Commons misled over impact of benefit cap on homelessness

Ministers repeatedly claimed that the risk was "not quantifiable" despite clear warning from Eric Pi

Ministers have been accused of repeatedly misleading the Commons about the impact of their £26,000 cap on welfare payments.

Yesterday, we noted the incongruence between David Cameron's claim that the cap would not lead to greater homelessness, and the warning in a leaked letter from the Communities Secretary, Eric Pickles (written by his private secretary Nico Heslop). The letter warns that welfare cuts could make an additional 20,000 families homeless (on top of 20,000 already anticipated because of other changes to housing benefit). It also warns that the plan will cost more than it saves because of the bill for temporary housing.

Now, Labour has highlighted several instances where ministers have acted disingenuously, given that this letter was sent in January. In February, the Department for Work and Pensions (DWP) published an impact assessment saying it was "not possible to quantify" the cost to local councils of the welfare cap, and the likelihood of greater homelessness. Grant Shapps, the Housing Minister, and others, quoted this assessment when asked about the impact on homelessness -- despite the fact that a specific estimate is included in Pickles' letter. Maria Miller, a welfare minister, told a Labour MP to "get real" when asked if the benefit cap would increase homelessness, while Chris Grayling said that it would not "exacerbate" the problem.

It is profoundly worrying that these concerns were not only ignored by government but repeatedly kept secret. The reason is easy enough to see - a dogged ideological commitment to encouraging work by punishing those on benefits. The Guardian quotes a governmental source pointing out that entering part time work exempts families from the cap, adding:

There might be some people who have to move to a less expensive area. But that doesn't mean they won't have anywhere to live. We are very optimistic about the behavioural change that this will bring about.

However, it is worth noting that the letter does not argue with the underlying principle that a family on benefits should be better off than a family that works. Rather, it suggests measures which would mitigate the negative effects while still retaining this fundamental aim. These include excluding child benefit from the cap, which would reduce the homelessness and child poverty risks, while still ensuring that most families with four children would not be able to live in "London or the south east" (Boris Johnson referred to this as "Kosovo style social cleansing" of poor people from cities).

Labour will try to force Pickles and the Welfare Minister, Iain Duncan Smith, to respond to an urgent question in the Commons today.

Unless it is modified, this policy risks failing on two counts: is not only inhumane but impractical and expensive too.

Samira Shackle is a freelance journalist, who tweets @samirashackle. She was formerly a staff writer for the New Statesman.

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How Labour risks becoming a party without a country

Without establishing the role of Labour in modern Britain, the party is unlikely ever to govern again.

“In my time of dying, want nobody to mourn

All I want for you to do is take my body home”

- Blind Willie Johnson

The Conservative Party is preparing itself for a bloody civil war. Conservative MPs will tell anyone who wants to know (Labour MPs and journalists included) that there are 100 Conservative MPs sitting on letters calling for a leadership contest. When? Whenever they want to. This impending war has many reasons: ancient feuds, bad blood, personal spite and enmity, thwarted ambition, and of course, the European Union.

Fundamentally, at the heart of the Tory war over the European Union is the vexed question of ‘What is Britain’s place in the World?’ That this question remains unanswered a quarter of a century after it first decimated the Conservative Party is not a sign that the Party is incapable of answering the question, but that it has no settled view on what the correct answer should be.

The war persists because the truth is that there is no compromise solution. The two competing answers are binary opposites: internationalist or insular nationalist, co-habitation is an impossibility.

The Tories, in any event, are prepared to keep on asking this question, seemingly to the point of destruction. For the most part, Labour has answered this question: Britain will succeed as an outward looking, internationalist state. The equally important question facing the Labour Party is ‘What is the place of the Labour Party in modern Britain?’ Without answering this question, Labour is unlikely to govern ever again and in contrast to the Tories, Labour has so far refused to acknowledge that such a question is being asked of it by the people it was founded to serve. At its heart, this is a question about England and the rapidly changing nature of the United Kingdom.

In the wake of the 2016 elections, the approach that Labour needs to take with regard to the ‘English question’ is more important than ever before. With Scotland out of reach for at least a generation (assuming it remains within the United Kingdom) and with Labour’s share of the vote falling back in Wales in the face of strong challenges from Plaid Cymru and UKIP, Labour will need to rely upon winning vast swathes of England if we are to form a government in 2020.

In a new book published this week, Labour’s Identity Crisis, Tristram Hunt has brought together Labour MPs, activists and parliamentary candidates from the 2015 general election to explore the challenges facing Labour in England and how the party should address these, not purely as an electoral device, but as a matter of principle.

My contribution to the book was inspired by Led Zeppelin’s Physical Graffiti. The track list reads like the score for a musical tragedy based upon the Labour Party from 2010 onwards: In My Time of Dying, Trampled Underfoot, Sick Again, Ten Years Gone. 

Continued Labour introspection is increasingly tiresome for the political commentariat – even boring – and Labour’s Identity Crisis is a genuinely exciting attempt to swinge through this inertia. As well as exploring our most recent failure, the book attempts to chart the course towards the next Labour victory: political cartography at its most urgent.

This collection of essays represents an overdue effort to answer the question that the Party has sought to sidestep for too long.  In the run up to 2020, as the United Kingdom continues to atomise, the Labour Party must have an ambitious, compelling vision for England, or else risks becoming a party without a country.

Jamie Reed is Labour MP for Copeland.