Welfare Reform Bill

I thank the noble Lord for bringing about this debate. I am trying to think of something amusing to say about standing here wearing my daffodil. I took it off momentarily to give it a drink, because it was starting to get a bit tired, so when the noble Lord, Lord Taylor, was congratulated on his, I had to pull mine up from under the table immediately. On an amusing note, I have just been handed the most wonderful piece of paper that I have had so far in this Committee. It just says, ““Yes””. We will come on to that. The aim of the amendment is to clarify the role that rent officers will play under the local housing allowance. I welcome many of the aims of the amendment and understand the sentiments behind it, but I take this opportunity to assure noble Lords that it is unnecessary. Rent officers will have a pivotal role to play in the local housing allowance. They will be responsible, as has already been described, for setting the local housing allowance rates and the broad rental market areas in which those rates will apply. As we have already heard, that will be key. Collaborative working between rent officers and local authority staff has resulted in an excellent partnership, ensuring effective administration of housing benefit. However, I appreciate that some of our stakeholders have found it difficult to understand the methodology employed by rent officers and exactly how they have fitted into a complex housing benefit system. We have an opportunity to make the role of rent officers, and the decisions they make, more transparent and open. I am grateful for all the work that organisations such as the Catholic Housing Aid Society in Kirklees have done to help identify some of the difficulties and propose practical solutions. We accept that the rollout of the local housing allowance presents an opportunity to put in place the processes demonstrating that rent officers make the right decisions. However, the best and most flexible way to do this is through guidance rather than legislation. We must also ensure that, in improving transparency, we do not undermine rent officers’ ability to collect accurate information and evidence. To calculate local reference rents and local housing allowances, rent officers currently use a wide range of evidence from the relevant rental market. To collect the evidence needed, rent officers use a variety of research methods and professional contacts, including individual landlords and lettings agents. Much of the information they gather is commercially sensitive and given in confidence. Requesting that rent officers publish this information would have two serious consequences, which I do not think that the amendments are intended to achieve. First, it would undermine the rent officer’s relationships with letting agents, and could lead to these agents withholding information that they do not wish to be made public. That would undermine the reliability of housing benefit rates. Secondly, it could result in stakeholders attempting to influence the rent officers’ decisions by providing additional but inaccurate market evidence. With the national introduction of the local housing allowance, the rates and the broad rental market areas relating to a local authority will be published—and this is key—to allow customers to see in advance what the maximum level of housing benefit, for a certain size of accommodation, will be. This transparencyis one of the key advantages of the local housing allowance. As the Minister for Disabled People stated in the other place, we also want to take this opportunity to ensure that the way these rates and areas are set is as clear as possible. I give a firm commitment that rent officers will consult with local authorities, both the housing benefit departments which noble Lords asked about and the wider housing strategy departments, when they are setting broad rental market areas to ensure that the areas accurately reflect the local housing markets and communities. The Rent Service in England will also put this into guidance for rent officers that will be published on the internet. We will work with rent officers to ensure that their role is aligned with wider government aims of encouraging mixed and sustainable communities, and that they deliver a consistent approach for all local communities. The planned two-year review of the local housing allowance will provide us with the opportunity to check that these processes are working effectively. The noble Lord, Lord Skelmersdale, asked whether the £20 earnings disregard would remain following the introduction of local housing allowance. As I have said, the answer is ““yes””. I hope that I have picked up on the important concerns that were expressed about the need for transparency, the need for rent officers to work closely with local authorities, and the need for fairness and openness. I hope that noble Lords will therefore feel able to withdraw their amendments.