Welfare Reform and Work Bill (Tenth sitting)

Naz Shah Excerpts

Thursday 15th October 2015 Public Bill Committees

[Debbie Abrahams]

My hon. Friend makes a valid point that needs to be driven home. There is such a poor evidence base to justify the policy. The Government have calculated the savings to the housing benefit bill, but the potential impact in other areas is significant. As a former public health consultant—I qualified in the ‘90s—I can remember the housing issues such as the need for rehousing on medical grounds, which was commonplace due to the poor quality of housing. A lot has been done to improve housing conditions though the decent homes programme and so on, and we do not want to reverse that. It would be particularly harmful to tenants, and particularly the young.

[Naz Shah (Bradford West) (Lab)]

Is the Minister aware that the measure will disproportionately affect certain housing associations in my constituency that cater for larger families? We have had the bedroom tax, and these measures feel like an extension of that sanction, which particularly affects more vulnerable people, such as women fleeing domestic violence. The Black Women’s Support Project in Bradford will suffer; I know because had a conversation with the chief executive, as I have served on the board in the past.

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We recognise that the reductions will have an impact on registered providers of social housing, although we believe that most will be able to manage them. We need to reflect and remember, as Opposition Members conveniently forget to do, that many housing associations are in a robust financial position, with strong balance sheets and £2.4 billion of surplus in 2014. We need to recognise that 165 local authorities with a housing revenue account have built up housing revenue account reserves of almost £2.2 billion.

[Naz Shah]

rose—

[Mr Vara]

A lot of questions were asked, and I would like to have the opportunity to address the issue of additional funds. I will give way to the hon. Lady in due course.

We need to recognise the £2.4 billion in surplus funds that housing associations have and the £2.2 billion that the 165 local authorities have in their housing revenue accounts. We should also remember the Government’s £10 billion debt guarantee scheme to support the delivery of new rental homes, and we are encouraging the supply of new homes with a £1 billion build to rent fund.

[Naz Shah]

Will the Minister give way?

[Mr Vara]

I will not for the moment.

The Government remain committed to the delivery of 275,000 homes over the course of this Parliament. I remind Opposition Members that we have a track record of delivery—in the past five years we delivered more affordable homes than the Labour party did in 13 years of Government.

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[Mr Vara]

In England, only 75,000 homes were started between June 2008 and June 2009, the lowest level of building since the 1920s. So Government Members will take no lectures from Opposition Members when it comes to house building. They need to reflect on a whole host of other things—

[Naz Shah]

Will the Minister give way?

[Mr Vara]

I will give way to the hon. Lady.

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[Naz Shah]

Will the Minister qualify his 2014 figure of £2.4 billion? Was that before the bedroom tax hit, when the housing associations lost that money, or afterwards?

[Mr Vara]

I thought I had made it clear that the £2.4 billion was in the 2014 financial year. The £2.2 billion for local authorities was in the last financial year.