Housing Benefit (Abolition of Social Sector Size Criteria)

Kerry McCarthy Excerpts

Wednesday 17th December 2014 Commons Chamber

[Yvonne Fovargue]

Absolutely. It is simply not the case that hundreds of families in Wigan are packed together like sardines, waiting for people with extra rooms to move out. The Government say that it is about fairness and levelling the playing field between those in social housing and those who rent privately who cannot afford spare bedrooms. Again, that is not the case in Wigan where one-bedroom properties are much rarer and people in the private rented sector can have a spare bedroom without paying for the privilege. That is because—contrary to the myth perpetrated by Government Members—the local housing allowance does not exactly work in the same way. It was not introduced retrospectively, and it is based on the average rent in an area for the size of property. Therefore, if a family can find a larger property that remains within the LHA rate, they can rent it with no penalty, as can be the case in Wigan.

Even if it were possible for a family to move easily to a smaller property, what would be the consequences? After all, a “spare”, or to put it crudely, “extra” room measure takes no account of disabled people’s adapted homes, foster parents who need rooms to take children in, separated parents who share custody of a child, or the grandparent in my constituency—as I know, grandparents are not always pensioners—who looks after her daughter’s child while she works nights. She would have to move.

[Kerry McCarthy (Bristol East) (Lab)]

I have had situations in Bristol where the housing department has decided that someone needs a second bedroom, but the housing benefit people have said that they are eligible for the bedroom tax. On one hand it is judged that someone does need an extra room, but on the other they are told that they have to pay for it. Is that not grossly unfair?

[Yvonne Fovargue]

Absolutely, and that is the problem with a discretionary payment. Do we really want people to move every time their circumstances change? Let us look at it logically. A young couple move into a one-bedroom flat. They have a child so they move to a two-bedroom flat. Then they have another child. The children start school and can share a bedroom for a certain time, but when the first child is older the family move again to a three-bedroom property. Then, when the eldest child is 18, they move back to the two-bedroom flat. Then they go to a one-bedroom flat. Is that not a sure way to break down communities, take away social cohesion and spoil children’s education just when they need it? However, that point is academic, because, as I said, there just are not the properties available for people to move around like that. People are not chess pieces.

Perhaps the Government know that. This is not really about overcrowding, but saving money. Even by that yardstick, however, it still does not work. The Department for Work and Pensions assessment has been downgraded a number of times. It now appears that the cost of dealing with the debt, eviction, abandonment of properties and widespread misery and mental health problems caused by this pernicious tax might mean that cash savings are minimal or non-existent.