HC Deb 11 January 1999 vol 323 cc15-6
9. Mr. David Kidney (Stafford)

When he expects to announce the results of the review of housing benefit. [63194]

The Parliamentary Under-Secretary of State for Social Security (Angela Eagle)

We have announced a project to simplify the housing benefit rules and regulations and to improve the administration and delivery of the benefit. We are working in conjunction with local authority associations and further announcements will be made in due course. In addition, we have announced a small-scale pilot, which will examine the issues surrounding the under-occupation of social housing.

Mr. Kidney

I thank my hon. Friend for that answer. Does she agree that the housing benefit system established by the previous Government can sometimes operate as a severe disincentive to work because of the steep rates at which benefits are withdrawn when recipients find work? Does she also agree that the Government's policies to be introduced later this year—the range of new deal projects and the working families tax credit—offer a powerful incentive to work for those who can work? Therefore, does she agree that it might be helpful if housing benefit could be changed this year, so that those changes could work with the grain of those other Government policies?

Angela Eagle

My hon. Friend is right to point out that some severe work disincentives—what I call the hassle factor—are inherent in the current design of the benefit. People spend so long trying to get their housing benefit allocation right that they are reluctant to come off that benefit to try, say, a temporary job. In the review, we are looking to see how we can reduce the hassle factor and whether we can create more obvious incentives to make that often difficult move from benefit into work. I accept absolutely my hon. Friend's point.

Mr. Edward Leigh (Gainsborough)

Following the answer that was given by the Secretary of State to my hon. Friend the Member for Arundel and South Downs (Mr. Flight), will the Minister give a categoric pledge—an assurance—that there has been and will be no watering down in the campaign by the Government and local authorities to combat housing benefit fraud?

Angela Eagle

Far from watering down the campaign to combat that fraud, we are gearing it up not only in the fraud strategy itself, but in our fundamental look at how the benefit is administered. As I said earlier, we have already announced £100 million extra to resource local authorities to enable them to check much more effectively how they administer housing benefit. The hon. Gentleman should await announcements on some of the changes in the simplification project, which I hope will tighten the gateways to that benefit and ensure that payments are right first time and stay right.

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