New Clause 11
Welfare Reform Bill
12:15 pm
Danny Alexander (Shadow Minister and Disability Spokesperson, Work & Pensions; Inverness, Nairn, Badenoch and Strathspey, Liberal Democrat)
I beg to move, That the Clause be read a Second time.
Again, I will try to be relatively brief but a few points need to be made here, and I hope that our debate will stimulate a further fleshing out from the Under-Secretary of the Government’s position on this important issue. This amendment would put into statute the regulation contained in section 91(1) of the Housing Benefit (General) Regulations 1987. Again, I am sure that I am only refreshing the Committee’s memory of this and I can see that the Under-Secretary is fully informed on this point already. The regulation requires local authorities to make payment on account of a rent allowance within 14 days of receipt, where an inability to make a decision on a case does not arise though a failure of a claimant to provide required information.
This duty exists in secondary legislation, which was the point the Under-Secretary made in response to the previous new clause that we debated. However, in relation to that, Shelter’s housing advice centres—and I am grateful to Shelter for this point in its briefing on new clause 11—report that the requirement is all too often ignored or, in some cases, treated as discretionary by local authorities. The idea here is that placing this obligation in the Bill will reiterate and underscore the vital importance of authorities making payments on account of a rent allowance.
The duty exists to avoid tenants falling into arrears at the outset of a tenancy and risking evictionand homelessness. Prompt payment is, obviously, particularly essential for private sector tenants—and evidence would bear this out—as their landlords are perhaps more likely to begin possession actions at an earlier stage than the relevant social landlord. It is also vital for ensuring that private sector landlords are willing to let to housing benefit claimants in the first place—an issue that I know we debated in one of our previous sittings, when the hon. Member for Colne Valley made particular points about that issue. Along with benefit shortfalls, long delays in beginning payments are cited by landlords as one of the main reasons for not wishing to let to housing benefit—or, in future, local housing allowance—claimants, so proper adherence to this regulation could go a long way to improving the private rented sector’s image of housing benefit, and so improve the ability of tenants to access that sort of accommodation.
It is worth saying that failure to make a payment on account is not considered an official decision, so there is no right of review or appeal. The only recourse for a claimant is judicial review, or to complain to the local government ombudsman. Although either course of action might, in the long run, get a proper remedy, both might cause lengthy delay and further problems for the claimant. Indeed, judicial review is not usually a proportionate form of recourse; it requires legal aid, a solicitor and court time. Also, while the ombudsman does good and worthwhile work, often reaching the right decision in the end, complaining to the ombudsman is not a particularly effective remedy in cases with a sense of urgency, as we would all agree is the position with such cases.
I hope that in her response the Under-Secretary again underscores the importance of following through the regulation consistently. By putting it into statute, we could ensure that all local authorities properly adhered to it so that potential tenants, tenants, benefit claimants and private sector landlords have a sense of security and understanding that the system works in the way in which it is intended to work. I hope that the she responds positively and explains how the Government intend to remedy the problem.