Housing and Planning Bill (Twelfth sitting)

Marcus Jones Excerpts

Thursday 3rd December 2015 Public Bill Committees

[Matthew Pennycook]

My hon. Friend makes a very good point, and I agree wholeheartedly. I served as a councillor before being elected to this place, and I give the Government credit for reforming the council house financing system. However, it is misleading and highly questionable to state that the rationale for the policy is an economic subsidy. That point needs to be made for the record. I will, for the reasons that I have stated, support the amendment, because the proposal represents bad policy making. There is a risk that it will lead to increased homelessness and increase the housing benefit bill. There is a risk that it will undermine the social mix on many estates, including those in my constituency.

The Government, incidentally, acknowledged that the discretionary threshold of £60,000 would have an impact on the income mix in areas but said the impact would be minor because of the threshold level. Bringing that threshold down would have a far bigger impact. Knowing the estates in my constituency and the problems they have as I do, I know that the last thing they need is for pressure to be put on people who do well, who aspire to get on and who get a better job to move out of those communities. This is bad policy making. For those reasons, I oppose the measure and support my hon. Friend’s amendment.

[The Parliamentary Under-Secretary of State for Communities and Local Government (Mr Marcus Jones)]

It is a pleasure to serve under your chairmanship, Mr Gray. This has been a wide-ranging debate, and a number of points have been raised that I am confident will be covered when we consider other amendments to the clause. I will therefore keep narrowly to the amendments in question, which seek to include a substantial amount of detail in the Bill on who the policy should and should not apply to. That is unnecessary as we have the power to make regulations for that purpose if they are required.

I assure the hon. Member for City of Durham that we are giving careful thought to how the policy should treat certain benefits, including the state pension, housing benefit, and employment and support allowance. With regard to carers, as I said before, exemptions can be made and we will consider carers carefully. We recognise that, in certain circumstances, exemptions may well be needed, and we are thinking through that process carefully. We will provide more detail as we approach the making of the regulations and will continue to engage with the sector as we develop the policy.

[Teresa Pearce (Erith and Thamesmead) (Lab)]

When having those deliberations about what should and should not be included in household income, will the Minister consider whether disability living allowance and personal independence payments should be excluded? There are additional costs for people with disabilities. Will he take that on board and consider giving some reassurance that DLA and PIP will not be included in household income?

[Mr Jones]

As I have made clear, we are considering carefully the circumstances in which the measure will apply to certain tenants. I note what the hon. Lady says, and we will take those comments into account in our deliberations before making regulations.

[Mr Thomas]

Given that there are a series of amendments to the clause, I do not want to detain the Committee unnecessarily with a clause stand part debate. In order not to do that, will the Minister reflect, while are we discussing exemptions, on whether tenants of housing co-operatives could be part of the exemptions he is looking at?

[Mr Jones]

The hon. Gentleman has shown a great interest in the tenants of housing association co-operatives throughout the Committee’s deliberations. I refer him to the answer I gave the hon. Member for City of Durham: we are considering carefully what exemptions will be in the regulations. We will certainly consider his comments. On the basis of the assurances I have given, I hope the hon. Lady will withdraw her amendment.

[Dr Blackman-Woods]

I thank the Minister for his response. The detail of the response indicates to me, and I hope to everyone else, that our proposal, far from being a wrecking amendment, as the hon. Member for Peterborough suggested, raises serious issues on behalf of some of the most vulnerable people in our society.

--- Later in debate ---

[Mr Jones]

Amendments 198 and 201 would lead to wide variation in the treatment of high-income social tenants, depending on where they lived and who their landlord was. That would be complex and confusing for tenants. In contrast, our approach is clear, consistent and based on a set of simple principles. We will bring forward further detail of how the policy will work in practice at later stages of the Bill.

Amendment 201 seeks to add a further requirement to consult tenants and have the local policy agreed with them. It is very unlikely that tenants will ever agree to rent rises but we will ensure that the final design of the policy is subject to engagement with landlord and tenant groups.

The remaining amendments seek to introduce a further range of considerations that should be applied by landlords in the setting of rent. Amendment 202 seeks to allow rents to be determined based on the condition of the property. That is simply not workable. We expect social landlords to meet their obligations to keep properties in a state of good repair and that should have no bearing on the rent levels to be set under this policy.

Amendment 203 seeks to introduce a taper. Again, as the hon. Member for City of Durham knows, we have consulted on that. Amendments 204 and 205 are laudable in aim, but are being delivered through the policies. Affordable housing should, wherever possible, be provided alongside market housing. However, where that affordable housing is occupied by households on higher incomes, it is not in the interest of cohesive communities that they should continue to benefit from reduced rents. Amendment 206 seeks to ensure that rents are set at an affordable level. For that reason, we have consulted on graduated and tapered approaches. I hope that, on that basis, the hon. Lady will withdraw her amendment.

[Dr Blackman-Woods]

I have heard what the Minister has said, and I am very disappointed. Again, we have identified clearly the Government’s difference of approach with regard not only to what counts as high earning but to what constitutes a market rent. I will give an example of a local set of circumstances. A family living in Durham with household earnings of £30,000 would probably have a market rent of about £150 to £180 a week, but a similar family living in Bristol would have a market rent of £260 or £280 rent a week, or even higher. That is what we are trying to expose. It makes a huge difference to a family’s income. In the latter example, it could mean that that family must rely on housing benefit.

That is exactly the point that we are trying to make to the Minister. Is this sensible policy making? No, it is not. The Government are giving no credence to the state of a property when setting rent, although the clause will push people on to market rents. That seems extraordinary. In the private sector, if a flat or house has been recently refurbished, it will generally be revalued and higher rents will apply, yet the Government seem to be saying that they will not allow housing associations or local authorities to do the same, even though they are requiring that a market rent be applied to the property. It seems an extraordinary thing to do.

I am pleased that the Minister will consult tenants, but I hope he will seriously rethink some of the proposals in the light of the comments made, the unworkability of the scheme and what it could mean for higher housing benefit costs, and that he will return on Report with more information that might help us understand more clearly the logic behind the Government proposals, which I am afraid is sadly missing and not obvious to us at this point. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Ordered, That further consideration be now adjourned. —(Julian Smith.)