Welfare Reform Bill

I shall also be brief. As my noble friend Lady Hollis has made clear already, the non-dependent adult deductions to housing benefit and council tax benefit are calculated at the moment according to the earnings of the non-dependant or a fixed rate if the non-dependant has no earnings. This amendment seeks to ensure that the amount of housing cost element of the universal credit that is reduced by those deductions cannot be more than 50 per cent of the total cost. The non-dependent deduction is a sensible one made to a claimant’s housing benefit entitlement if they share with a non-dependent adult, who could also be a sibling. It is assumed that non-dependent adults will contribute towards the housing costs, although those of us in this Committee who are parents may know that our offspring do not always pay rent when they continue to live with us. Nevertheless, it is a fair assumption and one that we would not argue with. There are a number of problems with the non-dependent deductions, however. The housing benefit is reduced by a pre-set amount, regardless of the total rent payable, which can actually leave the non-dependants liable for virtually all the total rent owed, even though, as my noble friend has said, they have no legal claim on the property. The amendment would ensure that the tenants remain responsible for at least half the rent, which we believe would support the Government’s ambition to promote financial responsibility. It would also go some way towards addressing many of the problems with high rates of non-dependent deductions, which I do not think any of us would want to see continue, with all the disincentives to work and the tensions within families that it creates and that have already been mentioned. It is a very common-sense amendment, and I look forward to hearing the Minister give his support to it.