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Housing Benefit (Amendment) Regulations 2011

My Lords, I thank the noble Lord, Lord Kirkwood of Kirkhope, for providing this opportunity to discuss planned changes to housing benefit that will affect certain young people currently living in the private sector in self-contained accommodation. These changes are contained in the regulations we are debating. The change to the shared accommodation rate was announced last October as part of the spending review in the context of reining back welfare expenditure in general and housing benefit in particular. Difficult decisions have had to be made about spending priorities. At the heart of those decisions is fairness and affordability. We need to be fair to taxpayers and mindful of the choices those not in receipt of benefits make when considering what they can afford to pay in rent and the type of accommodation they choose to live in. The shared accommodation rate reflects local private sector rent levels of accommodation where at least one facility is shared, for example a bathroom, kitchen or living room. The current rules for under-25s avoids the situation in which those in receipt of housing benefit could afford a level of accommodation that they would not be able to maintain were they employed. It also reflects the fact that sharing accommodation is common among younger people. We want work to be people’s first choice and do not think it unreasonable to extend the application of this rate from those aged up to 25 to those aged up to 35 for those who have recourse to public funds. This will realise savings of around £200 million per annum from 2013. That does not necessarily mean that people will have to move, although it is likely that some will need to do so—they will have to make the same sorts of choices about affordability as those who are not on benefits. Many in this age group already share. Over one-third of the 25 to 34 year-old local housing allowance claimants who are potentially affected by this measure are already choosing shared accommodation and claiming the shared rate. In this age group, 40 per cent of private renters who are not on benefits also share. The Social Security Advisory Committee put forward the view that the majority of older sharers are either professionals or mature students, but the 40 per cent figure that I just cited specifically excludes students, and our survey data indicate that there are people sharing across all types of occupations. The recent report by the Merits Committee posed the question: if savings are to be made, why choose the age of 35? Why not go higher? Such a move would not be supported by the evidence, which shows that sharing accommodation tails off significantly after age 35. Our equality impact assessment looked at the accommodation arrangements of all single and childless adults. Less than half of 25 to 34 year-olds have their own place, and a third live with their parents. When we look at those over 35, we find that 84 per cent have their own place and that only 6 per cent live with their parents. We realise that, for some, it is neither desirable nor appropriate to live in shared accommodation. There are already a number of exemptions from the shared accommodation rate for those in vulnerable situations, such as care leavers below the age of 22, those entitled to the severe disability premium and those who have an extra bedroom for a non-resident carer with a home elsewhere who provides overnight care. Those living in social housing and in certain types of supported accommodation are also not subject to that rate. Those exemptions will continue to apply, where appropriate, to claimants in the increased age group of 25 to 34. Since the announcement of the measure, we have been listening to people's concerns. I and my officials have met with interested parties, and the Social Security Advisory Committee has consulted and reported on the draft regulations. We decided to introduce two further exemptions for the extended age group. Those have been welcomed by several commentators and organisations, as well as by noble Lords who have spoken today. The first additional exemption is for those who have lived for at least three months in a specialist hostel for the homeless and, while living there, received support to resettle in the community. That exemption addresses the concerns raised by several commentators about the impact of the changes on rough sleepers—in particular, the silting up of hostel accommodation. We accept that, without that exemption, it would be difficult to secure suitable move-on accommodation for that group to help them into a more settled way of life, which could undermine our ambition to end rough sleeping. That exemption has been targeted at people aged over 25, who are at greater risk of rough sleeping. We believe that the current exemption is well targeted at people who are ready to move on to an independent life, but those people leaving hostels will have to have undergone some support and rehabilitation. That strikes the right balance between cost and fairness. We think that many former rough sleepers will be helped by that. My noble friend Lord Kirkwood asked about the ministerial homelessness committee, of which I am a member. It was with that ministerial hat on that we framed this support, working closely with my colleague Grant Shapps. The second new exemption is for those ex-offenders who present a serious risk to the public and who are subject to active multi-agency management under the multi-agency public protection arrangements—MAPPA—in England and Wales or are considered to present similar risks in Scotland. That exemption covers a very small group of ex-offenders who are to be excluded on the grounds of public safety. It is not extended to all ex-offenders because many of them pose no risk to the public. Perversely, the risk is that one might provide an incentive to commit modest crime, which we would not want to encourage. Other specific groups have been put forward as needing exemption. They include people with disabilities, those with mental health problems, those with a history of substance misuse and those seeking to maintain contact arrangements with their children. The case for those who have shared care of children is complex. We estimate that, of those who will be affected by this measure, around 10,000 have some contact with a child who lives elsewhere. Of these, it is not known how many would normally stay overnight, so the numbers are relatively low. But living in shared accommodation should not preclude both parents from playing a full part in a child’s life. Parents living in hostels or other non-mainstream accommodation will, I am sure, be striving to maintain quality relationships with their children. Ultimately, it is for individual maintenance and custody arrangements to reflect living arrangements, and it is not appropriate for the state to fund two homes for a child. To pick up the question that my noble friend Lord Kirkwood asked, I can assure him that this arrangement does not contravene Article 9 of the UN convention. We thought long and hard about other exemptions, but the blunt answer is that our analysis suggested that it is better to rely on discretionary housing payments than on specific exemptions because of the difficulty in defining and administering them. Our belief is that the local authority is best placed to consider individual circumstances. The point raised by my noble friend Lady Browning about the autistic is very moving. I have had a chance to read the letter sent to her from Mrs—