Secure Tenancies (Victims of Domestic Abuse) Bill [HL] Debate

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Department: Wales Office
Moved by
5: Clause 1, page 1, line 15, at end insert—
“(2AA) A local housing authority which grants an old-style secure tenancy under subsection (2A) has discretion to decide whether or not the maximum rent for the old-style secure tenancy should be determined according to regulation B13 of the Housing Benefit Regulations 2006 (SI 2006/213) as amended by the Housing Benefit (Amendment) Regulations 2012 (SI 2012/3040).”
Baroness Burt of Solihull Portrait Baroness Burt of Solihull (LD)
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My Lords, this simple amendment tackles the issue of what happens when someone becomes liable for the underoccupancy deduction, colloquially known as the bedroom tax, either as a result of the perpetrator having been removed from the household or the victim being allocated a new property which has technically too many bedrooms and qualifies for the underoccupancy deduction. The bedroom tax has been estimated to affect more than 400,000 households. We know that it does not apply to women in a refuge and, following the Court of Appeal decision, that it does not apply when someone has had a panic room installed. However, a problem frequently arises when a new local authority seeks to place a woman, and potentially her children, in new housing.

I agree with Women’s Aid, which considers that a victim rehoused with a secure tenancy because she has escaped or is escaping domestic abuse should not be impacted by the underoccupation deduction if it is set to apply as a result of her no longer living with the perpetrator. Women’s Aid has also received evidence from its member services that the bedroom tax is resulting in challenges in securing move-on accommodation. One refuge that secured move-on accommodation for a survivor, under time pressure from local authority specifications that state that refuges can house women only for four months and so have limited time to source appropriate move-on accommodation, received a note saying she would lose £50 a week because of the underoccupation deduction. Such significant financial losses have a severe impact on the ability of women to secure permanent housing after fleeing abuse and may result in many women choosing financial security over safety.

Will the Minister please reflect on this situation, which is likely to affect only a very small number of households? Even if it could be allowed for a transition period, it could save further misery, and potentially further risk, for victims who have already suffered enough.

Baroness Lister of Burtersett Portrait Baroness Lister of Burtersett
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My Lords, I support the amendment and would have put my name to it had I known about it. The noble Baroness has made a very strong case. I will not go into a riff about the bedroom tax and keep noble Lords here for the rest of the night—my noble friend Lady Sherlock and I could do a duet on it. The point is that we could undermine the very good intentions of legislation such as this if women are afraid that they are going to be hit by the bedroom tax if either the perpetrator leaves or they leave. This points to the importance of looking at this across departments and doing something about it. Even if something cannot be done now, can it be taken back and put into the pot of thinking about domestic violence strategy?

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Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, I thank the noble Baroness, Lady Burt, for raising this issue.

We would expect local authorities, when offering a tenancy under this Bill, to ensure that, wherever possible, this does not result in the tenant underoccupying the property. Let me make that very clear first of all—I am grateful for the opportunity to do so—that it would not be in the interest of either the tenant or the landlord. Not only would the tenant be subject to the housing benefit adjustment, whose object is to remove the spare room subsidy, but it would also not be the best use of scarce social housing.

Our 2012 statutory allocations guidance clearly recognises that local authorities, when framing the rules that determine the size of property to allocate to different households and in different circumstances, will want to take account of the removal of the spare room subsidy. However, I recognise that there may be some rare cases—it has been indicated that such cases are rare—where, for whatever reason, the local authority allocates a property that has more bedrooms than the tenant needs. In such cases, which, as I say, I would expect to be very few, it would be open to the tenant to apply for a discretionary housing payment to cover any shortfall.

In 2016, the Supreme Court dismissed a challenge to the removal of the spare room subsidy brought by a victim of domestic abuse on the grounds that it amounted to unlawful sex discrimination. That case involved a victim who was being provided with protection under a sanctuary scheme. In that case, the Supreme Court upheld the Government’s policy, which is not to deal with personal circumstances unrelated to the size of the property by the inclusion of general exemptions in the regulations but rather to take account of a person’s individual circumstances separately through the process for discretionary housing payments. The noble Baroness referred to some instances of which she is aware. I would be grateful to have a look at them just to make sure that everything has been done appropriately in those cases.

Since 2011, the Government have provided £900 million to local authorities in funding for discretionary housing payments to support vulnerable claimants, including victims of domestic abuse. There are no plans to withdraw funding for discretionary housing payments; funding for 2018 to 2021 was set out in the Summer Budget 2015. Funding for next year, 2018-19, will be £153 million for England and Wales.

The removal of the spare room subsidy was introduced to bring parity in treatment between the social and private rented sectors, encourage mobility, strengthen work incentives and make better use of available social housing. The rules on the removal of the spare room subsidy already include an exception for victims of domestic abuse in refuges. We do not intend to provide for any further exceptions, but I would be grateful to look at the cases to which the noble Baroness, Lady Burt, referred, to ensure that correct process has been followed.

That said, I have been asked to ensure that this issue is put in the general domestic violence pot, as was referred to, and I am very happy to give that undertaking. I appreciate that there may be a small minority of cases that deserve particular attention, and it is for that reason that I want to look at those cases and pass on any information to the Department for Work and Pensions, which leads on this issue, as the noble Baroness on the Front Bench and the noble Baroness, Lady Lister, will know.

With that, I am grateful to the noble Baroness for bringing this issue forward. We want to ensure that vulnerable people are not taken advantage of in this regard and that local authorities are doing what they should be doing in relation to the allocation of housing stock. I would therefore be grateful for that further evidence. I respectfully ask the noble Baroness to withdraw the amendment.

Baroness Burt of Solihull Portrait Baroness Burt of Solihull
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I am very grateful to the Minister for his comments and his partial reassurance. In answer to the noble Baroness, Lady Lister, the Minister talked about meeting Women’s Aid, and I think it would be delighted to bring him some examples. For instance, where there is great urgency to place a family and a local authority is not in a position to offer exactly the right size of accommodation, perhaps a transition period could be accommodated.

I am very grateful to the Minister for his very constructive comments, and I note what he said about the discretionary housing payments, which I hope are working. However, when he meets with Women’s Aid and other organisations face to face, that will give him a clear picture. Given those assurances, I beg leave to withdraw the amendment.

Amendment 5 withdrawn.