Grass roots revolt on benefit

The Labour leadership faces a huge backlash from its own party on its plans to force tenants to pay something towards their rents, Housing Today can reveal this week.

An exclusive poll of more than 100 Labour housing chairs or spokespeople showed that a clear majority were against the idea of scrapping full housing benefit entitlement.

The government has said that it in its forthcoming Housing Green Paper it will set out plans to force tenants to take an "interest in their rents".

But in our survey 52 per cent of the Labour chairs said they did not think that all tenants should pay something towards their rents, and only 45 per cent supported the party line. Many likened the proposals to the disaster of the poll tax.

The finding will make worrying reading for the Labour leadership at this week's party conference in Bournemouth. It suggests that there could be a Labour rebellion on housing benefit every bit as fierce as last year's revolt on loan parent benefits.

The poll also showed a surprisingly high level of resistence to the idea of transfering housing stock. Despite the record transfer programme, 70 per cent of the councillors said they expected to keep their housing stock under council control. Two and half years ago Housing Today asked 100 Labour housing chairs virtually the same set of questions. At that time a similar proportion, 69 per cent, were against transfer.

But on other policies there has been a marked changed in attitude. In 1997 for example 71 per cent expected that their councils would build new homes under Labour, last week only 12 per cent said they would.

Housing minister Nick Raynsford insisted that the housing benefit plans would be handled pragmatically. Commenting on the survey he said: "We are a radical government, we have radical plans but we are going to approach this in a very pragmatic way to ensure that the reform carries people with us."

National Housing Federation chief executive Jim Coulter said: "I'm surprised that the percentage in favour is so high, given the number in receipt of housing benefit unless there are corresponding increases in income support forcing people to pay something towards rents will simply make people poorer."

Chartered Institute of Housing director of policy John Perry said: "The survey shows that if stock transfer is the only route availabe it's going to be an uphill struggle convincing local councils to adopt it. The government will need to explore other routes like PFI and resource accounting."