Rent Officers (Housing Benefit and Universal Credit Functions) (Local Housing Allowance Amendments) Order 2015

Debate between Tristram Hunt and Justin Tomlinson

Monday 23rd November 2015 General Committees

[The Parliamentary Under-Secretary of State for Disabled People (Justin Tomlinson)]

It is an absolute pleasure to serve under your chairmanship, Mr Pritchard. The order puts in place the changes needed to freeze local housing allowance rates for four years from April 2016. Between 2000 and 2010, housing benefit expenditure doubled in cash terms, reaching £21 billion. Left unreformed, housing benefit would have cost £26 billion by 2014-15. Our reforms are now saving about £2 billion a year, and the summer Budget measures will add to that. Crucially, we ended the presumption that housing benefit would always pick up the bill.

Since reforms to the LHA were introduced by the coalition Government from April 2011 the number of housing benefit claimants living in the private rented sector is down by about 1% nationally and 3% in London. More claimants are moving into work as people make sensible decisions about what they can reasonably afford. The case load numbers show that claimants continue to live in all areas, including central London. The current case load for those renting privately in the capital stands at 258,000.

The Government made clear their intention to make significant savings to welfare expenditure before the general election. This measure is part of that commitment and was announced in the summer Budget. The Budget statement was followed by several days of debate, which provided an opportunity for this and other Budget measures to be discussed, particularly on the first day of debate, 9 July, when my right hon. Friend the Secretary of State for Work and Pensions responded on behalf of the Government.

This measure is not included in the Welfare Reform and Work Bill, as the Secretary of State already has the powers in primary legislation to change the way in which LHA rates are set. In response to hon. Members’ comments, however, it might help if I clarify how the freezing of LHA rates will work during the four-year period. The rates will still be reviewed each year by rent officers, who will continue to calculate, as they have previously, the 30th percentile of a list of rents for each property size in each area. In line with the amendments to the rent officers order, they will then set the new LHA rates at either the April 2015 rate or the 30th percentile of listed rents if that is lower.

[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

Will the Minister clarify the means by which the area is codified? I ask that because in Stoke-on-Trent and Staffordshire there is a broader area for housing benefit that does not actually take account of some of the narrower economic circumstances of a specific area.

[Justin Tomlinson]

It is done on a regional basis. Discretionary housing payments can help to alleviate that situation, but I will come back to that, if the hon. Gentleman can be patient.

[Tristram Hunt]

My concern is that we are ending up with areas in which it is much easier for landlords to make quite a high profit on housing benefit, relative to other areas. Essentially, the rate is too generous. Streets are being turned into areas with fly-by-night populations, as well all the problems we see with certain landlords. The order needs to be more specific about how the benefit is adjudicated.

[Justin Tomlinson]

Let me ponder that question and come back to it.

The Government recognise that some places will see high increases in rents, so we have made provision to help those areas. Over this Parliament, 30% of the savings generated from the measure will be recycled and used to create more targeted affordability funding, which will be used to reduce the gap between frozen LHA rates and the 30th percentile reference rent in areas of the greatest rental growth, building on the £140 million already distributed since 2014.

Hon. Members may be aware that in 2015-16 we have increased 191 LHA rates by 4%, instead of the uprating limit of 1%, using the targeted affordability funding. More than half of the LHA rates in London—41 out of 70—received the extra increase. The funding has also benefited other parts of the country such as Manchester and Aberdeen.

Arts and Creative Industries

Debate between Tristram Hunt and Justin Tomlinson

Wednesday 19th June 2013 Commons Chamber

[Justin Tomlinson (North Swindon) (Con)]

I shall take this opportunity to try to cover two subjects, the video games industry and libraries. I am the chair of both all-party parliamentary groups.

Starting with the video games industry, I work very well with the trade representatives, UKIE, the Association for UK Interactive Entertainment, and TIGA, which have done an incredible job in helping to shape Government policy and promote an industry that is growing at an incredible rate. In the UK alone the video game consumer market is worth £2.9 billion, with year-on-year growth of 4%. That makes up 40.2% of the entertainment market. There are about 33.6 million games in the UK, evenly split between males and females. The UK is the third biggest consumer market for the video games industry, after Japan and America. PricewaterhouseCoopers estimates that the global market will be worth $87 billion by 2017.

Game development is popular in the UK, with 56 universities providing 141 video games specialist courses throughout the UK. There are 9,224 creative staff working in studios, with 16,864 jobs indirectly supported by those studios. The sector’s contribution—this is always music to politicians’ ears—to the UK gross domestic product was around £947 million in 2012. Crucially, 95% of our game developers export their product.

The first of the three points that I want to make is that the UK games tax relief is hugely welcome news. It will be a major shot in the arm to our industry and will allow us to keep up with the international competition and the huge potential for growth in the sector. For those Eurosceptics in the Chamber, I have to say that Europe is being particularly difficult. I urge the Government to stand up, as they do on many other issues relating to Europe, and make sure that Europe does not cheat our games developers out of the incentive to proceed.

Secondly, the radical changes to computer science in schools are also crucial. On a number of occasions I have visited a local studio called Neon Play, which is expanding at an incredible rate and producing fantastic games. It tells me that its biggest challenge is getting skilled people. People have the degrees and qualifications, but they almost have to start again because their education has been broad brush rather than specialising in, for example, 3D programming, design, music or a particular segment of a game, which would make a huge difference. I saw how it can inspire young people. I was fortunate enough to be able to take a child from a local organisation called SMASH, which helps children from challenging backgrounds, and he was given an opportunity to be inspired in a career that ultimately, on average, pays £34,000 a year, which is definitely worth aspiring to.

Finally, we need to consider the problem of the lack of females in the video games industry. I went to an event organised by a fantastic charity called Lady Geek. Within the industry, 90% of jobs are taken by males, and only 4% of game developers are female. Lady Geek is doing a fantastic job to promote and encourage as many females as possible to take this up, and I have recently written to the Secretary of State for Culture, Media and Sport to ask her personally to meet representatives of the charity, and I very much hope that she will.

Libraries provide an important starting point for many people who ultimately go into the creative industries. I was formerly the lead member for libraries within my local authority and we built a number of new libraries, including a £10 million central library on time and on budget, and made some changes. I want to make a quick whistle-stop tour of things that I would like to see within the library service, and I am sure that the shadow Minister will be taking lots of notes, as this is an area that he often follows me on.

Modern library buildings are key. In a modern bookshop such as Waterstones, one expects a certain quality of service, but I am afraid that too many of our libraries are in need of refurbishment. Local authorities must utilise section 106 moneys, the new homes bonus and the opportunities within the Localism Act 2011 to leverage bits of funding. When they spend that money, they need to look at sharing best practice. Too often, local authorities reinvent the wheel, start again and spend huge sums doing things that Waterstones would do for a fraction of the price.

We must also consider measures such as shared usage. Our Old Town library was due to close. I was part of the team that campaigned to keep it, and across the road we had a fantastic refurbished arts centre. We transferred the library into that, and it extended its core 20 hours to cover the entire time that the arts centre was open. The council had to pay only one set of rent and rates, and usage went through the roof.

Libraries must be at the heart of the community. We should display usage and membership figures in all libraries for the community to see. Library managers should be empowered to be responsible not just for the physical building but for the community that they serve, taking library services out there.

[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

Will the hon. Gentleman therefore condemn the views of the Secretary of State for Communities and Local Government who said that those who are interested in saving their libraries were just “a bunch of luvvies”?

[Justin Tomlinson]

I have worked with library campaigners throughout the country and I always challenge them to make sure that local authorities understand the importance of libraries, and in particular to make sure that they are being well used. I have been incredibly impressed with my local authority’s attempts to do outreach work, encouraging the summer reading programme that all MPs support every year. We have a brilliant officer in Ellen Carter, who does fantastic things in the community, encouraging people of all ages to use the libraries.

We also need to make sure that the library service matches modern expectations. Swindon took a bold decision—we are always at the cutting edge—and opened a library on a Sunday because it was next door to the Asda Walmart, and it is now its busiest day, so we need to adapt and change.

Volunteers are a controversial subject in the library world. Some local authorities decided that they could do away with professional librarians and replace them with volunteers. My view is that volunteers should be encouraged to enhance library provision, which could be by extending opening hours, providing additional activities, entertainment and events, and fund-raising.