Housing Benefit

Debate between Stephen Doughty and Lucy Powell

Tuesday 12th November 2013 Commons Chamber

[Lucy Powell (Manchester Central) (Lab/Co-op)]

It is an honour to follow the hon. Member for Meon Valley (George Hollingbery) and my right hon. Friend the Member for Greenwich and Woolwich (Mr Raynsford), who made an excellent contribution.

I am pleased to be called to speak in this debate and I am proud that the Labour party now has a commitment to axing this appalling policy. I am proud of Opposition Members’ contributions to this debate, which stand in stark contrast to some of the drivel we heard from the Government Benches, much of which showed a lack of understanding of and basic research into how this policy is being delivered on the ground.

One example of that was in the contribution of the hon. Member for Suffolk Coastal (Dr Coffey), who said people should simply work an extra three hours a week to pay for this. If she knew the policy, she would be aware that those in work and receiving housing benefit who work an extra three hours a week will lose 85% of that extra income to pay for their rent and council tax. Therefore they would still have to pay the bedroom tax.

I am the MP for Manchester Central and my constituency has the highest number of people affected by the bedroom tax in the country—over 4,000. That is not just a number; it is people struggling desperately as a result of this unjust policy.

I have three main criticisms of this policy, and they build on the points made by my right hon. Friend the Member for Greenwich and Woolwich: it is a morally wrong and corrupt policy; it costs more than it saves; and it does not even work. By any measure, that is a pretty damning indictment of a policy.

It is morally wrong because it is such a blunt instrument and it is punishing all sorts of vulnerable people who have done nothing wrong. We have heard many examples from colleagues, charting the human cost of this disastrous policy. I want to highlight one other.

Elizabeth has a very disabled son, Ryan. Their case has been highlighted by the Manchester Evening News and the Daily Mirror, both of which have been running excellent campaigns against the bedroom tax. Ryan is a disabled adult and requires around-the-clock care, including overnight care. He is not excluded from the bedroom tax policy, however, because he is not the tenant of the property. Therefore, they are subject to the bedroom tax. After many weeks and months of anxious worrying, Elizabeth finally, after my intervention, was awarded the discretionary housing money. However, this does not take away from the fact that she is not sure what is going to happen next year or the year after that. That is the kind of anxiety people are facing. On the discretionary housing payment, I am delighted that the Minister has today said that if more claimants qualify but the £1.9 million that Manchester city council has received is not enough, the Government will guarantee those payments.

This policy also costs more than it saves, as is highlighted by the case of my constituent, Alan. He is in his late-50s and he has worked for most of his life. He lives in a two-bedroom property because no one-bedroom properties were available for him. He was made redundant and is now on benefits of £71.70 a fortnight. His social housing costs £60 a week and he has been asked to pay the bedroom tax out of that money. If he wants to move to the private sector, which is the only real option for him, that will cost him at least £100 a week in rent, which the housing benefit bill will have to pay. So that is going to take costs up, not down.

The final point I wish to make is that this policy does not even work. Many Government Members have talked about how it deals with overcrowding and people on the housing waiting list. In Manchester, 19,000 people are on that list and that figure has not moved one jot since this policy was introduced, because all the slack of available property is being taken up by people doing housing swaps. The only properties becoming available are two-bedroom properties in blocks of flats, which are unsuitable for families with children. So those properties are going to people in band 5—people who are not most in need. Those who are most in need are being pushed further and further down the waiting list.

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

My hon. Friend is making a strong speech, in which she mentioned families with children. Did she share my shock at Lord Freud’s comment that families who are separated should get a sofa bed to deal with the problem of being hit by the bedroom tax? Was that not a shocking thing to say about the situation of families in this country?

[Lucy Powell]

It was a shocking thing to say. It showed a complete failure to understand what family life is like and to understand that many fathers—I thought the Conservatives claimed to be the party of the fathers—have contact with their children only if they have a spare bedroom for them to stay in, so they will be losing that contact. That is a disgraceful aspect of this policy.

Perhaps if the Government had done a little more research, analysis and modelling before introducing this proposal, they might have foreseen some of these knock-on consequences. Labour Members are all for looking at how we can deal with some of the issues relating to under-occupancy and housing shortage, but this sort of brutal, blunt instrument does nothing to address that—in fact, it does quite the opposite. We need a long-term strategy bringing together the housing associations, other policy makers and tenants to work out how we can best use a carrot and stick approach to deal with under-occupancy. What we have from this Government is a morally corrupt policy that does not work and is going to cost the taxpayer even more.