Housing Benefit

Margot James Excerpts

Tuesday 12th November 2013 Commons Chamber

[Rachel Reeves]

My hon. Friend is absolutely right. Hospital care costs more, but so does making adaptations to a new property, which is what will have to happen if people are moved.

People up and down the country are asking why. Why are we putting vulnerable families through this? Why are we hitting some of the hardest-pressed households in our country? Why are we hitting disabled people like this? Why did the Prime Minister introduce this policy on exactly the same day as cutting taxes for millionaires? It shows how out of touch this Prime Minister and his Government are.

The Government would like us to believe that the bedroom tax is cutting the benefits bill and dealing with under-occupancy in social housing, but it simply does not add up.

[Margot James (Stourbridge) (Con)]

The shadow Secretary of State is providing a litany of cases, half of which are exempt under the legislation while many others will be beneficiaries of the discretionary housing payment, which this Government have trebled to £190 million per year. Did not her party in government introduce the local housing allowance to cover tenants in the private sector? Why is it one rule for them and one rule for others?

[Rachel Reeves]

First, as the hon. Lady knows, the Government’s policy is retrospective whereas in the private sector it is not. Also, the discretionary housing payments are not nearly enough to cover this. In my constituency in Leeds—[Interruption.] The hon. Lady has asked the question; perhaps she will listen to —[Interruption.]

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[Margot James (Stourbridge) (Con)]

In debating today’s motion, it is instructive to look back at the manifesto on which Labour Members stood at the last election. They talked about the need for “tough choices on welfare” and stated:

“No one fit for work should be abandoned to a life on benefit, so all those who can work will be required to do so.”

They also promised reforms to housing benefit so that the state does not subsidise people to live on rents that working families could not afford. As we have heard from my hon. Friend the Member for Birmingham, Yardley (John Hemming), when they were in government they intended to introduce the very same measure. So what happened?

Labour has reverted to type, defending those who are getting more than their fair share out of the system, to the detriment of hundreds of thousands of others who are worse off through no fault of their own. They include the 6,687 households on my local authority of Dudley’s housing waiting list. That is why Labour has opposed every single measure this Government have taken to reform the welfare state.

The public know that the catalyst for the reforms we have introduced was the ballooning deficit left to us by the previous Government. The overriding mission behind the reforms had a much wider moral purpose: to make work pay, to end the something for nothing culture, to ensure a strong safety net for those who cannot work and, in the case of the reforms to housing benefit, to reduce overcrowding and homelessness.

[Julie Hilling (Bolton West) (Lab)]

The hon. Lady is talking as though the only people in social housing are those on benefit or not working. It is an in-work benefit. More importantly, many people in this country who work for the minimum wage and work very hard will never be able to afford to purchase a property. That is why we have social housing and why we have homes for life for those people.

[Margot James]

I thank the hon. Lady for that intervention and I agree with much of the principle behind it. Of course, some people will never be able to afford to buy their own homes—although this Government are intent on helping as many people as possible to own their own homes—and that is the purpose of social housing and housing benefit. There is no argument with that principle, but we must be cognisant of the number of people who, at the moment, cannot even get council housing or privately rented social housing. That is one of the driving purposes behind the reform.

The subsidy has become something of a totemic issue for the Opposition. They want to position the end of the subsidy and the creation of a level playing field between all recipients of social housing support as a modern day poll tax. Whatever the merits or otherwise of different systems of raising taxes locally, there is no doubt that the poll tax lacked public support. That is the difference, and it is worth exploring why the policy we are debating today enjoys public support.

The MORI poll that my hon. Friend the Member for Meon Valley (George Hollingbery) mentioned found that 78% of respondents supported the need to reduce under-occupation and overcrowding in social housing, whereas 54% of them agreed that people of working age who live in social housing should receive less housing benefit if they have more bedrooms than they need. Some 60% of those polled believed that those affected should seek work or work longer hours if they could.

[Emily Thornberry]

The hon. Lady drew a parallel between the bedroom tax and the poll tax, and said that the difference between the two was that the poll tax was not popular. Does she therefore accept that the bedroom tax is a tax?

[Margot James]

I certainly do not. It is not a tax. A tax is a Government levy on somebody’s income, whereas we are clearly talking about reducing a subsidy.

Let me return to the subject of work. Many groups are exempt from the measure, including people in receipt of state pensions, families with disabled children, foster carers and other groups. Those who are in a position to seek work or extra work should either do so or try to swap their property for accommodation that meets rather than exceeds their needs. If their accommodation exceeds their needs, that is not a tenable or fair position for the long term. We are talking about only a few extra hours of work a week at the minimum wage. Instead of conducting a campaign of misinformation against the reforms to housing benefit—reforms that Labour accepted were necessary at the last election—local authorities should instead be helping people to downsize to accommodation that meets their needs, freeing up much-needed housing stock for the 2 million families on housing waiting lists.

I commend the Government for taking the tough decisions and, moreover, for their commitment to build 170,000 new social houses by 2015. In addition to this measure, that will help to ease overcrowding in many homes. I also hope that the Government will take a lead in encouraging housing associations and local authorities to convert some of the excess of large properties at their disposal so that we can begin to meet the needs of the 60% or so of people applying for social housing for single occupancy. I hear far more complaints from constituents who endure overcrowded accommodation than I do about ending this spare-room subsidy. I find the contents of my postbag quite instructive in that regard, so I shall support the Government amendment.