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Housing benefit change by backdoor makes mockery of consultation process

The British Property Federation (BPF) has dismissed moves by the Department for Work and Pensions (DWP) to change housing benefit policy via the backdoor as making a mockery of the consultation process.

A consultation paper issued by the DWP plans to overhaul benefit payments changing the way they are calculated. Rather than being calculated on a local basis, they are set to be worked out on a larger, regional basis, leaving thousands out of pocket. Setting rates across a wider band of post codes would have a massive baring on the amount of benefit paid.

The DWP is seeking to overturn the outcome of the ‘Heffernan’ judgement last July in the House of Lords, which successfully challenged changing the way benefits were calculated.

To sweep aside that judgement, the DWP has posted a draft statutory instrument on its website on 21 November, with an end date for consultation of 28 November.

Cabinet Office rules state that consultations should run for three months, but because this is a change to existing policy, it is allowed to run for one week, with many stakeholders unaware of its existence and the fact that the consultation closes today (28 November).

The BPF is pressing for benefits to remain calculated on a local basis and insisting that the consultation period be extended so that those affected can respond.

This change would give the DWP a significant amount of power to define the areas they want without properly or fairly consulting on the issue.

BPF residential director, Ian Fletcher, said:

“This makes a mockery of the word ‘consultation’. If DWP is going to consult, then it should do so properly. If it does not feel the issue warrants ‘consultation’ then it should have the front to explain why. At present, what we have is a Government department trying to tick the box of consultation through sheer tokenism. When you meet landlords many have a total disrespect for DWP. That is a tremendous pity, but reflects a lack of transparency and engagement which is very unhealthy for good policymaking.”

In further announcements this week, the Government confirmed:

That its behind-closed-doors review of housing benefit was focusing on reducing the cost of the new local housing allowance.

That it would not be extending direct payment, an important element of the local housing allowance to social landlords, such as housing associations, for fear it would cripple their efforts to raise finance in the current climate.

Reacting, Ian Fletcher, said:

“The PBR confirmed this week what many of us have been suspicious of, that the Housing Benefit Review is seeking to cut costs substantially, and stakeholders are being kept in the dark, because we would not like the answers. Many private landlords will also have been left incredulous at the Benefit Minister Kitty Usher’s remarks this week about the problems of direct payment for housing associations raising finance. Private sector landlords already face direct payment. How does the Minister think they raise finance?”

For more information please contact Maddie Williams on 020 7802 0364 / mwilliams@bpf.org.uk


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