How the coalition is turning the screw on housing benefit claimants

The latest round of welfare cuts will accelerate the rise in homelessness and leave low-income families struggling to find rented accomodation.

Child benefit, tax credits and disability allowance have all been at the heart of the political debate on welfare cuts. Housing benefit hasn’t. Yet people are already feeling the pain of the government’s changes and cuts. The Welfare Benefits Uprating Bill presents the opportunity for another turn of the screw on housing benefit, especially on the people who rent from private landlords.

Local housing allowance (LHA) is the housing benefit for those in private rented accommodation whose low incomes mean they rely on help with housing costs. It is an in-work and an out-of-work benefit paid to over 1.3m people. These are not the Chancellor’s "skivers" lying in all morning behind closed curtains. These are people in low-paid jobs, pensioners, disabled people, single parents, couples with kids and young people estranged from their parents. Almost one in five on housing benefit work, and only around one in eight are on Jobseeker's Allowance.

Housing benefit has always had a link to actual rents due to the huge differences in rates around the country. The government broke this link when it decided to uprate LHA only in line with CPI inflation. Under this new bill, the LHA in each area will only rise by either 1 per cent or the change in the level of the lowest third of rents, whichever is lower. But rents have historically risen faster than inflation, and certainly by more than 1 per cent, so many parts of London and many parts of other UK towns and cities will become no-go, no-live areas for those on the local housing allowance. People will be forced into debt, then out of their homes and out of their local areas.

Crisis, the homelessness charity, found in a recent report that fewer than 1 in 50 properties are now accessible to LHA recipients under 35-years-old because rents are already higher than housing benefit rates and landlords are unwilling to let to those who need it. Shelter have calculated that linking the LHA to CPI inflation will mean one third of the country will become unaffordable for low income families within a decade, and the 1 per cent cap will speed up this social exclusion. It will also accelerate the recent rise in homelessness. Rough sleeping was up 23 per cent last year, the number of people going to their council as homeless is up 22 per cent in the last two years and the end of a private tenancy is now the most common cause for those officially classed as homeless.

The real terms-cut imposed by the 1 per cent cap on local housing allowance from 2014 is just the latest in a long list. In April 2011, the government brought in caps on LHA for each property size, scrapped the rate for a five bedroom house and cut all increases from the median rise in local rents to the lower third. Last year, it froze all LHA rates and raised the age below which LHA support is only available for the costs of shared accommodation from 25 to 35. And this year it is bringing in the "bedroom tax" and capping any rise in LHA at CPI, or 2.2 per cent.

It is hurting but it’s not working. The housing benefit bill is up by £2bn since the general election and the total number of people relying on LHA has risen by 35 per cent. Debate in the Commons yesterday was guillotined by the government, so there was no debate or vote on exempting housing benefit from the 1 per cent cap or on a modest amendment I tabled to require the government to publish an annual report on the relationship between rates of LHA and actual rents, and if these become significantly out of step to reconsider the 1 per cent cap policy.

This is only what the welfare minister, Lord Freud, promised during the debate on CPI-linked uprating in the Welfare Reform Bill in December 2011. He said, “if it then becomes apparent that local allowance rates and rents are out of step, they can be reconsidered" and when pressed by Labour’s Lady Hollis he conceded, "on the basis that the noble Baroness is going to be incredibly helpful to me in all the consequent amendments in the Bill, I will change the word 'can' to 'will'".

It will be for Labour lords to pick up the case again next month. If parliament can’t stop the screw being turned ever-tighter on housing benefit claimants, the least it can do is ensure ministers face the facts about who is hurting most and how badly.

John Healey is the Labour MP for Wentworth and Dearne and the former housing minister

Rough sleeping rose by 23 per cent in 2012. Photograph: Getty Images.

John Healey is the Labour MP for Wentworth and Dearne and was formerly housing minister, local government minister and financial secretary to the Treasury

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Theresa May’s stage-managed election campaign keeps the public at bay

Jeremy Corbyn’s approach may be chaotic, but at least it’s more authentic.

The worst part about running an election campaign for a politician? Having to meet the general public. Those ordinary folk can be a tricky lot, with their lack of regard for being on-message, and their pesky real-life concerns.

But it looks like Theresa May has decided to avoid this inconvenience altogether during this snap general election campaign, as it turns out her visit to Leeds last night was so stage-managed that she barely had to face the public.

Accusations have been whizzing around online that at a campaign event at the Shine building in Leeds, the Prime Minister spoke to a room full of guests invited by the party, rather than local people or people who work in the building’s office space.

The Telegraph’s Chris Hope tweeted a picture of the room in which May was addressing her audience yesterday evening a little before 7pm. He pointed out that, being in Leeds, she was in “Labour territory”:

But a few locals who spied this picture online claimed that the audience did not look like who you’d expect to see congregated at Shine – a grade II-listed Victorian school that has been renovated into a community project housing office space and meeting rooms.

“Ask why she didn’t meet any of the people at the business who work in that beautiful building. Everyone there was an invite-only Tory,” tweeted Rik Kendell, a Leeds-based developer and designer who says he works in the Shine building. “She didn’t arrive until we’d all left for the day. Everyone in the building past 6pm was invite-only . . . They seemed to seek out the most clinical corner for their PR photos. Such a beautiful building to work in.”

Other tweeters also found the snapshot jarring:

Shine’s founders have pointed out that they didn’t host or invite Theresa May – rather the party hired out the space for a private event: “All visitors pay for meeting space in Shine and we do not seek out, bid for, or otherwise host any political parties,” wrote managing director Dawn O'Keefe. The guestlist was not down to Shine, but to the Tory party.

The audience consisted of journalists and around 150 Tory activists, according to the Guardian. This was instead of employees from the 16 offices housed in the building. I have asked the Conservative Party for clarification of who was in the audience and whether it was invite-only and am awaiting its response.

Jeremy Corbyn accused May of “hiding from the public”, and local Labour MP Richard Burgon commented that, “like a medieval monarch, she simply briefly relocated her travelling court of admirers to town and then moved on without so much as a nod to the people she considers to be her lowly subjects”.

But it doesn’t look like the Tories’ painstaking stage-management is a fool-proof plan. Having uniform audiences of the party faithful on the campaign trail seems to be confusing the Prime Minister somewhat. During a visit to a (rather sparsely populated) factory in Clay Cross, Derbyshire, yesterday, she appeared to forget where exactly on the campaign trail she was:

The management of Corbyn’s campaign has also resulted in gaffes – but for opposite reasons. A slightly more chaotic approach has led to him facing the wrong way, with his back to the cameras.

Corbyn’s blunder is born out of his instinct to address the crowd rather than the cameras – May’s problem is the other way round. Both, however, seem far more comfortable talking to the party faithful, even if they are venturing out of safe seat territory.

Anoosh Chakelian is senior writer at the New Statesman.

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