Affordable Homes Bill

Debate between Richard Graham and Nick Raynsford

Friday 5th September 2014 Commons Chamber

[Mr Raynsford]

I intend to make some progress, because many hon. Members want to speak. I may give way later, but for the moment I intend to make some progress.

I have made it clear that I regard the premise on which the policy was promoted as fraudulent because the Government’s real objective was to cut £500 million of public expenditure out of housing benefit. As the hon. Member for St Ives has clearly said, that could not be achieved if the policy’s ostensible objective—to encourage movement by tenants in social housing into smaller accommodation—was successful, because there would be no saving in public expenditure. The Government have been in the tortuous position of trying to justify the policy on the basis of making better use of the social housing stock when in practice they were after cuts in public expenditure that could not be delivered if the ostensible objective was met.

[Richard Graham (Gloucester) (Con)]

The right hon. Gentleman has made the point that some people in social housing provided by local councils want a spare room to enable their children or friends to stay. We all recognise that that is the case, but his Government changed the rules about that for the thousands and thousands of people in private accommodation in every constituency. Why should there be one rule for one lot of people and another rule for another lot? It is rank hypocrisy.

[Mr Raynsford]

The hon. Gentleman has clearly not been listening to the debate. My hon. Friend the Member for Dumfries and Galloway (Mr Brown) very forcefully made the point that the policy introduced by the previous Labour Government was not retrospective and did not penalise people on the basis of their existing circumstances. Quite simply, given the higher cost—[Interruption.] Perhaps the hon. Gentleman who asked the question would like to listen. He will know that private rented housing is generally very much more expensive than social housing. Social housing is allocated by landlords on the basis of how many bedrooms people need. If people who take private rented housing—they are not subject to allocation, but can choose their property—were able to select much more expensive properties that are larger than they need, that in itself would be reasonable grounds for a restriction. However, that applies only when people move into such housing, not retrospectively. Finally, I put it to him that if he and the Government were really concerned to make better and more efficient use of under-occupied social housing, they would not have exempted elderly people because it is predominantly that group whose properties are under-occupied. That point absolutely goes to the heart of the process: this is not about better use of the social housing stock; this is about trying to make cuts in public expenditure, which has been the Government’s objective from the outset. I now want to make some progress.

This whole ghastly process, which has caused anxiety, misery and hardship on a very large scale to hundreds of thousands of our fellow citizens, was based on a false premise, without any proper evidence to justify what was done. It was a truly dreadful example of the worst type of policy making. Ideally, the whole policy should be consigned to the dustbin immediately, and it will be if the Labour party forms the Government after the next general election.

In the meantime, the hon. Member for St Ives has given us an opportunity significantly to limit its negative impact by restricting its application in three specific ways. The first way is by excluding cases where significant adaptations have been made to a property to meet the needs of a disabled tenant or a close relative who lives in the house. Quite why the Government did not accept the need for such an amendment from the outset is difficult to understand. It is clearly wasteful of public expenditure to drive disabled people out of properties that have been adapted for their needs if, as a consequence, they move into unadapted properties that have to be adapted at considerable expense to make them fit for them to live in. That is yet another illustration of the perversity of the whole policy. The exemption is long overdue and will remedy one of the blatant injustices and endemic nonsenses that are inherent in the bedroom tax policy.

Secondly, an exemption is proposed for tenants and close relatives who are in receipt of disability living allowance or personal independence payments and who, because of their disability, are not able to share a bedroom with someone with whom, under the bedroom tax regulations, they would be expected to share a bedroom. Again, that is a sensible, humane exemption that ought to have been agreed from the outset. Instead, the Government argued that discretionary housing payment could be made in such cases, ignoring three principal objections.

First, not everyone who might qualify for discretionary housing payment will apply for it. The Government’s own review has demonstrated that that is the case. Secondly, not every local authority will approve DHP in all appropriate cases. Thirdly, the DHP regime is temporary. The Government have not confirmed that it will continue to be available beyond 2014-15, despite being pressed by the Work and Pensions Committee to give such a guarantee. It is far better to exempt those who are in receipt of DLA or PIP from the bedroom tax than to depend on the vagaries of DHP.

I do, however, have an anxiety about the precise wording of clause 2(1)(b). I have mentioned this point to the hon. Member for St Ives and I hope that, if necessary, the provision can be amended in Committee. As hon. Members will know, there are two levels of bedroom tax: it is 14% when the tenant is deemed to have one bedroom more than is strictly required and 25% when the tenant is deemed to be occupying two or more bedrooms more than they need. The exemption in the Bill is qualified by clause 2(1)(b)(v), so that it does not apply when the tenant has two or more bedrooms more than is strictly needed, even when the tenant has established that he or she cannot share a bedroom and so needs one bedroom more than their strict entitlement. The provision appears, therefore, to leave the tenant exposed to a 25% benefit reduction in such cases, rather than the more limited 14% reduction, which would appear to be fairer. I may be wrong in seeing that as a potential loophole that needs closing, and I would be delighted to hear from the hon. Gentleman if that is the case. If not, I hope that he will consider an amendment in Committee.