Welfare Reform Bill — Commons Reason

Part of the debate – in the House of Lords at 8:15 pm on 29 February 2012.

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Photo of Lord Freud Lord Freud The Parliamentary Under-Secretary of State for Work and Pensions 8:15, 29 February 2012

My Lords, let me start with two points. The first is that we plan to move ahead with these changes. The second is that I pick up the point made by my noble friend Lord Kirkwood. I heard very clearly what he said about housing strategy. On this measure, of the 3.3 million tenants living in the social rented sector and receiving housing benefit, only about one in five is expected to be affected by this change. Some will move to more suitably sized accommodation and will get support to do so. However, if social sector tenants choose to stay where they are and meet the shortfall through employment, we will offer them help in doing that. As noble Lords know, this measure applies only to working-age people. The substantial investment that we are making in the work programme and in universal credit will ensure that people are supported to find work and that work really will pay.

We have already tripled our contribution to the discretionary housing payment budget to allow local authorities to give additional support where they consider it is needed. Perhaps I may answer the detailed questions of my noble friend Lord German on the £30 million extra for the discretionary housing payments fund. As he pointed out, that could assist around 40,000 cases. We estimate that within that number there are 35,000 potentially affected claimants who are also wheelchair users living in accommodation that is being significantly adapted to suit their needs. The other 5,000 are made up of foster carers and, in particular, those between assignments who would potentially be affected by the measure.

The amount that has been added to the discretionary housing pot will be kept under review to see whether it is meeting the level of demand in different areas. If my noble friend Lord Kirkwood would like to classify that as an implied correction, I would not quarrel with him. However, we think that the amount is right. Of course, there are other discretionary housing payments. In total, £90 million a year will be available from 2013-14, and local authorities can spend up to two and a half times their allocation with funds of their own. I know that many noble Lords will point out that local authorities are not exactly flush with funds but that is the technical position.

Clearly, this is a big change-I do not deny that. Effective communication and implementation will be vital and we have already started working with stakeholders on this. We will need to evaluate the measure. I confirm to the noble Baroness, Lady Sherlock, that I believe in research and do not necessarily need to know the answer before I read it. We will carry out research on this measure, once it has been introduced, to understand the effects of the changes, but I do not see the need to put that in the Bill.

As noble Lords will understand, I am not yet in a position to provide the full details of that research project, but I can commit to bring forward fuller proposals when the regulations are debated after Royal Assent. I shall also seek to involve the noble Lord, Lord Best. I join other noble Lords in paying tribute to him. I may not have agreed or been able to accept some of the things that he has said but he has said it with precision, knowledge and a genuine understanding that I have learnt from and appreciated. He may not have felt it but he has had an impact. As I said, I shall seek to involve him and other key stakeholders in developing the research proposals, the implementation strategy, and the draft guidance for local authorities and housing providers.

In his amendment, the noble Lord, Lord Best, sets out the groups for whom the impact of the measure should be assessed. I look forward to discussing with him the timing of any evaluation and those whom it covers. Without wanting to pre-empt that discussion, I expect the evaluation to look at the effect on different groups such as families, and any wider effects that it may have on-for example-homelessness. Clearly, vulnerable children are another area. Taking up the point of the noble Baroness, Lady Lister, we should look at social support networks as well, and I undertake to do so.

I close by reiterating that this measure is not about making people move. Rather, people living in the social rented sector, like those in the private sector, will have to make informed choices about where they live and what they can afford. Some may choose to move but for people who do not want to do so there are a number of options to help to meet the shortfall, and we have discussed those over the past months. They include the employment option, increasing working hours, asking others in the household or the extended family to contribute, or taking in a lodger. We have now done this to death and I close by asking the noble Lord to withdraw his Motion.