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Welfare Reform Bill

My Lords, I am sure that all noble Lords will agree that we have debated this measure comprehensively over the passage of the Bill through this House. Perhaps, though, your Lordships will allow me to take some of our time this evening to explain again why we believe that this change is necessary. We have been open about the fact that this measure is essential to curb housing benefit expenditure. Left unchecked, expenditure on housing benefit would reach £26 billion by 2014-15. That is unsustainable and unjustifiable, not least because of the current economic climate. As I have said before during our earlier debates on this subject, we do not think that it is reasonable to expect the taxpayer to fund the cost of somewhere approaching 1 million spare bedrooms. At £500 million a year the cost is substantial, and there is no realistic possibility of finding that money elsewhere. Some in this House, and indeed in the other place, have suggested that we should perhaps abandon this measure altogether as it will not deliver savings if substantial numbers of tenants move into the private sector. I assure noble Lords that if that really were the case, we would not be implementing this change. It is important to look at the bigger picture. If there were movement into the private rented sector, that would free up accommodation in the social rented sector, enabling it to be let to others who may otherwise have been renting privately. Alternatively, it could be offered to people who are currently placed in often expensive temporary accommodation. So, while I can understand how some may conclude that this measure would result in an increase in housing benefit expenditure, I firmly believe that it will achieve precisely the opposite as the effects ripple outward. During this final stage of the Bill's passage, the noble Lord, Lord Best, has offered amendments to protect some social sector tenants, all of which would reduce the expected savings from this measure. I pay tribute to him for the manner in which he has pursued his amendments and the wealth of knowledge that he brings to bear on this issue. I do not doubt for one moment that these were anything other than well intentioned but the Government have been unable to accept them. Aside from the financial implications, there is an important issue of fairness. We have talked about that a lot in the context of these changes but we must make sure that we recognise the need to be fair to tenants living in the private sector in receipt of housing benefit. On the face of it, what has been suggested through earlier amendments is an approach that protects claimants in social housing but not those in the private sector. I do not believe that there is a clear rationale to pay claimants in the social sector to keep a spare bedroom but not those renting from a private landlord. The Government's clear view is that we do not fund spare bedrooms in the social sector or the private sector. The cost to the taxpayer would be excessive and totally unjustifiable. Although we have had to take a tough decision to press ahead with these changes, that does not mean we will not protect people in vulnerable situations. As noble Lords know, we are adding £30 million a year of extra help to the discretionary housing payments fund from 2013-14 for disabled people living in significantly adapted accommodation and for foster carers. Local authorities will of course still be able to consider discretionary housing payments for other groups. I realise that the noble Lord, Lord Best, and others would prefer the certainty of specific exemptions for these groups. We understand the arguments for that but do not believe that a blanket exemption is the most effective or affordable approach. Any exemptions would also add complexity to the system, which we want to avoid. We also have special rules to provide protection for groups such as the recently bereaved, so that they do not see an immediate reduction in their housing benefit. I know that the noble Baroness, Lady Hollis, who I do not see in her place tonight, is concerned about the impact of these changes on those who need care. Therefore, I reassure her once more that we will allow an extra bedroom for those requiring overnight care from a non-resident carer, in the same way as we do for claimants in the private sector. We have more than a year before these changes are due to come in and we recognise how important it is to prepare for them. It is essential that all those affected by this measure, whether directly or indirectly, understand how the change will affect them so that they can take action well before April 2013. Therefore, we will use this lead-in time as effectively as possible to support local authorities, customers, landlords and others to plan for these changes. I beg to move. Motion A1 (as an amendment to Motion A) Moved by