Local Housing Allowance: Supreme Court Ruling Debate

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Department: Department for Work and Pensions

Local Housing Allowance: Supreme Court Ruling

Neil Gray Excerpts
Thursday 13th June 2019

(5 years, 4 months ago)

Commons Chamber
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Will Quince Portrait Will Quince
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My hon. Friend is right that we are taking action to build the homes that our country needs. The LHA rate is an issue in so many cases because of supply and demand. Demand massively outstrips supply in certain areas, so I am pleased by the action that Cheltenham is taking with his support.

Neil Gray Portrait Neil Gray (Airdrie and Shotts) (SNP)
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I pay tribute to Ms Samuels, who brought her case as far as the Supreme Court. Hopefully her struggle will result in change so that others do not have to go through this.

This case should be a wake-up call for many local authorities in how they process homelessness applications, while acknowledging that Scotland has much stronger homelessness legislation. Local authorities have been left in a very difficult situation because of this Government’s policies, which drive cases like that of Ms Samuels. Local housing allowance rates have been frozen at 2015 levels by this Government. Why will that freeze continue into next year? The Minister simply cannot say that this is about not wanting to subsidise the private rented sector, because the Government are actively doing that by not building social housing.

In the four years to 2018, Scotland delivered 50% more affordable housing units per head of population and—this is the important one—five times more social rented properties per head of population, and more in total, than England. The Scottish Government are also spending £12 million on discretionary housing payments to mitigate the Government’s freeze on benefits such as local housing allowance and £50 million to mitigate the bedroom tax.

A perfect storm has led to so many of us having cases like that of Ms Samuels at our surgeries—punitive, arbitrary and punishing cuts to social security, including housing benefit, coupled with rent increases and a devastating under-supply of social housing. When will the Government wake up to the crisis they are causing?

Will Quince Portrait Will Quince
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Despite the freeze in Scotland, we have seen LHA rates rise. One rate rose in 2017-18, three rates rose in 2018-19 and 16 rates rose in 2019-20. The hon. Gentleman knows me well enough to know that I am looking at various options in this area ahead of potential spending review bids. The freeze comes to an end next year, and I look forward to working with him.