Housing Benefit

Debate between Chris Ruane and Derek Twigg

Tuesday 12th November 2013 Commons Chamber

[Derek Twigg (Halton) (Lab)]

There is no doubt that the bedroom tax is a brutal, callous and unfair policy that affects some of the poorest and most disadvantaged people in our communities, not least those who are disabled. They have been forced into arrears and further debt, and forced to go to food banks. The policy is having a major effect on many people in our communities.

I want to address some of the points that Government Members are using to justify what they are doing, such as the cost. We do not know whether the cost savings are achievable. Some hon. Members argue that they are not, but there is a great deal of doubt. For instance, the Government would have to take account of the £65 million increase in discretionary housing payment budgets that has already been set aside for 2013-14; the additional costs of fitting aids and adaptations for disabled tenants who move; the significant additional costs to housing associations that face increasing rent arrears, re-let times, rent collection and tenant support costs, and the impact of lost development capacity, at a time when the Government are trying to drive increased supply; and the additional indirect costs to other public services, such as homelessness, health, social and advisory services, of coping with the knock-on effects and consequences of tenants moving or accumulating debt. All need to be taken into account, which undermines the Government’s case for savings.

The Government’s amendment mentions

“the potential beneficial impact of this policy on those living in overcrowded accommodation”.

It is worth noting the word “potential”. I asked the Minister to provide figures, or any evidence, to justify the claim that there would be a significant “beneficial impact”, but he was not able to do so.

Government Members have been talking all afternoon about the private rented sector. It is important to understand the difference between sectors, and it is clear that some people do not. The method for calculating housing benefit in the private rented sector is local housing allowance, which is entirely different. It is a fixed allowance paid depending upon household size and circumstances, with no reference to the size of home occupied. A tenant can choose to use the fixed allowance to under-occupy a larger home in a lower-value area without any reduction in benefit. Rents in the private rented sector are not regulated. It is necessary to impose tighter benefit restrictions to curb excessive market rents. Social rents are regulated and are approximately 40% lower. The private rented sector performs a different role from the social rented sector, as hon. Members have made clear. In general, it provides shorter-term accommodation for younger households. Some 28% of household heads in the private rented sector are over the age of 44, compared with 60% in the social sector. That is a significant difference. What is being asked for is a retrospective change.

The Government’s brutal changes are affecting real people in my constituency. I spoke to Mrs Knight on Saturday morning. She has had adaptations throughout the house to ease difficulties that her husband is experiencing: a walk-in shower, a bio bidet, a wheelchair access door leading outside, hand rails on the doors, a drop rail in the bathroom, a rail fitted to the bed, raisers on the seat, and a through-floor lift into the bedroom. They are losing a significant amount of money—£700 a year. They have lived in the house for 29 years and brought up their family in it.

[Chris Ruane]

My hon. Friend has just given a comprehensive list of the improvements made to his constituents’ home. If they move to other accommodation, will the council have to pay again to put in those facilities again?

[Derek Twigg]

As usual, my hon. Friend makes an important point. Of course the council will have to pay again, and it is significant expenditure.

What about large families that have split up, where some of the children stay with their father for three or four days a week but he has been hit by the bedroom tax? How is that helping families? How does that help parents to stay in touch with their children? The excuse given by the Minister at the time was that it would depend on who had responsibility for the children, but it is causing problems for families.

What about a single man who has lived in a house all his life and has recently become unemployed, finding himself having to live on £70-odd a week and trying to find the difference for the bedroom tax? We talk about the discretionary payment system, but they are temporary payments and finding a job in my area is not easy.

In response to a question I put to the Prime Minister earlier in the year, he said:

“Let me be clear…pensioners are exempt, people with severely disabled children are exempt and people who need round-the-clock care are exempt.”—[Official Report, 6 March 2013; Vol. 559, c. 949.]

That turned out not to be true and I challenged the Leader of the House on it the following day. On the Monday, the Government dropped their appeal to overturn the decision of the Supreme Court on the exclusion of disabled children. People with a disabled child and two spare bedrooms are hit by the bedroom tax. When universal credit comes in, pensioners with one person in the household under the pension age will be hit by the bedroom tax. Disabled people, unless they have a full-time or part-time live-in carer, are not exempt. Disabled people whose family members or friends are supporting them are not exempt. This is a terrible policy. It needs to be changed quickly.