Housing Benefit (Under-occupancy Penalty)

Debate between Jessica Morden and Stephen Mosley

Wednesday 27th February 2013 Commons Chamber

[Jessica Morden]

I agree with my hon. Friend’s excellent and powerful point.

According to the Trussell Trust, the huge increase in the use of food banks is due in no small part to the benefit changes. Some 42% of those who turn up for their three-day supply of food are not able to balance their budgets because of benefit delays, mistakes, sanctions or reviews. Front-line professionals have to give a reason for a referral to a food bank and problems with welfare are increasingly being cited.

With food inflation above 4% and increases in energy and petrol costs, it will be impossible for many people on low incomes to absorb the additional housing costs. Rent arrears will increase and housing associations might struggle to deal with that. The Welsh Tenants Federation estimates that 10% of tenants are already in debt to their social landlord and that a rent increase on top of those rent arrears could result in 4,000 people presenting themselves as homeless. Newport city council in my area estimates that there will be a 5% increase in homelessness next year.

The Government’s answer to those who cannot move is that the discretionary housing payment will deal with all the issues. Newport is getting £343,000 of discretionary housing payment and Monmouthshire £121,000.

[Stephen Mosley (City of Chester) (Con)]

The hon. Lady is portraying a bleak picture, but as we heard from my hon. Friend the Member for Leeds North West (Greg Mulholland), Labour did exactly the same thing in 2008 when it introduced the local housing allowance in the private sector. Any of us could have stood up then and said exactly the same things that Opposition Members are saying now. Why did Labour introduce that policy in 2008?

[Jessica Morden]

It did not work like that. We are debating a policy that will come in in April. As Members have explained, it will be applied retrospectively to people who have been living in their houses for decades. Government Members have forfeited the right to make such interventions because they have given tax cuts to millionaires.