Housing Benefit (Under-occupancy Penalty)

Debate between Michael Ellis and Stewart Hosie

Wednesday 27th February 2013 Commons Chamber

[Stewart Hosie]

The Minister says it is a right. I believe it may be a matter of discretion. It is not at all clear whether my constituent could meet the criteria for a discretionary payment, and even if he did, getting it would depend on whether any money was left in the pot.

I did not intend to speak in such general terms. In the final three minutes, I will concentrate on what is happening in Dundee. We have figures from the council telling us that 3,387 households will be affected by this tax—and it is a tax. Of those, 583 will lose 25% of their housing benefit. That is a loss that will have the impact of a tax.

[Michael Ellis (Northampton North) (Con)]

Will the hon. Gentleman give way?

[Stewart Hosie]

No, as I have only two and a half minutes left.

The other 2,804 households will lose 14% of their housing benefit. Tenants in two-bedroom council properties could lose benefit entitlement of approximately £9.93 a week, which is £516 a year. Those with two so-called spare rooms will lose an entitlement of £20.07 a week, which is more than £1,000 a year. Does the Minister understand what the loss of £1,000 a year means to families who are already struggling to make ends meet? Does he understand the consequence of that level of indebtedness? Legitimate lending companies will not lend to people in those circumstances, and credit unions can only do so much. This policy will drive people into the hands of loan sharks and illegal moneylenders, and the consequences of that will be picked up by social work departments, health services and the police, at a cost to the public purse for a policy that is unlikely to save this Government any money in the first place.