My Lords, I rise to make a few brief points in support of this group of amendments. First, with regard to the threshold, I thank the Minister for her response in her letter of 8 April to my question as to why it had been reduced from that in the voluntary scheme. However, the statement in the letter that the new thresholds are above the average median wage is not an explanation for the reduction, because that was the case already. Similarly, her response to my noble friend Lord Kennedy on the previous group of amendments was no answer to why there has been a change in the thresholds. Given that, according to the FAQs appended to the letter, the Government have no information on how the voluntary scheme has operated, what is the evidence base for changing the threshold? If as the Minister said a moment ago no local authority has chosen to implement the voluntary scheme, that speaks volumes. Nor has there been any public assurance that the thresholds will be reviewed regularly to ensure that they are uprated in line with median wages—although, as my noble friend Lord Beecham referred to that just now, I hope that we are about to be given some illumination on it.
4.30 pm
The new thresholds may be above the median wage—although, as we have heard, we are in many cases talking about two wages—but they still take no account of the costs associated with children and childcare and disability; that is, an income has to be assessed against basic needs if a means test is to be fair. I have yet to hear a justification for this. The issue is not addressed in the equality statement, magicked up on the day we discussed this matter in Committee, nor does that statement mention the potential indirect discriminatory impact on second earners, mainly women, for whom the policy is likely to act as a disincentive to stay in or take up paid work, especially if the taper will be 20% rather than 10% as had been hoped in Committee.
Government Amendment 73A states that,
“regulations may create exceptions for high income tenants of social housing of a specified description”.
I am sorry to be dense, but does “specified description” refer to the tenants or to the social housing or both? Either way, can the Minister give us some idea of what those exemptions might be, as she was pressed to do in Committee? In particular, having expressed sympathy on the issue, has she come to a decision on the treatment of disabled people and carers? I thank her for arranging a meeting between officials and Carers UK. She seemed to be thinking along the lines of exempting certain benefits received by disabled people and carers. The letter that we have all received today confirms that disability living allowance will be exempted, but what about carer’s allowance and other disability benefits? While exemption would be helpful, as Habinteg has
pointed out, these benefits do not necessarily cover all the additional costs associated with disability which can mean that what might appear to be a relatively high income is not that high in relation to needs. Can the Minister address the specific issue I raised in Committee of exemption for disabled people in accessible adapted homes and, on the same logic, victims of domestic violence whose homes have been adapted under the sanctuary scheme?
Finally, the Minister was pressed both in Committee and today by my noble friends Lady Hollis of Heigham and Lord McKenzie of Luton about treatment of fluctuating incomes, which goes way beyond the question of zero-hours contracts. Anyone who has done any work in this area will know that people on lowish to middling earnings have incomes which fluctuate a lot. The issue was raised with me in a recent email from a member of the public, a self-employed actor whose income, a good chunk of which goes to her agent and on expenses, can fluctuate between £8,000 to £10,000 one year and £20,000 the next, and even when working she can be paid months after the job has finished. She cannot understand how her and her partner’s joint income will be assessed and is worried. She says, “If I was having a poor year that was assessed on a good year I simply would not have the funds to pay the rent”, and asks, “How will it work with varying income and self-employed workers? I would appreciate some solid answers from the Government”. Well, wouldn’t we all? Hitherto, answers have been as solid as soup. The answer in the FAQs that in the case of redundancy or a family crisis a so-called high-income social tenant could apply for universal credit is no answer to what then happens to the rent. I hope that we can get some clearer answers and assurances today and that we can do something to mitigate what my noble friend Lady Hollis described as a spiteful provision.