Housing Benefit
Rob Wilson Excerpts(14 years, 1 month ago)
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Mr Alexander
My hon. Friend speaks with force and knowledge about the impact of these changes in his own constituency. I hope that when Government Front Benchers reflect on the range of points that have been made about the impact on our communities and constituencies across London, they will take the opportunity to think again.
Mr Rob Wilson (Reading East) (Con)
It takes the entire income tax paid by seven average earners in my constituency, and by nine average earners in the right hon. Gentleman’s constituency, to pay one family’s housing benefit bill. Does he think that is fair?
Mr Alexander
I will come to the issue of the cap. The hon. Gentleman does a disservice to the importance and seriousness of this debate by simply reading out the questions the Whips have given him. In terms of the cumulative effect, which is what we were talking about, this package involves £1.8 billion-worth of cuts. The measure that he identifies accounts for £65 million of that £1.8 billion. One of the many attributes missing on the Government Benches is a sense of proportion.
Let us look at some of the individual measures. Labour Members do not have any objection in principle to asking younger single adults to live in a shared house or flat—after all, that is what has happened a great deal in the private sector. Yet it is revealing that the Chancellor, in his spending review statement to the House, described this as a chance to limit the ability to live on housing benefit as a lifestyle choice. So why have the Government not produced an impact assessment for these proposals? How can we be reassured that there will be sufficient supply to accommodate additional people and that the specific needs of young people in special circumstances, such as the disabled, will be addressed before this measure is introduced?
On the social sector, even the Government themselves seem to be struggling to understand some of the proposals. The June Budget promised to change housing entitlements for people of working age in the social sector. Can the Secretary of State explain what that means, and whether it will mean forcing people to move out of their council homes when their children turn 18? The Minister of State, Department for Work and Pensions, the hon. Member for Thornbury and Yate, who has already contributed to the debate, recently said in an answer to a written question:
“The detailed policy design of this change is still being developed.”—[Official Report, 1 November 2010; Vol. 517, c. 565W.]
In that case, why are the Government so confident that it will save £490 million?
Let us move on to the issue of the CPI. The shadow Chancellor has made it clear that we would support changing the uprating of benefits for a time-limited period, but this is not what the Government propose in relation to housing benefit. Index-linking local housing allowance to the CPI, which does not in any way reflect housing costs, means that the LHA’s value will drop substantially against rising rent levels, and households will increasingly find themselves priced out of all but the poorest-quality accommodation.
The impact is clear if we view the decade from 1997 to 2007 and then project forward. During those 10 years rents increased by 70%, while the CPI—the new inflation index that the Government have chosen—increased by only 20%. On that projection, by 2020 housing benefit based on CPI will have fallen so far behind private rents that it may cover only 10% of the available property. In Manchester it would cover only 5% of available two-bedroom flats, and in parts of Winchester, within 10 to 12 years not a single two-bedroom home would be affordable on housing benefit.
I ask Ministers in all seriousness whether it is coincidental that in evidence to the Select Committee on Work and Pensions last week, Lord Freud suggested that the coalition Government now saw it as
“quite valuable to rewrite the homelessness legislation”
Can the Secretary of State confirm whether that is indeed the case, and can he further assure the House that the Government are not simply seeking to rewrite the rules for those threatened by homelessness as they rewrote the rules for the unemployed in the 1980s and ’90s, parking a generation of people in the unemployment figures?
Oral Answers to Questions
Rob Wilson Excerpts(14 years, 6 months ago)
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Mr Rob Wilson (Reading East) (Con)
5. What recent discussions he has had with ministerial colleagues on reducing levels of unemployment.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
One of our top priorities is to reduce the number of people—nearly 5 million—on incapacity, lone parent or jobseeker’s benefits. We will reform the benefits system to make work pay and reassess the position of people on incapacity benefit, through a single, integrated package of support, to give people the personalised support that they need to find work.
Mr Duncan Smith
My hon. Friend is absolutely right. The figures are somewhat worse than that—the UK has a higher proportion of children growing up in workless households than almost any other EU country. We have had a very high level of residual unemployment for far too long. The key to dealing with that is the integrated Work programme, which will look at ways of trying to get back into work some of those long-term unemployed—many of whom have been parked on incapacity benefit and forgotten about—and support those who have not been contacted. Something like 40% of unemployed people had not been contacted for over six years; no one had bothered even to speak to them. We will also try to reform the benefits system so that when someone can go to work they will straight away see that it is worth their while to do so, whereas at the moment work simply does not pay, or appears not to.
Mr Duncan Smith
The first thing I can say to my hon. Friend is that one of the key coalition drives is to stop the would-be jobs tax, the national insurance charge, that was to be imposed by the last Government when they were in power because that would have taken away a great many opportunities for young people. The other thing is to make sure that the targeted Work programme, which the Minister of State, Department for Work and Pensions, my right hon. Friend the Member for Epsom and Ewell (Chris Grayling), will be speaking about in more detail later, helps the youth unemployed get back to work. We must remember that after all the money that was spent by the other Government, youth unemployment is now higher than it was when they came into office in 1997.
Mr Duncan Smith
The purpose of this Administration is not to penalise those in most need. We will do our level best to ensure that during these changes—and given the necessity of reducing the budget—we try to protect as many of those people as possible. Ultimately the best thing that we can do for them across the board is to simplify the benefit system so that the take-up is greater and ensure that going to work pays, with people retaining more of what they earn when they go to work than they do at the moment.
Mr Rob Wilson (Reading East) (Con)
T3. What action can the Government take to bring the ballooning public sector pension debt under control?
The Minister of State, Department for Work and Pensions (Steve Webb)
Our colleagues in the Treasury are establishing a commission to look at public sector pensions, and we have already had a meeting with our colleagues to try to ensure a fair deal both for the hard-working people who work in the public sector and for the taxpayers who are making a very large contribution to those pensions. It is important that the true cost is made transparent, which it clearly is not at present.