Housing Benefit

Debate between Simon Hughes and Steve Webb

Tuesday 12th November 2013 Commons Chamber

[Steve Webb]

The hon. Gentleman misses the point. He mistakes the issue of empty properties for properties that are currently accommodated. The social housing swap website indicates tens, if not hundreds, of thousands of people in smaller properties who want to trade up, while people in larger properties want to trade down.

In response to the hon. Member for Manchester Central, I am rather startled by this figure, but it appears that last year Manchester local authority sent back to the Government £595,000 of unspent DHPs.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

I am grateful to my hon. Friend and his colleagues for the extra allocation of money. My local authority has bid for an extra £600,000, which I hope it will receive. I supported the motion at the Liberal Democrat conference arguing for changes in this policy. [Interruption.] I will take no lessons from Labour Members. Will my hon. Friend look at exempting those who have applied and are eligible for a smaller property, and are waiting to be allocated?

[Steve Webb]

I am grateful to my right hon. Friend for referring to our policy motion, which is a darn sight better than the one we have been asked to consider by the Opposition. The Government are addressing many of the elements in our conference motion. For example, the motion calls for

“an immediate evaluation of the impact of the policy”

which we are undertaking, and

“A review of the amount allocated to local authorities for the Discretionary Housing Payment Fund”.

Housing Benefit (Under-occupancy Penalty)

Debate between Simon Hughes and Steve Webb

Wednesday 27th February 2013 Commons Chamber

[Steve Webb]

Our impact assessment is our best estimate based on what we expect the impact of the policy to be. That is all any Department ever produces. We believe that it is a robust best estimate.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

My hon. Friend knows that his Liberal Democrat colleagues expressed concern about this measure when it went through this House and the other House, and that it was changed as a result of some of those concerns, but does he accept that there is still concern that the message about the facts is not getting through and that pensioners in particular are worried? Will he also accept the need to address other categories of people who need separate rooms—for example, those with disabilities or those with teenage, university or service children—but whose needs are not being adequately met at the moment?

[Steve Webb]

My right hon. Friend has some credibility on the issue of welfare reform, because he has been prepared to vote for difficult decisions on public spending. Neither the Labour party nor the nationalist parties have taken any difficult decisions on anything—they simply oppose everything—whereas he has, quite fairly, been willing to take some difficult decisions and support them and, again quite properly, raise concerns about the detail of policy. He is entirely right. The principle of the policy must be seen in the context of deficit reduction. Given that we have to reduce the deficit, we want to do so in a way that potentially has upsides as well as downsides, such as by making better use of the social housing stock, but it has always been our intention to protect the most vulnerable. The additional £30 million on top of the core £20 million for discretionary housing payments is the key way we want to do that, and I will say more later about how we want to ensure that that system works.

--- Later in debate ---

[Steve Webb]

I am grateful to the hon. Lady. The point of the policy is not for people to be evicted, which would raise costs for the Exchequer and for the individual, but to ensure that existing housing stock is fully occupied.

Let me try directly to address the issue of the shortfall. There were two ways in which we could have approached the matter, one of which was blanket exemptions, which is what we did for pensioners. I am grateful to the hon. Member for Banff and Buchan for making it absolutely clear in opening the debate that pensioners are not covered by this change.

It is clear that we wanted to protect another set of people. Let me deal with the example of foster children, whom my right hon. Friend the Member for Bermondsey and Old Southwark (Simon Hughes) mentioned. The position on foster families is, I think, shared across the House. If people need a spare bedroom for a foster child, we want to make sure that they have one, and we want to support fosterers. The question is whether that is done better by some blanket exemption or by what we have done in costing what it would take to meet the shortfall for those families and giving the money to local authorities so that a foster family for which this was an issue—it might not be an issue for all of them—can approach the authority and have the shortfall made up.

My right hon. Friend the Secretary of State and I are entirely open to discussing whether that is the most effective way of delivering that support. Our judgment was that discretionary housing payments gave local authorities the discretion we would want them to have. If for any reason that message is not getting through and is causing anxieties to foster families who do not know about DHPs, for example, or if local authorities have not communicated well enough, we would be happy to look at whether this is the most effective way of supporting families. Where there is a shortfall, discretionary housing payments for this and other measures are available. We want to make sure that people use them when they are in genuine need. Eviction is clearly not something that we are seeking to achieve.

[Simon Hughes]

That was really helpful. I want to pursue the issue raised by the hon. Member for Aberdeen South (Dame Anne Begg). The Minister has said that he is willing to look at whether the discretionary funds will meet certain problems. May I take it that he and the Secretary of State would be willing to look at the categories defining which people need a bedroom, as I think some categories that are not currently counted as falling within the definition should be included in it?

[Steve Webb]

I can see the attraction of that approach, and I think there is a balance to be struck. The attraction of the approach for foster families would be that the size criteria could be defined and then categories of people such as a couple, teenage children and so forth could be added to the list. We could say that a bedroom used for a foster child is a bedroom, so no deduction applies, people do not need to go to the council for the DHPs and the Department for Work and Pensions rather than the local authority would meet the bill. That is one way of doing things.

The challenge for us in that approach is defining in Whitehall all the categories of people who ought to have a room. There could be difficulties even within a category, as there might be foster carers, for example, for whom this is more or less of an issue. It could vary from case to case. We have to make the judgment: where do we need to make a blanket exemption or a blanket entitlement to a room, and where do we say that we will give the local authorities money and discretion? Each side of the argument has its attractions. We have to ensure that the money we have given to local authorities is well spent and that people know it is coming.

I have been interviewed on various television programmes, which have featured case studies of people who were obviously distressed—and I do not doubt that some people are distressed by this change. Obviously, however, if they approached their local authority, they would not be affected by it. That is the issue. They would go to their local authority, which has been given money to help them; the authority would help them, so they would not be affected. My right hon. Friend the Member for Bermondsey and Old Southwark and the hon. Member for Aberdeen South (Dame Anne Begg) are right that we must ensure that people are not unduly alarmed, as in many cases money is available to help the most vulnerable.

Oral Answers to Questions

Debate between Simon Hughes and Steve Webb

Monday 28th January 2013 Commons Chamber

[Steve Webb]

Just to be clear, we are talking about women who draw a pension significantly earlier than men born on the same day. The hon. Gentleman is shaking his head; that is a statement of fact. It is the case that present pensioners do not fall under the new system. I have explained why we cannot bring it forward, but I am delighted that the Opposition’s principal criticism is that we are not introducing our reform quickly enough.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

On the Government’s benefit changes for housing, foster carers have expressed their concern to me that they might be inhibited from doing their good work by the extra penalty for having a spare room. Can the Secretary of State or a Minister give me some reassurance that the amount of fostering that we currently have—and need—can continue without financial disadvantage?

Oral Answers to Questions

Debate between Simon Hughes and Steve Webb

Monday 23rd April 2012 Commons Chamber

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

Following earlier questions on pensions, will the Minister put on record the fact that the Budget and the Government’s decisions are the best news ever for pensioners now, as well as for pensioners in the future? The press and the Opposition appear to have somewhat missed the point.

[The Minister of State, Department for Work and Pensions (Steve Webb)]

My right hon. Friend is aware that, as Pensions Minister, I am responsible for people who are currently pensioners and for everyone who will be a pensioner, which is everybody, and we have good news for today’s pensioners: not only the highest-ever cash increase but, more than that, year-on-year above-inflation increases whenever earnings grow more rapidly—and, incidentally, an increase in the age-related personal allowance this April of more than £500.

State Pension Reform

Debate between Simon Hughes and Steve Webb

Monday 4th April 2011 Commons Chamber

[Steve Webb]

I am grateful to the Select Committee Chair for her questions. To be clear on the role of pension credit, we envisage that there will have to be a safety net under any system, and the Green Paper provides for consultation about what exactly that might look like. There will still be a guaranteed credit type system—a floor below which people cannot fall. In a single-tier pension world, the savings credit would no longer be necessary for new pensioners. In other words, the savings credit was invented by the previous Government to deal with the fact that 100% marginal tax rates were paid on any saving. Because we are not doing that any more, we will not need the savings credit for new pensioners, which helps to pay for the reform. It is less means-testing, more universal pension.

The hon. Lady rightly mentions the position of women and my point is that women under the current system, who often did their child rearing before the state second pension was introduced, have no protection at all, whereas they have basic pension protection. Under a single-tier world, they get protection at the full rate, so they will benefit from the reforms we are introducing.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

My hon. Friend the Pensions Minister has not only this very month introduced the link between pensions and earnings, for which pensioners have been calling for years, but now makes a clear bid to be the most popular Pensions Minister for decades, in announcing the option of the citizens pension for which he and I have campaigned for ever. It is clearly fairer, simpler and particularly helpful to women and the self-employed. I urge my hon. Friend to be as bold and reforming as he suggests option 2 would allow. I urge him to go fully through the consultation process, but when midsummer’s day arrives—the last day of the consultation—I urge him to go for the single tier state pension so that this Government’s legacy for pensioners will be as radical in this century as the legacy of Lloyd George and Beveridge was for pensioners in the last.

[Steve Webb]

My right hon. Friend puts me on the spot, but I am glad to respond positively. I have noted his comments down as being the first response to my consultation, making it 1-0 for the single-tier option—I will keep score as we go. He is right that the restoration of the earnings link after 30 years of breaking it is an historic event, although it has been rather overshadowed by other events in the world. We think someone retiring this year will, over the years, get an extra £15,000 in basic state pension through the restoration of the link. That is a real firm foundation for today’s pensioners as well as reform for tomorrow’s. I am grateful to my right hon. Friend in respect of the liberal heritage and to my right hon. Friends the Secretary of State and the Chancellor for their encouragement for the proposal to move forward.

Oral Answers to Questions

Debate between Simon Hughes and Steve Webb

Monday 28th March 2011 Commons Chamber

[The Minister of State, Department for Work and Pensions (Steve Webb)]

For the first seven or eight years in which the winter fuel payment existed, it was set at exactly £200. For three years only, it was temporarily increased, and the budgeted amount was set to reduce this coming winter. Last year—the hon. Lady may not be aware of this—we ensured that poor pensioners got an £80 electricity rebate. This winter, subject to regulations going through the House, we plan that over 1 million poor pensioners will be entitled to a £120 electricity rebate—real help for people who need it.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

T6. Next week, pensions get linked to earnings for the first time since Mrs Thatcher abolished the link in the 1980s. I do not think that pensioners have yet got all the good news messages that they should be getting from this Government. Can Ministers assure us, and pensioners, about what those messages are? Can they then make sure that every pensioner and pensioners’ organisation understands the range of good things from which they have already benefited thanks to Ministers in this Government?

[Steve Webb]

My right hon. Friend is absolutely right. I spend a good deal of my time going out around the country talking to pensioners’ groups. I shall be talking to one such group in Birmingham on Wednesday, and I will tell them that restoring the earnings link for the first time in 30 years will provide a firm foundation and dignity for pensioners. That is long overdue.