Housing Benefit (Under-occupancy Penalty)

Stephen Doughty Excerpts

Wednesday 27th February 2013 Commons Chamber

[Mr Byrne]

House building did not collapse. In the final years of our Government we brought forward serious new investment for housing, and it is the Labour party that is proposing serious investment in social housing and new housing today. That position seems to be shared by the Deputy Prime Minister, but his Government are presiding over an 11% collapse in the number of houses being built.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

Does my right hon. Friend agree that it is extraordinarily hypocritical for the Secretary of State to be talking about investing in housing when—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. I am sure that the hon. Gentleman did not mean to use the word “hypocritical” and that he is now going to withdraw it and carry on with his question.

[Stephen Doughty]

I will withdraw it, and I apologise, Mr Deputy Speaker. It is extraordinary for the Secretary of State to be talking about this measure when he is putting many of our housing associations and registered social landlords at risk. Moody’s downgraded housing associations’ credit ratings this week, which means that they are not going to be able to invest either in the properties they have or in building new ones, as my hon. Friend the Member for Swansea West (Geraint Davies) just said.

[Mr Byrne]

My hon. Friend is right. We have the National Housing Federation to thank for estimates on the amount of arrears, which housing associations now say are going to grow. Some estimates I have seen show that housing associations face up to a quarter of a billion pounds-worth of arrears because of this policy and other changes the Secretary of State is making. At a time when the country’s debt rating has been downgraded, that will make things incredibly difficult for housing associations in delivering on future social housing builds. The bedroom tax will only make the situation worse.