Social Security and Pensions

Debate between Stephen Timms and Jeremy Corbyn

Monday 6th February 2023 Commons Chamber

[Sir Stephen Timms]

There is a strong case for that. At the time when the benefit cap was introduced, we were told that it was to prevent people from receiving more in benefits than they would if they were working, but any relationship with wage levels has long since disappeared.

In its briefing for this debate, the Child Poverty Action Group makes the point that the increase does not undo the damage of the cap having been frozen since 2016, but

“pushes families who would be in poverty anyway into even deeper poverty.”

It points out that 123,000 households are currently affected by the cap, including 107,000 households with children. That is one reason why, before the pandemic, when the data was most recently updated, 700,000 more children were in poverty than in 2010. The case for the cap needs to be reconsidered.

I want to pick up a point that my hon. Friend the Member for Westminster North (Ms Buck) made about the absence of an uprating to the local housing allowance, which is a very big problem. The LHA will be frozen for the coming year at the level at which it was set in 2020, even though rents are rising fast. When I raised the matter with the Prime Minister at the Liaison Committee in December, he replied that the uprating in 2020 represented

“a very significant cash uplift at the time, which it is appropriate to have maintained”,

echoing the wording of the ministerial statement from which my hon. Friend the Member for Westminster North quoted.

[Jeremy Corbyn]

I agree with the Chair of the Select Committee about the rapid increase in rents, particularly in the private sector—it is huge in the big cities. Does he think that the Government should at least reflect on the need for a freeze on private sector rents, and for some serious legislation to protect the now huge proportion of our country’s population who live in the private rented sector?

[Sir Stephen Timms]

The right hon. Gentleman makes a very powerful argument that the rate at which rents are now rising is devastating household finances in many parts of the country. All the 2020 increase—the much-vaunted “generous uplift”—did was raise the local housing allowance back to the level at which it had been set at the beginning of the decade: at the 30th percentile of local rents. In other words, it was raised to a level at which it covered three in 10 of the homes of that size in each local area, so even in 2020 it was not enough to cover the rent for seven out of 10 of the homes available. Since then, it has been frozen; by the end of the coming financial year it will have been frozen for four full years.

The consequences are becoming clear. Last week, the Combined Homelessness and Information Network reported that up to 3,570 people were sleeping rough in London from October to December 2022—a 21% rise on the same period in the previous year, with a 29% increase in the number of new rough sleepers. The chief executive of Crisis said:

“It is simply disgraceful that the numbers of people forced to sleep on the capital’s streets is very nearly back to the record levels we were seeing before the pandemic.”

Zoopla data shows large shortfalls for the cheapest properties by the end of last year: the shortfall for a one-bedroom home in Southwark had almost doubled in five months to £2,630 a year, while the shortfall for a three-bedroom home in Bromley had increased by more than £1,000 in five months to £3,555. At the start of 2022, some 1.7 million people—more than one in three renters in the private rented sector—were dependent on housing support to help them with their rent. Fewer than one in 12 private homes listed last year were affordable within the local housing allowance level; that figure reduced by a third in just five months last year.

The level of support is now being frozen in cash terms for a further year. Crisis said last week that it was

“particularly concerned that the lack of social housing and the growing gap between overheating rents and the frozen Local Housing Allowance is pushing people towards homelessness.”

That is the reality of the impact of the policy, which should urgently be reconsidered. Ministers say that they are committed to ending rough sleeping, but the policy is driving an increase in rough sleeping.

I am grateful to my hon. Friend the Member for Westminster North for drawing attention to the Select Committee’s recommendation about the cap on the level of childcare support in universal credit. It is regrettable that there is nothing in the present measures that will address that, but I hope we might see something in the Budget on that front, given the cross-party concern about the inadequacy of childcare support at a time when we want to encourage people back into work.

It is a relief that a catch-up uprating is being delivered to the main rates of benefit, but we are a very long way from providing an adequate social security safety net. A large-scale repair job will be needed in the near future. There is growing evidence that disabled people are facing an especially tough time in the current cost of living crisis. Their situation, to which the hon. Member for Blackpool North and Cleveleys was right to draw attention, has to be addressed.

Most immediately, however, I urge the Minister to take another look at the local housing allowance level. Ministers say that they are committed to eradicating rough sleeping, but it does not look as though they mean it. Keeping the local housing allowance frozen for a fourth year will drive a further surge in the number of rough sleepers, as well as very serious problems for hundreds of thousands of others.

Nationality and Borders Bill

Debate between Stephen Timms and Jeremy Corbyn

Report stage
Tuesday 7th December 2021 Commons Chamber

[Jeremy Corbyn (Islington North) (Ind)]

I just want to put on record four things. First, this Bill is an appalling piece of legislation. It is designed to appease the most backward elements in our society and it is designed to chase headlines in the popular media. The attacks on refugees and the attacks on people who support refugees are nothing but appalling and disgusting. The idea that this country has always been a welcoming place for refugees is simply not true. Often, it has been very hostile towards refugees. If we were that welcoming, we would not have so many people who have legitimately sought asylum in Britain living in desperate poverty, because the Home Office cannot be bothered to process their applications, and they are living in penury as a result. It would not be criminalising people who are trying to save lives on our shores, or prosecuting people in the Royal National Lifeboat Institution, or anything else. We should all be very proud of people who demonstrated in memory of those who died off Calais, including the 250 people who attended a demonstration at the Stade in Hastings a couple of weeks ago.

I wish to refer to three parts of the Bill. I absolutely support new clause 2, tabled by the hon. Member for Crawley (Henry Smith). I have been a member, and in the past chair, of the Chagos Islands (British Indian Ocean Territory) all-party group for many years, and I worked with Olivier Bancoult, and many other Chagos islanders. We did wrong to the Chagos islanders in the 1970s and ’80s when they were driven off their land, and we have done wrong by them many times since then. The reason British nationality was offered was that the late Tam Dalyell and I tabled an amendment to previous legislation, to try to get recognition of the rights of Chagos islanders. Unfortunately, the Foreign Office and the Home Office collectively got it wrong, and the new clause corrects a mistake—let us be generous and call it a mistake—that was made many years ago, and will grant security to Chagos islanders living in this country.

I strongly support new clause 8 tabled by my hon. Friend the Member for Streatham (Bell Ribeiro-Addy). Nationality fees should be based solely on the cost of processing, not on the Home Office making a vast amount of money out of that. The new clause would help to right what is an intrinsic wrong.

In my remaining 39 seconds, I strongly support amendment 12, tabled by the right hon. Member for Haltemprice and Howden (Mr Davis), about the removal of British nationality. Many of us in the House—probably everybody—has at some point been to a citizenship ceremony at our town hall. They are nice; they are moving occasions. But all that could be for naught. The Home Secretary could simply remove the right of citizenship from someone who has gained it in this country or gained it through their heritage. Such a removal requires the agreement of another country, but people will not get that, and we will end up with stateless people as a result.

[Stephen Timms]

I wish to support new clause 8, tabled by my hon. Friend the Member for Streatham (Bell Ribeiro-Addy). The “Barriers to Britishness” report was published a year ago this month, and in his foreword, the Conservative hon. Member for South Leicestershire (Alberto Costa) pointed out that the cost of citizenship in the UK is the highest in the western world, and that

“the combined cost of applying to become a citizen in Australia, Canada, the USA and France still does not add up to the cost of a single application in Britain. The fee of £1,330 is almost four times the cost to the Home Office of processing an application.”

This is a hostile environment for hard-working, law-abiding migrant families, and that is why clause 9 provokes such anxiety.

I know many families on the so-called 10-year route to indefinite leave, which means that two and a half years’ leave to remain at a time needs to be obtained four times, before they can apply for indefinite leave. They pay extortionate fees every time. Sometimes people lose their jobs because they do not have leave to remain between one two-and-a-half-year period ending and the Home Office getting round to granting the next. No recourse to public funds applies throughout that 10-year period—that is the subject of a different amendment that we will debate later.

At the Liaison Committee last year I told the Prime Minister about a family I know. Both parents work, the mother as a teaching assistant and the father in a big international company. The mother’s job continued after lockdown, but the father was laid off. Lockdown happened in one of the gaps between two-and-a-half-year periods, and the father’s employer did not know whether it was allowed to furlough him under the new scheme, so it did not. That family had no recourse to public funds, and all they could do was turn to a foodbank to survive. At the Liaison Committee the Prime Minister said that hard-working, law-abiding families in that position should have help of one kind or another. I very much agree with him, but unfortunately they do not, and every two and a half years they have extortionate visa fees. How do people cope with massive fees? For one family I know, we are talking about £14,000 every two and a half years in order to stay in the UK. For 10 years, they get no child benefit, even if the children are British citizens; no universal credit if somebody loses a job; and, prior to the pandemic, no free school meals if the family hit hard times. That is the hostile environment for law-abiding, hard-working migrant families, which is why families are so worried about what is in this Bill.