HL Deb 07 July 1998 vol 591 cc1088-9

2.45 p.m.

Earl Russell asked Her Majesty's Government:

What principles will underlie their review of housing benefit.

Lord Haskel

My Lords, the Government remain committed to ensuring that people can afford reasonable accommodation. Therefore any changes in the principles underlying the Government's review of housing benefit will be designed to make it more user friendly by making it easier to understand and simpler to administer. The Government will also seek to minimise work disincentives and the risk of fraud.

Earl Russell

My Lords, I thank the Minister for that commitment to ensuring that people can afford accommodation. In the light of recent attempts to cap levels of housing benefit, does the department believe that there is any evidence to suggest that caps on housing benefit may lead landlords to reduce the level of rent?

Lord Haskel

My Lords, the Government remain committed to a private sector which is uncontrolled and private landlords will not be affected by rent controls. The question of capping does not arise.

Baroness Gardner of Parkes

My Lords, is it a fact that the rents set for accommodation for which housing benefit is payable are determined by a valuation officer? Is it also correct that in central London the rent for a one-bedroomed flat is £185 a week, £250 for a two-bedroomed flat and £350 for a three-bedroomed flat? People who are in such accommodation in central London have a tremendous disincentive ever to take employment. How could they afford, in anything but the highest paid job, to pay those sort of amounts per week out of a net income? Would it not be wise for the Government to consider setting a ceiling upon housing benefit? I understand that some central London rents are being paid from housing benefit at £900 a week.

Lord Haskel

My Lords, the noble Baroness has a point. Rental variations occur throughout the country. The housing benefit system at the moment does not differentiate between those tenants who need to look for more economic premises and those who do not. However, systems are in place to evaluate what is an economic rent in different areas. There is a big variety of rentals in different areas of the country.

Baroness Williams of Crosby

My Lords, can the Minister say whether it is still the case that the Government abide by the principles of the 1986 Act; namely, that income support is not normally intended to cover rent? Is it still seen as a separate issue from the rent which people have to pay?

Lord Haskel

My Lords, on the whole, income support is not intended to cover housing costs. We have a separate housing benefit scheme which pays up to 100 per cent. of rent. It is not our intention to leave claimants out of pocket. However, for home owners, income support, with the mortgage interest scheme, provides a contribution towards mortgage interest payments for the purchase of a home and for some repairs and improvements to it.

Lord Higgins

My Lords, the Government's document, A New Contract for Welfare, contains a large section on housing. However, when it comes to success measures, all it says is that there has been an improvement in the quality of housing and housing management. That is so vague as to be utterly meaningless. Will the review being carried out include quantitative measures as to whether or not the Government have been successful?

Lord Haskel

My Lords, the Government are intending to improve the quality of housing, and the review will include quantitative measures.