Housing: Underoccupancy Charge

Lord Bishop of St Albans Excerpts

Wednesday 29th January 2014 Lords Chamber

[Lord Freud]

My Lords, clearly people will respond in different ways, which is one of the things that this policy is intended to bring about. The area with which the noble Baroness is closely associated, Gateshead, spent roughly 69% of DHP in the first half-year and put in an application for further DHP that we were pleased to match with another £130,000. This meant that it could spend roughly the same amount in the second half of the year as in the first. That contrasts with the area that the noble Baroness, Lady Hollis, is very closely associated with. It has spent 58% of its DHP. I have not seen its application for further DHP. There is a bidding fund of £20 million that I would like to get spent. Norwich has until Monday to put in that bid, and I hope that the noble Baroness will use her very considerable energies to make sure that it does.

[The Lord Bishop of St Albans]

My Lords, with the Cambridge Centre for Housing and Planning Research showing that 42% of tenants in some parts of Wales, north-east England and north-west England think it unlikely that they will be able to pay their rent in full, what assessment have Her Majesty’s Government made of the implications of the introduction of the charge? In particular, what contingency plans do they have in case that research proves to be true?

[Lord Freud]

My Lords, the way in which we are handling the transition is to make sure that there are adequate discretionary housing payments. That is why we raised that figure. We know that people are making adjustments, which will take time and need funding.

I am very pleased to see some of the innovative ways in which local authorities are responding to the challenge. Places such as Warrington and Salford are converting empty office space. They are purchasing and improving long-term empty two-bedroom homes. Derby has a home-release scheme that provides tenants with money to move—£500 for removal costs, for example. Many local authorities have revised their strategies to allow people with arrears to move, which was a block for some people. We are getting the kind of creative response from local authorities for which this policy asked.