High Court Judgment: Benefit Cap

Martin Whitfield Excerpts

Tuesday 4th July 2017 Westminster Hall

[Alison Thewliss]

Absolutely. The entire policy and the way that people end up as a result of it need to be reviewed. It is causing genuine hardship to no good purpose, as the judge pointed out. We need to look at the whole policy in the round.

The Government will say that there is the discretionary housing payment. Yes, there is, but the savings from the benefit cap amount to £155 million, while the amount put towards the DHP by the Government is £37.1 million, so there is no way that the money can be made up in that way.

The Local Government Association has found that the

“cumulative impacts of welfare reform are contributing to a…housing affordability crisis.”

The Government have a huge part in that. There is a lack of rehousing options for women. Where can they move that is cheaper than where they are now? If they live in a city such as London, they would probably have to leave it altogether, which would mean leaving the family, school and other support networks they might have. There is a lack of social rented housing, particularly in some parts of England. A lot of it used to be local authority housing that has either been bought under right to buy or has gone to housing associations or other areas where there is less control over it. Not enough new housing has been built in its place, so there are fewer options for people. Private lets are extremely expensive. When private landlords see someone who they think will not be able to pay the bills in a few months’ time, they will not take them on. As the judgment states,

“the reality is that DHPs do involve short term payments and give those affected no peace of mind.”

[Martin Whitfield (East Lothian) (Lab)]

May I say how grateful I am that the hon. Lady secured this debate? I would like to cite one extra figure: 3,270 children in Scotland have been affected by this cap. We have heard harrowing tales about individuals who have suffered because of it, and about the difficulty that the Government are placing them in: an ultimate Hobson’s choice that single parents, predominantly mums, have to make over their children. In Scotland, 3,270 individual children are being made subject to this cap. They are under 18, they do not vote, and their parents have to make the choice.

[Alison Thewliss]

I agree.

The judgment further notes that inquiries were made

“of local authorities about their practices in dealing with DHPs. Of the 235 who responded, none had ever made a permanent award nor had any agreed to make a payment before a tenancy commenced.”

So somebody who goes into a new tenancy cannot expect to get that payment, and neither can the landlord expect to receive it. It is not enough of an option. By their very nature, discretionary housing payments are discretionary—they are at the discretion of whoever the person applies to. They are also oversubscribed in many areas, because people know that they are their only option to try to top up an income that is dwindling as a result of Government policy.

The other problem with moving people to so-called cheaper areas around the UK is that those areas also tend to have higher rates of unemployment. People are not moving to areas where they are more likely to get work; they would get work in areas where rents are higher, because there is more demand for it there.

The issue of private landlords is particularly worrying. The judgment mentions evidence from the Residential Landlords Association and the National Landlords Association that

“private landlords are very reluctant to take on tenants who were capped and many would seek to evict such tenants.”

It is not even that people will not get a tenancy, but that they will be evicted from the tenancy they already have. That seems particularly cruel.

All these problems are avoidable. They are a result of Government policy, and there is a choice here for the Government. We are in a very different situation now from the one before the election. There is no longer a majority for austerity in this House. The Government have a choice. They do not have to waste further money on appealing the judgment. I understand that they have already wasted at least half a million pounds on other appeals relating to the bedroom tax and the carer’s allowance, but they should not waste more public funds appealing a case that has already been proven to be an injustice. They should put their hands up and say, “There is an injustice here, and we will put it right in the interests of the children who are affected.”

The Government have a choice. The Chancellor has stated that the British people are “weary” of austerity. I urge the Government to do something about it for these women, for their children and for families across the UK. If money can be found on the magical money tree for £1 billion to prop up the Government, it can be found for women and children across these islands.