PRESS RELEASE FROM ANN COFFEY MP
Higher numbers of vulnerable Stockport young people could be made homeless and many families on modest incomes will face big rent increases because of the Government’s pernicious new Housing Bill, Ann Coffey MP warned today.
Ms Coffey said cuts in Housing Benefit for single people under 35 years would particularly hit care leavers because they often do not have the alternative of moving in with supportive family and friends if rents become too extortionate.
She also warned that plans to increase rents for those families earning above £30,000 per household under a new “Pay to Stay’ scheme could be a disincentive to work.
Speaking during the report stage of the Housing and Planning Bill she said capping housing benefit for single people under 35 to the Shared Accommodation Rate would make it even more difficult for young people to buy a home.
She said: “Around 1,800 of Stockport Homes’ current tenants are under 35 and are receiving some level of Housing Benefit. The changes would mean that both the social housing and private rented sectors would become increasingly unaffordable and young people will be at increased risk of homelessness at a time when homeless acceptances have risen nationally by 36 per cent since 2009 and 15 per cent in Stockport over the last year.”
Ms Coffey argued that because care leavers are often vulnerable people with complex needs that can last a lifetime, they should be excluded from the shared Accommodation Housing benefit cap beyond the age of 22, the current proposed exemption age.
The Housing Bill proposes “Pay to Stay” market rents for people earning a combined household income of £30,000. Ms Coffey said that because the cost of private renting varies greatly from area to area the Pay to Stay market rents should take account of the average income of couples and private sector rents in each area so that there are no disincentives to work.
Ms Coffey said: “The £30,000 threshold is too low. A couple, both working full time at the average Stockport wage of £19,083 would have to pay a significantly higher rent than their neighbours. The rents in private rented properties in Stockport are twice those of the Stockport Homes average rent of £74.60 a week.”
“So clearly moving to the private sector would not be an option but also paying a higher rent may also be unaffordable. Therefore one way out would be to earn less money to ensure they do not meet the threshold by cutting the hours they work or even leaving a job altogether.
“Clearly it cannot be right that this would have the impact of being a disincentive for people to work the maximum amount of hours that they could. This is counter to everything the government espouses.”
She said the Bill would lead to a huge loss of affordable homes to rent and buy, which will intensify the spiral of ever higher housing costs.