Housing Benefit

Mark Lazarowicz Excerpts

Tuesday 12th November 2013 Commons Chamber

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

Does the hon. Gentleman accept that one solution to the problem would be to offer Scotland the same opportunity as Northern Ireland to exempt all existing tenants from the bedroom tax? I understand his unwillingness to accept the principle of the bedroom tax, but if parties in Northern Ireland can agree to that, surely those in Scotland could agree to provide such assistance to our constituents.

[Mr MacNeil]

The hon. Gentleman should know that welfare is devolved in Northern Ireland, but I am glad that he supports the principle of devolving welfare to Scotland. In fact, we can devolve everything to Scotland by voting yes on 18 September next year.

The chairman of the US Federal Reserve, Ben Bernanke, once said that the best form of quantitative easing for Japan about 10 or 20 years ago, when it was going through its economic travails, would be to pile cash in a helicopter and shovel it from above over any Japanese city, down on the citizens below. What is happening at the moment is the opposite of that because the Government are taking money from those who circulate it in the economy. The quickest way to stimulate demand in the economy is to put money into people’s hands; the Government are taking money out of their hands.

The money that people are losing would quickly end up in the hands of small businesses, yet in Scotland alone, £54.5 million has been taken out this year. Trickle-down economics never worked, but hoover-up economics certainly does work. Quantitative easing in this country has been a welfare subsidy of epic proportions to bankers and those who are already rich, yet this afternoon we are discussing how to take even more money from those who can ill afford it.

There are further complications with the bedroom tax. Discretionary housing payments have two important conditions. People cannot claim retrospectively and must apply for a housing transfer, but many people in my island constituency feel that is dishonest and do not want to do it for the simple reason that they do not want to move house. They also know that they might be moved to another island if the policy was to go through to its ultimate logical possibility. Of those 188 people in the Hebrides, only 80 or 90 have so far claimed discretionary housing payments. Hebridean Housing Partnership is in rent arrears, and more worryingly, 20 people have not engaged with, responded to or acknowledged the process at all. They are reckoned to have drink, drugs or mental health problems, and ultimately the tax could end up further destabilising their lives. At the very least—I make this plea to the Department for Work and Pensions —we should allow retrospective claims. Some people are currently trying their best to manage, but I feel that they may fail in their attempts and need support. That support should be retrospective.

Further complications are added by seasonal work, and the small amount that people earn from jobseeker’s allowance while having to pay for essentials such as food and big annual demands such as the TV licence. Losing £10 from 70-odd quid a week is quite a lot and a huge hindrance in life.

Some people watching this debate probably begrudge what other people have, but they should look to countries such as Norway and Denmark where the unemployed do far better, society is far healthier and unemployment is far lower. To those who are still begrudgers I say, “Look at the wealth disparity in the United Kingdom, the fourth most unequal country in the OECD, where sadly the super-rich are getting richer.” That is where the real societal flaws are.

I have known the father of the Chief Secretary to the Treasury, Mr Di Alexander, for 10 or 15 years, and he has worked in social housing. He is, of course, very proud of his son, but he has stuck to his principles. I strongly admire what he has said about the bedroom tax, which was absolutely spot-on. If we listen to anybody on or connected to the Government Benches, it should be Mr Di Alexander.