Welfare Reform Bill

I have great sympathy with the concerns raised by the amendment of the noble Lord, Lord Addington. I have added my name to it. On these Benches, we have serious concerns over the Government’s intention to encourage customer claimants to handle their housing benefit rather than opting to have it paid directly to their landlord. Although we understand their aim of encouraging financial responsibility and are pleased that they are attempting to give recipients more freedom to manage their income as they see fit, we think that doing these things by this method is dangerous and is likely to lead to more harm than good. As a result, want to have a stand part debate for the whole clause. Currently, only 40 per cent of private housing tenants receiving housing benefits handle the money. Under the Pathfinders, we understand that the number has doubled to 80 per cent. Will the Minister reassure me that these figures are not being achieved by setting targets for local authorities, but really are a reflection of the conditions on the ground? As the amendment suggests, we are very concerned by the expectation that people unable to handle their own money must draw their vulnerability or unsuitability to the attention of the housing authority. It is unlikely that vulnerable claimants will identify themselves, and we feel that the housing authority should have a proactive role in seeking out those who might be unable to handle the benefits themselves, before they fall into debt, rent arrears or face eviction. Waiting until the problem is so far advanced before taking action will do nothing to improve the claimant’s personal responsibility and could cause significant hardship and distress. We understand from Citizens Advice that the Government have removed the specific lack of an obligation to be proactive from the guidance. Is that the case? Will the Government therefore actively encourage housing officials to identify vulnerable claimants? These measures are also likely to have knock-on effects on the housing market. The secure knowledge that their rent will arrive on time, and in full, is an important reason private landlords rent to benefit recipients. I am aware that recipients do not need to declare that they are receiving housing benefit to their landlord, but it is not in anyone’s interest to see the supply of private housing shrink to those who do. With greater uncertainty over the security of their rents, it is likely that private housing will become more expensive, more limited or both. Finally, I would like to revisit a point made at Second Reading by my noble friend Lord Skelmersdale. If the Government are so sure that these steps will be beneficial for housing benefit recipients, why are they not extending the option to tenants of social sector housing?