Under-occupancy Penalty

Owen Smith Excerpts

Thursday 28th January 2016 Commons Chamber

[Owen Smith (Pontypridd) (Lab)]

(Urgent Question): To ask the Secretary of State for Work and Pensions if he will make a statement on the Court of Appeal ruling that the bedroom tax has caused discrimination, contrary to article 14 of the European convention on human rights.

[The Parliamentary Under-Secretary of State for Disabled People (Justin Tomlinson)]

We know there are people who need extra support. That is why we are providing local authorities with discretionary housing payment funding. Local authorities are best placed to assess people’s needs in their area and identify where extra support is needed.

We have increased the amount of discretionary housing payment available. On top of the £560 million since 2011, we are providing an extra £870 million over the next five years. The people involved in these cases are receiving discretionary housing payments. That is precisely why we have discretionary housing payments, and shows that these are working.

We welcome the fact that the High Court and the Court of Appeal both ruled that the public sector equality duty had been met in respect to women. Furthermore, we have won a Court of Appeal ruling where the court ruled in our favour on the policy of the spare room subsidy. In that judgment, the court found that the discretionary housing payments were an appropriate means of support for those who are vulnerable. So this is a complex area and in terms of these two latest cases, it is a very narrow ruling.

On these cases, the High Court found in our favour and we fundamentally disagree with yesterday’s Court of Appeal ruling on the ECHR. This is not a case of people losing money, for in these cases they are in receipt of discretionary housing payments. This is about whether it is possible to define such exemptions or whether direct housing payments through local authorities give the right flexibility to help a wide range of those in need. The Court of Appeal itself has already granted us permission to appeal, and we will be appealing to the Supreme Court.

[Owen Smith]

May I start by saying that I am flabbergasted by that response and I am flabbergasted that the Secretary of State, to whom I asked the question, is once more ducking his responsibilities?

We knew the bedroom tax was cruel, but we now know it is illegal, and this decisive ruling from the Court of Appeal should mark the end of this pernicious policy. The ruling could not be any clearer: the bedroom tax is unlawful and discriminatory.

The Court of Appeal considered two cases against the Secretary of State, who once again is not prepared to defend his policy: one from a victim of rape who had had a panic room installed by the police; and one from the Rutherford family, whom I know personally, and to whom I pay tribute here today both for the care they provide for their severely disabled grandson, Warren, and for the bravery they have shown in taking on the Secretary of State.

In both instances, the court ruled that the bedroom tax had caused “discrimination”. It found, moreover, that the

“admitted discrimination…has not been justified by the Secretary of State”.

So the question for the Minister—in place of the missing Secretary of State—is what does this ruling mean for the 450,000 families currently affected by the bedroom tax? If the Government are appealing to the Supreme Court, as, extraordinarily, it seems they are, can the Minister tell us on what specific grounds they are appealing? Crucially, as a matter of urgency, will the Government immediately exempt the two groups that have found to have been discriminated against from paying the bedroom tax: victims of domestic violence and the families of severely disabled children?

Can the Minister confirm there are 280 victims of domestic abuse who have had a panic room installed under the sanctuary scheme and who are affected by this policy? Can he further confirm that exempting victims of domestic abuse would only cost the Government £200,000 a year? By comparison, can he tell us how many hundreds of thousands of pounds he has already spent on legal fees defending this vile policy, and how much more he is prepared to defend? Does he have a blank cheque to defend this to the end?

Can the Minister also tell us how many families with severely disabled children are currently paying the bedroom tax? Will he inform the House what proportion of domestic violence victims and families with disabled children are in receipt of discretionary housing payments? This ruling was on two specific grounds, but will the Minister confirm that the bedroom tax is failing in every regard? He talks of discretionary housing payments, but his own Government’s report, which was dumped before Christmas, admitted that 75% of victims did not receive DHP, that three quarters of those hit by the bedroom tax were cutting back on food, that only 5% had been able to move and that 80% regularly ran out of money.

Politics is about choices, and the choice that faced the Secretary of State today was very clear. He could have come to the House and admitted that this was a rotten policy that was punishing poor people across the country, and he could have scrapped it. Instead, he is sitting on the Front Bench before going back to Caxton House to consult his lawyers in order to defend this policy against the victims of domestic violence and the parents of disabled children. We know the choice he took.

[Justin Tomlinson]

To be absolutely clear, this is about whether it is possible to find such exemptions or whether direct housing payments through local authorities give the right flexibility to help a wide range of those in need, and we will be appealing this to the Supreme Court. If we try to set strict categories, people—especially those with unique circumstances and issues—could fall just below an artificial line, meaning that they would miss out. Is it realistic to expect that here in London we could set such an exhaustive list? Direct housing payments, for which we are providing £870 million over the next five years, give flexibility that allows us to work with organisations such as the police, social services and medical professionals to provide a co-ordinated level of support underwritten by the public sector equality duty.

It is right to say that politicians face choices. When the local housing allowance was introduced into the private sector under the last Labour Government, no additional support was provided to those in the private sector who faced exactly the same challenges as those we are discussing here. Why have things changed so much now? We keep making references to taxes. What about the 1.7 million people on the social housing waiting list? What about the 241,000 people in overcrowded accommodation? The Opposition have scant regard for them, but they are the people we are speaking for, and it is right to provide flexibility and a co-ordinated approach. This is the right thing to do.