is why the numbers of homes that have been brought up to standard in both the public and the private sectors have increased very significantly, and the numbers that are below standard now lie at record lows. On housing generally, hon. Members will know that a significant amount of extra money has been put into the Government house building programme. That now stands at £9 billion, and no doubt there will be more initiatives to come from the Ministry of Housing.

We are also supporting, I believe, the Homes (Fitness for Human Habitation and Liability for Housing Standards) Bill, promoted by the hon. Member for Westminster North. It will give tenants the right to take legal action against landlords who do not fulfil their duties.

It was slightly disappointing to hear from the Opposition a fairly stout defence of the previous benefits system. As far as I can tell, that was a fraudulent system, perpetrating a lie upon the poor. It was designed to trap them in poverty. That is why we saw very little change in long-term poverty, which is what we are dedicated to tackling. I can reassure hon. Members that we are not complacent and particularly not in London, and we will be doing our best over the years to come to try to address the problems that have been raised.