My Lords, I recognise with others who have spoken a need to reform the present arrangements for housing benefit but I also express my concern about the measures that are before us. The noble Lords, Lord Best and Lord Knight, presented some alarming figures which, even if we perhaps dismiss the more extreme end, nevertheless give rise to considerable grounds for concern.

The noble Lord, Lord Best, referred to a number of charities that have supplied him with briefing papers; I have been involved with a number of others. Housing Justice expresses fear that the arrangements being proposed would significantly increase the number of homeless people, particularly within London but elsewhere in the country as well.

A reduction in housing benefit at a time when we are facing all the uncertainty and the outworking of the comprehensive spending review compounds the complications of the system and risks therefore greater harm being done to those who are most vulnerable. It is so difficult, as I think everyone who has spoken already acknowledges, for us to assess the outcomes of the proposals both for those on housing benefit and for others in the system.

The noble Lord, Lord German, focused very much on the financial aspects of the market and what would happen to rents, and the effects therefore on the families who might have to bear the extra costs of the £22 here in London or the £9.84 elsewhere in the country. I have two comments to make about that. First, £9.84 may not sound a lot of money. Certainly, some on housing benefit are in employment, and perhaps some of them could stretch to that amount-but "stretch" would be the operative word. Many others are not in employment, and the amount of disposable income after they have met their outgoings and the demands on them is very limited. They are stretched already. We need to be sure that we have some imagination as to the impact-if I can put it to noble Lords like this-even of £9.84 a week, and how disastrous it could be for some households. It could be met only by them eating less or having less on their fuel bill, or doing without some other major thing that they need in their lives.

My second point is that money of course drives this, but the focus must not be just on the money. We must also understand and try to see through the consequences of these changes, which might be driven by finances but will have a huge impact on families, relationships and social groupings. As the noble Lord, Lord Knight, said, one consequence of the proposals would probably be that a lot of families would have to move from their existing houses to other areas. If they do so with young families and small children at a point when they need stability in their lives, that could be very damaging-and not only to them; it could have longer-term consequences. It could be damaging, too, in that they may no longer be able to work where they were working before.

This could have a double effect by creating more monochrome areas of our society. The areas that they leave might become more monochrome, with more expensive homes and more rental homes for those who can afford them and who move in. Similarly, the areas to which they go might become more monochrome. The big society at its best is also a very healthy society, which also means a mixed society. If the consequences of the movements that might come about because of this are that different groupings become more monochrome, that is retrograde and potentially harmful and damaging to the societies and communities in our land.

I was grateful that the noble Lord, Lord German, referred to the provision of social housing. I wanted to stress that as well, because part of the problem with high rental is demand. If we are to address one piece of the picture, as we need to do to find a different way in which to organise and provide housing benefit, we must look at the totality of the picture. That is why I support the remarks of the noble Lord, Lord Best. Part of the totality must be the provision of more housing and a greater emphasis on the supply of that housing.

In conclusion, I recognise the wisdom of the proposal and am grateful for it, and I hope that it will find favour because it will help us to address complex issues. We must let our judgment be driven not just by the finances but by the family and social needs, and we must emphasise the need for an increase in the supply of housing.