HC Deb 21 May 1990 vol 173 cc6-8
5. Mrs. Gorman

To ask the Secretary of State for Social Security if he has any plans to review the operation of the housing benefit system.

Mrs. Gillian Shephard

Although we monitor closely the working of the housing benefit scheme, we have no plans for a major review.

Mrs. Gorman

I thank my hon. Friend for her reply. Does she agree that if we subsidise something we often get more of it, and that people in local government who administer housing benefit and, incidentally, the Housing (Homeless Persons) Act 1977 believe that such subsidies are often a temptation to people to throw themselves on the authority for accommodation? If she agrees with that, would she further agree that the way to do something about the housing problem is to recreate a market in rented homes, and that if we could abolish controls on newly rented property we would reinstate the friendly landlady, who would be willing to take in many of the young people and others who sleep rough on our streets?

Mrs. Shephard

I am aware of my hon. Friend's concern in this matter. She has raised it before in the House and she will know that regulation of rents is a matter for the Department of the Environment. She will also know that housing benefit is not intended to help pay excessively high rents. Our arrangements for reimbursing local authorities for housing benefit expenditure give them an incentive not to pay benefit above reasonable market levels. Local authorities have powers to restrict benefit in cases where accommodation is over-large for a claimant's needs or unreasonably expensive. In the longer term, we propose to restrict the amount of housing benefit payable for properties at the top end of the market, but information to achieve that is not ready and will not be ready for some time.

Mr. Kirkwood

If the Government will not undertake a major review of the housing benefit system, will they take an urgent look at the way in which the housing benefit system prejudices the young, especially the homeless young? Will the Minister study the speech by Mr. Donald Maclean, president of the Association of Scottish Police Superintendents, who said in Peebles on Friday that stray dogs get a better deal than the young homeless in Scotland and that a civilised society such as ours should be able to do better than that? This is the first time in my experience that a senior and respected police officer has become involved in the benefit debate, and the Government should not ignore that. In the monitoring or review process, will the Minister bring forward urgent help for people under 25?

Mrs. Shephard

I am not aware of the speech made by Mr. Donald Maclean but I will certainly look at it. The hon. Gentleman spoke of the young homeless. I am sure that he is aware of the administrative and other changes introduced by the Department to help 16 and 17-year-olds become entitled to benefit. An announcement about that was made in November and changes were made in the interaction between benefit and youth training schemes. Those were announced by the Department of Employment in March. In July we made a substantial change in benefit arrangements for young people who have to live away from home. Of course, we continue to monitor the situation.

Mr. Hind

My hon. Friend constantly reviews the housing benefit system. Will she look at the position of pensioners in receipt of small occupational pensions for which they have paid during their working life? When money becomes available will my hon. Friend try to improve their standard of living through the rates of benefit paid to them as that group of people has been hard hit by current inflation and the introduction of the community charge.

Mrs. Shephard

As my hon. Friend says, the Department continues to review the position of all groups. One result of such review was the changes made in October to help particularly needy pensioners of the kind described by my hon. Friend.

Mr. Winnick

Is the Minister aware of the appalling hardship and deprivation caused to many people and certainly to my constituents because, as the hon. Member for Lancashire, West (Mr. Hind) has said, the occupational pension is fully taken into account and the amount of housing benefit is therefore either derisory or none at all? Why do the Government penalise time and again so many of our senior citizens who, because they receive such a pension—in many cases a small amount—have to pay large amounts in rent and rates so that their standard of living is constantly being undermined? The Government bear a heavy burden of responsibility for the shocking poverty which has resulted from the changes in housing benefit.

Mrs. Shephard

I repeat that it was precisely such groups that the Government sought to target with our October package of help for older and poorer pensioners and, of course, are keeping the position under review.

Mr. Burns

Will my hon. Friend accept that there is a genuine problem about the payment of housing benefit? It usually takes two weeks and sometimes more to process an application, but many people who become homeless have to pay their rent weekly and landlords will not wait until the housing benefit application has been processed. It seems to be a vicious circle. I am sure that all hon. Members would be extremely grateful if my hon. Friend's Department could come up with any reasonable way to look at the rules and allow flexibility to minimise the number of people caught in that unfortunate trap.

Mrs. Shephard

The administration of housing benefit is a matter for local authorities. I believe that my hon. Friend has raised previously his concern about the way in which this is done in his constituency. Housing benefit claims are meant to be processed in 14 days. Many authorities achieve this target, and there is no reason why all of them should not do so. However, if claimants have to wait because of the inefficient operation of housing authorities there is the possibility of a crisis loan.