Parliament fails to accommodate growing housing problem

These letters (one from our chairman) were published in the Guardian today:

 

Housing policy represents another lack of strategy in the Queen’s speech (Editorial, 10 May). A combination of housing benefit caps, cuts and the rising prices and rents of a home will inflict ever increasing pain on Londoners. The Royal Institution of Chartered Surveyors tells us that house prices are falling everywhere except London, and Rightmove says optimistic sellers in the capital have driven asking prices nationally above their 2008 peak. Rents in London are being driven above the caps by a global free market which sees London property as a triple-A-rated safe haven for spare cash. Saif al-Islam Gaddafi, the son of the Libyan leader, was planning to make more than half a million pounds a year renting out his home in north London.

The coalition, with almost total silence from the opposition, has told Londoners to get on a housing ladder that is more like a moving staircase coming down, until the poorest are shunted off the bottom to who knows where as rents overtake caps. In the 1960s, many families were moved from the East End into new towns with newly built homes. This time there is no planned affordable rented housing to move to, just temporary accommodation, overcrowding and debt. Is anybody listening, does anybody care?

Rev Paul Nicolson

Taxpayers Against Poverty

Amelia Gentleman’s special report (10 May) outlines the desperately inadequate living conditions and exploitative landlords to be found in the London borough of Newham in 2012. I have just been re-reading Jack London’s People of the Abyss and have been struck by the frightening similarities in the grim picture he paints of squalid living conditions for the poor of the East End in 1902. He too describes vastly overcrowded, infested houses, with haphazard shacks behind, their roofs strewn with refuse from above. The inhabitants have miserable and precarious lives. The 20th century brought genuine and huge improvements in living conditions for millions, by means of mass access to high-quality sanitation, healthcare, education and social security. I fear that the regressive policies of this government are leading us, 110 years later, to a place where nobody should ever want to go. We should be concerned that the safety net is really starting to unravel. In part, these are some of the unanticipated social consequences of the Olympic project, in a capital city where Boris Johnson’s regime has knowingly presided over a growing housing crisis. The sad predicament of the people Ms Gentleman describes diminishes us all.

Rebecca Knowles Warrington,

Cheshire

London’s Housing Crisis

There are two stories highlighting the rise in overcrowding and “sheds with beds” in this morning’s Guardian and Independent. These also come hot on the heals of ippr’s report this week explaining why the housing situation in London is such a mess and making some practical suggestions government and the Mayor can take to turn the city around.

We know from our NextDoor project, which helps people effected by cuts to thier benefits, that scores of families are relocating and overcrowding which exacerbates these problems (read Romin Sutherland’s report here), despite some journalists trying to deny this.

Housing Benefit And The New London Mayor

Z2K wrote to all the mayoral candidates drawing attention to the suffering of impoverished tenants as a result of the housing benefit caps. Only the Conservative and Labour candidates replied.  None of them addressed the issues. The new Mayor will have to address a rampant global free market pouring money into the London property as a triple-A-rated bond investment for the very wealthy. The pace of foreign investment in London property is now reaching catastrophic levels from squeezing impoverished Londoners out of their homes and rents are raised above the caps. Their suffering is result of a global glut of private tax free wealth, around $11.5 trillion in overseas accounts, nations with GDPs in surplus and tyrants ripping off their fellow countrymen treating property as a safe haven in a trouble world.  Is the new mayor brave enough to put 99% of Londoners first?

Find copies of the responses below.

Rev Paul Nicolson, Chair,

Zacchaeus 2000 Trust.

 

Housing Benefit

Two letters from PHA Members were published in the Guardian this morning:

It would have been good if the secretary of state for work and pensions had “found his bottle sooner”. He has turned private landlords into the rogue elephants in the housing policy room.

Land and property have become cash cows for the wealthy. They jacked up their uncontrolled rents to profit from uncontrolled but secure housing benefit from the 1990s; they are now liberated by the total insecurity of tenants receiving the local housing allowance (LHA) created by a thoughtless parliament in the 2008 crisis. “No welfare claimants here” is appearing in their windows or pinned to their front doors. A housing benefit claimant used to be a secure tenant with the rent paid direct to the landlord, but the coalition insists that the LHA should be paid into the tenant’s often empty, if not non-existent, bank account.

Security of tenure is being smashed by the move of uprating from RPI to CPI. Tenants have to move or are evicted, making way for a better, and more secure, profit from Olympic tourists and then from the high demand for homes in London. Migration is forced, with no planned affordable housing to move on to before the caps axe falls. The coalition is the bull in the china shop of social housing policy. Please sign this petition athttp://epetitions.direct.gov.uk/petitions/25438.

Rev Paul Nicolson
Chair, Zacchaeus 2000 Trust

 

It was reassuring to learn from the deputy leader that Southwark council do not intend to export their poorer households but plan to write into their contracts with housing providers that rents should be “genuinely affordable”.

The council may not be aware that four years ago, working with London Citizens, I developed a methodology for establishing a genuinely affordable rent level for any specified household type and location. This assumed an income at the London living wage, subtracted the costs of all defined non-housing necessities priced at lowest local cost and took the residue to be the “affordable rent” level. It worked out at £135 per week for a two adult plus two children household living in Stepney. At a public meeting Boris undertook to work with this definition of affordable. That he has not done so, and that so much “affordable” housing is clearly unaffordable to many is one of the meaner tricks played on the poor and vulnerable in London.

Professor Peter Ambrose
University of Brighton

Shameful cost of uprooting families

Letter published in The Independent, 26th April 2012:

The reckless forced migration of tenants out of London, to who knows where, creates costs for the taxpayer and to the wider economy that the Treasury never estimates (“Plans to house London’s poor in Stoke attacked as ‘social cleansing“, 25 April).

Educational under-achievement has been shown to be more likely as a result of the destabilisation of children’s lives. Deliberate overcrowding to make the rent fit the caps is also likely to lead to more aggressive behaviour both in the classroom and on the streets as young people compete for space and lose some elements of parental and kinship control. Children losing local circles of friends and adjusting to new schools also disrupts educational progress.

The housing benefit caps create unmanageable rent arrears. The stress of the parents in debt is known to affect the children. Debt is related to mental illness, which the Centre for Mental Health has shown is the most expensive illness for the NHS, the economy and in human misery.

There are social and economic consequences in the break-up of well-established local three-generational family structures, as was discovered in the mass movement from the East End to the new towns in the early 1960s. That movement was planned and new affordable housing was ready for the tenants.

This time the lack of any coherent housing policy for the past 40 years means the demand for affordable housing far outstrips the supply; no affordable homes were planned for the new homeless. They face a life of impoverished uncertainty of which Parliament should be ashamed.

Stephen Battersby, Chair, Pro-Housing Alliance, Past President, Chartered Institute of Environmental Health

Peter Archer, Chair, Care & Repair England

Professor Peter Ambrose, University of Brighton

The Rev Paul Nicolson, Chair, Zacchaeus 2000 Trust

NextDoor: Experiences of helping people effected by the Housing Benefit caps in London

NextDoor is a dedicated project working to raise awareness of the impact of welfare reform on the private rented sector in London, and acting to mitigate the worst effects of these changes for low income households.  We currently offer a range of services, including a specialist Housing Benefit Helpline (0808 964 0961), casework and advice service, training sessions, access to information packs and materials, and a private rented sector access scheme which aims to help those moving within the private rented sector to access sustainable tenancies with reputable landlords.

Continue reading

NextDoor: Amelia Gentleman Article

NextDoor is an advice line and casework service for households effected by reductions to thier housing benefit. Last week we were very pleased to be mentioned in a front page story of the Guardian. It highlighted the number of families in Westminster to be affected by the policy and schools that are now likely to close as children are forced from the area.

 

Paul Nicolson – The Poverty Trap

Our Chairman, Rev Paul Nicolson, had the following letter published in The Times this morning.

Sir, Maria Miller (letter, Feb 7) claims that the Universal Credit will lift 350,000 children and 550,000 adults out of poverty — but she comes to this conclusion by using the income threshold before housing costs have been deducted (BHC), below which people are deemed to be in poverty. However, poverty is at its harshest when measured after housing costs have been deducted (AHC). Using the latter measure the Universal Credit cap will add to the misery already created by the housing benefit caps. The higher the rent which is capped, the worse the misery. The level of a single adult’s Job Seekers Allowance is now £67.50 a week and will continue at that level as the Standard Allowance in the Universal Credit in 2013. The two caps create rent arrears which have to be paid out of that £67.50, if the children’s or disabled people’s additional benefits are not to be reduced by the debt. It is already half the governmental poverty threshold and is expected by the Centre for Research in Social Policy to be reduced by £1 a week every year as a result of the coalition moving the annual uprating from the retail prices index to the consumer prices index. The Joseph Rowntree Foundation estimates that a healthy diet costs £47.31 a week. The Royal College of Psychiatrists reports that poverty and debt are trigger factors for, and part of, the experience of those with poor mental health. It is an impossible struggle to pay bills as prices rise and AHC welfare incomes fall.

Z2K amendments will now be moved on Wednesday

As the debate around the £26,000 household benefit cap lasted late into Monday night, Z2K’s two amendments [62A and 62ZC], which aim to protect benefit claimants from unfair sanctions and any resultant damage to thier mental health, will be moved early in Wednesday’s session. We are pleased about this as many Crossbench peers we hope will vote for our amendments had left the chamber by the end of last night.

Read about the amendments in Sunday’s Observer.

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Welfare Reform: Joanna Kennedy comments

Over the last few days Government Ministers have been presenting a lot of misinformation around the £26,000 household benefit cap. As this is debated in the Lords (along with two of Z2K’s amendments) later today our Chief Executive Joanna Kennedy has responded to some of the points made by Iain Duncan Smith.

Those who support the caps all seem to do so on the basis of misleading information fed to them by Iain Duncan Smith and the government,

No campaigners are arguing on the basis that homelessness means having to share a room and it is completely dishonest to say that they are.

The policy is expressed to be about driving people into work but of the 56,000 families affected only a proportion are capable of work. The rest are mothers of young children ,other carers or those who are ill but not long term disabled . Many are also already working part time.

Comparing £ 26000 benefit income with the gross average income of someone in work is a completely false comparison. The only kind of household which would receive that level of benefit is one with a number of children living in the private rented sector London or some other very expensive area. An equivalent family in work would be likely to receive substantial benefits on top of its earned income because it is not possible for a family of that kind to live on that income. The only meaningful comparison is between the household income of a similar household in a similar region in and out of work.

£26000 is not a lavish income for those relatively few who receive it because almost all of it goes to a landlord. A family with 3 children living in London in a 3 bed roomed property ( i.e with 2 children sharing ) would be likely to pay £340 pw ( the capped level of housing benefit) rent i.e £ 17680 in rent.. The average gas and electricity bill for that size household n London is £1200 and the average council tax £1200. That leaves them with £113 ,84 pw for food ,clothes , travel , household expenditure and phone for 5 people. It is very difficult indeed for anyone to manage on that income .

No one with any sense would come to England for our benefits ( leaving aside the fact that it is almost impossible to do that ). Our benefit levels are amongst the lowest in Western Europe and our cost of living amongst the highest .

The answer is said to be for these households to move to cheaper areas .However apart from the whole problem of breaking up support networks , disrupting children’s education etc the areas with low rents are those with no jobs which undermines the stated aim of the policy.

If Iain Duncan Smith really believes that this policy is in the best interests of the poor as he proclaims then it is difficult to understand why he describes it so misleadingly. It is also disappointing that these points never seem to be put to him in interview which is one of the reasons why there is such widespread misunderstanding about this issue