Housing Benefit Entitlement

Debate between Phil Wilson and Kate Green

Wednesday 23rd January 2013 Westminster Hall

[Phil Wilson]

At the beginning of the 21st century, it obviously is. Bishop Auckland, the constituency that my hon. Friend represents, shares some of the statistics regarding Livin, because it covers both our constituencies, and it is concerned because of the proposal that its rent arrears could double from 4% to 8% in the future. In a briefing note prepared by Livin, it said:

“Rent arrears will increase, affecting cash flow, which could mean that the loan facility made available to Livin for improvements and development of the housing stock may be required to fund administration. This could only be considered as a temporary position and Livin would need to readjust its spending to avoid borrowing for ongoing day to day costs.”

I said earlier that the impact of these new rules would be arbitrary on families and communities. Here are a couple of examples. The DWP’s equality impact assessment shows that 66% of claimants who will be affected by the bedroom tax are disabled. Although recipients of disability living allowance are exempt from the overall benefit cap, the DWP has chosen not to exempt them from the bedroom tax.

[Kate Green (Stretford and Urmston) (Lab)]

I am grateful to my hon. Friend for mentioning disabled people. He may be aware that Ministers have made much of access to discretionary housing payments for disabled people. Indeed, Ministers have implied that the money has been allocated specifically to meet the needs of disabled people. But, of course, the money is temporary and limited, and the discretion of local authorities whether to pay only to disabled people cannot be fettered. Is it not totally misleading to imply that discretionary housing payments will in any way compensate for what has been lost?

[Phil Wilson]

My hon. Friend is absolutely right. I will address that in my speech, which many hon. Members seem to have read. The Minister will probably say that that budget is being increased, but it is not ring-fenced.

A man came into my constituency office. He is divorced, and he cares for his children for part of the week. He receives housing benefit and lives in a two-bedroom house. The children’s mother, however, is deemed to be the main carer, so his housing benefit will be docked by 14%. He will need to move into a one-bedroom property, if he can find one. His main problem is that, if he moves into a one-bedroom house, how will he look after his children for part of the week?