Property: Under-occupancy Charge

Lord Naseby Excerpts

Tuesday 2nd July 2013 Lords Chamber

[Lord Freud]

My Lords, the estimate of the annual savings is about £500 million a year. As to the circumstances in which people move into the private sector, clearly it is more expensive generally in the private sector than in the social sector. However, one has to look at the whole of the transaction. Such a move will free up a large apartment or home in the social sector, which will then be made available for a large family on the waiting list. There are 1.8 million families on the waiting list, a group that we can now start to fit into appropriately sized houses.

[Lord Naseby]

Is my noble friend aware that, as a former chairman of the housing committee in the London Borough of Islington, I wish that there had been a Minister in 1968 who had taken such care and trouble over the changes that were implemented in that year? Should the House not reflect a little on the care that my noble friend has taken and give the procedure time to settle down, in the confidence that if there are quirks to it they will be dealt with?

[Lord Freud]

My Lords, I am grateful for my noble friend’s support. It is important that we see how people respond. We are expecting a behavioural response and people to change their behaviour. We are watching what is happening very closely. I will make appropriate responses when I know what is happening, but it is too early to do so now.