Housing

Lord McKenzie of Luton Excerpts

Thursday 8th July 2010 Lords Chamber

[Baroness Hanham]

Once again, my Lords, this is a matter for local authorities, particularly with their own housing. I know that some local authorities have not made the maximum use of it, and of course we will encourage them to do that. The private sector will still be encouraged to ensure that empty properties in the private sector are brought back into use. I think we would all agree that empty property is not desirable, by any stretch of the imagination, and it denies homes to people who need them.

[Lord McKenzie of Luton]

My Lords, will the Minister please share with us the coalition Government’s assessment of the impact on homelessness and the need for social housing as a consequence of the proposed draconian—indeed, wicked—cuts in housing benefit?

[Baroness Hanham]

My Lords, there will be reductions in housing benefit via a cap, but I am sure everyone will note that the real-terms costs of housing benefit have risen from £14 billion 10 years ago to £21 billion today. I think we would all agree that that is completely unsustainable. The measures announced in the Budget will refocus the welfare system on supporting those who should be working while continuing to provide for those most in need. Housing benefit reform will help to make better use of all our social housing, for example by freeing up larger homes for overcrowded families.

Some noble Lords will have read that up to £2,000 a week is being spent on housing benefit in the private sector. That is well beyond the means of all but a very few of the richest people in this country.