Bedroom Tax (Scotland)

Pamela Nash Excerpts

Thursday 8th May 2014 Westminster Hall

[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Bone. When discussing the report today, the key issue that we should not lose sight of is that the bedroom tax should never have happened in Scotland. There has been a broad cross-party consensus that it is a regressive measure and it should be abolished. However, the truth is that it should never have been introduced in the first place. It was brought to us by a Tory Government—propped up by their Liberal Democrat allies—for whom people in Scotland did not vote, and it reflects the same Tory values that brought us the poll tax 25 years ago, and which have been rejected time and again at the ballot box.

The bedroom tax has caused enormous hardship for some of the most disadvantaged tenants in Scotland, the vast majority of them disabled. It has created problems for social landlords and it has cost more than it has saved. The problems created by the bedroom tax were entirely predictable, and were in fact predicted by local authorities, housing associations and organisations representing tenants, as well as by Members of Parliament here and in Edinburgh.

To a large extent, the report we are debating today has been overtaken by events, given that a few days ago the Under-Secretary of State for Scotland said that the UK Government would provide Scottish Ministers with a power to set the statutory cap on discretionary housing payments in Scotland, using section 63 of the Scotland Act 1998. The Deputy First Minister made a statement in the Scottish Parliament yesterday and, I believe, met the Under-Secretary earlier today to discuss the process from here. That is a very welcome, if belated development, and follows several months of silence from the UK Government on the issue.

Yesterday’s announcement paves the way for discretionary housing payment to be made to everyone affected by the bedroom tax in Scotland. As the law stands, the only legal way to make regular and ongoing payments directly to tenants to make up for their loss of housing benefit is through discretionary housing payments. The UK Government has allocated Scottish local authorities £15 million for discretionary housing payments, but that is less than a third of the £50 million needed to mitigate the penalty for everyone affected.

[Pamela Nash (Airdrie and Shotts) (Lab)]

Does the hon. Lady accept that local authorities in Scotland have found other ways to give money to their tenants and residents to mitigate the impact of the bedroom tax, without using DHP? Can the Scottish Government not also use that, as the UK Government have confirmed?

[Dr Whiteford]

I am grateful to the hon. Lady for raising that point. It is something that parties in Scotland have looked at very closely, and I know that senior Labour MSPs such as Jackie Baillie and Iain Gray have very much been part of discussions with the Scottish Government about those issues. Even they have agreed with the Scottish Government about the way to distribute the extra money, in compliance with the law as it stands. They agree that DHPs are the only clear legal route to provide funding for bedroom tax arrears directly to the people affected on a regular and ongoing basis. We are having to jump through a lot of legal loopholes. It is clear there are some solutions—the Scottish Government, certainly, were looking at them very carefully—but it seems that the clearest way forward is through discretionary housing payments and the challenge for all of us is to make sure that they are made.

--- Later in debate ---

[Dr Whiteford]

I am very much looking forward to the referendum in September, when people in Scotland will have a say on whether they want control of their own affairs and responsibility for setting income tax levels. I led an Opposition day debate on this issue back in February last year, when I called on the Government to end the policy, but we have had a number of opportunities in the House since then to voice our opposition, which includes opposition on the Government’s own Back Benches. The best chance we had to get rid of the bedroom tax was in November last year, when the Government came tantalisingly close to being defeated in the Commons in a vote following a Labour Opposition day debate. A defeat in the Commons would have forced the Government to rethink their approach, because it would have shown that even their own Back Benchers in the coalition—

[Pamela Nash]

Will the hon. Lady give way?

[Dr Whiteford]

I said that I would not take any more interventions, so I will not. [Interruption.] Well, I did say that earlier.

A defeat in the Commons would have forced the Government to rethink their approach, because it would have shown that even their own Back Benchers in the coalition recognised the manifest injustice of the bedroom tax, but that vote was lost by a margin of 26 votes, and 47 Labour MPs did not vote for their own motion. They included 10 Scottish Labour MPs, who apparently were in cosy pairing arrangements with their Tory counterparts. That was the best real chance we had at Westminster to sink the bedroom tax, and it was wasted.

I am well aware that there are often very legitimate reasons why Members of the House of Commons cannot attend votes. At times, all of us will have to deal with illness, bereavement, caring responsibilities or competing demands from our constituencies, but for matters of importance, most of us will move heaven and earth to be in the Lobby when we need to be. Those who missed that vote need to ask themselves whether what they were doing was really more important than voting down the bedroom tax.

--- Later in debate ---

[Pamela Nash (Airdrie and Shotts) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Bone.

It is good for Scottish Members of Parliament to have an opportunity to debate the bedroom tax and its impact on Scottish constituents and constituencies. As well as examining the specific problems and effects in Scotland, the report considers what should be done to mitigate those problems. We were inspired to produce our report by the policy’s impact on our constituents and the constituents of colleagues across Scotland—across parties, Members were concerned. I was delighted to welcome the Committee to my hometown of Airdrie to see the impact of the bedroom tax and what is being done in Airdrie and throughout north Lanarkshire.

Before the inquiry started, I campaigned on the bedroom tax in my constituency. At the beginning of my campaign I started a joint campaign with the local Scottish National party. That had not been done before, but we came together as two local political parties because we were united in our anger at the UK Government—the Tories and the Lib Dems—for introducing the policy, which was doing so much harm in our local area. Unfortunately, it quickly became clear to us in Scotland that the Scottish Government were not doing everything they could have done, and with regret the happy partnership ended rather quickly.

When the Chair of the Select Committee, my hon. Friend the Member for Glasgow South West (Mr Davidson), spoke earlier, the hon. Member for Perth and North Perthshire (Pete Wishart) was chuntering as usual, and I want to get it on the record. What he said—please correct me if I am wrong—is that it was ridiculous that the Chair of the Select Committee dared to mention that the Scottish Government had played politics on this issue by announcing that the bedroom tax has now been fully mitigated.

The Scottish Government let people suffer for more than a year. Some 82,000 households across Scotland have suffered, losing, on average, £50 a week. By definition, those are the poorest households: they are claiming housing benefit because they are low-income families and low-income households, and 80% of those households have a disabled member. Perhaps the Scottish National party should have spent more time considering what it could do, rather than pointing the finger at us and at the Labour party as a whole.

I was not going to spend time on this, but I feel that I have to defend myself and the Labour party. The hon. Member for Banff and Buchan (Dr Whiteford) mentioned the Opposition day vote on the bedroom tax. I asked to intervene, but she was in full flow. I agree that that number of Labour MPs should not have been paired, and I am already on the record as having said that—I have said it publicly and I have said it locally. But it is misleading to say, I assume accidentally, that those pairings changed the outcome of the vote. Every single Labour MP was paired with a Government MP, as was confirmed by the parties at the time. It is not true that there would have been a difference in the outcome of the vote. We have to put that on the record, and it is nothing short of hypocritical for the SNP to say that when every single SNP Member of Parliament has missed a vote on bedroom tax legislation.

[Pete Wishart]

That isn’t true.

[Pamela Nash]

I have had it checked by the House of Commons Library. I voted against the bedroom tax seven times, which is all the votes on legislation, and I supported a private Member’s Bill, yet the SNP choose continually to mention the Opposition day debate on which some Labour MPs were paired and therefore did not attend. I am sorry to labour that point, but it is important to get on the record the facts of who represented Scotland by voting against the bedroom tax and who did not.

I unequivocally agree with all Members who have said today that, as the report clearly states, the bedroom tax should never have come into fruition and should never have been introduced by this UK Government. I think the bedroom tax should be abolished immediately, but that does not let the Scottish Government off the hook. In my hometown, people still remember the impact that Strathclyde regional council made during the miners’ strikes. That was part of the inspiration for devolution and for the Scottish Parliament: when a local authority could protect its local people, imagine what we could do for all of Scotland. That has been used as an argument for independence, too, but it is an argument for devolution. Devolution was designed to get the best out of the UK and to protect it when something goes wrong and there is a policy with which we do not agree. The SNP has remained anti-devolution and uses the Scottish Parliament only when it suits the SNP.

I hope the Minister will announce the abolition of the bedroom tax today. I will not hold my breath, but I hope she will at least tell us whether the Government are doing an analysis. If that analysis shows that the Government’s aims for the policy are not coming to fruition, will they consider abolishing the bedroom tax not just for Scotland but for all the UK? I am relieved that my constituents will not have to suffer from the bedroom tax in future, although they have already incurred debts. I look forward to a Labour Government abolishing the bedroom tax for the entire UK in 2015.

[Mr Peter Bone (in the Chair)]

I congratulate hon. Members on their self-restraint. Every Back Bencher who wanted to speak has spoken.

--- Later in debate ---

[Lindsay Roy]

rose—

[Pamela Nash]

Will the Minister give way?

[Esther McVey]

I will not give way just yet.

Since I am talking about people who have to afford their homes, what about people who have bought their own home on a low income but cannot have a spare room because they cannot afford it? We have to look at fairness to the taxpayer and to people in private rented homes, and those in social rented homes, as well as at a bill spiralling out of control. As I said, I am afraid that this problem was handed to us. It is not an easy problem; it is a complex one. It is a difficult problem to solve, but we are solving it.

Talking about the extra support, which is key, we trebled discretionary housing payments for the complex cases; that is the money that we have handed out. We recognise the rural issue and have provided an extra £5 million for that, and we recognise significantly adapted homes, whether with a room for those affected by domestic violence or with specific adaptations for disabled people, for example. We have put an extra £25 million into that. All those things have been acknowledged.

At the same time, claimants or their partners who receive frequent overnight care from someone not in their household were exempt. Parents of disabled children who could not share a room were also exempt. Foster carers had an extra room. Parents with adult children in the armed forces who remained at home when not on operations had exemptions, too. All those people were recognised.

[Pamela Nash]

The Minister mentioned a few numbers relating to money given in mitigation. Exactly how much have the Government saved as a result of this policy? Which organisations have come to the Government, during their analysis of the policy, before and after implementation, and said, “This is a good idea”?

[Esther McVey]

I am not just talking numbers; I am talking lives of people right across the country who are affected by this. We are looking to save £500 million per year. That is what is being rolled out and what is being saved, because at the moment people are moving into other homes. At the moment, that is the amount being saved.