On 21st October 2013, Baroness Hollis of Heigham asked Her Majesty’s Government what advice they give to social landlords whose tenants have fallen into arrears as a result of the under-occupancy charge. The Bishop of Ripon and Leeds, the Rt Revd John Packer, asked a supplementary question:
The Lord Bishop of Ripon and Leeds: My Lords, is the Minister aware of the evidence that people who are leaving accommodation to avoid the under-occupancy charge are being rehoused in private accommodation at greater cost? What steps are being taken to monitor this?
Lord Freud: My Lords, as I have just pointed out, we are undertaking an elaborate set of research programmes to understand this. If a family moves into private accommodation, which is more expensive, it does not necessarily mean that there is a net cost, because it frees up larger accommodation in the social rented sector to which a family can move from the expensive private sector.