Oral Answers to Questions

Toby Perkins Excerpts

Monday 27th January 2020 Commons Chamber

[Dr Coffey]

I actually think that the spare room subsidy was an important part of a change to deal with the challenges of homelessness, which we have just been discussing. I absolutely believe that we will continue that policy, but, as ever, when there are problems, part of the role of the discretionary housing payments is to deal with them. The hon. Gentleman will be aware—I think I am right in saying this—that the Scottish Government have not introduced that policy quite yet, but intend to do so later in the year.

[Mr Toby Perkins (Chesterfield) (Lab)]

Anyone who has visited a food bank or has met homeless people on their streets will know that welfare policy is the No.1 reason for the appalling rate of homelessness in our towns. As a simple starting point, if the housing element of universal credit were paid to landlords, we could make a start towards ending the appalling problem of homelessness that welfare policy is currently inflicting on our streets.

[Dr Coffey]

As the hon. Gentleman knows, it already can be.

--- Later in debate ---

[Will Quince]

It is a one-off payment, so, in effect, it is treated as income as it would be for tax purposes. Over the course of a year it would of course balance out. It is important to stress that under the legacy benefits system it would have attracted a marginal tax rate of 91% maximum as opposed to only 75% under universal credit.

[Mr Toby Perkins (Chesterfield) (Lab)]

The Secretary of State’s answer to my earlier question about homeless people’s universal credit payments going to their landlords missed the point completely. Many people who are homeless have alcohol or drug abuse issues. Giving the money to them directly is not solving the problem; it needs to go to the landlord. Rather than saying that it is a choice for them, that choice should, in many cases, be made for them.

[Dr Coffey]

I will have to repeat the answer: that can happen.