Housing and Planning Bill

Lord McKenzie of Luton Excerpts

Wednesday 4th May 2016 Lords Chamber

[Baroness Bakewell of Hardington Mandeville]

My Lords, I was going to speak passionately in favour of Motions F1 and H1. There is now no need to do so and I am delighted about that. I very much welcome the taper of 15%, which my colleague and I discussed yesterday with the Minister, but at that stage she was unable to commit to it. I am really pleased that there has been some movement on that. I also very much welcome the move towards accepting that the income limits will be raised in line with the consumer prices index. That is only right, given that everything else in life increases, such as pensions and the minimum and living wages. Therefore this should also increase.

However, I am still somewhat concerned about the costs of administering the so-called pay-to-stay policy. There are costs involved in assessing when tenants have reached the threshold, in assessing how much the tenant should pay in additional rent as they move towards the full market rent, and in collecting this rent. During our discussions with the Minister and her officials this week on the amendment on carbon-compliant homes there was much reference on their part to the cost-effectiveness of carbon compliance and the cost-benefit of such a policy. So we are somewhat surprised to find that there has been no such cost-benefit analysis of the implementation of the high-income tenant policy. There is some concern that the amount collected by the increased rents is likely to be outweighed by the costs involved in implementing the policy. I believe that this House should be concerned about this. Having said that, I welcome the movement by the Minister and the Government on these amendments.

[Lord McKenzie of Luton (Lab)]

My Lords, like other noble Lords, I welcome the movement that has been made in this policy area, although, also like other noble Lords, I believe that it has all the hallmarks of an administrative nightmare. I ask the Minister to clarify one thing. In introducing these items she referred to the fact that people on housing benefit would be outwith the policy. I ask again a point I raised on Third Reading. I can see that somebody currently on housing benefit before the application of the policy is easy to spot and would not be assessed, but what is the position with somebody who is brought into the housing benefit regime because of the higher rents that could flow from this policy? Will they be out as well? That would be incredibly convoluted to deal with.

[Baroness Williams of Trafford]

I agree with the noble Lord—