Memorandum-to-the-Prime-Minister-on-Unaffordable-Housing

Introduction
The <strong>Prime</strong> <strong>Minister</strong> met a delegation from <strong>the</strong> Zacchaeus 2000 Trust coalition of 68 NGOs calling for
Minimum Income Standards in his room at <strong>the</strong> House of Commons on <strong>the</strong> 17th September 2003.The
signa<strong>to</strong>ries <strong>to</strong> <strong>the</strong> letter asking for <strong>the</strong> meeting were Lord Morris of Manchester;The Chief Rabbi, Professor
Jonathan Sacks;The Bishop of Oxford,The Rt. Rev. Richard Harries; Lord Adebowale, Chief Executive,Turning
Point; Sir Archy Kirkwood MP; Andy King MP; Dr Doug Naysmith MP and Dr Howard S<strong>to</strong>ate MP.
The delegation was led by Lord Morris of Manchester and comprised Lord Adebowale; Andy King MP; Dr
Doug Naysmith MP; Professor Jerry Morris of <strong>the</strong> London School of Hygiene and Tropical Medicine; Geoff
Rayner, Chairman of <strong>the</strong> UK Public Health Association; Neera Sharma, Senior Policy Officer, Barnardo’s;
Georgia Klein, Senior Policy Officer, National Consumer Council; Reverend Paul Nicolson, Chairman,
Zacchaeus 2000 Trust & Trustee London Citizens and Family Budget Unit and Lina Jamoul (minutes).
The coalition is calling for research in<strong>to</strong> <strong>the</strong> minimum incomes needed for healthy living <strong>to</strong> provide information
<strong>to</strong> <strong>the</strong> public, employers and government when <strong>the</strong> levels of unemployment benefits, tax credits/minimum
wage and pensions are being set.The <strong>Prime</strong> <strong>Minister</strong> was informed that a seminar was <strong>to</strong> be held in Oc<strong>to</strong>ber
2003 <strong>to</strong> discuss existing research.The <strong>Memorandum</strong> on Minimum Income Standards based on <strong>the</strong> seminar was
delivered <strong>to</strong> him in February 2004 (available on www.z2k.org).
Responding <strong>to</strong> <strong>the</strong> memorandum through Lord Morris of Manchester <strong>the</strong> <strong>Prime</strong> <strong>Minister</strong> offered continuing
dialogue with <strong>the</strong> Zacchaeus 2000 Trust. In view of <strong>the</strong> pressure of housing costs on minimum incomes and on
State finances we decided <strong>to</strong> engage that offer with this memorandum on unaffordable housing in <strong>the</strong> UK. In
preparing <strong>the</strong> minimum income standards memorandum it became clear that housing for people receiving <strong>the</strong>
lowest incomes is unaffordable for <strong>the</strong>m and increasingly expensive for <strong>the</strong> tax payer in Housing Benefit
payments which have increased from £5.4 billion in 1986/7 <strong>to</strong> a planned £19.7 billion in 2007/8.
We hold that land exists for <strong>the</strong> common good. It provides <strong>the</strong> basic needs of shelter, food and clothing of which
everyone should have a just minimum share. But housing and land have become investments, from which
specula<strong>to</strong>rs, moneylenders and <strong>the</strong> banks grow ever wealthier. Governments have allowed <strong>the</strong> market <strong>to</strong> exploit
<strong>the</strong> shortage of land by allowing unregulated lending <strong>to</strong> lift <strong>the</strong> price of housing above <strong>the</strong> needs of <strong>the</strong> poor in
<strong>the</strong> UK.
‘Affordable’ in relation <strong>to</strong> housing requires precise definition. It means that once <strong>the</strong> cost of rent or mortgage
(including service charges) and council tax has been met from <strong>the</strong> income of a household, be it an individual, a
family or pensioners, <strong>the</strong>re remains sufficient <strong>to</strong> sustain safe and healthy living, provision for <strong>the</strong> future and
participation in <strong>the</strong> community.‘Unaffordable’ housing means that <strong>the</strong> remaining income is insufficient <strong>to</strong>
ensure <strong>the</strong>se outcomes.
An economy that provides health and education services free at <strong>the</strong> point of delivery, and is competing in <strong>the</strong>
global market, cannot afford <strong>to</strong> leave expenditure on housing at a level that damages health. Statu<strong>to</strong>ry minimum
incomes are being used up by a growing proportion of expenditure on rent/mortgage and council tax.
Inequalities in wealth need <strong>to</strong> be corrected by minimum income standards <strong>to</strong> ensure that <strong>the</strong> mixed
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Zacchaeus 2000 Trust - <strong>Memorandum</strong> <strong>to</strong> <strong>the</strong> <strong>Prime</strong> <strong>Minister</strong> - May 2005