Local Housing Allowance

Oral Answers to Questions — Work and Pensions – in the House of Commons at 2:30 pm on 11 May 2009.

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Photo of Willie Rennie Willie Rennie Chair of Parliamentary Campaigns; Shadow Defence Minister 2:30, 11 May 2009

What assessment he has made of the effectiveness of the operation of local housing allowance.

Photo of Andrew Stunell Andrew Stunell Liberal Democrat, Hazel Grove

What assessment he has made of the effectiveness of the operation of local housing allowance.

Photo of Kitty Ussher Kitty Ussher Parliamentary Under-Secretary, Department for Work and Pensions

Local housing allowance is a simpler, fairer and more transparent system of help with rent for people on benefits or low wages. It is designed to promote personal responsibility over payment of rent and to ensure that people do not face disincentives to move back into work.

We are, as I said in an answer to a previous question, closely monitoring how the scheme works in practice and have committed to completing a full review over a two-year period from the commencement of the scheme's roll-out in April 2008.

Photo of Willie Rennie Willie Rennie Chair of Parliamentary Campaigns; Shadow Defence Minister

The Minister will have seen reports that about half of all landlords are considering getting out of the housing benefit market because they have lost complete confidence in the system, mainly through tenants who are unable to pay their rent on time. The situation has a significant impact on the finances of landlords' businesses, and it could, in turn, have a significant impact on homelessness. What is the Minister prepared to do—further to the flexibility that she discussed earlier—to ensure that that drastic measure is not taken?

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I am glad to see this matter raised. I have been a private landlord (having some 30 lodgers in my home over several decades) and have had both acceptable and negative experiences with Housing Benefit. Not all landlords are wealthy nor profiteers nor remote. Some depend on rent for all or part of their own living. Some make spare...

Submitted by Graham King Continue reading

Photo of Kitty Ussher Kitty Ussher Parliamentary Under-Secretary, Department for Work and Pensions

There are quite a lot of things going on in the housing market at the moment, and we do not have the evidence that those changes mean that landlords are withdrawing from the market. In fact, overall, there has been a slight increase in the number of rented properties in the market throughout the country. As I said, we are ensuring that local authorities completely understand that they have the flexibility to reinstate direct payments if they think that the tenant is vulnerable; the authority does not have to wait eight weeks to do so; and we will complete a full review at the two-year anniversary of the scheme. The review will include proper research and data collection, rather than simply the rumours that the hon. Gentleman is clearly trying to promulgate.

Photo of Andrew Stunell Andrew Stunell Liberal Democrat, Hazel Grove

Does the Minister recall the time when her hon. Friend Mr. Mullin was Minister and housing benefit local areas were expanded? Hazel Grove, a Constituency with high property and rental values, was linked with inner Manchester, leading to "economic cleansing" of poor tenants in my constituency. Will she undertake to ensure that, in the review, Stockport will be restored as a separate local housing allowance areas, allowing the poorest in my community to remain in that community when they need to do so?

Photo of Kitty Ussher Kitty Ussher Parliamentary Under-Secretary, Department for Work and Pensions

I will not, because I will take the advice of the Rent Service. However, as I said in response to a previous question, we will be reviewing 25 per cent. of broad rental market areas each year. I advise the hon. Gentleman to engage fully with the Rent Service in England, to make his points clearly.

Photo of Rosie Cooper Rosie Cooper Labour, West Lancashire

Does my hon. Friend agree that it is important for there to be a wide range of organisations involved in the provision of training and support, developing skills and experiences for people with disabilities? I commend the Brighter Future Workshop and Midstream, two organisations in my local area that do a grand job with people of varying ranges of disability. I invite my hon. Friend to visit any time she can.

Photo of Kitty Ussher Kitty Ussher Parliamentary Under-Secretary, Department for Work and Pensions

I completely agree with my hon. Friend, and I would be delighted to visit.

Minister

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constituency

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