Housing chiefs slam MPs for overturning Welfare Reform changes

Published by Julien Tremblin for 24dash.com in Housing

Housing chiefs have spoken out against the overturn of the Lords amendments to the Welfare Reform Bill and vow to keep fighting against ‘unjust’ measures.  

Yesterday’s vote in the House of Commons overturned the series of defeats the bill suffered in the House of Lords in the past few weeks.

David Orr, chief executive of the National Housing Federation said the decision was “totally wrong” and represents a blow for thousands of families “already struggling to make ends meet”.

It is understood the Government now plans to use the "financial privilege" rule that will prevent peers from overruling MPs on matters of spending.

Controversial measures include the decision to cut housing benefits for social tenants who are deemed to under-occupy their homes as well as a £26,000-a-year benefits cap.

The Chartered Institute for Housing has warned the Bill will have a “detrimental impact” on tenants and landlords. It has urged the government to rethink its decision to deny peers the chance of another vote when the Bill returns to the Lords.

Abigail Davies, assistant director of policy and practice at CIH, said: “The decision to avoid the ping pong process by invoking financial privilege is a slap in the face for proper scrutiny of the impacts of legislation.

“Ironically, we suspect that by doing this government will introduce legislation that ends up costing the public purse more than it actually saves.”

“Overturning the under occupation amendment means people on benefits will be forced to bear the brunt of government’s welfare cuts: this reform is not about changing behaviour or making better use of stock.”

Meanwhile, the Federation vowed to keep fighting against those proposals, in the light of widespread support for the Lords amendments.

David Orr said: "That over 70 organisations, from disabled charities to mortgage lenders, came together in support of this change to the Welfare Reform Bill shows just how important this issue is. It is unjust to penalise people for under-occupying their homes when they have nowhere else to move to."

"Given the level of opposition in the Lords to these proposals and their potential impact, it is totally wrong for the Government to shut down discussion by claiming financial privilege.

'We will continue to campaign against these unfair proposals."

Meanwhile, the Government has reaffirmed its commitment to "transitional arrangements" and promised a nine-month "grace period" for tenants hit by the overall benefit cap after losing their job.

The Federation has welcomed the new arrangements but warns they will do little to protect families.

"We remain concerned that this crude measure will lead to a rise in rent arrears, homelessness and child poverty," Mr Orr said.