Welfare

Karen Buck Excerpts

Monday 21st March 2016 Commons Chamber

[Stephen Crabb]

Labour Members jeer my hon. Friend, who, with her own upbringing and her work as a cancer nurse on the south coast, has far more understanding, in real-life terms, of working with vulnerable people who need the support of the state than the Opposition are displaying.

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

When the Secretary of State says, “Read my lips—no more cuts to welfare,” he does not of course include the huge cuts in social security spending that have already been agreed and are still to be implemented. The Government website says:

“If you’re ill or disabled, Employment and Support Allowance…offers you…financial support if you’re unable to work”.

Only last week, he, as a Government Minister, was telling people on his Facebook page that people on employment and support allowance were able to work. Will he correct that, please?

[Stephen Crabb]

I think the hon. Lady is referring to an error that was on my constituency Facebook page. It was a good spot, but it has been corrected.

Oral Answers to Questions

Karen Buck Excerpts

Monday 1st February 2016 Commons Chamber

[Mr Vara]

Absolutely. As of April this year, with a new state pension and the triple lock, people will be £1,000 better off than they would have been under the old system whereby pensions were uprated. The triple lock will benefit people by £1,000 by April this year.

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

6. What evaluation his Department has made of the effect of the under-occupancy penalty.

[The Parliamentary Under-Secretary of State for Disabled People (Justin Tomlinson)]

The number of people subject to a reduction owing to under occupancy has been reduced by 18% since the introduction of this policy, and has already saved the taxpayer £1 billion. We will therefore be maintaining this policy, and will continue to protect vulnerable claimants who require additional support through discretionary housing payments.

[Ms Buck]

London is by no means the region worst affected by the bedroom tax, but even so, just one in four people affected in my constituency have been able to downsize in the three years since the policy came in. The Government’s own research indicates that three-quarters of those hit by the bedroom tax have had to cut back on food, and 46% have had to cut back on heating. What steps will the Minister take to ensure that those who are unable to downsize their homes are not left cold and hungry?

[Justin Tomlinson]

First of all, the £870 million discretionary housing payments fund has been set aside for this Parliament. The one in four looking to downsize will be welcome news to the 241,000 families in overcrowded accommodation and the 1.7 million on the housing waiting list.

Universal Credit Work Allowance

Karen Buck Excerpts

Wednesday 6th January 2016 Commons Chamber

[Owen Smith]

My hon. Friend is absolutely right as usual, and I think 10,000 of his constituents will eventually be affected with lower incomes as a result of these changes. He is also right about the transitional protections and the way in which the Secretary of State has, I think, sought to misrepresent those as covering the losses; I will come to that later in my speech.

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

rose—

[Owen Smith]

Before I do, however, I will give way to my expert friend.

[Ms Buck]

That is kind—and inaccurate. Like many Opposition colleagues I was besieged by constituents concerned about their tax credit cuts in the run-up to the spending review. They were horrified that a Government who said making work pay was going to be their mantra should do this to working people. Does my hon. Friend think the 600,000 Londoners on tax credits—7,000 in my constituency—will be equally horrified to know the sting is still in the tail and working people are going to lose out dramatically as UC is rolled out?

[Owen Smith]

I think that, more than that, they will be absolutely cheesed off to the back teeth that this Government have tried to pull the wool over their eyes, because the truth is these are precisely the same cuts that were proposed through tax credits—almost exactly the same amount of money will be saved through these cuts to the work allowances as was previously proposed.

Oral Answers to Questions

Karen Buck Excerpts

Monday 2nd November 2015 Commons Chamber

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

4. What assessment he has made of the effect of poverty on increases in the number of people living in temporary accommodation since 2010.

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

6. What assessment he has made of the effect of poverty on increases in the number of people living in temporary accommodation since 2010.

[Simon Danczuk (Rochdale) (Lab)]

14. What estimate he has made of the change in the number of people requiring temporary accommodation since 2010.

--- Later in debate ---

[Justin Tomlinson]

Today, the number of households in temporary accommodation is 66,890, and the all-time high in September 2004 was 50% higher than that. The average time that households spend in temporary accommodation is now seven months less than when we came into office in 2010. Working with DCLG, we are introducing measures to build more houses. Over this Parliament, we expect a further 275,000 affordable houses to be built, which is the fastest rate in 20 years.

[Ms Buck]

Discretionary housing payments were intended to mitigate some of the effects of welfare cuts—housing benefit and the benefit cap—and to prevent homelessness. In my local authority, however, half of expenditure is going to support house- holds that are already homeless and in temporary accommodation. Will the Minister tell us what proportion of expenditure nationally is going on paying for existing temporary accommodation? Does he think that is the point of discretionary housing payments?

[Justin Tomlinson]

We are making available £800 million for discretionary housing payments over this Parliament, which is an increase of 40%. The key is that it is discretionary for each local authority. In addition, to recognise the additional costs within London, £60 per household is provided per week to the local authority.

Welfare Reform and Work Bill

Karen Buck Excerpts

Monday 20th July 2015 Commons Chamber

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

Returning to my right hon. Friend’s commitment to amend unfairnesses in the Bill, will he confirm that one of his amendments might tackle the obscenity of a woman who has been raped having to prove to the Department for Work and Pensions that she has been raped in order to be able to claim tax credits in future?

[Stephen Timms]

We will have to hear from the Government how they envisage that part of their proposal working, but I can well understand the concern that my hon. Friend raises.

Let me turn to the individual measures in the Bill, starting with the benefit cap. We support the principle that work should always pay and that people should be better off in work than on benefits. That is why our manifesto supported a household benefit cap and the idea that it should be lower in areas where there are lower housing costs.

Child Poverty

Karen Buck Excerpts

Thursday 25th June 2015 Commons Chamber

[Mr Duncan Smith]

My hon. Friend is a doughty campaigner for families and for assisting families to stay to together. Many of our reforms are helping families to stay together. Our reforms to the Child Maintenance and Enforcement Commission—the Child Support Agency, as it was often known in the past—hugely offers families the chance to sort their problems out before they go through the system. We are now seeing record numbers of those making their own balanced arrangements. We have put extra money—millions of pounds—into counselling for families on the verge of break-up, and we believe that that is helping them. The troubled families programme is aimed at stabilising families.

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

Poverty in inner London after housing costs is the highest in the country, at a scandalous 33%. Does the Secretary of State share my disappointment that, while we all believe that work should pay and is the best route out of poverty for many, the numbers on low pay in London have risen for the fourth year in a row and a third of a million more Londoners are now on low pay than in 2010? Can he reassure me that the way to tackle low pay is not to cut tax credits?

[Mr Duncan Smith]

What the figures show is that, as I know as a London MP, parts of London have particular and deep-rooted problems. We want to address those particular problems. First of all, it is true that people are better off in work than they would be out of work, because without work they would have no chance of raising their income. As I made clear on Monday, we also want companies to start paying people a proper wage. I have campaigned endlessly to raise the minimum wage. We have raised it, and the Government are committed to raising it further. I have said to companies, “It is time now that you pay more money to your employees, to rate them as they should be for the work that they have done.”

Housing Benefit (Abolition of Social Sector Size Criteria)

Karen Buck Excerpts

Wednesday 17th December 2014 Commons Chamber

[Rachel Reeves]

People affected by the bedroom tax are facing impossible decisions that, frankly, no one should have to make: whether to pay the bills or put food on the table; or whether to pay the rent, at the risk of getting into debt, or risk losing their home. We have seen the evidence from the Trussell Trust and the Child Poverty Action Group, but we do not have to turn to that report to see the devastating impact of this vicious policy; we need only look at the evaluation commissioned by the Government themselves. It was conducted by the centre for housing and planning research at Cambridge university and slipped out this summer, when the Government no doubt hoped no one would notice. Its findings are clear and damning.

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

London is not the area worst affected by the bedroom tax. In fact, regional variation is one of the striking things about it, because there is more overcrowding in the south and more under-occupation in the north. Despite that, we have 860 households currently affected by it. Does my hon. Friend share my astonishment that in recent years councils and housing associations, such as Westminster city council, have sold 240 one-bedroom properties, thus removing the very opportunities people need to downsize in order to avoid the bedroom tax?

[Rachel Reeves]

That is a really important point. Six months after the restrictions on housing benefit had been applied, only 4.5% of those affected had moved into smaller homes within the social sector, despite that being, as the report put it,

“a key aim of the policy”.

The vast majority of claimants said that they were unable to move because of their need to remain close to work, services or support networks, or simply because, like the Rutherfords, they needed the room that the Government had decided was surplus to their requirements.

The Government’s evaluation also found that a shocking 60% of those affected were in arrears. Social landlords were beginning eviction proceedings in some cases, even though they knew that their tenants could simply not afford the rent increases. Most devastating of all are the official findings on how tenants have struggled to pay the shortfall. The evaluation reported

“widespread concern that those who were paying were making cuts to other household essentials or incurring other debts in order to pay their rent”.

It reported that 57% of claimants had said that they had cut back on household essentials.

There are not many of them here, but let me say a few words about the Liberal Democrats, who took the publication of the independent evaluation as an opportunity to try to wash their hands of this notorious policy. The Deputy Prime Minister said he had changed his mind after seeing the evidence in the report that most people were unable to move in order to avoid the tax, but what did he expect? Did he expect that half a million households would find new, smaller, affordable homes and that everyone would live happily ever after?

The reality is that it was always obvious that that was not going to happen. The Government’s own impact assessment, published in June 2012, assumed that no one would move and warned that if they tried there would

“be a mismatch between available accommodation and the needs of tenants”

meaning that

“in many areas...there are insufficient properties to enable tenants to move to accommodation of an appropriate size”.

Indeed, the very report that the Deputy Prime Minister cited as the “trigger” for his attempted U-turn points out that the smaller number of moves that had taken place were actually

“higher than some had expected”

in the Department for Work and Pensions. The utter disingenuousness of the Deputy Prime Minister’s attempts to excuse his collaboration with the Tories on this issue once again confirms that we simply cannot trust a single word he says.

--- Later in debate ---

[Mr Harper]

With the greatest respect, the period during which the housing benefit bill rose so fast, as the hon. Gentleman has just said, was of course when his party was in government. He is quite right about the need to build more houses, but housing starts fell to a historical low under Labour. We have actually increased the building of new homes. Nearly 500,000 homes have been built since 2010, and a further 275,000 affordable homes will be built from 2015 to 2020. More affordable homes are planned over the next Parliament than in any equivalent period in the past 20 years. The point he makes is right, but this Government have absolutely dealt with it. Overall, the changes we have made to housing benefit will save £6 billion during this Parliament.

The removal of the spare room subsidy is a key part of the reforms. Despite some outlandish claims about its effect, it is working. In the interim evaluation, half of those affected and unemployed had looked for a job, and one in five of them intended to plan to earn more. It was alleged that the change would move people into poverty. In fact, the figures show that thousands of those affected have moved into work.

Despite the Opposition’s scaremongering about evictions and arrears, the evidence has been to the contrary. The latest statistics show—[Interruption.] If we are to have a sensible debate about such matters, it would help if people did not make outlandish claims. I listened very carefully to the intervention by the hon. Member for Westminster North (Ms Buck). It is worth remembering that, when we discussed the benefit cap, she said that huge damage would be done to the 400,000-plus working households in private rented accommodation. However, we know from work that we published this week that 41% of people affected by the benefit cap are more likely to go into work. People are doing more to find work, and the policy has actually been very successful. In London, where the highest number of people are subject to the benefit cap, very few people have actually moved, and those who have moved have not moved great distances.

[Ms Buck]

Will the Minister give way?

[Mr Harper]

Since I mentioned her, I will of course give way to the hon. Lady.

[Ms Buck]

Perhaps the Minister will explain to the House why, in the last year alone, there has been a rise of almost 30% in the number of households forced outside the area in which they originate? That is in contradiction to the advice given by Housing Ministers for years and years that homeless households should not be placed outside their local authority.

[Mr Harper]

It is simply not the case that people have been pushed out of London: 84% of the capped households in inner London that have moved continue to live in the central boroughs. The idea that hundreds of thousands of people would be forced out of London is simply not true.

Oral Answers to Questions

Karen Buck Excerpts

Monday 24th February 2014 Commons Chamber

[Steve Webb]

I entirely agree with my hon. Friend that the funding being made available to local authorities for cases where it would be inappropriate for individuals to make up the shortfall should be spent. In addition, this Government have made available an extra £20 million, in-year, but less than a quarter of local authorities bid for that money. We want local authorities to spend the money being made available, so that those who can move do so, but those for whom that would be inappropriate have the top-up that they need.

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

One of the worst cases that I have dealt with recently was of a homeless mother with a severely disabled child who receives disability living allowance. That allowance was taken into account in deciding their discretionary housing payment, which left the family with virtually nothing to live on. Will the Minister issue guidance to local authorities saying that they should not take into account disability living allowance when making DHP payments?

[Steve Webb]

The hon. Lady is very knowledgeable about these matters, and she will know that local authorities make their decisions on a case-by-case basis. Clearly, they do not have to include income from DLA, but they are free to do so. If she believes that her local authority should not have done so in an individual case, she should make representations to it.

Housing Benefit

Karen Buck Excerpts

Tuesday 12th November 2013 Commons Chamber

[Rachel Reeves]

It will be interesting to see which way the hon. Gentleman votes this evening given that his own party conference has said that this is an unfair tax. Will he vote with the Conservatives or with his own party? Let me be very clear: if I am Secretary of State in 2015, the first thing I will do is reverse this unfair and pernicious tax. It is a shame that his party and his Minister will not do likewise.

There is a contradiction at the heart of this policy that shows how disingenuous the Government’s justifications are for it. On the one hand, they say that it is necessary to deal with under-occupation and overcrowding, yet on the other that the benefit savings they are claiming assume that nobody moves. So which is it to be, because it cannot be both? Is this a policy to cut costs by getting social housing tenants to pay more, or is it a policy to move people out of their housing to avoid paying the tax, in which case it does not raise any money? It just does not add up.

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

Government Members have been calling out that this is a legitimate policy response to help with overcrowding, but the Government’s own impact assessment says that

“the highest rates of overcrowding are also those with the lowest percentage of under occupiers…this mechanism for encouraging the more efficient use of social housing may make less of an impact in those regions most affected.”

So the Government’s own impact assessment states that this policy is a nonsensical response to dealing with overcrowding.

[Rachel Reeves]

I thank my hon. Friend for that intervention. The justifications for this do not stack up. People are not moving but they are not paying either. More and more people are falling into arrears. As many as 50% of them, hit by the tax, are now behind with their rent. The loss to local authorities and housing associations is already running into tens of millions of pounds, and the cost of evicting all those who have not paid their rent and then dealing with the resulting homelessness could cost many times more. While the Government preside over the lowest level of new home building since the 1920s, their answer is to make the housing crisis even worse by making it harder for housing providers to meet local housing need by blowing another hole in their budget and destabilising their fragile finances further.

--- Later in debate ---

[Andrew George (St Ives) (LD)]

I voted against this policy before and I will again be voting against the Government today, but I have to say that the Labour motion is tortuous and convoluted and not very well argued. My hon. Friend the Minister who opened the debate for the Government is right that the Labour party is incoherent in that it brought forward policies introducing a bedroom tax in the private sector yet opposes it, on the basis of a principle it claims to abide by, in relation to this measure.

[Ms Buck]

I want to nail that argument, which we have heard time and again from the Conservative party. The fact is that the local housing allowance did not apply to existing tenants. That is the fundamental difference.

[Andrew George]

The point still applies because ultimately the previous Government were seeking to achieve exactly what the current Government want to achieve in respect of the social rented sector.

--- Later in debate ---

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

In powerful speeches from the Front and Back Benches, we have heard arguments against the bedroom tax, all of which were predicted and laid out by the Government in their impact statement. The impact statement made it clear that if this policy worked, in so far as it allowed people to downsize and their properties to be occupied by other social tenants, it would not save money, and that savings would come about only if the policy did not work. Contrary to the statements from some Government Members, those two objectives are mutually incompatible.

The impact statement showed that an estimated one in three of those affected would go into arrears. The Government knew that arrears were the likely consequence of this policy, and that is what we have seen. What we have not heard is another truth, which is that two thirds of those people affected by the bedroom tax are also affected by the Government’s cuts in council tax benefit. Out of their very low incomes of £75 or £105 a week they are having to make a contribution of £14, or in some cases £20-plus, for their bedroom tax and their council tax.

[Mr Jim Cunningham (Coventry South) (Lab)]

Is not one of the big problems the lack of accommodation? It is ridiculous to try to move people from large to small accommodation when we do not have it. Will that not contribute to the housing bubble?

[Ms Buck]

My hon. Friend is absolutely right. I was about to make that point. The impact assessment also told us—as has been mentioned already this afternoon—that the distribution of properties across the country does not match the two objectives of downsizing and dealing with overcrowding. In the north-west, in Yorkshire, 43% of social tenants are affected by the bedroom tax, and I think the figure is worse in Wales. That is more than double the rate for London, yet it is London that has the most serious problem of overcrowding: one in six properties is overcrowded. So the policy is predicated not just on people moving from one property to another in their neighbourhood or community, which might have some sense to it, but on people moving from one part of the country to another, from one end of the country to another. Frankly, that is not how people live. People are not sticks of wood. People are not crates of dry goods that can be put in a container and taken from London to Liverpool or Wales, because that is how the distribution of property suits their needs.

[Chris Ruane (Vale of Clwyd) (Lab)]

I agree entirely with my hon. Friend that this will lead to the mass movement of vulnerable people around the country. What impact does she think that will have on seaside towns, which have many hundreds of houses in multiple occupation, which are not fit to bring children up in, or for anybody to be living in?

[Ms Buck]

My hon. Friend is right. We are already seeing some of the impacts of this and other housing and welfare policies impacting detrimentally on seaside towns, in the same way as happened in the 1980s and 1990s. But the fact is that this policy simply cannot achieve the objective of tackling overcrowding because the larger properties are in the wrong place, and the numbers demonstrate that. It will work only if people do something that they do not want to do, which is to leave their homes, communities, networks, grandchildren, and families—to leave the people for whom they provide care.

That is also why those Government Members who have repeatedly made the argument that the Labour Government introduced a local housing allowance that applied a restriction on bedrooms in the private sector are so fundamentally wrong. A third of all private tenants across the country have lived in their homes for less than a year. Whether we like it or not, and whatever changes we might want to make to it, the private rented sector is highly mobile. Some 40% of all social tenants have lived in their homes for 10 years or more.

People went into a social property believing that it was a home for life. They believed that they would be able to bring up children, look after elderly relatives, care for people, live in their communities and contribute to them because they had a home there. That has now been removed, and it has been removed—this is the absolute cruelty of the bedroom tax—retrospectively. The situation simply cannot be compared with the private rented sector, because people in that sector move around much more and they are not impacted retrospectively.

[Dr Coffey]

I agree with the hon. Lady that this is retrospective, unlike her point about local housing allowance, but the principle is the same, although it might not have been applied retrospectively when it was introduced by the previous Government. On her point about private mobility, it is we on the Government Benches who are trying to help people buy their homes.

[Ms Buck]

There is no attempt to do anything of the kind, otherwise people would be looking at longer-term tenancies and introducing that. The fact is that there is no principle in this. The principle of a tax being retrospective, as it is in this case, is the only principle that matters.

Even within the Conservative-led London borough of Westminster, which has a serious overcrowding problem, people are still unable to move. They are unable to move within the borough, let alone to Liverpool or Wales. Of the 405 families affected—it is a small number, because London is not the most affected by the bedroom tax—only 40 have been able to move. Half of them are in arrears and half of them are disabled.

I will conclude my remarks by referring to one of the many difficult cases that have been brought to my attention. A gentleman e-mailed me at the weekend. He wrote:

“I’m a 50-year-old single man living in a two-bedroom flat and have been hit by the so-called Bedroom Tax. I’m on employment support allowance and have been suffering from Chronic Depression and Anxiety for several years now and I’m now finding these latest attacks on the weakest and most vulnerable in society very difficult to deal with. I have little money and now find my rent arrears total nearly £800 as a result of the Bedroom Tax. I’m continuing to pay the previous level of rent, but the council have now sent me a letter saying that the next step will be to serve me with a Notice of Seeking Possession if I don’t pay the arrears in full. I simply can’t do this.

I’m loth to downsize for several reasons. My main reason is that I’ve lived at my present address for over 29 years and there is a lot of sentimentality connected with my home… because I lived here with my brother, who sadly passed away… This is my last link to him and I really couldn’t envisage living anywhere else. I’m feeling increasingly fatalistic and helpless and my thoughts are turning more and more to ending my life, which is something I’ve successfully avoided since my brother’s death. This latest setback just seems so insurmountable and there really doesn’t seem to be any sympathy or understanding… I no longer have anywhere to turn.”

He asked me to vote against the bedroom tax this afternoon, and I will be very proud to honour an obligation to him by doing so.

Oral Answers to Questions

Karen Buck Excerpts

Monday 1st July 2013 Commons Chamber

[Esther McVey]

My hon. Friend asks a timely question, because tomorrow we will publish a detailed, cross-departmental action plan on how to help disabled people in many different respects. That plan has been developed with disabled people, and it ranges from employment to education to transport to social participation.

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

In 2011 Lord Freud told peers that in theory his housing benefit policy would cause rents to fall, that it is a matter of market forces, and that it was irresponsible to suggest that thousands of people would be made homeless as a result. In fact, rents have soared, most new claims for housing benefit are from working families, and in London there has been a 91% increase in homelessness applications from people losing their private sector tenancies. How is that theory going?

[Steve Webb]

The hon. Lady refers to soaring rents, but I hope she accepts the evidence from the Office for National Statistics, which last week published figures for rents in London in the private rented sector that showed an increase of 2.2% below the rate of inflation.