---

Localism Bill

My Lords, the noble Lord, Lord Palmer of Childs Hill, makes a very interesting case. I do not propose to follow him into the detail of ground 8, but I shall comment on the fact that we are going through a period of some upheaval in relation to housing benefit, which brings a particular poignancy to the point which he raises. If we look at what is on the cards, we know that local housing allowance rates are now set at the 30th percentile of local market rents. We know that a cap on the local housing allowance rate has been introduced. We know that under the Welfare Reform Bill, local housing allowances are going to be uprated by CPI in future rather than by reference to what is happening to rents. We know that there is an increase in the non-dependant deduction, and we know that there are changes to the shared room rate as well. Each of those things creates some challenges in the administration of housing benefit. Moreover, we are on the cusp of having something called universal benefit, and all the housing benefits will eventually be paid through that process but at a time when the Government are seeking to uncouple the administration of housing benefit from council tax benefit. The practicalities of that present a real challenge, because we know that lots of councils will have contracted out those joint arrangements and how you unpick and administer them is a really challenging issue—quite apart from the issue of whether they are going to be direct payments or how the payment of housing support is going to flow through. We know what the Government’s answer is going to be because we have read it in the book that was presented to us, and I doubt that that has changed over the weeks since that appeared. The point made by the noble Lord seems to me to be especially relevant at this time because of this great upheaval around housing benefit.