Housing Benefit

Lilian Greenwood Excerpts

Tuesday 12th November 2013 Commons Chamber

[Jessica Morden]

I thank my hon. Friend for that intervention. That is not the only process they have to go through, either. The cumulative effect of the Government’s different benefit changes, particularly on disabled people, makes things all the more arduous for them.

The warning from Opposition Members was that far from saving money, this policy could end up costing money. The warning was that the very notion of tenants moving to smaller homes was clearly absurd, as there were nowhere near enough smaller properties for them to move into.

[Lilian Greenwood (Nottingham South) (Lab)]

Does my hon. Friend recall the Government’s 2012 impact assessment, which said:

“Estimates of Housing Benefit savings are based upon the current profile of tenants in the social rented sector, with little tenant mobility assumed. If a significant number of tenants wished to move, this would reduce direct savings and place extra demands on social landlords.”

Does she agree that this confirms that the Government’s real intention was to balance the books on the backs of the poor and vulnerable?

[Jessica Morden]

I thank my hon. Friend for that intervention. It is clear that the Government will save money only if people stay put and pay up, which is the fundamental point.

The shortage of housing is no more acute than in Wales, where traditional three-bedroom properties predominate and there is a huge shortage of smaller social properties. Again, the warning back then was that discretionary housing payments were not enough to help the disabled and that housing associations would be left with a burden of debt, and unenviable choices.

All those warnings were ignored by the Government coalition parties. Government Members said that debates such as this one were characterised by exaggeration, that we were painting too bleak a picture and that our predictions were inaccurate. Tragically, those predictions were not wrong.

All Members have constituency cases to quote, so here are just a few of mine from the last couple of weeks. The mother of a disabled child who up to now used the third bedroom as a sensory room for her autistic son, as recommended by a paediatrician, is now struggling to find the extra rent. A divorced father whose two sons normally stay with him during the summer months has had to move because he cannot afford to keep his current home and will no longer have that access to his children. The largest group is the numerous families with disability adaptations to their properties who have no prospect of being moved to smaller accommodation that fits their needs because it would cost far too much to adapt the new properties. It is now clear that the financial “assistance” provided to already cash-strapped local authorities is not enough, as I see every day in my case work.

--- Later in debate ---

[Jeremy Lefroy]

I thank the hon. Gentleman for his intervention. I will come to that later in my speech. Discretionary housing payments are extremely important because they provide flexibility; indeed, I would wish for a bit more flexibility.

My authority is working very hard to assist people who are in difficulties as a result of this policy. I want to draw out a number of things from its experience. First, it is vital, as the hon. Member for Islington South and Finsbury (Emily Thornberry) said, that local authorities work with social housing providers to help all those affected.

[Lilian Greenwood]

Will the hon. Gentleman give way?

[Jeremy Lefroy]

This will be my third intervention, but as it is the hon. Lady, I will.

[Lilian Greenwood]

I wonder how it will be possible for local authorities to help all those who are affected. Nottingham was allocated £696,000, and over 6,000 tenants in the city are affected. Its total missing housing benefit amounts to over £4 million. It is no surprise when Nottingham City Homes tells me that over half its tenants are in arrears. There is simply not the money to assist all those who are affected.

[Jeremy Lefroy]

I am sure that the Minister has heard that. He mentioned the extra £20 million, which I should hope that Nottingham would bid for. Perhaps that sum could be increased; in fact, that is something I would ask for.

Discretionary housing payments are extremely important, as shown by the experience of my local council. As the Chair of the Select Committee, the hon. Member for Aberdeen South (Dame Anne Begg), said, the system needs to be administered more flexibly so that, perhaps, hard cases that are currently excluded are included. Again, I am sure that the Minister is listening.

We have heard about tenants getting into debt and therefore being unable to move. That Catch-22 situation has to be dealt with. People who are in arrears must be able to move if they are in arrears as a result of this policy and not of historical arrears. The Government could consider the rates that are charged, which are set at 14% and 25% for one-bedroom and two-bedroom properties. Perhaps there could be a lower rate that was increased gradually over the years as additional appropriate housing was provided. This must not result in evictions. Some councils have no-eviction policies, and that is a very commendable approach. I would look for all possible measures to be taken prior to eviction being enforced.

Many unintended consequences of the policy were mentioned by the hon. Member for Liverpool, West Derby (Stephen Twigg) and, particularly in respect of rural areas, by my hon. Friend the Member for St Ives (Andrew George). Those need to be looked at very carefully, and am sure that the Minister will do so.

The Government could also look at the costs of administering social housing. Let me put this in perspective. In South Staffordshire, the discretionary housing payment pot is £90,000, and people are working very hard to make the system work. I was therefore a little surprised to read that the salaries and benefits of the directors of one of the local social housing providers were £223,000, £160,000, £149,000, £136,000 and £139,000. Given that those salaries are paid from the earnings and taxes of hard-working people, perhaps the Minister will look at how housing associations that pay such salaries could themselves contribute to discretionary housing payments.

The Government have committed to monitor the effects of the policy. This debate is a good chance for the Government to listen to reasonable suggestions for changes to the policy in the interests of all our constituents.