Social Security

I believe that Baroness Thatcher is entitled to other benefits these days. If uprating had at least kept pace with inflation, the earnings disregard for housing benefit and council tax benefit would now be £8.35. In other words, the Government are clawing back from the poorest people £175.20 per year per person by not uprating these disregards. I urge the Minister to pay close attention to that issue in future years. An even greater disincentive to work is the combined housing benefit and council tax benefit taper, which withdraws 85 per cent. of people’s earnings for every extra pound earned. All Members will doubtless have heard constituents complain about this issue, and I am pleased that the Minister confirmed in a written answer to me that the pathfinder project evaluation would examine income tapers. I hope that the Minister will give a further assurance that it will form a substantial part of the evaluation, and the recommendations that are to follow. Finally, I turn to another group of people directly affected by the orders—claimants who are single or under 25 years of age. Young single claimants are often overlooked, but they face growing inequality as the gap between their incomes and the average income widens because their benefits are linked to prices. There is a prejudice against people aged under 25, who are especially hard hit by lower benefit rates and the unfair single room rent. In opposition, the Government opposed the single room rent. Many Labour Back Benchers have supported parliamentary motions calling for it to be ended, and Shelter reminds us repeatedly that it causes homelessness.The median rent shortfall for those receiving the single room rent is £31 a week. These orders will raise to £45.50 the jobseekers allowance paid to people under 25, but subtracting from that amount the £31 rent shortfall caused by the housing benefit regulations means that they will have only £14.50 to live on each week.The system is unfair. It increases homelessness, encourages fraud and can also help to promote the grey economy. Government estimates are that 12,000 young people were subject to the single room rent in May 2005. At an average shortfall of £31, it would cost only £372,000 to end the single room rent. Can the Minister find that amount in the Department’s budget? As I said, my party will not divide the House over these orders. We are happy to support the benefit uprating proposals, but the Government still face substantial challenges in respect of pensions and welfare policy. They are far from meeting those challenges at present, and I look forward to their response to the debate.