Housing Benefit (Abolition of Social Sector Size Criteria)

Stephen Twigg Excerpts

Wednesday 17th December 2014 Commons Chamber

[Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)]

When the Minister spoke at the beginning of the debate, he accused the Labour party of contriving to scare. I have to say to him that that is a gross insult to my constituents, who feel very strongly about this issue. In one ward in my constituency, Norris Green, more than 1,000 tenants are directly affected by the bedroom tax, and in total 2,500 people are affected across my constituency. With all due respect to the hon. Members for Henley (John Howell) and for South Derbyshire (Heather Wheeler), to whom I listened carefully, the scale of the challenge in a constituency such as mine is completely different from what they described in their constituencies.

An interesting piece of work has been undertaken, with those directly affected by the bedroom tax, called the Real Life Reform report. It is being constantly updated, and its latest research shows that one in eight of those involved has used a food bank at least once in the past three months. One of the most concerning findings in the Real Life Reform research is that people who are having to pay the bedroom tax are spending less on food—on average, about 10% less; the typical spend on food in September 2013 was £3.28 a day, which is hardly a massive amount of money, but the latest figure is £2.79 per day. So when we say that people are confronted with the choice of paying the bedroom tax or paying for food, we know that the research is demonstrating that for a significant number of people that means spending even less on food.

[Emily Thornberry (Islington South and Finsbury) (Lab)]

A constituent of mine has had a row with her daughter, who has moved out, and wants the bedroom to be left available for her daughter when she comes home. In the meantime, as she waits for her daughter to come home, she eats nothing but sandwiches, because she has to pay the bedroom tax.

[Stephen Twigg]

I am grateful to my hon. Friend for raising that issue, and I have encountered countless examples like that in my constituency. I am grateful to the registered social landlords in my constituency—Riverside housing, Liverpool Mutual Homes and Liverpool Housing Trust—for providing me with up-to-date information ahead of today’s debate. Let me run through some of what they have told me, some of which is different from what we heard from the Minister. I accept that the impact of this policy is different in different parts of the country, but I am speaking about what I have been told by the RSLs in my constituency.

I am told that there is a significant increase in current tenant rent arrears. Riverside housing told me that those affected by the bedroom tax are twice as likely to be in arrears with the rent as those not affected by it. LMH and LHT tell me that there has been an increase in the number of empty properties—there are more void properties. They say that that is linked mostly to prospective tenants either choosing to wait for a suitable-sized property to meet their housing need or simply being unable to afford the rent if under-occupancy is applicable, given their own family circumstances. Thirdly, housing associations are struggling to let some of their lower demand properties, as applicants are unable to make up the shortfall in rent. One of the consequences, certainly in Liverpool, is that the average re-let period has increased for those two housing associations from 27 days to 40 days—in other words, properties are left empty, so rental income declines for RSLs.

On the shift to the private sector, the experience in Liverpool is very different from the figures that the Minister shared with the House. Riverside housing tells me that of those who have moved, 30% have moved from the social rented sector as a result of the bedroom tax into the private sector. As my hon. Friends have said, that is often more expensive to the public purse because the level of housing benefit paid out in the private sector is higher, as private rents tend to be higher.

I shall conclude by saying something about discretionary housing payments. Last year, Liverpool spent £2.5 million on over 9,000 DHP awards. It spent all the money allocated by the Government, and it topped it up—there simply was not enough. The same thing is on course to happen again. The scale of need in a constituency such as mine, in a city such as Liverpool, cannot be met by the amount of money provided in DHP. We have no assurance that those housing payments are there for the long term.

A much more intelligent and straightforward policy is advocated in today’s motion, which recognises the hardship that this cruel tax has created. It recognises that it has led to an increase in household debt, and that it has hit the poorest, the most vulnerable, and disabled people. I make an appeal, even at this late stage, for Government Members to come through the Lobby with us this afternoon so that we can repeal this cruel tax.

[Several hon. Members]

rose—