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Housing Benefit (Amendment) Regulations 2011

I muttered it. The letter was very moving and was about a particular individual. Clearly, people on the autistic spectrum who are receiving severe disability premium are exempt from this measure. But not everyone, as my noble friend pointed out, is categorised as severely disabled. The question is: how does one best get support? Our basic view is that the local authorities are best placed to identify this group. Indeed, they have a duty to identify this group, unlike other groups. It is our view that discretionary housing payments to that group are the way to go. Clearly, it would be hugely in the interests of local authorities to make sure that happened because, as my noble friend pointed out, the ongoing costs of getting this wrong in particular cases are much larger than the DHP support. So there is a real incentive for local authorities to get this right. Looking a little further forward to the changes in DLA, we are looking very closely at how to afford the right levels of protection for particular groups in the personal independence payment. Within the universal credit, there will be an exemption that matches what we have now for those who receive severe disability premium. That is the forward-looking position. In our response to the Social Security Advisory Committee’s report on the draft regulations, we acknowledged that we had listened to concerns from stakeholders, but it is very difficult to draw that out in regulatory form for people with multiple problems. Our approach is to go with the DHPs. We have put in place, as a number of noble Lords have pointed out and welcomed, a substantial package of financial and practical support worth more than £190 million over the spending review period to help ease the transition for the housing benefit reforms, some of which will assist those affected by the shared accommodation rate changes. The Merits Committee states that DHPs can provide only a temporary solution, but there is no limit on how long they are paid for. This is reflected in the guidance available to local authorities. We review the allocation of DHPs to local authorities annually and will continue to do so. The noble Baroness, Lady Lister, raised two issues relating to women, the first of which concerned pregnant women. We are talking about a short-term adjustment between the time someone registers as pregnant and the baby arriving. It would seem an ideal use of DHPs to smooth that process to avoid women having to move twice. A substantial number of single women fleeing domestic violence will be exempted if they leave specialist homeless hostels. Again, we think that the numbers involved are small. In our equality impact assessment, we estimate that 63,000 local housing allowance claimants would be affected by the regulations and lose an average of £41 per week. So, for those affected, we acknowledge that the impending change might be significant and it is vital that people are made aware of it. The regulations were laid just before the Summer Recess as soon as possible following the Social Security Advisory Committee’s report, giving local authorities, advisers and claimants nearly six months before implementation. We have issued guidance to local authorities. Posters, leaflets and draft letters have been made available, and I know that local authorities are working very hard to identify, notify and support those affected. Introduction will be phased in over a year from next January, so, although claimants making new claims for housing benefit after that date will be subject to the shared accommodation rate immediately, those already claiming will be affected only gradually over the course of 2012. Those who have been claiming since before April this year are likely to have transitional protection from the April 2011 LHA changes, and this will last in some cases until December 2012. All others will see their benefit reduced on the anniversary of their claim. Individuals are being notified well in advance of the change as it affects them. The noble Lord, Lord Kirkwood, asked why we were not piloting the change. The reason is that it is a small measure in terms of housing benefit and we do not think that a pilot is necessary. The letters being sent to claimants to advise them of the April 2011 changes and any transitional protection period are now advising those affected of the move to the shared accommodation rate at the end of that period. That is nine months ahead of the change affecting them. Local authorities are also advising them of the change towards the end of their transitional protection period, and some local authorities are also writing out with more detailed and tailored information where their computer systems allow. Many signpost their housing options department within the local authority and liaise with them closely to provide advice to those looking for suitable alternative accommodation. On the point made by the noble Lord, Lord McAvoy, about these individuals being easy targets for cuts in benefit, not all of this age group have alcohol problems, mental health problems and so on. Some are in work or seeking work and are by no means all vulnerable. The data we have show that sharing is common practice, whether or not people are on benefit. Much has been said about the current lack of suitable shared accommodation, and I fully understand that this is a key concern. However, it is too early to say how landlords might react to this measure and the changes made to housing benefit from last April. For example, some landlords may consider it more profitable to let a property as shared accommodation rather than to a large family unit. Some individuals we have spoken to recently have also indicated that they are looking into providing shared accommodation in order to meet the upcoming demand. There has been dramatic growth in the private rented sector in England, with the number of households living in private rented accommodation increasing by around 1 million between 2005 and 2009-10. We are not talking about a static market, and there is no reason to assume that the availability of shared accommodation will remain as it is now.