Welfare Reform Bill


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Danny Alexander: The Under-Secretary made a sensible point about pilots. Previous exchanges have brought a question to my mind: if the sanctions are piloted for two years in certain areas but the national network of rehabilitation is rolled out throughout the country, does she foresee the evaluation of comparing performance in areas where sanctions apply with areas in which they do not apply, so that it is possible to understand whether sanctions make any difference in themselves to the success of rehabilitation processes?
Mrs. McGuire: I have actually already answered that question and said that a comparison would be made between the piloted areas where there would be a sanctions regime, if necessary, and those areas where there would not be a sanctions regime.
The fact that there was widespread anxiety about such matters meant that we did not pursue them. However, we still believe that it is important for those very few people who have tried and tested the system to the nth degree that we consider another way to deal with such matters. I know that hon. Members are worried, and rightly so, about people with mental health difficulties and those who might have behavioural problems. Yes, that will be part of an assessment involving individuals, households and their needs.
I reassure the Committee that we do not intend to push people into rehabilitation services that would not be appropriate for them. I recognise some of the scenarios that have been presented by members of the Committee about people with behavioural difficulties that perhaps can be misinterpreted. We shall obviously be working with local authorities, many of which will have significant skills in the area of assessment of those with difficulties.
Mr. Ruffley: Can the Under-Secretary say whether she would like to pilot the proposal from Shelter and Citizens Advice to the effect that the 30 per cent. docking would be reduced to 10 per cent. for vulnerable people?
Mrs. McGuire: The hon. Gentleman will understand if I do not give him a definitive answer to that question. We are aware of the proposal and I am sure that members of the Committee will come back to it at further points in the process.
Kali Mountford: May I pursue the point about domestic violence? It often happens that the person who ends up being evicted was the victim of someone else’s crime. I know of cases when the whole community gangs up on the victim rather than the offender and the person is misidentified as an offender when they were not. If we were to pilot such a project, there would have to be a proper understanding of how those offences are pursued.
Mrs. McGuire: My hon. Friend speaks words of wisdom. I recognise the position that she has highlighted and, once again, that is an area where we shall be working very closely with local authorities that have expertise and knowledge. I am sure that they will engage with the local network of voluntary and charitable organisations that have front-line experience, not only in domestic violence but, as I said earlier, in particular circumstances that, if not handled properly, could result in an eviction when not all individuals in a household are the perpetrators of antisocial behaviour. I hope that the Committee will endorse the clause.
Question put and agreed to.
Clause 28 ordered to stand part of the Bill.

Clause 29

Housing benefit and council tax benefit for persons taking up employment
Mr. Murphy: I beg to move amendment No. 67, in page 26, line 11, at end insert—
‘( ) For the purposes of subsection (1) a person must be treated as entitled to housing benefit or council tax benefit by virtue of the general conditions of entitlement if—
(a) he is not so entitled to that benefit at the time he or his partner ceases to be entitled to the prescribed benefit as mentioned in subsection (1)(b), and
(b) his entitlement to housing benefit or council tax benefit (as the case may be) ceased during the prescribed period before that time.’.
I am delighted formally and belatedly to welcome you to the Chair, Mr. Amess, this early evening in London.
Mr. Hunt: Has the Minister noticed that the sun is about to set over the shoulders of the hon. Member for Ochil and South Perthshire (Gordon Banks)?
Mr. Murphy: I would have noticed, of course, but my hon. Friend the Member for Ochil and South Perthshire is in Belfast today, so it would have been pretty difficult. I notice if I turn around that the sun is in fact setting behind my hon. Friend the Member for Dumfries and Galloway (Mr. Brown). Of course, the sun always shines in Dumfries. The sun may be shining in Belfast, but it may set a little later there because of its latitudinal position.
We now come to the substance of the Bill—the extended payment schemes on housing benefit and council tax benefit. Clauses 29 and 30 are technical, as is the amendment. With your indulgence, Mr. Amess, I shall rewind our proceedings—almost halfway—to clause 15 to confirm formally to the Committee that a request was made for the paperwork on private and voluntary providers, and that all 240 pages are in the Library. They will also be placed on the DWP website. After careful consideration, my hon. Friend the Under-Secretary and I decided to make them available unedited. All paperwork that was made available to potential private and voluntary sector contractors and providers is now available to all members of the Committee and, by extension, all Members of this House and of another place. Thank you, Mr. Amess, for your indulgence in allowing me to share that with the Committee.
The extended payment scheme in the amendment and in the clause is aimed at providing additional housing benefit and council tax benefit support for people coming off prescribed benefits for work-related reasons. The structure of the scheme is similar to existing schemes, with the detailed entitlement conditions described in secondary legislation, thus providing the flexibility to keep the schemes under review.
Under the current schemes, the housing benefit and/or council tax benefit claim has to be ended before an extended payment can be made. Once the extended payment ends, a person has to make a new claim if they think that they might be entitled to housing benefit or council tax benefit. The purpose of the amendment is to preserve a feature of the current extended payment scheme. For ease of reference, I shall refer to it solely as housing benefit, although the same rules will apply for council tax benefit.
The amendment is concerned with certain people whose housing benefit stops, for example because they have moved out of their home to start work in another local authority area. They would not usually receive an extended payment, because their entitlement to housing benefit would have ended before they ceased to be entitled to a qualifying benefit for the extended payment. The subsequent ending of the qualifying benefit for work-related reasons, one of the basic conditions for the entitlement to extended payment, would have no effect as the housing benefit claim would have already been closed. The current scheme allows a grace period if the move takes place in the week the person takes up employment or in the preceding week, and the powers in the clause must be amended to allow that to continue.
The proposed amendment would give the Secretary of State the power to prescribe in regulations a period before the cessation of qualifying benefit, during which the person would be treated as being entitled to housing benefit or council tax benefit. The intention is that the period should be the same as that in the current schemes, making special provision for cases in which housing benefit and/or council tax benefit ceases due to a person moving out of their home in the week that they take up employment or in the preceding week.
I have no idea whether you are minded to have a clause stand part debate on this important but technical issue, Mr. Amess. However, given my comments, I hope that both amendment No. 67 and the clause will be included in the Bill.
Amendment agreed to.
Clause 29, as amended, ordered to stand part of the Bill.
Clauses 30 to 32 ordered to stand part of the Bill.

Clause 33

Supply of information by rent officers
Danny Alexander: I beg to move amendmentNo. 259, in clause 33, page 28, leave out lines 21 to 23.
This Committee seems to move in fits and starts: long periods of debate on some clauses followed immediately by periods of dramatic progress. I intend to speak to the amendment briefly, because the issues that it seeks to address have been well aired in earlier debates, not least in remarks made by the hon. Member for Colne Valley on clause 27. However, it gives the Under-Secretary the opportunity to answer some of those points in more detail.
The amendment seeks to probe the circumstances in which the information prescribed in subsection (1) is to be provided for use by the Department. Will the Under-Secretary clarify whether information relating to individual cases will be required to be provided for those five areas listed in subsection (1)? Is the intention to prescribe general information about housing benefit or specific details about a case, relating, for example, to individual child support cases, when such information may be shared? Will she explain the Government’s intentions?
John Penrose: I should like to press the matter a little further. We have discussed, particularly in the debate on the single room rent restriction, whether rent officers are getting their decisions right in all cases. There was much disquiet in that debate about whether they are setting single room rent levels correctly. It was felt that there could be a vicious downward spiral: the level was set too low, which led to shortfalls in claimants’ benefits, which in turn they had to make up. That also had a negative knock-on impact on the supply of suitable properties, which made it harder for rent officers to determine what the correct rent level should be.
One obvious way to deal with some of these problems and allow a degree of external verification and audit, and justification as to whether the rent officers are getting such decisions right, is to increase the amount of transparency. We could shine a little more sunlight into potentially murky corners by ensuring that rent officers show their workings when they take the decisions about the local housing allowance in any one area. I am sure that it is germane and important for the single room rent restriction, but it will be important in respect of many other classes of property.
As the earlier amendment about the single room rent restriction was not agreed to, my suggestion is an alternative way of dealing with the problem—a point that I was making at the time of that earlier debate—and it would be tremendously beneficial. I see no downsides in making the information available to the public and to all interested parties, so that they can check that the decisions are justifiable. In the spirit of open government, I therefore hope that the proposal will be relatively easy for the Under-Secretary to agree to.
4.45 pm
Mrs. McGuire: Once again, I hope I can allay concerns of the hon. Member for Inverness, Nairn, Badenoch and Strathspey as expressed in the amendment. Clause 33 establishes a gateway, enabling the Secretary of State to require rent officers to pass information to him or to a person providing services to him, for various specified purposes, including social security purposes. The information is already being provided under existing powers, but the Secretary of State can only request the information.
Taking forward legislation to facilitate the local housing allowance roll-out has provided a suitable opportunity to enable the Secretary of State to require rent officers to provide him with information in a manner and form that is useful to him. The information will include details such as how many determinations rent officers have made and what proportion of these have meant that housing benefit has been restricted. In future, it will also include information about the local housing allowance rates and the broad rental market rates.
The hon. Member for Inverness, Nairn, Badenoch and Strathspey asked what personal information would be transferred, and I can assure him that we do not envisage that personal information would be transferred through the proposed gateway. Analysts tend to make broad assumptions based on their analysis, and that detail is not necessarily appropriate.
May I also answer the question posed by the hon. Member for Weston-super-Mare (John Penrose)? I appreciate that there is some concern about the transparency of the rent officers’ deliberations and I hope that in the last debate I highlighted the fact that there is a great deal of market evidence and information to be gathered, including that from professional contacts and letting agencies. It is difficult to see whether that information could be published in full because there would be potentially serious consequences. For example, the rates might be seen as an indicator of a customer’s housing benefit entitlement, and assumptions that would be very misleading to customers could be drawn from the unexpurgated information. Dare I say it, it could also encourage landlords to increase rents and we must be careful that housing benefit and local housing allowance do not start to lead the market in determining what the rent could be. If landlords increase rents, that could increase the shortfalls to the customer.
The average data for each local authority is published in the Rent Service’s annual valuation report. Concerns were raised by hon. Members on both sides of the Committee relating to data transparency, and my hon. Friend the Minister and I will look at the comments that have been made to see whether there is anything else we can say or do that will give comfort to hon. Members on the issue.
As with all benefit information that the Department holds, its use will be strictly governed and controlled. The information will be accessible, as now, only to certain officials of the Department and then only on an “if required” basis. Each time the information is accessed, the access has to be justified by a business case showing that it is essential for the effective running of the Department. The business case also has to show that Data Protection Act and European convention on human rights issues have been carefully considered. The information is essential to our ability to monitor the impact of our policies on all DWP benefits, but it is done within a framework of safeguards. I therefore ask the hon. Member for Inverness, Nairn, Badenoch and Strathspey to withdraw the amendment.
 
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