Labour and Banks Plan House-Building Funds

Labour is working with the five major high-street banks on proposals to kick-start a house-building boom with the help of government loan guarantees for builders. Chris Leslie, the Shadow Chief Secretary to the Treasury, and Housing spokesperson Emma Reynolds met representatives of HSBC, Barclays, Lloyds, Standard Chartered and Royal Bank of Scotland last week to hammer out proposals. Labour wants a “help to build” scheme if it wins the general election next year, a policy that would involve government underwriting bank loans to small house-builders with a turnover of up to around £20m a year. These smaller firms have struggled to secure loans as the banks have become more cautious with their money since the onset of the financial crisis. Read more on the Independent website.

'Generation Rent' Suffers 10% Drop in Wages under Coalition, Claims Labour

Employees under the age of 30 have suffered a real-terms drop in weekly wages of around 10% under the coalition, according to an analysis released by Labour. Earnings for 18-to 21-year-olds have dropped by 10.3% since 2010, while 22-to 29-year-olds saw their weekly income fall by 9.4%, research by the House of Commons library shows. Chris Leslie, the shadow chief secretary to the Treasury, said young workers are bearing an increasingly heavy burden as a result of coalition measures and neglecting them would put Britain's future prosperity in peril. A Labour government would set up a panel to assess the impact of its policies on the under-35s, often described as "generation rent" because they struggle to get on the housing ladder. Read more on the Guardian website.

Universal Credit – Parliamentary Written Answer

Chris Leslie: To ask the Secretary of State if he will make provision in the universal credit system to ensure that people in need of refuge support as a consequence of domestic violence have access to short-term housing support equivalent to that provided under the current housing benefit system.

Steve Webb: The Government is committed to tackling domestic violence and to providing better support for victims. It is our intention that universal credit will not cause a reduction in support levels for victims of domestic violence.

Stephen Timms: To ask the Secretary of State how he plans that eligible service charges will be paid for under universal credit.

Steve Webb: Social rented sector landlords will be responsible for setting out clearly to the tenant those charges which are allowable. The claimant will report this as part of their claim.

Stephen Timms: To ask the Secretary of State whether he has carried out analysis of future universal credit claimants to establish (a) how many households will be affected by the transition to universal credit, (b) how many such claimants are worried about the change to universal credit and (c) how many claimants will be capable of managing universal credit; and if he will place a copy of any such analysis in the Library.

Mr Hoban: The Department estimates that 12 million claims to current benefits and tax credits will be integrated into eight million household claims to universal credit.  We recognise that some claimants may need additional help to budget, particularly during the transitional period. We are working, with the advice sector to ensure that claimants are able to access appropriate budgeting support services to enable them to manage their money successfully.  For a minority of claimants however, an alternative payment arrangement may be required in addition to the above support. This includes making more frequent than monthly payments of universal credit to households, splitting payment between both joint claimants or paying housing costs directly to the landlord.