Housing Benefit

Debate between Rachel Reeves and Lilian Greenwood

Wednesday 26th February 2014 Commons Chamber

[Rachel Reeves]

Let us see where Bradford is by the end of the financial year, not just six months into it.

Many of those who are moving because of the bedroom tax are ending up in private rented accommodation which, though smaller, is more expensive. Analysis by the university of York suggests that this could mean the Government paying out £160 million more in housing benefit than had been budgeted for.

Ministers have also been forced to admit that 35,000 of the disabled people affected have had their homes specially adapted for them with, for example, wheelchair ramps, wider doors, stair lifts and accessible bathrooms. If they are forced to move, it has been estimated that the costs of repeating those adaptations in new properties could be as much as £234 million.

According to the latest numbers from the National Housing Federation, two thirds of the households hit by the bedroom tax have already fallen into arrears, hitting the finances of the very housing providers we need to be building more homes to deal with overcrowding, and a staggering one in seven of the tenants affected have already received eviction warning letters.

[Lilian Greenwood (Nottingham South) (Lab)]

Does my hon. Friend share my concern that in Nottingham more than 2,000 City Homes tenants are falling into arrears totalling more than £286,000—money that should be spent on refurbishing existing homes and building new ones? The fact that they are in arrears means that even if there were somewhere for them to downsize to, tenancy restrictions would prevent them from doing so.

[Rachel Reeves]

In my hon. Friend’s local authority area—Nottingham city council—200 people have been wrongly paying the bedroom tax because of this Government’s mistakes. She is absolutely right to mention the number of people in her area who are in arrears and the difficulties they will have in moving.

The eviction warning letters that have gone to so many people raise the threat of millions more being wasted in eviction proceedings and the emergency accommodation that will be needed for those who are made homeless. What a shambles.