Affordable Homes Bill

John Hemming Excerpts

Friday 5th September 2014 Commons Chamber

[Chris Bryant]

I would agree with my hon. Friend, except for his use of the word “unforeseen”, as this was completely foreseeable and indeed completely foreseen by every organisation in the land, apart from the Government. I sometimes think to myself that blindness is one thing but wilful blindness in politics is disgraceful beyond measure, and that is what has been shown on this.

[John Hemming (Birmingham, Yardley) (LD)]

rose—

[Chris Bryant]

I want to make a bit more progress, because I know that lots of people want to speak. I hope the hon. Gentleman does not mind.

The Government will no doubt argue that they have made allowances for such instances of hardship as have been mentioned in the debate through the discretionary housing payments, but those have been fraught with problems. I gently suggest that the clue is in the word “discretionary”; one local authority may hold back, either at the beginning of the year or throughout the year, because they do not know what demand there will be, whereas another authority, possibly a neighbouring one, will open its hands far more swiftly. So two families divided by a local authority boundary will have had completely different results when they made claims, and that is for those who know about the right to make a claim. The situation has not been helped by the completely uneven allocation of cash. Redcar and Cleveland’s authority received £400,000 for 2,313 applications, which works out at £181 each, whereas Tory Wandsworth council—surprise, surprise—received £1.83 million to divvy up between fewer applications, just 1,629, which works out at £1,129 each. When the Government are being incompetent, they could at least be incompetent in a fair way.

Another element of discretion is involved in all this. The total funding made available for 2014-15 under the discretionary housing payments was £165 million, and the original allocation for 2013-14 was £155 million, which was then increased to £180 million. But local authorities are permitted to contribute two and a half times the Government contribution to this, so in 2013-14, 85 English local authorities, 15 Welsh local authorities and 27 Scottish local authorities felt that the problem was so severe in their area that they had to spend more than the contribution provided by the Department for Work and Pensions. That works out as a third of all local authorities across the United Kingdom, 55% of authorities in Wales and 84% of those in Scotland. So, yet again, the poorest local authorities in the land are forced to rob Peter to allow Paul to pay Iain. Local authorities have therefore had to close libraries and swimming pools, and cut services—those have all been slashed to pay for a Conservative ideology-driven policy.

The Government’s evaluation highlighted a range of other problems. It said:

“local authorities struggle to make long-term plans for this resource”.

It made criticisms, saying:

“There was some variation in who was assisted, even within a local authority”.

It also talked about:

“Uncertainties around both future demand and the size/availability of the fund”.

That did not help, not least because

“the 2014-15 allocation was only announced in January 2014”.

In addition, many have pointed out that disabled people in adapted homes have not always been awarded discretionary housing payments because disability benefits, which are intended to help with some of the extra costs of having a long-term disability or health condition, can cause them to fail means tests based on their income.

[Chris Bryant]

The right hon. Lady makes a very fair point, and I suspect that many Labour Members, if not Members around the House, can cite distressing cases where people, particularly those with mental health problems—they are expressly referred to in the Government’s evaluation—have not known how to make an original claim for discretionary housing payment, do not understand the rules and have been very much left out in the cold. Her constituent is not the only one who has taken their own life because of this.

[John Hemming]

Does the shadow Minister agree that because substantially what the Bill does is formalise what is currently mainly paid through discretionary housing payments, there will not be any substantial additional cost as a result of it?

[Chris Bryant]

Those are the kinds of issues we need to discuss in Committee. However, as I said earlier, I am profoundly distrustful about this, as one thing I have learnt in my time in the House is that when a Minister stands at the Dispatch Box when the debate is already going on and says that something is going to cost £1 billion, the figure has normally been invented the night before when someone was desperate to come up with something. The figure is suspiciously round.

--- Later in debate ---

[Mr Nuttall]

My hon. Friend is absolutely right, and we have not heard much this morning about the second part of the Bill. One or two Members have touched on it, but we have heard little about the part that deals with the review of affordable housing. I shall certainly be touching on it, after I have dealt with the first part of the Bill, which contains the proposed changes to housing benefit.

I accept, as does anyone who has looked at the issue, that the changes to housing benefit resulting from the removal of the spare room subsidy have been controversial. There is no doubt about that. We have to ask ourselves why the Government had to take tough, difficult decisions to try to control the level of public spending. The answer is quite simple. We as a country simply could not continue spending money that we did not have. The coalition Government inherited a situation in which £1 in every £4 had to be borrowed. In other words, the books were not being balanced. The scale of the problem is demonstrated by the fact that, even now, after four years of a Government who have been doing all they can to try to rein in public spending, we as a country are still years from having completely dealt with the deficit and being in a position to balance the books. That position required the Government to look at areas of expenditure like the welfare budget.

[John Hemming]

On the question whether this is about extra money being spent, there was a court case this year, number EWCA Civ 13, in which the Secretary of State, when challenged on the lawfulness of the discriminatory elements in the regulations relating to disabled people, said that he would continue to closely monitor and adjust the implementation of the policy

“to ensure that the needs of these groups are effectively addressed in the longer term”.

The Bill is, in essence, about moving from discretionary housing payments to exemptions. It is not about additional cost to the public purse.

[Mr Nuttall]

My hon. Friend might think that, but I think it is better for the discretionary housing payment to be looked at on a case-by-case basis, as at present.

[Mr Nuttall]

I am grateful to my hon. Friend for reminding the House that we now know from the Minister’s comments that we are talking about a figure of £1 billion a year, whichever way we look at it.

[John Hemming]

The Minister made it very clear that this is not about the elements relating to spare rooms but an argument that is contested in respect of non-dependant deductions.

[Mr Nuttall]

I am grateful for that point, which I will deal with in more detail later. We do not want to get bogged down in arguments about this, that or the other. The fundamental point is that the coalition Government had to make savings in the welfare budget, and this policy has reduced the welfare budget, as I will explain. I think that deals with my hon. Friend’s point.

The widespread view before the last election was that the previous Labour Government had allowed the welfare budget to spiral out of control. The housing benefit budget typified this, as its cost had increased from £11.2 billion in 1997-98 to £20 billion in 2009-10. This meant that every household in my constituency, where hard-working taxpayers were themselves struggling to make ends meet, were paying £900 a year towards a benefit that, in some cases, was enabling others to live in accommodation that they could not afford to live in. That is the key point.

--- Later in debate ---

[John Hemming]

Does my hon. Friend not accept that the debate today is not about the principle of the spare room subsidy, spare room rent subsidy, bedroom tax or whatever we wish to call it, but about whether the exceptions set out in guidance—in effect, there are legitimate expectations about those exceptions, subject to judicial review—should be transferred into legislation to give people greater certainty?

[Mr Nuttall]

That is indeed what clause 2 proposes. I take the view that what one might call cases outside the normal set of exemptions, which I will come on to, are best dealt with through the current system of discretionary housing payments.

The present size criteria allow one bedroom for each person or couple living as part of a household, with children under 16 of the same gender expected to share and all children under 10 expected to share. Tenants’ housing benefit is reduced by 14% for those with one bedroom more than that formula allows, and by 25% for those with two or more spare bedrooms.

With estimates putting the total number of spare bedrooms at approaching 1 million, it is absolutely no wonder that Ministers should look at that matter. Considering that, according to the Office for National Statistics, 360,000 households live in crowded accommodation in the social rented sector in England, all of whom would I am sure dearly love to move into bigger accommodation, Ministers had to take action. With nearly 2 million families on social housing waiting lists in England, it makes absolute sense for the nation’s social housing stock to be utilised as efficiently as possible.