MP Jeremy Corbyn: ‘Poor better off on benefits than in job’

JEREMY Corbyn has spoken out over Islington’s “new poor” being forced onto the dole in order to pay huge rents being demanded by private landlords.

The MP for Islington North said people are finding it more financially lucrative on benefits, with rents being paid by social security, than in employment. He said he also understood why more people in the borough, often in their 30s or 40s, were being forced to live with elderly parents in order to cope.

Mr Corbyn MP is seeking an  urgent parliamentary debate to discuss the crisis in the escal­ating rental sector.  

About 30 per cent of residents live in privately rented property, and another 40 per cent in council and housing association properties. About 30 per cent are home owners. Housing association rents are also increasing although not as high as the private sector. 

Mr Corbyn said: “I’ve come across obscene levels of rent in the private sector of £400 a week for ex-council homes and flats, most of which has to be paid for by housing benefit.

“These huge housing benefits are actually ­propping up  the very lucrative private ­market. 

“I fully recognise the need for people to be housed, and housing benefit should cover their costs, but there is a case for much greater regulation of the housing market to put us on par with the European norm.”

Mr Corbyn said he raised the issue with ministers who have recognised that there is a very serious   problem. 

“Housing benefit is paid for the first six weeks of work, which is good, but after that you have to have a very well-paid job indeed to continue paying the rent.

“We have ended up with a benefit system which benefits the ­private rented sector rather than the needs of the people who need homes.” 

Currently people who rent in the private sector can appeal to a rent tribunal. 

This is of limited help as rent is set by tribunals according to the ­current market. 

“It’s a vicious ­circle,” said Mr ­Corbyn. 

“The market is propped up by the housing benefit system and the rents are then set by the level of the housing market.” 
PETER GRUNER