Social Housing (Regulation) Bill [HL]
Monday 27th June 2022
(2 years, 5 months ago)
Lords ChamberRead Full debate Social Housing (Regulation) Act 2023 Read Hansard Text Read Debate Ministerial Extracts
The Minister of State, Home Office and Department for Levelling Up, Housing & Communities (Lord Greenhalgh) (Con)
My Lords, I am proud to be here today to open this Second Reading debate of the Social Housing (Regulation) Bill. This Bill will transform the lives of social housing tenants up and down the country. Once it is implemented, more tenants will live in decent, well looked-after homes, enjoying the quality of accommodation that they deserve.
However, it is right that we also reflect on the events that have led us to this point. Just over five years ago, 72 people—18 of them children—died as a result of the Grenfell Tower fire. The horrifying scenes that night ought never to have occurred. The situation in which the residents of Grenfell Tower were placed was unforgivable. The fire at Grenfell Tower exposed failures and decades of malpractice. It is vital that we bring about reform and lasting change so that a tragedy such as Grenfell never happens again.
Noble Lords have debated the Fire Safety Act and the Building Safety Act. The Social Housing (Regulation) Bill represents the next step in this programme of change. Social housing tenants, whether in Grenfell Tower or elsewhere up and down this country, have not been treated with the respect that they deserve. They do not always feel safe in their homes. Everyone should be treated with respect. Everyone has the right to feel safe in their home. In 2022, it is a disgrace that there are social housing tenants who are forced to live in damp, cold, unsafe homes. Some tenants wait months for repairs and are ignored by their landlords. We should be ashamed that this takes place. There are many good landlords in the sector. Many provide high-quality, well-managed, well-maintained accommodation. Many listen and care for their tenants, and many run a fiscally sound organisation. However, that cannot be said for every organisation. The Social Housing (Regulation) Bill will change this.
This Bill is short but radical. The Regulator of Social Housing is responsible for landlords who register with it throughout England. The regulator will be taking a new, proactive approach to regulating social housing landlords on the issues that matter most to tenants: safety, so that tenants feel protected in their homes; transparency, so that tenants know what their landlord is doing to resolve their issues and can hold their landlord to account; quality accommodation and services, which we would expect landlords to provide; and complaint handling, so that tenants are listened to and their concerns are effectively addressed. The Bill will drive significant change in how social landlords behave, forcing them to focus on the needs of their tenants. Where they do not do this, they will be held robustly to account.
The Bill has three key parts. The first is a brand-new proactive consumer regime. This is the core of this legislation. The regulator will be empowered to hold landlords to account and to proactively ensure landlords are meeting the consumer standards we expect them to deliver. We are changing the regulator’s objectives. This will put tenant safety and transparency at the heart of everything the regulator does. We are removing the “serious detriment” test so that this is no longer a barrier to the regulator enforcing breaches of consumer standards. We are setting out the powers for the Housing Ombudsman to issue a complaint handling code to its members and to make orders to prevent problems recurring in future following complaints.
The Government are also taking a power to bring forward electrical safety regulations for social housing. We are consulting on mandatory electrical safety checks in the social rented sector, and this will align standards with the private rented sector. The new regime will also mean that the regulator will regularly inspect the largest landlords to ensure they are delivering quality homes and services to their tenants. Landlords will need to appoint a person with specific responsibility for health and safety. There will be a new access to information scheme. This will work similarly to the Freedom of Information Act for landlords not currently captured by that Act. Tenants of these landlords will, under the access to information scheme, have the right to request information from their landlord so they can effectively hold their landlord to account.
The second part of the Bill tweaks the current economic regulatory regime. The existing regime has been highly successful. The regulator has been effective at ensuring social housing landlords are fiscally well managed, and that tenants’ homes are not lost. However, we cannot rest on our laurels. The make-up of the sector is changing. New models for how landlords structure their organisations are popping up. We need to future-proof the current regime. We are tightening the definition of “non-profit” so that malign actors cannot play the system. We are forcing landlords to notify the regulator when they change their corporate form. We are introducing a look-through power so the regulator can follow money paid outside of the regulated sector, to ensure probity.
The third part of the Bill will give new powers for the regulator to take enforcement action when things go wrong. These powers will ensure the regulator can take robust action where landlords are failing to meet standards. There will be no limit on the amount the regulator can fine a landlord. Where a survey uncovers a serious issue with a property that a landlord has failed to fix, the regulator will be able to intervene and carry out repairs to fix the problem.
Noble Lords will wish to note that there will be a few targeted government amendments to this legislation in Committee. Among these, we are adding a provision that companies will be required to notify the regulator when there is a change in control of a housing association, as set out in the social housing White Paper. We are also adding a duty on the Housing Ombudsman to monitor compliance with its complaint handling code and a power for the ombudsman to recover any associated costs from its members.
The introduction of the Social Housing (Regulation) Bill to this House represents a decisive moment for tenants of social housing up and down this country. I beg to move.
Baroness Wilcox of Newport (Lab)
My Lords, I welcome the noble Viscount, Lord Camrose, and look forward to hearing his maiden speech shortly.
Before that, Labour welcomes the Social Housing (Regulation) Bill, which introduces long-overdue changes to the social housing regulation regime, five years on from the Grenfell Tower tragedy. However, we regret that what is essentially narrow and largely uncontroversial legislation has taken so long to materialise. Fire safety concerns raised by Grenfell residents had been ignored by their landlord. Residents complained of not being heard and of being treated with indifference. Therefore, we call from this side of the Chamber for higher standards for social tenants. We are extremely disappointed that the Bill does not go far enough in putting tenants at the heart of regulation and governance. The Grenfell tragedy shows that tenants can never again have so little power over their homes.
However, we must set the context in arriving at a judgment on the Bill. There are many social landlords who routinely fall well short on repairs and maintenance and could do far better. However, social landlords do not operate in a vacuum. Years of funding cuts to local authority budgets, as well as the four years during which a Conservative Government imposed a 1% social rent cut on them, have inevitably taken their toll, with the pandemic adding to the problems of housing revenue accounts.
Another major factor is the lack of affordable social housing, which has been exacerbated during 12 years of Tory rule. Successive Governments have not only singularly failed to build the social homes we need over that period but have overseen their loss on an unprecedented scale; 134,483 social homes for rent were either sold or demolished without direct replacement between 2010 and 2021. That is an average net loss of over 12,000 desperately needed, genuinely affordable homes a year.
Unfortunately, the Government’s headline proposals of rating your landlord and allowing a 250-person panel to meet three times a year with Ministers are not the powers residents need. The panel will exist only to scrutinise the measures being proposed in the legislation and will not be able to consider other pertinent issues, such as waiting lists, stigma, rent increases, allocation and housing supply. We need the Government instead to bring forward proper proposals to give tenants more power to take action in both social and private rented sectors. They should look towards the work of the last Labour Government, who introduced the decent homes standard, making available £22 billion of public investment in decent homes and improving the housing conditions of over 1.4 million council homes. By 2009, 86% of all council and housing association homes were brought up to a decent standard.
I reiterate that we support many of the measures in the Bill. However, given the scale of the problem that we know exists in regulating social housing, we want the Government to go further in key respects so that standards in social housing can markedly and rapidly improve and tenants’ complaints can be dealt with quickly and efficiently.
We have concerns about the ability of the Regulator of Social Housing to respond in practice to the volume of individual tenant complaints it is likely to receive and whether it will be inadequately resourced to perform its new role vis-à-vis inspections. We will therefore seek to amend the Bill to allow the regulator to retain the proceeds of any fines levied to help fund its work. We want to see the regulator given more teeth than the Bill currently proposes. We will seek to give it a range of wider powers, including the ability to order compensation for tenants.
Even with an enhanced role, armed with greater powers to regulate consumer standards in social housing, the regulator cannot be the sole redress for tenants. We will seek to have the Bill do more for tenants to enforce repairs themselves. We believe it does not go far enough on a national voice for tenants. At a minimum, the work of the residents’ panel could be shaped more directly by tenants themselves. We will seek to ensure that it can be—for example, by enabling its agenda and terms to be developed via tenant input.
An advisory panel with tenants represented on it will be established by the Bill, but to consider only
“information and advice to the regulator about, or on matters connected with, the regulator’s functions”.
This is not a new idea. In the aftermath of Grenfell, the Government and tenants drew up plans to set up A Voice for Tenants, a national tenant group to work with government on issues affecting those in social housing. To the frustration of tenant bodies involved, it never progressed.
Another possible issue is that the Regulator of Social Housing relies on registered providers to let their tenants know of ways to complain, which means that the worst providers are likely to be the ones to inform their tenants of their rights, and therefore potentially reduce complaints. The White Paper committed to routine inspections only for the largest registered providers—those of more than 1,000 homes—every four years.
Beyond this, there is nothing in the Bill on how tenant voice and engagement will work in practice at the local level. It would allow, but not force, the regulator to set standards relating to the information landlords provide to tenants. Examples are mentioned in the draft regulations.
Safety is the greatest of concerns. The Bill would add generic safety to the regulator’s fundamental objectives. This means that the regulator can now set a standard on safety and enforce against it. The Bill further introduces a new requirement for social landlords to appoint a named individual responsible for health and safety. A separate regulator, the Health and Safety Executive, will also regulate all buildings’ safety when the new regime comes into force.
Currently, fines for non-compliance are capped at £5,000. The Bill proposes giving the regulator the power to issue unlimited fines. Larger fines could be a crucial deterrent to bad practice, enforcing the law against poorly performing landlords and disincentivising the poor treatment of tenants, but questions remain about what the fines would mean in practice, particularly in terms of housing associations passing the cost back to tenants.
The Bill also proposes enabling the regulator to enter and inspect properties with only 48 hours’ notice, down from 28 days, which is a significant change. However, short notice inspections need to be carefully thought through. Finally, the Bill proposes enabling the regulator to make emergency repairs where there is a serious risk. The White Paper stated that the Government were
“determined to increase the supply of new and beautiful social homes”,
yet the Bill is silent on the issues of supply.
I leave my final comments to echo those of David Renard, the Conservative leader of Swindon Borough Council and housing spokesperson for the Local Government Association:
“As well as improving existing homes, the social housing supply is not sufficient to meeting the current housing demand, which is why we want to see long-term plans to give councils powers to build 100,000 high-quality, climate-friendly social homes a year, including reform of the Right to Buy scheme, which has made it difficult for councils to build replacement homes at the rate at which they are sold.”
Viscount Camrose (Con) (Maiden Speech)
My Lords, it is a great honour to make my maiden speech in your Lordships’ House today. I start with deep and sincere thanks to the many people who have helped me in the daunting journey of taking up my membership: Black Rod, the Clerk of the Parliaments and their offices; staff at the door of the Chamber and elsewhere; the Whips’ and the spads’ offices; and the many noble Lords on all sides of the House whose warmth, friendliness, encouragement and advice have made joining such a pleasure.
The first Viscount Camrose was my great-grandfather, who started as a journalist on the Merthyr Times—only 40 miles from Newport, I think. He built and grew a remarkable stable of newspapers, both regional and national, including, among many others, the Manchester Evening Chronicle, the Sunday Times, the Financial Times and the Daily Telegraph, which remained in family ownership until 1986. He became a baron in 1929 and a viscount in 1941.
Growing up surrounded by journalists, I concluded very early in life that I never wanted to become one but chose instead to go into management and consulting. As a result, I have had the great good fortune to live and work, as well as in London, in Redcar, in Birmingham, all over Europe, in a number of the great sprawling cities of west Africa, and in the United States. I have worked in international development, shipping, pharmaceuticals, oil and gas, financial services and manufacturing. Through these experiences, I have developed a strong interest in what makes people and the organisations they work for productive. Few of life’s experiences offer more satisfaction than a productive working day, and it has been and remains my purpose to provide as many of those to as many people as possible.
It is through that lens that I would like to comment on this Bill. Looking at it, as I would, as a management consultant, I suggest that we need to ask ourselves two questions. First, are the residents of social housing going to be made substantially safer and better accommodated by its provisions? Secondly, does it effectively balance the needs of providers of social housing and residents? As for the first point, I welcome the requirement on providers to appoint health and safety leads with the authority, capacity and resources to take responsibility for building safety. Few things get more in the way of risk management and incident preparedness than ambiguity—ambiguity over who is supposed to make decisions and who holds the budget to pay for the changes that those decisions require.
I am sure that we all recall with horror many different details of the Grenfell disaster, but one that sticks in my mind is the fire extinguishers that had been marked down for decommissioning by one team but were never actually decommissioned because it was not clear who was supposed to be doing so. That is why it is so valuable to make a single properly resourced person accountable for all safety decisions.
As to my second question on balancing the needs of social housing providers and residents, I am encouraged by the primacy of the tenant in these new regulatory arrangements. Although, of course, the priority is to offer safe homes of good quality to residents, we have to make sure that providers are willing to enter the market and compete. On this basis, I welcome the primacy of the tenant in the Bill, because it aligns the interests of all three parties: the tenant, provider and regulator. To satisfy the tenant is to satisfy the regulator, and I welcome the clarity of this direction.
If the Bill has been a long time in coming, that time has clearly been spent in taking considerable pains to design, through the Green Paper, call for evidence and White Paper, what we can all hope will have a transformational effect on the social housing sector.
Finally, it is worth reminding ourselves of the context for benefit-dependent tenants: the tightening public purse; a continuing dearth of affordable housing, worsened by the rise of Generation Rent; and, of course, the uncertainties of inflation. In these highly pressured circumstances, we need more homes and more providers to enter the market. I suggest that a stable, balanced regulatory environment for social housing will go some way to encouraging them to do so.
Lord Young of Cookham (Con)
My Lords, it is a real pleasure to be the first to compliment my noble friend on his maiden speech. He has entered the Benches on this side of the House the hard way. He had to compete against a substantial number of well-qualified candidates who applied for the vacancy, whereas the rest of us, such as me, simply had to catch the eye of the Prime Minister of the day. I see with him in the House some of his recent fellow successful candidates, all regular attenders, in collective defiance of the Private Member’s Bill of the noble Lord, Lord Grocott.
My noble friend has built his career independently of the publishing tradition with which his family is associated, and, as we have heard, brings to your Lordships’ House a range of highly relevant abilities and interests, ranging from the oil and pharmaceutical industries to issues of governance and corporate management, and he has developed them in all parts of the globe. One of his particular concerns is that people and organisations cannot fulfil their full potential because they are not productive, particularly those who are out of work. The biggest problem facing this country today is poor productivity, and I look forward to his contributions to that debate. I also particularly welcome him to the ranks of those on this side of the House who take an interest in housing, and agree with what he said about the need to invest more in housing and social housing. I know the whole House will join me in welcoming my noble friend, and we look forward to his future contributions.
Turning to the Bill, I am grateful to my noble friend the Minister for the meeting he arranged to discuss it, which was attended by the noble Lord, Lord Best, and me. The noble Lord’s travel arrangements have precluded him attending due to disruption on LNER. I can tell my noble friend that, as a result of that meeting with him, I will not be causing him the distress that I know I did during the passage of the then Building Safety Bill.
I have three issues that I want to raise with my noble friend. The first concerns Clause 2 and the advisory panel. The Bill provides for a statutory advisory panel. I welcome the idea, but why does it have to be statutory if its role is simply to give advice? The Housing Ombudsman also has a panel of advisers created in 2018, but that is not statutory and seems to work perfectly well. There are many other instances of panels and advisory boards dotted around Whitehall which are informal. Making this one statutory could raise costs, make it subject to judicial review, make it less flexible and will require primary legislation if it were to be abolished. Is this a bit of gold-plating that we do not really need?
How does this panel relate to the one that was set up a year ago? In August last year, Minister Eddie Hughes announced a new expert panel to advise the Government on the delivery of the social housing White Paper. That was non-statutory, with 14 members to deliver on the reforms. Are these the same people who will form the panel in Clause 2, whose objectives seem to be exactly the same as the expert panel, or are we to have two panels with similar objectives, one statutory and one non-statutory? Perhaps my noble friend can shed some light on this.
My second issue concerns the relationship between the two bodies to whom social tenants can now complain. A social housing tenant can complain to the Housing Ombudsman, and now to the Regulator of Social Housing. I am all in favour of avenues through which tenants can seek redress, but there must be some risk of duplication here. It is clear from the Bill that the Regulator of Social Housing can have a direct line of communication with tenants. The social housing White Paper expects:
“The Regulator of Social Housing to undertake specific, reactive investigations and/or inspections where appropriate. This could be when a serious potential compliance breach has been brought to its attention by tenants”.
The briefing notes that accompanied the Queen’s Speech also referred to the powers of the regulator to arrange emergency repairs to tenants’ homes following a survey, and to a guarantee that the regulator will be able to act more quickly where it has concerns about the decency of a home. Therefore, the regulator also has the means to rectify complaints itself, as contained in Clause 24.
These are not powers that the Housing Ombudsman has—his role is to resolve disputes. He can make awards and recommendations, but he cannot, for instance, enter premises to remedy specific failures. If I was a tenant, and particularly if there is a backlog of complaints to the Housing Ombudsman, I would head for the Regulator of Social Housing, since he has more powers. However, there is a further overlap where there is scope for confusion. The Housing Ombudsman does not just resolve complaints: he has broader objectives that seem to trespass on the territory of the regulator. For example, the Housing Ombudsman uses insight and data to identify trends in complaint types and carries out thematic investigations into issues affecting the sector, producing regular “spotlight reports”. He investigates systemic issues relating to individual landlords. He can share expertise, insight, experience and learning to influence the sector to drive a positive complaint-handling structure. These objectives are emphasised in the corporate plan for 2022-25.
However, those powers of the Housing Ombudsman are very similar to the powers given to the regulator in Clauses 17 and 21, and to the objectives set out by the Minister. Paragraph 1 of the Explanatory Notes tells us that:
“The intent of this Bill is to reform the regulatory regime to drive significant change in landlord behaviour to focus on the needs of their tenants and ensure landlords are held to account for their performance.”
However, that is just a shortened version of what I have just read out about the ombudsman.
This brings us to Clause 4. The Explanatory Notes refer in more diplomatic terms to the potential conflict I have just referred to:
“The regulator and the housing ombudsman both have a role in overseeing the performance of social housing landlords”.
But that is the problem. They then refer to the memorandum of understanding between the two. Officials kindly sent it to me, but it does not deal adequately with this overlap. It should be rewritten, with greater clarity about who does what, and to avoid duplication. It is not enough to say, as it does at the moment, that they should
“seek to promote understanding about their respective roles.”
I hope my noble friend can reassure me that this overlap will be addressed.
Finally, I turn to issues which will be raised by the noble Baroness, Lady Hayman. She is commander-in-chief of Peers for the Planet and I am a humble spear-carrier, but there is a need to increase energy efficiency in the social housing stock if we are to achieve our climate change objectives. Although the Government set the objective of improving the efficiency of homes, no commitment has yet been made on social housing. Their Heat and Buildings Strategy states:
“We will also consider setting a long-term regulatory standard to improve social housing to EPC band C, with levers required to decarbonise the stock in line with Net Zero”,
but no consultation has yet been launched. The Committee on Climate Change recommended that all properties should reach EPC C by 2028.
Related to this, I refer the Minister to Clause 18, which enables the regulator to issue a code of practice on consumer standards. Will energy efficiency be included in this code, against the background of what I just said?
With those remarks, I end by assuring my noble friend that I welcome the Bill and hope it reaches the statute book soon.
The Lord Bishop of Chelmsford
My Lords, I also begin by congratulating the noble Viscount, Lord Camrose, on his excellent maiden speech. Clearly, he has a whole set of skills and experiences that will ensure that his contributions in this House will be highly valuable, as was apparent in his incisive and to the point speech, much of which I agree with and endorse.
Before I go any further, I declare my specific interest as the Church of England’s lead bishop for housing. Noble Lords will know that the Archbishops’ Commission on Housing, Church and Community has been actively working to envision how the Church, government and the nation might tackle the current housing crisis. Last year, the commission released its Coming Home report, which sets out in detail a reimagining of housing policy and practice centred on five core values, which are that housing should be
“sustainable, safe, stable, sociable and satisfying.”
Recently, the Church announced its intention to create a whole new national housing association, which will enable it to become a major provider of social housing. We are committed to doing our part to tackle the social housing shortage, and likewise to working with others to bring about this vision of truly good-quality housing across the nation.
Therefore, I welcome the Government’s introduction of the Social Housing (Regulation) Bill. Many of its measures begin to address issues of transparency and accountability. The removal of the serious detriment test is much needed. As things stand, it is a major barrier to ensuring proactive engagement with tenants’ concerns. It is right to remove it in order to ensure that good living standards are upheld and maintained. The setting up of an advisory panel to amplify tenants’ voices is also very welcome. Too often the concerns of social housing tenants have been ignored or silenced. This must end.
The tragedy of the Grenfell Tower fire demonstrates the urgent need for safety to be a central objective. We must all do everything we can to ensure this dreadful tragedy is not repeated. As the Bishop of Kensington, the right reverend Dr Graham Tomlin, said at the recent five-year memorial service,
“what happened at Grenfell was wrong. It was not an unfortunate accident—it was the result of careless decisions taken, regulations ignored, an industry that seemed at times more interested in making profits and selling products than in the precious value of human life and keeping people safe in their own homes.”
I am sure noble Lords will join me in strong praise of the work done by the Bishop of Kensington and the incredible Grenfell community to bring about a safer future for social housing in their community and across the nation.
Therefore, it is only right and appropriate that the Government have now made safety one of the regulator’s fundamental objectives in the Bill. I urge the Government to also consider adding as fundamental objectives the other core values of sustainability, stability, sociability and satisfaction. These can work in complementarity to ensure truly good housing for all.
What plans do the Government have to increase the amount of good-quality social housing stock in the nation that meets these objectives? Recent decades have seen a drastic drop in available social housing. According to Shelter, since 1991 there has been an average annual net loss of 21,000 social homes and more than 1.2 million households are currently waiting for social homes. Millions have been pushed into the private rented sector, often resulting in unstable and unacceptable circumstances of overcrowding or temporary accommodation. We must work together to address this shortage of supply. In doing so, it is essential that we ensure that this is truly affordable housing. Current definitions of affordability fall short. What is classed as affordable should reflect residents’ ability to pay rather than local market rates. Simply building more homes without consideration of their affordability will not solve the housing crisis.
I understand the impetus to fine social housing landlords, but I would be grateful if the Minister could clarify how this will work effectively, given that such fines are likely to take resources from the housing association, thereby potentially reducing its ability to provide services, improvements, tenancy and neighbourhood support, a point touched on by the noble Baroness, Lady Wilcox.
Finally, in addressing the housing crisis, I urge the Government to consider one more essential element set out in the Coming Home report: sacrifice. At present, the cost of the housing crisis falls largely on those who are financially poorest and resident in unaffordable or substandard housing. This is starkly evident at the moment as the cost of living crisis bites as well. The housing crisis will not be solved unless there is a willingness among others in the housing market to share this burden: that means landlords, developers, landowners, homeowners and government. These sacrifices will help ensure a lasting housing legacy that works for us all. A long-term, cross-party housing strategy that brings those at every level of government, together with landowners, developers, landlords, homeowners and faith organisations, is the only way that sustainable and meaningful transformation will happen.
Lord Bourne of Aberystwyth (Con)
My Lords, it is a great pleasure to speak in strong support of the Second Reading of the Social Housing (Regulation) Bill. I declare my interest as set out in the register. I, too, congratulate my noble friend on a maiden speech of great distinction. It was truly excellent.
It is a great pleasure to follow the right reverend Prelate and to agree with much of what has been said. So far this has been a debate of almost universal consensus, but I take issue with the noble Baroness, Lady Wilcox, with whom I am normally totally in agreement, and point out to her that many of these problems are of long standing and did not suddenly arise in 2010. Nevertheless, she made a great stump speech and I know the noble Baroness is very capable of that.
Any fair-minded person would say that it is high time that we responded to the Grenfell fire with this legislation. We do that here and I congratulate my noble friend on the legislation, which is totally appropriate. The proactive regulation regime being introduced and the refining of the regulatory position are desirable, as are the strengthening of enforcement powers and the toughening up of enforcement rules. That said, when my noble friend responds to the Second Reading, will he deal with some of the costs on the social housing regulator that may be increasing and seal off that issue? I am not sure whether the costs are considerable or not.
These regulations will govern 4 million households; that is significant. They will help give some closure to the people involved in the Grenfell fire. I was Minister in the department at the time and I remember the lasting horror of that as if it were yesterday—it has been quite a long while now. I think this will help give some sort of closure, as will decisions on prosecutions, although I recognise that this is well outside my noble friend’s control as a Minister. Not all government Ministers recognise that there is a division of powers but I know my noble friend does. I am conscious that, while no doubt progress is being made, it is somewhat slow.
I am very pleased that there is something specific on electrical safety checks in the legislation that we will be considering. Members will recall that, although the cladding obviously made a massive contribution to the spread of the fire, in legal terms it was caused by an electrical fault. I pay tribute here to the work of Electrical Safety First, an excellent organisation led by Lesley Rudd, Ron Bailey and others, which does first-class work in this area and has been focusing attention on the need to extend electrical safety checks from the private sector to include the social sector. The Bill will do just that. I hope that the consultation going on in parallel with this will be comprehensive and will look at all checks of installations of appliances so that we can deal with an all too common cause of housing fires in our country. Again, that will be a welcome development if, again, somewhat late.
I join my noble friend Lord Young in asking about the relationship between the housing ombudsman and the regulator; I am not clear in my own mind how that would work and would be grateful for any clarity. I also join him as another spear carrier behind the chariot of the noble Baroness, Lady Hayman, as it proceeds in the fight on climate change and related issues, in this case particularly including energy efficiency. We will be looking at that keenly as the legislation progresses. Nevertheless, we should all give a warm welcome to this legislation; no doubt we will seek to improve it as it goes through Committee and Report.
Baroness Warwick of Undercliffe (Lab)
My Lords, I add to the compliments to the noble Viscount, Lord Camrose, on a most thoughtful and interesting speech. It was something to ponder on and I am sure that, in further contributions to the housing debates, it will be possible to expand on some of his thoughts and ideas. I am also delighted to follow the noble Lord, Lord Bourne of Aberystwyth, with whom I share a number of interests.
I am pleased today to welcome unreservedly the Social Housing (Regulation) Bill, as others have. It is vital legislation, which will give residents a much more powerful voice when it comes to the homes in which they live. It is an important part of the response to the horrific events at Grenfell Tower five years ago. The Bill goes a long way to address constructively some of the key issues that matter most to residents and social housing providers, including quality of services, safety and performance.
I declare an interest as chair of the National Housing Federation, the trade body for England’s housing associations, a position I have held since 2015. During my tenure in this role, which draws to a close in September, I have been privileged to see first-hand the ways housing associations work tirelessly to deliver good-quality, secure housing for millions of people across the country. The important role that housing associations and social housing can play in every community was highlighted to me during the pandemic, when the sector galvanised at speed to keep residents safe, keep vital services operating and protect residents’ financial security by committing to a no-evictions pledge, which is still in place today.
Most strikingly, however, I have seen from what I regard as a brilliant sector a continued and unfailing commitment to learn and improve where services are not meeting residents’ expectations and needs—and that is exactly why the sector stands behind this legislation. Since the very start of the process of developing the social housing White Paper, from those early conversations with the then Housing Minister and tenants across the country following the Grenfell fire, the NHF and its members have been engaged and proactive in seeking change. There was a clear message from tenants that social housing providers were not always living up to the high standards that we rightly expect from that sector, with its long and proud history of housing people in need. We were not always listening to tenants’ views as closely as we could and should, or responding quickly enough to their concerns.
While it may not always have been easy to listen to such criticisms, the sector is now unflinching in recognising where improvements could be made and is always committed to getting things right. In fact, the sector stepped forward without legislation or government policy decisions to develop, along with residents, Together with Tenants, a sector-wide initiative focused on strengthening the relationship between residents and housing association landlords. Based on a four-point plan and charter, the programme has been delivering tangible changes in accountability, transparency and governance across housing associations since its launch in 2019. To date, 207 housing associations are signed up to the programme, covering 83% of all housing association homes. The NHF was pleased to see Together with Tenants referenced in the White Paper. I am confident that the programme has laid excellent foundations on which the regulations brought forward by the Bill can stand securely.
Furthermore, in the last three weeks the sector has taken a huge step forward in tackling issues of poor-quality housing. Earlier this month it was announced that the National Housing Federation and the Chartered Institute of Housing have worked together to set up an independent panel to make swift recommendations to tackle issues of poor-quality housing in the sector. We have seen from reports on ITV News and campaigns on social media that some residents have been badly let down by unacceptable problems with housing quality and poor customer service. The work of the new panel, chaired by Helen Baker, the chair of Shelter and an expert in housing, social care, health and education, will guide housing associations to tackle these problems head-on.
I am proud to say that the NHF and its members embrace a culture of transparency and openness when it comes to performance in dealing with issues that matter to residents, and we want that to be clear, meaningful and inclusive. We are at a critical point for improving many residents’ experience of social housing, and housing associations stand ready to deliver this change.
As I welcome the Bill, I hope the Minister will join me in welcoming the work that housing associations are already doing to drive up standards. Will he commit to continuing to engage closely with housing associations on what I believe to be vital reforms?
Baroness Hayman (CB)
My Lords, I declare my interest as co-chair of Peers for the Planet, although I have to say I rather like the “commander-in-chief” designation given to me by the noble Lord, Lord Young of Cookham. I am grateful to him and to the noble Lord, Lord Bourne—very distinguished spear-carriers—for their anticipatory support.
As others have said, the Bill aims to offer renters of social housing a range of new regulatory standards and expectations, the need for which the tragedy of Grenfell and the inquiries that followed so clearly demonstrated. However, on one area of the regulator’s existing remit, that social housing should be of “appropriate quality”—that is, energy efficiency—the Bill is silent, yet the warmth and the heating costs of their homes is of crucial importance to tenants, particularly those who live in what the Minister described as damp, cold and unsafe homes. I shall therefore focus my brief comments on the importance of energy efficiency.
Back in November, even ahead of Russia’s invasion of Ukraine, the International Energy Agency reported that it considered energy efficiency to be the “first fuel”, as it still represents the cleanest and, in most cases, cheapest way to meet our energy needs. It also highlighted that there was no plausible pathway to net-zero emissions without using our energy resources much more efficiently. The strength of these arguments has been redoubled following the 54% increase in the energy price cap in April, with an expected further 65% increase in October and analysts saying say that this is going to go on until at least 2030.
However, progress appears to have stalled on energy efficiency, and this Bill does nothing to remedy that. In the Clean Growth Strategy in 2017, we heard of a planned consultation on how social housing can be upgraded to energy performance certificate, or EPC, band C by 2030 where practical, cost-effective and affordable. Four years later, in October 2021, in the heat and buildings strategy, a long-term regulatory standard to improve social housing was still being considered.
This Bill is intended to facilitate a new, proactive approach to regulating social housing on consumer issues such as safety, transparency and tenant engagement, about which we have heard in this debate. The cost of keeping warm is a key consumer issue, and yet tenants of social housing are still waiting for that regulatory standard. Welcome as the drip-feed of funding for selected improvements has been, along with the Government’s promises to learn from schemes that have failed in the past, 35% of social housing remains rated EPC D or below. Increased support for energy efficiency measures would address all three points of what has been called the “energy trilemma”.
On the first issue, affordability, the Building Back Britain Commission, made up of chief executives from some of the UK’s biggest housing groups, has argued that £200 a year could be saved just by improving a home’s energy performance certificate rating of D to C. That sum is equivalent to the originally announced energy bill discount—but every year, rather than a one-off. The CBI has made similar points, with Tony Danker asking whether we want a new normal of energy efficiency, or of billion-pound bailouts every quarter. The Committee on Climate Change has also shown how the capital investment needed to get to net-zero building will more than pay for itself through savings on fuel, healthcare and other costs.
On sustainability, domestic heating accounts for 21% of UK greenhouse gas emissions. The vast majority of homes still rely on natural gas for heating, meaning that every kilowatt hour of energy saved will help us to meet our commitments under the Paris Agreement and our domestic legally binding net-zero target. Regarding homes heated by electricity, it will help by lowering demand in the coldest months of the year, when our museum-piece coal-fired power stations are most often brought out of retirement for additional capacity.
On security of supply and cost, the same considerations apply. Every unit of energy saved will help us to reduce our dependence on imported gas and, indeed, on North Sea oil and gas, which is in any case traded on the global market and priced accordingly.
There is in fact a fourth point: the impact on employment opportunities and levelling up. The Construction Industry Training Board has estimated that net-zero homes will create more than 200,000 new jobs, and energy efficiency retrofits in particular are expected to provide new jobs as an important part of the green recovery. The building back greener commission has also shown that the homes which stand to gain most from government intervention are in areas designated as needing levelling up.
When will the long-term regulatory standard for social housing be brought forward? Will the Government commit to the same trajectory for social housing as they set out for private renters in the heat and buildings strategy? Of course, addressing energy efficiency in social housing is only one part of a necessary wider national strategy to reduce energy demand, but the Government are even further behind on their commitments on social housing compared to other housing types. This Bill provides a perfect opportunity for the Government to put their outstanding public commitments on a statutory footing, setting out a detailed trajectory for meeting them. I look forward to hearing from the Minister a clear plan and timetable for doing so.
Lord Foster of Bath (LD)
My Lords, as others have said, the Bill is in part a response to the Grenfell Tower fire. I reiterate my condolences to the family and friends of those who died in that tragedy.
On these Benches, we welcome the Bill, although we wish it had been brought before us much earlier. After all, it stems from the Green Paper, A New Deal for Social Housing, which was published almost four years ago. Personally, I particularly welcome the removal of the serious detriment test. I also hope that the regulator and the ombudsman will have sufficient resources to carry out their enhanced responsibilities once the conflicts between their respective roles, raised by the noble Lord, Lord Young of Cookham, have been resolved.
I want to raise just three issues. The first two relate to electrical safety, which I raised during the passage of the then Building Safety Bill when I drew attention to the large number of property fires caused by faulty electrical installations or appliances, some with devastating consequences. As we have heard from the noble Lord, Lord Bourne, in the privately rented sector, it is already a mandatory requirement to have safety checks on electrical installations every five years but there is currently no similar requirement in the social rented sector despite the social housing charter specifically stating this:
“Safety measures in the social sector should be in line with the legal protections afforded to private sector tenants.”
I moved an amendment to the Building Safety Bill to try to rectify this. Sadly, it was rejected at that time by the Government on the grounds that it would lead to an added burden on the new safety regulator and would
“distract it and hinder its success”.—[Official Report, 29/3/22; col. 1403.]
However, in a remarkably short space of time, there has been a welcome change of heart, following the Government’s own working group concluding that five-yearly checks on electrical installations in social housing should take place. As the noble Lord, Lord Bourne, pointed out, consultation is already under way on the details of introducing such a measure.
So, with just one reservation, I warmly welcome Clause 10, which provides powers to the Secretary of State to do so by way of regulation. However, a careful study of Clause 10’s proposed way of achieving this—by amending Section 122 of the Housing and Planning Act 2016—reveals that the Secretary of State does not have to make any changes; merely that he may do so. Will the Minister give an assurance that, following the consultation, the Government will commit to ensuring that “may” becomes “must” so that the pledge to ensure the parity of social tenants with private tenants is honoured?
While faulty electrical installations can cause fires, so, too, can faulty electrical appliances, as was tragically the case in the Grenfell Tower fire. I have previously drawn attention to regulatory deficiencies regarding the safety of electrical appliances. For example, shopkeepers are responsible for the safety of electrical products they sell whereas, under current legislation, online marketplaces are not responsible for the safety of products sold by third parties on their platforms. Again, unfortunately, my amendment to the then Building Safety Bill to rectify this did not find government favour. Yet, with more and more electrical appliances being bought online and evidence that, in London at least, a disproportionate number of electrical fires happen in social homes, the Bill could be a vehicle to address this issue. Will the Minister have another change of heart and consider doing so?
I recognise that some progress is being made. The Government state in paragraph 89 of the consultation paper, previously referred to, that there should be at least a legal requirement for the regular testing of those electrical appliances that are provided by social landlords. Given the clear intention of the Government to do that, can the Minister explain why there is no enabling clause in the Bill? Will he agree to bring forward an appropriate amendment to ensure that there is?
Finally, as many other noble Lords have done, I turn to energy efficiency, so powerfully referred to by the noble Baroness, Lady Hayman, just now. Not least in the current energy crisis, one of the most important ways of improving social housing is by improving the energy efficiency of such properties, thus reducing energy bills and excess winter deaths, and improving the quality of life for residents. As the Minister knows, I have frequently raised the issue of the need for a coherent national plan for energy efficiency in all forms of tenure; this is supported by many organisations. As we know, the Building Back Britain Commission has argued that energy bills could be reduced by £200 every single year just by improving a home’s energy performance certificate rating from D up to C.
As others have done, we recognise that the retrofit industry is needed to deliver this and the Government’s oft-repeated target of getting all fuel-poor homes to EPC band C by 2030, and all others there by 2035. Having been let down so many times, the industry says that it would be much more likely to invest in equipment and training with the certainty provided by putting those targets into legislation. Yet the Government have repeatedly refused to do this; frankly, I still fail to understand why.
More specifically, as we have heard in relation to social housing, in the Heat and Buildings Strategy published last October, the Government said:
“We will … consider setting a long-term regulatory standard to improve social housing to EPC band C, with levers required to decarbonise the stock in line with Net Zero”.
As others have pointed out, the strategy continues:
“We will consult the sector before setting any regulatory standard”.
I join others in expressing real concern that that consultation has not yet started. I hope that the Minister will be able when he winds up to explain why not and tell us when it will commence.
Can he also explain what the legislative process will be to introduce the necessary new regulatory standards once agreement on them has been reached? Surely this Bill is an ideal vehicle for doing so, and an amendment to achieve that would be very welcome. While welcoming this overdue Bill, I believe that there are several missed opportunities, which I hope will be rectified during its passage through your Lordships’ House. I look forward to the Minister’s response.
Baroness Watkins of Tavistock (CB)
My Lords, I draw attention to my interests in social housing, in particular as the chair of Look Ahead, a small housing association in London. Like other noble Lords, I warmly welcome this Bill, which will support stronger and more proactive consumer regulations and the inclusion of further health and safety requirements in social housing to protect tenants.
The National Housing Federation provided a very useful briefing for today; it has been detailed by the noble Baroness, Lady Warwick. I particularly want to talk about its recommendations that the Government should seriously consider the potential costs of the ombudsman and regulator in taking on these new responsibilities, and ensure that there is effective funding so that they can conduct them properly. Can the Minister clarify what funding will be made available to ensure that the aims of the Bill can be achieved at pace within sound government structures?
In all the briefings received—including those from Shelter and Electrical Safety First, already referred to by other noble Lords—issues arise with the proposed electricity checks. Will such checks include appliances such as white goods, for example fridges, as well as main electrical installations for sockets and lights? We know—again, as other noble Lords have said—that the Grenfell Tower tragedy was linked to such an issue. New white goods are expensive. What will happen if tenants’ own white goods fail assessments for safety? Will they be removed? How will people afford replacements? These are really important issues for social tenants.
It is clear that social landlords will need sufficient powers to gain access to properties if they are truly to make sure that large buildings are fully assessed for electrical safety. Should safety checks cover leasehold properties in social housing blocks as well as homes that are rented out?
If the new proactive consumer regulation regime is adopted as outlined in the Bill, are the Government confident that the definition of “social rented sector” is sufficiently detailed? The statistics in the Library briefing suggest that the social rented sector provides homes for 4 million households, or, perhaps more importantly, one-sixth of all households. The Bill and briefings received appear to make no mention of shared ownership properties, which are a particular interest of mine, as the Minister knows. Many shared ownership households own only a quarter of their homes and pay social rent to housing associations on the remaining 75%. Is there a need for an amendment to the Bill to clarify the rights and responsibilities of both parties involved in shared ownership, particularly with regard to safety checks and the costs of putting things right? Under current legislation, I suggest that these will fall on the tenant, rather than the housing association, and I would welcome clarity on this.
Other noble Lords spoke eloquently about the positive aspects of the Bill, and it will certainly improve the lots of tenants if enacted. I look forward to working with the Minister and Members on all sides of this House to make revisions in areas where further definitions may improve the Bill, particularly with regard to the rights of shared ownership tenants, many of whom work in the public sector and are already suffering with the cost of inflation, before the mortgage element of their shared ownership increases.
Baroness Thornhill (LD)
My Lords, I draw the House’s attention to my role as a vice-president of the Local Government Association and a non-executive director of the Hertfordshire Housing Conference. From these Benches, I congratulate the noble Viscount on his maiden speech; I am delighted that he is joining the housing geeks, and I am sure that he will make an excellent contribution.
As always in your Lordships’ House, this has been a thorough and wide-ranging debate, from my noble friend Lord Foster’s comments on electrical safety to the timely reminder of the noble Baroness, Lady Hayman, about the importance of energy efficiency in poverty and quality housing. As ever, many points of detail will emerge during Committee, and I suspect that the Minister will have his hands full.
Many noble Lords have reminded us that the catalyst for this was the tragedy at Grenfell Tower and the subsequent shocking discovery that repeated concerns about fire safety were raised by residents but fell on deaf ears. In week 80 of the inquiry, evidence was found of
“wilful blindness and complacency towards safety”.
Those are strong and shocking words indeed. So all of us who are working on the Bill will work to change such negative cultures and root out and eradicate poor providers.
Conversely, many landlords are good or very good and are already actively changing their performance measures, becoming more transparent and engaging better with their tenants. They have not stood by and waited for the inquiry outcomes or for legislation to be passed, as was detailed by the noble Baroness, Lady Warwick of Undercliffe, in the role that she is, sadly, giving up soon.
Had my noble friend Lady Pinnock been allowed to speak—she was delayed by the same rail problems that have deprived us of the wisdom of the noble Lord, Lord Best—she would have said that we applaud and support much in the Bill. At its heart is the expansion of the powers of the Regulator of Social Housing and the removal of the “serious detriment” test; these are two sides of the same coin and must have equal balance. The removal of the “serious detriment” test is an essential tool to allow intervention before a crisis point, by which time it will or could be too late, as we know and as the right reverend Prelate the Bishop of Chelmsford pointed out.
I note the expanded Housing Ombudsman Service has seen a massive increase in casework, and it may take more than the memorandum of understanding to clarify all the roles and responsibilities and ensure effective partnership working to cut out duplication and overlap. These concerns were forensically dissected by the noble Lord, Lord Young of Cookham. I will also ask how the Government will ensure that both the regulator and the ombudsman have sufficient resourcing to enable them to effectively conduct their duties, as mentioned by the noble Lord, Lord Bourne of Aberystwyth, and the noble Baroness, Lady Watkins, whose comment about shared ownership was particularly pertinent—this was not something that I was aware of, and her points were very well made.
Giving the regulator Ofsted-style powers is fundamental to successful change. From my own experience—it was first introduced while I was assistant head in a large secondary school—I believe that it is the right way to go. At first, it was draconian, top-down, massively intrusive and a heavily judgmental process—a far cry from the friendly old inspectors and advisers we were used to seeing to, but largely ignored. However, it was a very, very necessary change. A key factor in its success was the certain knowledge that there would be very regular inspections, not a one-off so that schools could paper over the cracks, hope for the best during the inspection week and then breathe a sigh of relief when the inspectors left on Friday afternoon. It was known that they would be back and approximately when—it kept us on our toes for years, until we learned to absorb the new normal of continuous improvement and performance management. Therefore, we will be looking to strengthen the Bill along those lines.
I say to the Minister: because it will take time for the regulator to be tooled up with enough trained inspectors and for the whole inspection regime to be established, surely the regulator’s activity will initially prioritise intervention with landlords who are experiencing the most severe challenges. Will the Government then work proactively with the National Housing Federation and the Local Government Association to ensure that there is a proportionate, risk-based and outcomes-focused approach to inspection that satisfies everyone?
During the passage of this Bill, we want to look at broadening the focus of the inspection to also include each provider’s work on homelessness. The inspection process will, of necessity, mean that landlords will focus on what can be measured. We think that the homelessness provision aspect needs to be given some weight in any judgment. Surely it is also part of the regulator’s remit to look closely at why the landlord is failing, and not just to say that it is failing. Is it the endemic culture of the organisation or financial capacity? Each requires very different responses—and that is where the PIPs will be very important. For the former, change takes time, which is why we believe that reviews and more regular inspections will be needed. For the latter, with below-market rents being a very necessary feature of social housing, the reality of each landlord’s financial situation must be recognised.
To support council landlords, will the Government agree to prioritise reforms that remove the financial constraints on councils, including the ability to retain 100% of right-to-buy receipts with no restrictions on their use—I apologise to the Minister for sounding like a broken record on that issue—and reform social rent policy to allow a longer period of annual rent increases for a minimum period of at least 10 years? On the topic of money, it is also worth noting that, while the removal of the fine cap is a deterrent, could the Minister assure us that it is intended to be a penalty of last resort? This is because—as another noble Lord mentioned; I hope I will be forgiven for forgetting whom—tenants will, in effect, be the ones who pay that fine through their rent.
I say to the Minister that it is clear that there is a lot riding on this Bill, which is why we will be looking to put amendments down to look at regular reviews and progress of the whole sector as the years go by. If there is a weakness, we believe that it is around the tenant voice being heard, as was very passionately articulated by the noble Baroness, Lady Wilcox of Newport. Indeed, the residents advisory panel falls far short of a meaningful voice for tenants, and there is a real danger that, as it stands in the Bill, it will effectively just be a short-term token gesture. In this regard, we feel—to use my old teacher parlance—that the Bill could do better.
Finally, I want to put on record that despite the shameful tragedy of Grenfell and other high-profile failures of housing providers, it is still true that millions of people and their families living in one of the sector’s 4.5 million homes are, for the most part, glad to be in this sector rather than the private rented sector. As one resident said to me when I joined her when she moved into her brand-new council house, “I feel like I have won Willy Wonka’s golden ticket—a safe, stable roof over our heads, a rent I can afford and a landlord who appears to listen.” That is, always will be, and must be the sector’s mission. I look forward to working with your Lordships on this important Bill because, sadly, we know that this is not the case across the board or this Bill would not be here today and it would not have the very clear cross-party and outside consensus that it seems to command.
Baroness Hayman of Ullock (Lab)
My Lords, this has been a fairly short but excellent debate on this Bill, enhanced by the really good speech of the noble Viscount, Lord Camrose. I warmly welcome him to this House and look forward to his future contributions.
As my noble friend Lady Wilcox said in her introduction, we welcome this Bill, which, as we have heard, introduces long-overdue changes to social housing regulation some five years after the Grenfell Tower tragedy, where safety concerns raised by residents had been ignored by their landlord. I join the right reverend Prelate the Bishop of Chelmsford in praising the Grenfell campaigners for continuing to press for these much-needed changes to the law.
It is worth noting that, since 2010, the Government have reduced tenant representation, abolishing the Tenant Services Authority, abolishing National Tenant Voice, and removing national funding through the decent homes programme. The Bill today represents a crucial opportunity to put this right. However, while the Bill is very welcome, we also feel it is disappointing that it does not go far enough in putting tenants at the heart of regulation and governance. We believe it needs to focus more on tenant empowerment and representation.
My noble friend Lady Warwick of Undercliffe talked about the important role that housing associations play in providing support to people in need. While many provide good and excellent service, unfortunately that is not the case for all. There needs to be a proactive inspection regime for the Regulator of Social Housing that monitors all providers and not just those it suspects might not be compliant with consumer standards. We believe that the regime announced by the Government falls short of this.
We welcome the key focus of the Bill to enhance the regulator’s consumer standards regulatory regime. Again, as the right reverend Prelate the Bishop of Chelmsford said, we also welcome the removal of the “serious detriment” test, which other noble Lords have mentioned. This is a long-awaited change and will give the regulator more power over consumer standards and broaden the monitoring and enforcement powers.
The Bill enables the RSH to issue a code of practice, as we have heard, for its consumer standards. That will match the approach taken for economic standards. This will help providers have a better idea of what is expected of them and tenants to have a better idea of what to expect from their landlords. However, we believe it should also establish a grading system for these consumer standards, in line with what currently exists for economic standards.
We have heard about the introduction of tenant satisfaction measures. Again, we welcome this, but there must be transparency and accountability throughout the regulatory process, especially since social housing tenants have limited ability to have any choice in their landlord.
We have heard that the Bill enables the RSH to deregister a private registered provider for failing to meet a regulatory standard. We believe this sends an important message to providers but does not offer any additional security or compensation for the tenants of deregistered providers. I ask the Minister: will the Government look at this?
It is important to note that, to raise standards in social housing, new legislation must be properly resourced for the regulator to be truly proactive and to deliver a decent homes standard fit for the future and robust requirements for strong tenant representation within the regulatory system.
We have heard much about tenant representation in today’s debate. The Bill has a greater focus on transparency and making information available to tenants, but transparency alone, although important, is not enough to drive the kind of change that we need to see. The only provision in the Bill that is directly related to tenant representation is the requirement to set up the advisory panel. As my noble friend Lady Wilcox and the noble Baroness, Lady Thornhill, mentioned, we need more than this. I would be interested to know the Minister’s response to the suggestion from the Mayor of London on the creation of a commissioner for social housing to address underrepresentation across the sector and across government. What does the Minister think about that suggestion and whether it would help?
My noble friend Lady Warwick of Undercliffe welcomed the work that housing associations are already carrying out to drive up standards. We absolutely support those housing associations that are doing important work on that aspect. We are also pleased to see that the Bill introduces performance improvement plans and states that tenants can make a written request for a copy of their provider’s performance improvement plan. The Government need to establish a clear communication channel between tenants and the RSH so that tenants can share information about whether and how their landlord has been taking action. As the noble Baroness, Lady Thornhill, said, we need to know where there are failings and why.
We have also heard that the Bill removes the cap on fines and about the Secretary of State’s power to amend the value of fines. This flexibility is welcome, especially as it allows penalties appropriate for the serious harm that tenants may endure as a result of poor standards. However, we also believe that the different thresholds need to be clearly stated so that there can be full, public accountability for any enforcement action. The noble Lord, Lord Bourne of Aberystwyth, asked about costs. Enforcement and inspections will of course need significant resources, so I am interested in the Minister’s response to his questions.
We welcome the Bill’s strong focus on transparency and access to information. Because measures relating to transparency and information are important, keeping tenants informed about landlord performance and governance should be matched with robust requirements for tenants to be able to discuss this with their landlords. We believe that we should have a goal for landlords and tenants to work together to reduce the likelihood of things going wrong in the first place, rather than just retrospective accountability for poor performance.
There has been much discussion about the Housing Ombudsman scheme and the relationship between the ombudsman and the RSH. We know that the Bill puts into law the ombudsman’s code of practice. The noble Baroness, Lady Watkins, asked a number of important questions about resources in this regard and the nature of safety checks and assessments. I look forward to the Minister’s response to her questions.
Confidence in the complaints system is as important as the robustness of the system itself. Complaints handling is itself the second most common complaint to the ombudsman after property condition. Improving the system must be a priority and the ombudsman will need to be properly resourced to deliver this, especially as it has had a significant increase in casework, as referred to by the noble Baroness, Lady Thornhill. I am also particularly interested in the Minister’s response to the question from the noble Lord, Lord Young of Cookham, about the power of the regulator regarding complaints, how that will operate alongside the ombudsman and the potential for any confusion.
We welcome the requirement for registered providers to designate a person to act as lead on the provider’s compliance with its health and safety obligations towards tenants. This is very important.
Finally, a number of noble Lords talked about electrical safety standards, particularly the noble Lord, Lord Foster of Bath, who I know has an interest in this. We welcome the proposal in the Bill to impose electrical safety duties on registered providers to ensure that safety standards are met when premises are occupied under a tenancy. The noble Baroness, Lady Hayman, highlighted the importance of pushing for energy efficiency in social housing. This is increasingly essential; as she said, social housing often has very poor ratings for energy efficiency and, as we look at the increased costs of energy and the increase in fuel poverty, we really need to tackle this, both to support people who are struggling to make ends meet at the moment but also as a crucial step to achieve net zero. As the noble Lord, Lord Young, asked, will energy efficiency therefore be included in the code of practice? This is very important and I think would have support from right across the House. I look forward to the Minister’s response and to working with him and other noble Lords to improve the Bill as it progresses through your Lordships’ House.
Lord Greenhalgh (Con)
My Lords, I thank everyone across the Chamber for contributing so constructively to the spirited and very wide-ranging Second Reading. The debate once again highlighted the breadth and depth of noble Lords’ expertise and I congratulate my noble friend Lord Camrose on an excellent maiden speech. He comes with really practical skills—probably more practical than the scribblers out there, even though his family includes very distinguished owners of many of the titles that many of us read today. I am looking forward to his measured and thoughtful contributions to this House over the coming years.
Across all the contributions today there has been a consistent concern to ensure that tenants of social housing receive the housing and respect that they deserve. I share this concern. The Bill will deliver extensive and much-needed reforms. It will continue to drive forward the once-in-a-generation change required to make sure that tenants live in decent, safe and secure homes and are treated with respect. I join the noble Baroness, Lady Hayman of Ullock, in praising the contribution of the Grenfell community in advancing this important agenda. I will do my very best to address as many of the points raised as I can—again, this has been an incredibly wide-ranging debate.
A number of questions focused on the supply of social housing, including the contributions from the right reverend Prelate the Bishop of Chelmsford and the noble Baroness, Lady Wilcox. This legislation is not about supply, as I think they both realised, but we are committed to increasing the supply of affordable homes. We have invested more than £12 billion in affordable housing over the five years, but we recognise the need to build more social rented housing, which is why this current programme of affordable housing is seeking to double the number of social homes we are building to 32,000. I noticed the focus in the excellent speech by the noble Baroness, Lady Wilcox, on the decent homes standard. There is no greater sign that the Government recognise the importance of the decent homes standard than trying to extend it into the private rented sector. It is about raising quality, irrespective of whether you are a social tenant or a private tenant, so we improve quality in the round.
In response to the noble Baronesses, Lady Warwick and Lady Thornhill, I undertake that we will continue as a Government to work closely and engage closely with both the National Housing Federation and the Local Government Association as we bring forward these reforms and improve regulation.
A number of noble Lords, in particular the noble Baroness, Lady Wilcox, raised the issue of why it has taken so long to introduce the Bill. We have to recognise that the Bill is just one of many reforms that the Government have delivered in response to Grenfell Tower, including the Building Safety Act and last year’s Fire Safety Act. We spent time listening to residents, as pointed out by my noble friend Lord Camrose. We had to hear at first hand about their experiences and how they wanted a sea-change. More than 8,000 residents contributed to these discussions, including the bereaved, survivors and residents of the Grenfell Tower tragedy. There has been a process: a social housing White Paper, which we consulted on, then we responded to the consultation, and now we are moving to legislation. It is important to get these things right.
A number of noble Lords asked about funding for the new regulatory regime, including the noble Baronesses, Lady Wilcox, Lady Watkins and Lady Thornhill, and my noble friend Lord Bourne. We are making significant changes to the regulator, which will drive change in the sector and improve the lives of social housing residents. Given the scale of reform, it is likely that the regulator will need to double in size to deliver the strengthened consumer regulation regime. Further work will be carried out to determine the exact cost of delivering the new consumer regulation regime, in part because the regulator will need to design and consult on the new regulatory framework following the passage of this Bill.
However, the Government are committed to ensuring that the regulator has the resources it needs, both to deliver the new consumer regulation regime and to continue effectively regulating on its economic objectives. A new fees regime will need to be developed for when the new consumer regime has been implemented. This will be subject to engagement and formal consultation with stakeholders. Government policy is to maximise the recovery of costs through fees in the same way that the regulator already does.
As the right reverend Prelate the Bishop of Chelmsford raised, issuing fines is one of the enforcement powers the regulator can use. It is not the only one, and it is for the regulator to decide on the appropriate sanction depending on the circumstances. Government rent policy limits the maximum amount of rent that the social landlord can charge, subject to certain exceptions. It is down to the regulator to get the system of enforcement right, and there are protections on rent levels.
I point out to the noble Lord, Lord Foster, in particular that the vast majority of the cost associated with this regulation, estimated at some £174 million, is largely a result of the requirements on providers to perform five-yearly electrical safety checks. That is certainly the largest source of cost. I know that he, in exhorting me to move from “may” to “must”, recognises that we do not want to pre-empt the consultation on electrical safety measures for social housing. However, we are obviously looking at the financial impact of that and would not be putting those powers in the Bill if we were not very serious in our intention to level up between private and public housing.
The noble Baroness, Lady Watkins, asked a difficult question about how the electrical safety power and associated costs affect shared ownership properties. I was scratching my head; I undertake to write to her with details on this critical issue.
The noble Baronesses, Lady Wilcox, Lady Thornhill and Lady Hayman of Ullock raised the issue of how we listen to tenants’ voices. We launched this social housing quality resident panel only in March, which brings together social housing residents from across the country so that they can share their views with government and Ministers. Let us see how that plays out. However, I note that the Mayor of London has called for a commission. We will look at that seriously and, I am sure, respond to those points.
The noble Baroness, Lady Wilcox, has really been into the details of this Bill. She wanted to know how we focus inspections and why small landlords will not be inspected. The system of inspections will be based on risk profile to ensure that those landlords at greatest risk of failing, or whose failure might have the greatest impact on tenants, are subject to greatest oversight, which makes sense to me. The regulator will continue to develop its approach and the details of how it will manage consumer inspections.
My noble friend Lord Young, who is forensic in his analysis of all housing legislation, asked why this advisory panel needs to be statutory. Placing the requirement in statute ensures that this happens. It also sets out expectations on the make-up of the panel and the range of matters it would consider. I believe it is sensible to ensure through legislation that this happens, rather than relying on the regulator choosing to do so. In other words, we are making sure that there is no way out and that this will happen.
In my meeting before today’s debate and during it, my noble friend Lord Young raised the confusion between the Housing Ombudsman and the Regulator of Social Housing. The Regulator of Social Housing has the emergency repair power. I point out that there is a long track record of close working between the regulator and the ombudsman, and we are ensuring effective information sharing between them. The proposals in the Bill will reinforce and strengthen the co-operation that already exists. We are also delivering a communications campaign to tenants so that they know where to go and are well informed.
There were a series of important contributions from the noble Baroness, Lady Hayman, the noble Lord, Lord Foster, and my noble friend Lord Young about what has happened to the government consultation on energy efficiency and what the Government are generally doing in this important area, particularly with respect to social housing. The Government agree that improving the energy efficiency of homes is a must. In the 2021 Heat and Buildings Strategy, we committed to consider setting a long-term regulatory standard to improve social housing to EPC band C, and we will consult the sector before setting any standard. The Government have committed some £3.8 billion to the social housing decarbonisation fund, which will help councils and housing associations to upgrade social housing. In fact, Lancaster West Residents’ Association has been a beneficiary of that fund.
I have to say that the noble Baroness, Lady Thornhill, is incredibly dogged and has raised right to buy on pretty much every occasion, certainly in recent weeks. I know that a number of your Lordships are concerned about the impact of right to buy on social housing stock. The Government agree that it is important that homes sold under right to buy are replaced, and we want to see an increase in the number of replacement homes sold by local authorities. Following a consultation on the use of right-to-buy receipts, the Government introduced a package of reforms in 2021 to help local authorities build more homes. This set of reforms, combined with the abolition of the borrowing cap in 2018, certainly gives councils more flexibility to build council homes. That is what we are seeing: councils are building more council homes. With regard to the replacement of homes sold under the extension of right to buy to housing associations, tenants will be central to the scheme design. I am sure that the replacement of stock sold through that voluntary scheme will be foremost in getting the scheme right.
The noble Baroness, Lady Hayman of Ullock, raised the issue of tenant satisfaction measures. We believe that these measures provide a snapshot of a landlord’s performance, so they will not include everything. I know that the regulator has worked with the sector, the National Housing Federation and others in developing a balanced set of tenant satisfaction measures that cover the issues that tenants have told us were important to them.
The noble Baroness, Lady Hayman of Ullock, asked a very specific question about whether the Government are looking at compensation for deregistered registered providers. I will take this important issue back to the department, as I do not have an answer here and now.
With regard to the focus on including net zero in the decent homes standard, as I said, we committed in the Heat and Buildings Strategy to consider setting a long-term regulatory standard to improve social housing to EPC band C. We will consult the sector before setting that standard, as I said in an earlier response.
It has been an incredibly wide-ranging debate, but I thank noble Lords, because I think there is a genuine desire to get behind the Bill to make sure that the voices of tenants are heard. I am sure there will be many opportunities to come up with practical proposals. Having taken forward legislation in this area, I look forward to working with those on all sides of the House to get this important legislation right and I beg to move.
Social Housing (Regulation) Bill [HL]
Tuesday 6th September 2022
(2 years, 3 months ago)
Lords ChamberRead Full debate Social Housing (Regulation) Act 2023 Read Hansard Text Amendment Paper: HL Bill 21-I Marshalled list for Committee - (2 Sep 2022)
Member's explanatory statement
This amendment would require the fundamental objectives to include reference to energy efficiency
Baroness Pinnock (LD)
My Lords, I draw the attention of the House to my relevant interests as a vice-president of the Local Government Association and as a councillor. I apologise to the House that, due to train delays, I was unable to speak at Second Reading, though I was here for most of that debate, bar for about three minutes.
This Bill is broadly accepted—certainly by those of us on our Benches—but there are some additions which we think would make it better. Back in July, when my noble friend Lady Thornhill and I tabled this amendment on energy efficiency, little did we know that the issue would be even more in the public eye and even more important to address in a strategic way. The amendment, which adds the words “energy efficient” to the fundamental objectives set out in Clause 1, must surely now be a priority for any Government.
Our country’s energy security is finally at the heart of government thinking. The cost of energy for tenants—many of whom will be among those with the lowest incomes—means that they will be completely unable to meet their basic needs. Improving energy efficiency is one of the key planks of a longer-term strategy to ensure energy at a cost that can be afforded. As this is undeniably the case, I hope that the Minister will be able to accept the amendment.
Houses in Britain are some of the worst insulated in Europe—it is shameful to have to say that, but it is true. The Government aim to improve the energy efficiency of homes, but what appears to be lacking is a practical plan to achieve those absolutely essential improvements.
The properties in the social housing sector will, in the main, have been built post-1920, when cavity walls became the norm. One-third of heat loss is through walls. Prior to 1990, cavity wall insulation was not the norm, although it can be done relatively easily. Ensuring that loft insulation is 300 millimetres deep—the current new-build standard—will also help, as will double glazing, although the majority of properties will already have double glazing, albeit at the lower efficient level installed at the time. The Government have the stated intention of exchanging gas boilers for heat pumps, which are effective only with very well insulated homes. Therefore, achieving more energy-efficient social housing should be a priority, which is the purpose of the simple amendment that we have laid today.
Achieving better energy efficiency is not difficult if there is a will to do so. When I was leader of Kirklees Council, about 15 years ago we had what we called the warm zone scheme, which provided free loft and cavity wall insulation to all homes, regardless of tenure—not just social housing but all homes—and which was part- funded by a levy on energy companies. In total, nearly 100,000 homes benefited. If it was that easy to do—to be honest, it was not that difficult—it can be done now on a nationwide basis, and ought to be done. It is practical but will happen only if the sector is required to make it a priority; hence the purpose of the amendment.
This amendment is about the principle of energy efficiency, and Amendment 21, in the name of the noble Baroness, Lady Hayman, is much more detailed in nature and provides specific targets for energy efficiency, which of course we will support wholeheartedly.
I also wish to speak to Amendment 4 to Clause 1, which is also in my name and that of my noble friend Lady Thornhill. The purpose of this amendment is to provide the regulator with a duty to report on the removal of unsafe cladding and the remediation of fire safety defects in social housing. Members of the Committee may be thinking that the issue of unsafe cladding and other fire safety defects has been resolved; the solution was the Building Safety Act. Unfortunately, there are many unresolved problems, and for the social housing sector the challenge is that of the lack of funding for dealing with essential remediations.
The National Housing Federation estimated earlier this year that remediation costs for its sector will be about £10 billion and for social housing owned by local authorities a further £8 billion. Social housing landlords do not have access to funding for non-ACM cladding removal—so there is no funding for the other fire safety defects. There is also no funding to cover costs for tenants in the same way as there is for leaseholders. One of the consequences is that tenants, through their rents, will be contributing to the cost of remediation.
Imposing the cost of remediation on social housing landlords obviously has knock-on effects on plans for other refurbishment, or could even stall plans for new homes. An excellent research paper from the House of Commons Library was published in June on this issue, from which I got some of that information.
Baroness Hayman (CB)
My Lords, it may be helpful to the Committee to continue the theme of energy efficiency, rather than going through the amendments numerically, so I will do so. I declare my interest as co-chair of Peers for the Planet. As the noble Baroness, Lady Pinnock, said, I have Amendment 21 in this group, and I am very grateful for the support of the noble Lords, Lord Bourne of Aberystwyth and Lord Foster of Bath, who have added their names to it.
At Second Reading of the Bill in July, there was similar support from across the House—on all Benches—for action on energy efficiency in the social housing stock. The Minister himself described action as a “must”, but I am afraid he stopped there in describing how that action would actually be implemented. As the noble Baroness, Lady Pinnock, said, social housing tenants are among the most vulnerable in the current energy crisis. The Government’s own most recent data shows that 72% of new lead tenants were not in employment; 20% of new lettings were reserved to those who were statutorily homeless. Research by the Energy and Climate Intelligence Unit shows that houses in EPC band D, which are 35% of social housing, will pay £600 more a year under the cap as it is at the moment than those in band C, and forecasts from Cornwall Insight suggest that that could be doubled next year.
The money that we are led to believe will be spent in subsidising—paying for—those bills is money that literally goes up in smoke. The money spent on home insulation and energy efficiency is money that does not have to be spent year after year when we have an energy price crisis. This was recognised by the Government in the clean growth strategy in 2017, when they committed to consultation on minimum energy performance standards in social housing, but we have seen no plan—not even a consultation on a plan or a plan on a consultation. Hence the need to take action in the Bill to put the requirement in primary legislation and get moving with doing this.
As the noble Baroness said, this amendment is more detailed than hers. We have framed it as a duty on the Government to publish a strategy. I hope that others will agree that this is the most appropriate approach. It should not be a duty on social housing providers to improve properties without any government support, nor a duty on government to go into properties that they do not own and forcibly improve them without landlord and tenant consent. A duty for a strategy will require input from social housing providers, tenants and community groups and the specialist and general firms who carry out the work.
The amendment is relatively simple. Proposed new subsection (1) gives the social housing regulator the power to set standards in relation to energy demand—a slightly different approach from that in Amendment 1 —and requires the regulator to have regard to the Government’s strategy on this topic when it does so. Proposed new subsection (2), which is the meat of it, requires the Government to set out an energy reduction strategy, with four key points.
The first is the rollout of low-carbon heat, so that it accounts for 100% of installations by 2035. The low-carbon heat could equally well come from heat pumps or local heat networks. This is simply putting a commitment that the Government have already made, but are not making a lot of progress with, on a statutory footing.
The second is an EPC rating of C for all social housing properties by 2028. The Committee on Climate Change has recommended that year; the Government have suggested 2030, but it is important that we make progress now.
The third point is to have interim targets for the first two points. We have all seen the dangers of putting very high-level commitments out in principle while not seeing any plan for their implementation and no milestone so that we can tell how far we are going. Interim targets would give transparency for tracking the government target for energy-efficiency improvements made each year and would maintain momentum.
The fourth point is a plan to support social housing providers in engaging with one another, the social housing regulator, and a single source of government advice. This is really important. One of the things that people are flailing around for is the best way to do things in the current crisis. It is tremendously important that the Government, who have referred to providing a source of advice, do so urgently, so that we do not all reinvent wheels all over the place. Proposed new subsection (3) requires the Government to consult the Climate Change Committee, which has significant expertise in this area, when producing their strategy—another belt and braces to ensure that we are making progress.
Ideally, we would be tackling energy efficiency across all fields. There is a huge gain to be made there. The noble Lords, Lord Bourne of Aberystwyth and Lord Whitty, and I will be tabling amendments to the Energy Bill for a broader government strategy. However, we can and should make progress now with this particularly vulnerable group of people. As I said, 2017 was the first time that this was mooted by the Government. The adage is that the best time to plant a tree is 10 years ago. The best time to have begun this strategy was five years ago, but the second-best time to plant a tree is today. I hope that the Minister will respond by doing this now.
Lord Bourne of Aberystwyth (Con)
My Lords, it is a great pleasure to follow the noble Baroness, Lady Hayman, and to support her in this amendment, along with the noble Lord, Lord Foster of Bath, who has also added his name to it. I declare my interests as published in the register. I am also a member of Peers for the Planet. It sounds like saying that I am a member of Alcoholics Anonymous, not that I have ever had to do that. This is an extremely important amendment.
As has been noted, at Second Reading there was very strong support from around the House for the Bill’s objectives, and I am clear that that will remain the case. There is also strong support from around the Committee for the Government’s commitment to achieving net zero, and for the work of the Committee on Climate Change. What we need to do, through this legislation, is provide some heft to that commitment, because what is lacking, as the noble Baroness noted, is a road map to take us to the very noble aim of net zero. As the noble Baroness, Lady Pinnock, rightly said, since Second Reading, it has become even more evident how important this is—in very graphic terms, with the eye-watering price of energy and energy security centre stage following the dreadful situation in Ukraine. I think that is recognised by the incoming Prime Minister, but I say to the Minister, who has a long list of things to take up with the incoming Prime Minister and Ministers, that this is an opportunity for a very early demonstration of this Government’s commitment to tackling this very serious issue by tackling not just climate change but the energy security issue and, not least, the eye-watering cost of energy that we face currently.
At this juncture it is clear, as clear as it can be, that any action to reduce energy demand is sensible and vital. As is often said, the energy that is cheapest is the energy that we do not use. One thing we can perhaps take some comfort from, in a slightly bizarre way, is that we have got more ground to make up in this country than many other countries in relation to energy efficiency. There is a lot we can be doing; there is massive scope for energy efficiency and, indeed, for demand reduction, which this amendment is geared to. By reducing energy demand, we contribute to the fight for net zero, we contribute to helping ease the massive cost of energy and we also contribute to our energy security. These three pillars are all vital in this battle, and this amendment—a very modest amendment, really—would contribute to all three. The commitment to the low-carbon heat target of 100% of new installations of heating appliances and a minimum EPC rating of C for all social housing is, I believe, achievable and vital.
I appeal to the Government to come forward with a positive programme of engagement with social housing landlords, and advice, also very sensible and provided for in this amendment. I am sure it would have support from all corners of the Committee and would contribute in a very positive way to something that we know our country needs to do. I trust that the Government will demonstrate their commitment to net zero, to easing the cost of energy and to achieving energy security by supporting this amendment. It is a practical, pragmatic, sensible response to the energy crisis, will be seen as such, and will be seen as an early demonstration of the commitment of this Government. So I hope that is what the Minister will say when she responds to this group of amendments.
Lord Foster of Bath (LD)
My Lords, I begin, as I did at Second Reading, by reminding noble Lords that this Bill is part of the response to the Grenfell Tower fire. Yet again, I offer my condolences to the families and friends of those who lost their lives in that dreadful tragedy. I support all the amendments in this group, including Amendment 21, which carries my name alongside those of the noble Baroness, Lady Hayman, and the noble Lord, Lord Bourne, both of whom have done excellent work in these areas over several years. I also support the amendments from my noble friends Lady Thornhill and Lady Pinnock, and of course I particularly support the amendment from the noble Lord, Lord Best, whose work on housing over many years has been inspirational.
Millions of families live in social housing. They are often the least well off and impacted the most by the current rocketing energy prices. We have something like 15 million homes, across all forms of tenure, that are below energy performance certificate band C; in other words, we have 15 million homes that are inadequately insulated, and many of them are in the social housing sector. As a Times article said a week ago:
“Our latest analysis, published today in partnership with economists at the CEBR, underlines the scale of the growing energy efficiency divide in Britain. From October, the two thirds of households living in homes rated below the government’s target EPC C rating, are set to pay £748 more per year for their energy than the third living in homes at or above the threshold.”
As the Minister knows, I have, through two Private Members’ Bills, one of them still awaiting a Committee stage—I hope she might help me out with that—and amendments to other pieces of legislation, frequently raised the need for the Government to place their own already agreed targets for improving energy efficiency into legislation to give the industry, so badly let down by previous schemes, the confidence it needs to invest in the technology, skills and equipment to achieve this. Like the noble Baroness, Lady Hayman, and others, I have tabled amendments to the Energy Bill to seek to achieve that.
Baroness Jones of Moulsecoomb (GP)
My Lords, I want to speak about energy efficiency as well, because clearly this is something that no one can disagree with. It is smart and, at the very least, good business practice—not to mention that it helps people on very low incomes.
As the noble Baroness, Lady Hayman, pointed out, social housing landlords have a huge challenge to raise the energy efficiency of the homes they look after and to bring them up to modern standards, simply because they do not have the money. If the Government are not going to give them a handout or ease the energy crisis in all sorts of ways, they need to make it possible and to make funding less incredibly difficult. The situation is getting worse day by day, as supply chain issues and the rate of inflation keep shooting up.
At the moment, the main source of funding for social housing improvements seems to be borrowing against future income from social rents. This means a very tight pot of funding, where energy-efficiency measures have to compete against issues such as maintenance, renovation and new home building. The Government could create new fundraising opportunities for local authorities. Some of this could be grant funding but there are other options too, such as facilitating the creation of climate bonds and other sorts of financing.
I hope that tackling this funding gap for social housing is a priority of this Government. It would help so many people. I look forward to the Minister sharing the Government’s plans and, I hope, bringing forward something on this issue on Report.
Lord Whitty (Lab)
My Lords, I want to briefly record my support for the intent of all these amendments for both social and environmental reasons. The tenants of social landlords need to be prioritised by improving their energy efficiency, and hence cutting their bills. Because it is a significant proportion of our housing stock, to meet the net-zero pathway it is necessary for the social housing sector to make a step change in the improvement of its premises.
To achieve that, there are responsibilities on government, not least in pursuing the strategy that the speech and amendment from the noble Baroness, Lady Hayman, address, but there are wider responsibilities on government to create the overall policy and the legislative and regulatory framework to ensure that it is delivered. There are also responsibilities on social landlords, and that should be made explicit to them, but the Bill is primarily about the regulator. The regulator’s central duty ought to include energy-efficiency objectives. I regard that as an important missing dimension of the Bill. I would argue this in relation to almost any other legislation, in any field, that changes or introduces new regulation. We need a net-zero objective in our social and economic regulators’ responsibilities and terms of reference.
I have a couple of questions for the Minister. When pursued on energy-efficiency matters on the Energy Bill and in other contexts, her noble friend and colleague, the noble Lord, Lord Callanan, often says that part of the Government’s solution is to fund the programme of improving social housing. I find it difficult to say that that is sufficient. Does the Minister know what proportion of the totality of social housing premises, or whatever subset of that she has information on—large estates, in particular—has been addressed since the Government’s intention that social housing’s energy efficiency be improved, both by insulation and by the source of its energy, became clear? If she does not have that information today, perhaps her department and BEIS could provide me with an answer.
The second question is on planning, which clearly is within her department’s responsibility. Many social housing estates, mainly in the local authority but also in some housing association areas, are faced with major schemes of regeneration. Too often, in my view, local authorities and developers, when faced with demands or requests for regeneration, opt for demolition and rebuild. In almost all cases, demolition in each of its stages and the rebuild have a larger carbon content than most schemes of refurbishment. When will the planning process address this and ensure that it is a central issue for those planning authorities faced with propositions from social landlords?
Baroness Thornhill (LD)
My Lords, I will speak to Amendment 2 in my name and that of my noble friend Lady Pinnock. I wish also to echo from these Benches the support for the amendment in the name of the inspirational—I agree with that—noble Lord, Lord Best, on the same topic. The fundamental difference between the two amendments is simply that our amendment to Clause 1 would make it a fundamental objective of the Bill, while the noble Lord’s amendment seeks to ensure that the regulator has the powers to require housing associations to safeguard and promote the interests of the homeless and potentially homeless. Therefore, I am pleased to say that they work very well together.
We are seeking this simple amendment as a fundamental objective because, without it, there is a real danger that, as the Government quite rightly and understandably tighten the regulation of social housing as outlined in the Bill, social housing providers themselves, many of whom are fairly cash-strapped, will prioritise that which is being measured for fear of being named, shamed and fined. So they should, you might say, but it will have consequences for the homeless and those in temporary accommodation. This is a phenomenon that has been experienced with former council inspections and with Ofsted.
The fact that several housing associations have formed themselves into their own group, known as Homes for Cathy, shows that many take their homelessness prevention work seriously and strive to house people away from the streets, sofas and the overcrowded conditions that they might currently live in. Quite simply, we believe that this work is significant, valuable and essential, and therefore should be monitored by the regulator as part of a provider’s performance improvement plan.
During the pandemic, heroic efforts were made by government, councils, voluntary groups and housing providers to significantly reduce the numbers sleeping rough, which according to the 2022 government figures stand at an eight-year low. This is to be commended and is indeed good news, but we have to set it against the same set of annual figures that show that the numbers in temporary housing have been rising steadily since 2011. There are over 96,000 households in such accommodation as of September last year. Extremely worryingly, that figure includes over 121,000 children. We are all aware of the negative impacts this leads to, not only on a child’s education but on their general health and well-being.
Regrettably, I know from personal experience that the quality of that accommodation has deteriorated due to several factors, not least the inexorable decline in the number of social homes being built to move families on to; that is a debate for another day but a relevant factor. I will never forget the day that my head of housing came to see me urgently. Knowing that I was proud of our record of never having to use bed and breakfasts for homeless families, she was not looking forward to telling the mayor that that day we were placing families into a hotel for the very first time. Such were the pressures mounting on our housing stock. Now it is commonplace for councils to use bed and breakfasts, hotels and hostels—albeit the time for that is now limited by statute—before a move to temporary accommodation, which is when other problems begin.
Temporary accommodation, sad to say, is often inadequate—a room in a shared house that is overcrowded and in need of repairs or in poor condition. Critically, it can even be in another town, miles away from your workplace or children’s schools. It is not unusual for families to be in temporary accommodation for years. Shelter and the LGA have evidence of some families being housed in this way for a decade or more. That has to be unacceptable. Getting people off the street and out of temporary accommodation are two sides of the same coin. That should be an important function of all providers; we need it to be.
Lord Best (CB)
My Lords, I shall speak to Amendment 22 in this group. It links to and complements Amendment 2, just spoken to by the noble Baroness, Lady Thornhill. The two together underscore the role of social housing regulation in securing accommodation for those who are homeless or are likely soon to be so.
Like the noble Baroness, Lady Pinnock, I apologise on behalf of LNER for arriving too late to speak at Second Reading. I hope your Lordships will forgive me adding an introductory preface to my advocacy for the amendment.
I have spent well over 50 years supporting the social housing sector and have been both on the receiving end of social housing regulation and a participant in regulatory policy-making. From these perspectives, I recognise that poorly designed regulation can interfere with the independence, freedom, flexibility and diversity of approaches of social housing providers, but a bigger part of me recognises that a well-designed regulatory system is a positive. By ensuring adherence to good standards, regulation enhances the sector’s support from its residents, central and local government, investors, partners and the wider public. That is why I welcome the Bill. Indeed, an effective system of regulation is essential if the sector is to grow, as it must, to meet the desperate need for more decent and affordable homes.
This brings me to the first of the two amendments I am putting forward today. Amendment 22 takes us to the heart of why we have a social housing sector in the first place and to the role of regulation in ensuring these providers fulfil the most pressing of the roles which society expects of them. Amendment 2, put forward by the noble Baronesses, Lady Pinnock and Lady Thornhill, makes addressing homelessness issues part of the objectives of the regulator. Amendment 22 enables the regulator to require social housing landlords to comply with standards it sets regarding homeless and potentially homeless households.
The amendment is being sought by a group of over 100 housing associations and other housing charities called Homes for Cathy, which is led by David Bogle of Hightown Housing Association. Many of your Lordships will hear the echoes of the famous documentary drama “Cathy Come Home”, which revealed the horrors of becoming homeless back in 1966. The programme inspired many of us to get involved in social housing. Several of the organisations in Homes for Cathy today were established at that time to rescue people from homelessness and prevent households suffering the horrors of homelessness. Sadly, as we all know so well, this problem is still with us.
The Government are committed to ending street homelessness by 2024 and great progress was made by local authorities and social housing bodies during the height of the pandemic. Today we heard from the noble Baroness, Lady Bloomfield of Hinton Waldrist, via email about renewed efforts to end rough sleeping, which I greatly welcome. Meanwhile, the number of homeless and would-be homeless who have had to be placed in temporary accommodation has grown alarmingly, as the noble Baroness, Lady Thornhill, has mentioned.
It may seem obvious that social housing landlords should be expected to ease the problems of homeless families. Doing so is surely a key reason for the taxpayer supporting the sector. No one believes that the private rented sector can supply the secure homes we need at rents within the means of those on the lowest incomes. Unlike housing associations, councils have legal duties and statutory responsibilities for supporting homeless people. But local authorities—which are strapped for cash and have a hugely diminished stock after right-to-buy sales and after transferring their council housing to registered providers—now rely on the housing associations to help shoulder this task.
It is regrettable that not all the housing associations are doing as much as they could. Critics accuse some of the registered providers of avoiding housing those in the greatest need. In the year before Covid, registered providers evicted 10,000 tenants—effectively creating homelessness problems. Even allowing for the severe financial pressures they face at this difficult time, surely it must remain a key responsibility of housing associations to be meeting the needs of homeless and potentially homeless people.
Amendment 22 gives the regulator the power—not the obligation—to set standards of behaviour for registered providers in relation to safeguarding and promoting the interests of those who are homeless or may become homeless. This does not compel the regulator to do so or prescribe the form its action might take. In Scotland, for example, the Scottish Housing Regulator has placed a duty on social housing providers to report to the regulator on their homelessness activities.
This light-touch addition to the standards, for which the regulator in England can require compliance, seems entirely compatible with the Government’s aims to reduce homelessness. It enables the regulator to hold all the housing associations to account in their fundamental role of addressing the housing problems which the market cannot solve. It responds to the criticism that some parts of the social housing sector have forgotten their social motivations. It recognises the wonderful work many in the sector are doing and it enables the regulator to press all housing associations to do so too.
Baroness Hayman of Ullock (Lab)
My Lords, this is an important Bill and it has our support. This is also an important debate, highlighting issues around energy costs and homelessness. Our position is that this is a good and important Bill, but there are areas in which it could be improved. I hope that the Minister is listening carefully to our debates, and I am sure that everyone here hopes to support the Government in making the Bill as good as it can be.
I will speak in support of the amendments on energy efficiency, which, in the light of rising and predicted costs, is clearly critical at the moment. I will first address Amendment 21, in the name of the noble Baroness, Lady Hayman, and of course Amendment 1, in the name of the noble Baroness, Lady Pinnock, which covers the same ground. The noble Baronesses spoke of the importance of tackling issues around energy efficiency. As we heard, the proposed new clause of the noble Baroness, Lady Hayman, requires the Secretary of State to publish a “Social Housing Energy Demand Reduction Strategy”. She went into some detail about how that could be achieved and what it needed to contain in order to help reduce energy consumption, fuel poverty and the emission of greenhouse gases.
The noble Baroness, Lady Hayman, mentioned the Government’s clean growth strategy and their announcement five years ago, in 2017, about setting a target to get all housing up to energy performance certificate band C by 2030. Although many social housing providers have made strides to improve efficiency, we have heard in this debate that more needs to be done quicker. If we are to reach our net-zero targets by 2050, we must decarbonise our buildings, including the 2.7 million housing association homes in England. Housing association homes are, on average, more efficient than any other home but, as we heard, there is still much to do. The noble Lord, Lord Bourne, said that we have some catching up to do in this area, and he is absolutely right.
The noble Baroness, Lady Pinnock, and the noble Lord, Lord Foster of Bath, talked about insulation. We believe that social housing providers should be required to properly insulate properties to a high standard. Social housing tenants were not eligible for assistance under the new Green Deal, and some housing associations have in fact refused to insulate properties that are extremely cold and energy consuming in winter, simply because they do not have to do so. Insulating existing social housing properties would significantly reduce greenhouse emissions in the United Kingdom, help us to meet our legally binding CO2 reduction targets and potentially save the lives of many vulnerable people in the process. With people saying that they may have to choose between heating and eating this winter, this is even more critical.
This is not just about bringing existing properties up to energy band C; we also need to consider new build and our legislation around expected standards. According to Inside Housing, housing associations have built only a tiny number of homes that have the highest energy performance certificate rating of band A. The biggest 157 associations in the UK completed just under 50,000 homes in the 2021-22 financial year, but only 607 of those—1.2%—achieved a band A rating. In fact, the number of energy-efficient homes being completed by associations has actually fallen since last year, when they built 651 band A-rated properties. This data also shows that social landlords are falling behind the wider building sector. Two per cent of all new builds in England and Wales were EPC band A, according to the latest data. Although that rate is low, it is still more than 40% higher than the proportion built by housing associations.
Baroness Scott of Bybrook (Con)
My Lords, I begin by welcoming members of the Grenfell community, some of whom are in the Gallery today, while many are watching online. I commend them for their continued engagement in this vital piece of legislation and assure them that they are never far from our thoughts and prayers.
First, I thank the noble Baronesses, Lady Pinnock, Lady Thornhill and Lady Hayman, the noble Lord, Lord Best, and others for this debate on these very important issues, which are becoming more important as energy becomes a bigger and bigger issue for the people of this country. These amendments seek to make changes to the Regulator of Social Housing’s statutory objectives and standard-setting powers and to the approach to energy efficiency in the social rented sector.
I begin with Amendment 1 in the name of the noble Baroness, Lady Pinnock, and Amendment 21 in the name of the noble Baroness, Lady Hayman. As I said, energy efficiency is an important topic, both to meet our net-zero commitments and to reduce residents’ energy bills over the long term, which we know is more important than ever at this time. Many registered providers of social housing are already striving to improve the energy efficiency of their properties. Indeed—I think this is an answer to the first question from the noble Lord, Lord Whitty—two-thirds of the sector currently achieves an EPC rating of C or above, making it the best-performing housing sector we have.
The Government are committed to considering setting a new regulatory standard of EPC C in the social rented sector and to consulting the sector before that standard is set. I am sure this is something that incoming Ministers will want to look at once they are appointed. Also, the Government committed £800 million in the 2021 spending review to the social housing decarbonisation fund, bringing the total committed to just over £1 billion. The fund will support the ambitions set out in the Clean Growth Strategy that as many homes as possible are improved to energy performance certificate EPC band C by 2035, where practical, cost-effective and affordable, and for all fuel-poor homes to reach that target by 2030.
As well as achieving good standards on average, many providers are already including net-zero considerations in their long-term planning and recognise the importance of improving energy efficiency. In the Heat and Buildings Strategy, published in October 2021, we committed to consider setting a new standard on energy efficiency in the social rented sector and that we would consult the sector before doing so. This part of the process is vital. Setting targets such as those proposed in Amendment 21 would exert significant financial pressure on social landlords who must balance differing spending priorities. We need to know whether spending on net zero might come at the expense of being able to deliver much-needed new housing and, importantly, home repairs.
That is why we must ensure that plans to decarbonise social housing are properly scrutinised and that we understand the broader impacts of any proposed metrics and standards. A full consultation and impact assessment would be a key step to understanding the impact of new standards on social landlords and on residents—who will benefit most from improved energy efficiency.
I assure the noble Baroness that improving energy efficiency in the social rented sector is a priority. The regulator already requires providers to meet the decent homes standard, which requires efficient heating and insulation. Including energy efficiency in the regulator’s objectives would therefore be only a symbolic change. Changing the objectives to include an already existing duty would be, in my opinion, a duplication.
I agree with the comment from the noble Baroness, Lady Hayman, that much of the debate that we have had this afternoon should possibly be taken in the Energy Bill as well. It is important that it is not forgotten.
The noble Lord, Lord Whitty, brought up the issue of the planning system and pleaded for incentives for regeneration rather than demolition and rebuild. I have to say that I agree with those sentiments but I do not have the answer. I will write to the noble Lord and will put a copy in the Library.
On communal heat networks, raised by the noble Baroness, Lady Hayman of Ullock, the Government have confirmed—I think I mentioned this in an answer to a question today—that network customers who will not be reached by the Energy Bills Support Scheme will be supported with an equivalent scheme, which is very good news. We are also taking powers in the Energy Bill to rectify the situation and Ofgem will regulate this in the future.
I now move on to Amendment 4 in the name of the noble Baroness, Lady Thornhill, and the important issues of cladding remediation and fire safety. The noble Baroness, Lady Pinnock, brought up the funding for replacement of usage of non-ACM cladding. The Government have committed to £400 million to replace unsafe ACM cladding, and a £4.5 billion fund to remediate unsafe non-ACM cladding on residential buildings over 18 metres or just below in all sectors. There is money there for non-ACM cladding.
Nothing is more important than keeping people safe in their homes. The Bill is just one of a number of reforms that the Government have delivered in response to the Grenfell Tower fire; this includes this year’s Building Safety Act and last year’s Fire Safety Act. The department continues to work closely with registered providers to look at ways to make sure that buildings with unsafe cladding are remediated quickly. However, we are not persuaded that this type of monitoring is appropriate for the Regulator of Social Housing to undertake. While the regulator collects data from registered providers to inform its regulation of the standards, it is not a specialist health and safety body. The regulator’s data collection powers enable it to collect only data relevant to its regulatory functions. Significantly, its regulatory remit does not extend to monitoring the progress of cladding remediation.
The department is currently examining options for monitoring and reporting remediation progress in future, including cladding remediation. We strongly believe that decisions in this area should be based on thorough analysis of available options; this will ensure that the function is undertaken by those with the correct skills, expertise and capacity. Consequently, it would be counterproductive to pre-empt the outcome of this work by adding this amendment. I am, however, keen to reassure the noble Baroness that ensuring that landlords provide safe, high-quality social housing remains a key part of the regulator’s role.
I now turn to Amendments 2 and 22 in the names of the noble Baroness, Lady Thornhill, and the noble Lord, Lord Best, respectively, which relate to the regulator’s role regarding homelessness. The Government are committed to tackling homelessness before it occurs; this year we provided local authorities with £316 million in homelessness prevention grant funding. Since the introduction of the Homelessness Reduction Act 2017, over half a million—510,930—households have been supported into secure accommodation. We have made excellent progress on our manifesto commitment to end rough sleeping and will build on this progress through continued work with our range of partners. To deliver our vision, we have brought forward a bold new strategy to end rough sleeping and we have pledged £2 billion over three years to deliver on this ambition by supporting local authorities and partners to deliver on this strategy. It will continue to be the role of local authorities to consider how their allocation policies support those in need of social housing, including people who are homeless. It differs very much, depending on where that local authority is and its demography.
While we expect landlords to treat everyone with respect and deliver a high-quality service to all, the measures in the Bill are targeted specifically at existing social housing residents. This is to enable the regulator to monitor compliance with its standards, supporting improved services for residents.
The regulator’s existing tenancy standard already sets an expectation that providers take account of the housing needs and aspirations of tenants and potential tenants, and assist with local authorities’ strategic housing function. This includes homelessness duties. Providers are also required to provide services that will support tenants to maintain their tenancy and prevent unnecessary evictions. I also note that the regulator plays a vital role in ensuring that providers are financially viable and well managed, which protects tenants from situations that would put their housing at risk. Following the passage of the Bill, the regulator will review and consult on changes to the regulatory standards, including the tenancy standard.
Baroness Pinnock (LD)
My Lords, first, I want to remind us all that this Bill is here largely because of the tragedy at Grenfell, to recognise that and to thank the campaigners for, in a time of deep distress, taking up the cudgels on behalf of not only those who suffered and died in the Grenfell tragedy but the whole social housing sector, to improve the quality of social housing for everybody. We should all be grateful to them for what they have forced this Government and ourselves to address and to respond positively to—so thank you.
I thank everybody for the debate we have had on such important issues. It has been an excellent debate and, across the Committee, we have all agreed. I am not sure the Minister has, but I am sure she can be persuaded and I thank her for her responses to the issues that have been raised. I want to say one or two words. There are three big debates here, are there not? One is about energy efficiency, where I thought the two amendments actually knitted together really well. In principle, there is a duty there to add that to the objectives of the regulator and, obviously, the strategy, the plan that is going to get us there. That was beyond me, so the experts took that on, and, you know, why do we not just say yes to it? Because it is so good—is it not?—and very important at this particular time. Some £700 per household could be saved if we insulated homes properly. In some parts of the country we did that, so we can do it everywhere.
On responsibility for homeless provision, I was really shocked by the statistics from the noble Lord, Lord Best, that 10,000 tenants have been evicted. Did I hear that right? I did. That is dreadful: 10,000 tenants evicted and then homeless. Where do they go? That has to be put right. Again, that was at the heart of the principle and the plan that we heard about from my noble friend and the noble Lord, Lord Best. A strong case was made. I know that the Minister has had to read out what she was given, but the case was there. I am sure this amendment will come back on Report, as will the one on energy efficiency.
Finally, I make no apology for raising cladding once again. The social housing sector is not as well funded to deal with it as other areas, and until I am convinced that it can be achieved without costing tenants and the opportunity cost for providers, I will keep raising it.
It has been a good debate. I thank the Minister for what she said, and I therefore will not press my amendments —but I will probably bring them back on Report.
“(d) after paragraph (d) insert—“(e) to make recommendations to the Secretary of State in relation to compensation for tenants of social housing.””Member’s explanatory statement
This amendment would allow the regulator to make recommendations about compensation for tenants.
Baroness Wilcox of Newport (Lab)
My Lords, I draw the Committee’s attention to my interest in the register as a vice-president of the Local Government Association. This group of amendments relates to monitoring and enforcement of what will become this Act, with three of the four amendments tabled by the Labour Front Bench.
Amendment 3, in the name of my noble friend Lady Hayman of Ullock, would allow the regulator to make recommendations about compensation for tenants. I would like to ask the Minister about government guidance on compensation and how the Government view the future relationship between the regulator and compensation working in practice.
Amendment 28, in the name of the noble Baroness, Lady Pinnock, relates to the powers for the regulator to arrange surveys of the condition of social housing properties. The amendment notes that tenants must be given only 24 hours’ notice, whereas providers are given 48 hours’ notice. This amendment rightly draws attention to the need for social housing tenants to feel safe and secure in their homes—the basis of that hierarchy of needs that so many of us learned about at university. It seems completely unnecessary that they are given such short notice, so, again, I ask the Minister about the discrepancies in this area.
Amendment 32, in the name of my noble friend Lady Hayman of Ullock, would mean that emergency remedial action “must” take place, rather than “may”, if those conditions are met. Words are powerful things, and the implications behind “must” and “may” are equally important. The intention is to highlight the importance of emergency action to fix problems in social housing and to raise areas of concern about poor housing conditions. Emergency remedial action removes the risk of serious harm. As I know only too well, a local authority has an immediate right of access if it decides to take emergency action. If this happens, the tenant and landlord are served with a notice, and the local authority can claim back the cost of any work from the landlord. Unfortunately, unscrupulous landlords have used such actions to evict tenants, as those with limited security of tenure can be evicted fairly easily. Some landlords may choose to evict a tenant following a complaint from that tenant about the condition of the property, rather than carrying out the necessary work. This amendment would go some way to further support the rights of tenants to live in decent homes.
Amendment 48, also in the name of my noble friend Lady Hayman of Ullock, would mean that the Secretary of State must publish an annual statement to include the number of successful and unsuccessful appeals in any given year.
This amendment seeks more information about the appeal procedure and urges the Government to be transparent about its operation. I beg to move.
Baroness Pinnock (LD)
My Lords, I want to speak to Amendment 28 in my name. Clause 22(3) sets out the powers to carry out a survey of a property without a warrant. The authorised person, who would be named by the regulator, is given these powers by this clause, as long as the registered provider has been given 48 hours’ notice. This seems fair enough to me. By the same clause, the tenant is given only 24 hours’ notice. The reason for the difference in the timings of the statutory notice is not clear to me. The purpose of Amendment 28 is to probe the thinking behind this difference. In lieu of any explanation, I propose that the notice period for both provider and tenant should be 48 hours.
The changes made by Clause 22(3) move the responsibility for giving notice to enter a property from the registered provider to the authorised person. Therefore, there is no practical reason—as there was originally in the Housing Act—for the difference in the notice period. This is especially true as, to quote from the Bill, the notice can be fixed to a
“conspicuous part of the premises.”
When the Minister responds, will she also help me by explaining the addition to the Housing and Regeneration Act 2008 of new Section 218B? I apologise; I noticed this only when I was reading the Bill more carefully yesterday. The tenant is provided with a copy of the performance improvement plan—which is drawn up where a registered provider has failed to reach a statutory standard for properties under their responsibility —only if they make a “written request” for one. This seems unreasonable and not to fulfil the other parts of the Bill which are for greater transparency. In my view, the registered provider or the regulator should have a duty to inform the tenants affected by the performance improvement plan as a matter of course. Tenants who are directly impacted by poor quality of provision will want to be in a position to ensure that the plan is fulfilled. They are best placed to call the registered provider to account. I apologise for raising this issue at the last minute in the debate. If the Minister cannot give me a reply, I should be happy to receive a written response.
The amendments in the name of the noble Baroness, Lady Hayman of Ullock, make excellent sense and we support them. I beg to move my amendment.
The Deputy Chairman of Committees (Baroness Fookes) (Con)
My Lords, I remind Members of the Committee that only the first amendment in a group is moved until such time as it is reached on the Marshalled List.
Baroness Scott of Bybrook (Con)
I thank the noble Baronesses for tabling amendments on these important issues. This group of amendments primarily relates to the Regulator of Social Housing’s monitoring and enforcement powers.
Amendment 3 relates to compensation. I begin by stating that registered providers of social housing should always seek to rectify problems relating to the housing they provide. In certain circumstances, where they do not do so and continue to fail their tenants, it is right that tenants are compensated for the suffering caused as a result of these failings. However, I must reject this amendment.
Baroness Wilcox of Newport (Lab)
My Lords, I am glad to hear that the amendment of the noble Baroness, Lady Pinnock, which seems both eminently sensible and fair, will be taken away by the Minister for further discussion—a very positive outcome—and that the Minister agrees that these are very important issues and that registered providers of social housing should always seek to remediate properties. Again, I thank the Minister for reminding us of the facts surrounding compensation. On emergency repairs, the regulator can step in for appropriate emergency action. I am glad that this new tool exists.
Clearly, I am disappointed that the Minister cannot accept the change of emphasis from “may” to “must”, but I am glad she recognises the importance of the appeal mechanism and I accept the notion of duality, which she explained clearly. On that basis, I beg leave to withdraw the amendment.
Baroness Pinnock
“(2) After subsection (3) insert—“(3A) In undertaking its objective under subsection (2)(b) the regulator must report to the Secretary of State at least every three years on whether the provision of social housing in England and Wales is sufficient to meet reasonable demands, and must make recommendations to the Secretary of State on how to ensure that the provision of social housing is so sufficient.” (3) The Secretary of State must lay a copy of any reports prepared by virtue of subsection (2) before Parliament.” Member's explanatory statement
This amendment would require the regulator to report to the Secretary of State on the adequacy of the stock of social housing.
Baroness Pinnock (LD)
My Lords, Amendment 5 is in my name and that of my noble friend Lady Thornhill. It requires the regulator to report to the Secretary of State on the adequacy of the stock of social housing. We have rightly spent a lot of time so far in the debate on this Bill thinking about the quality and standards provided by the social housing regulator, but we should also be thinking about the sufficiency of supply, hence this amendment.
The recent report of the Built Environment Committee of your Lordships’ House spelled out the stark statistics on this issue. In its report, the committee states that in March 2021 there were 1.2 million house- holds on local authority waiting lists. Many people are desperate to access social housing because the rents are within their means and the housing built to a decent standard.
The report from the House of Commons Housing, Communities and Local Government Committee, Building More Social Housing, concluded that the Government should introduce a large-scale social housing programme. That is exactly what our amendment is asking: for the regulator to report to the Secretary of State at least every three years on whether the provision of social housing is sufficient to meet reasonable demands. We want a focus not just on the numbers of social housing but on the types of housing needed. As far as numbers go, the Lords report estimated that 90,000 homes for social rent need to be built every year, whereas earlier the Minister reminded us that the Government have set out for 150,000 over a much longer period. Clearly, the Lords report is asking for a much larger-scale investment in building homes for social rent.
It is important to consider not only numbers but the types of housing built. The Lords committee report concluded that older people’s housing choices are very much constrained by the options available to them and that there will need to be more specialist housing for older people if the housing market is to be sustainable. This growing need for more specialist housing for older people, so that they can retain their independence, is vital. By 2032 it is estimated that there will be more than 5 million people in the UK who are over 80 years old. Building housing with extra care enables older people to live in a supported way and as independently as possible. This has a dual benefit of also reducing demand on social care.
Social rents are generally set at the local housing allowance, whereas families who want but are not able to access social housing often rent from the private sector, where rents invariably are higher than the local housing allowance. This results in those families who are dependent on benefits being even more impoverished, since they have to make up the rent to the landlord out of their benefits, over and above the LHA allowance that they get towards their rent. No wonder families end up going to food banks, when the rent that they are charged is more than the benefit they are provided with.
Lord Foster of Bath (LD)
My Lords, the various amendments in this grouping are largely about monitoring, reviewing and assessing. I am very supportive of all of them, particularly the requirement in the first amendment from my noble friend on the Front Bench that there be an assessment of the sufficiency or otherwise of social housing stock in this country. I place on record how much I agree with her about the way in which such properties are built. We should ensure that many of them are built in such a way that gives an opportunity for people to live longer in their homes. There are some very simple issues that could be taken on board, such as ensuring a reasonably thick wall going up staircases so that stairlifts can subsequently be attached to them, which is rarely done at present.
Having said that, my Amendment 12 in this group concerns a somewhat niche but important issue relating to safety within social housing. It is an issue I have raised on a number of occasions, and I now have an opportunity to praise the Government for doing nearly everything that I want. My amendment seeks to persuade them to go that final bit further to achieve everything that I hoped to achieve.
During the passage of the then Building Safety Bill I drew attention to the large number of property fires caused by faulty electrical installations or appliances, some with devastating consequences. I pointed out that in the privately rented sector it is already mandatory to have safety checks on electrical installations every five years, but that there is currently no similar requirement in the socially rented sector, despite the social housing charter specifically stating:
“Safety measures in the social sector should be in line with the legal protections afforded to private sector tenants.”
I moved an amendment to that Bill to try to rectify this but, sadly, it was rejected by the Government on the grounds that it would lead to an added burden on the new safety regulator and would
“distract it and hinder its success.”—[Official Report, 29/3/22; col. 1403.]
However, I am delighted that, in a very short space of time, there has been a welcome change of heart by the Government following their own working group concluding that five-yearly checks on installations in social housing should take place. That is reflected in Clause 10 of this Bill, which amends Section 122 of the Housing and Planning Act 2016 to extend it to all landlords, thus including social landlords. It is a measure that I applaud. A consultation, which ended just a few days ago, has already taken place to consider the details of how such measures should be introduced. I welcome that.
The great thing is that the Government have even gone one stage further. They have clearly now decided that five-yearly checks will definitely go ahead in the socially rented sector, because paragraph 81 of the call for evidence of that consultation says:
“The government acknowledges the support of the Working Group for this proposal and agrees with the proposal to mandate five-yearly checks of electrical installations.”
It is now clear that the Government will go ahead and it is merely the details of how the scheme will work that have to be finalised.
Even at Second Reading I was pleased with all this, although the consultation had not taken place at that time, nor had we had that final statement that we would be going ahead. However, I pointed out that
“a careful study of Clause 10’s proposed way of achieving”
the five-yearly checks
“by amending Section 122 of the Housing and Planning Act 2016—reveals that the Secretary of State does not have to make any changes; merely that he may do so.”
I asked the then Minister—the noble Lord, Lord Greenhalgh —to give me an assurance that
“following the consultation, the Government will commit to ensuring that ‘may’ becomes ‘must’ so that the pledge to ensure the parity of social tenants with private tenants is honoured”.—[Official Report, 27/6/22; col. 459.]
Very sadly, although I was told that the Government
“would not be putting those powers in the Bill if we were not very serious in our intention to level up between private and public housing”,
he nevertheless declined to accept my proposal to change “may” to “must” and said:
“I know that he, in exhorting me to move from ‘may’ to ‘must’, recognises that we do not want to pre-empt the consultation on electrical safety measures for social housing.”—[Official Report, 27/6/22; col. 468.]
The consultation has now made it clear that the Government will go ahead but will be guided on the details of how they do so as a result of the consultation. Therefore, I now have a new amendment, Amendment 12, to deal with concerns about pre-emption by saying that the Government would have one year after the consultation before they must bring forward the required regulations. It no longer pre-empts the consultation. It would enable the Government to develop regulations to cover the details around implementation over the coming year. At the same time, it would ensure that the legislation required the much-needed and, as I am sure the consultation responses already show, widely supported introduction of mandatory five-yearly checks on electrical installations to take place in the socially rented sector. We nearly got there; on this occasion, I hope that we will have the Minister’s support for this amendment.
Baroness Jones of Moulsecoomb (GP)
Very quickly, I will speak to Amendment 5, but I support others. I am a big fan of social housing. I grew up in a council house in the 1950s and 1960s and my parents thought they were the luckiest people alive to have a new council house. It was a very happy home. These days, social housing is in very short supply, partly as a result of all sorts of population changes but also because of the Government’s very badly thought through right-to-buy policies. Somehow, we have to mop this up.
The Green Party’s 2019 manifesto committed to fund councils to deliver more than 100,000 new social houses per year
“through sustainable construction, renovation and conversion”.
That is the scale of the solution needed to make local communities much more secure in their social housing. The Government have to remove the barriers that local authorities and social landlords face.
I will touch very briefly on freezing or limiting social rent increases. I very much feel that these rent increases need to be kept as low as possible—or frozen. The Government have to backfill the large gaps that this would leave in the funding for social housing. I also suggest a ban on evictions at the moment, because life is getting harder and harder. It seems downright unfair if the Government are going to pay energy companies £0.25 trillion to cap energy prices but, at the same time, pay nothing to social landlords to cap rents.
Baroness Hayman of Ullock (Lab)
My Lords, I will first make a few comments about the amendment in the name of the noble Baroness, Lady Pinnock. It is important that she has drawn attention to the issues we have around the huge demand that exists for social housing. The noble Baroness, Lady Jones of Moulsecoomb, talked about the short supply as well. That means we have incredibly lengthy waiting lists. People often cannot get a property because there are no suitable properties available for their needs.
I would also like to reflect on the bedroom tax, which caused all sorts of problems with the availability of inappropriate social housing for people who had been asked to move. It is something we have to address. I was pleased that the noble Baroness talked about the importance of ensuring that, when investment is made, it is made in the type of housing that is needed, which also needs to be built to appropriate standards. Again, this is something that the noble Baroness, Lady Jones of Moulsecoomb, mentioned around sustainability.
When I was a Member in the other place, local residents brought up the lack of appropriate social housing time and again. It was one of the major unsolvable problems, to be honest, that we had to deal with all the time. So I hope that the Minister takes this away and that we can look at having a proper programme of decent, sustainable, appropriate social housing development.
On the amendment from the noble Lord, Lord Foster, we supported him on the safety concerns and protections that he raised during the passage of the Building Safety Bill and join him in welcoming Clause 10 on electrical standards, as clearly it is important. Once again, we support his comments on the consultation and his amendment in this area.
I have a number of amendments in this group concerning the impact, the timing and the transparency of decision-making in the Bill. My Amendment 24 to Clause 19 would mean:
“Any direction under subsection (2A) must be laid before both Houses of Parliament.”
This is to ensure that there is proper oversight and transparency of any standards and objectives set by the Secretary of State.
My Amendment 27 to Clause 21 would ensure that performance is monitored routinely rather than ad hoc by requiring the Secretary of State to publish regular timetables for the purposes of performance monitoring. It is important that the Bill brings in stronger enforcement powers for the regulator to tackle poor performance and we support these tougher enforcement powers. However, we also believe that they should be used in conjunction with a tough, regular inspection regime. Shelter has made it clear that it believes routine inspections are needed to make good practice and good behaviour the norm. However, I am aware that we shall be discussing this aspect of the Bill later today in group 6, so I shall move on.
Baroness Scott of Bybrook (Con)
My Lords, I thank the noble Lords for tabling these amendments, which all relate to the implementation and review of the Bill. Before I start, I will respond to the issue raised about social housing rents by the noble Baroness, Lady Jones, as it does not really fit in to this debate. I would just say that we are consulting on setting a ceiling on rent increases in 2023-24. The consultation sets out several options for the ceiling; responses will be considered once the consultation closes, which we expect to be in a short time rather than a long time.
I will begin with Amendment 5 in the name of the noble Baroness, Lady Pinnock. The noble Baroness is right to highlight the importance of social housing supply, but also that it is not just about any houses; it is now very much about specific housing—housing for older people and families as well as for disabled people and vulnerable people. The Government are committed to increasing the amount of social housing but also to looking at the prioritisation of specific housing for specific groups.
Housing will be provided through our £11.5 billion affordable homes programme and I think it entirely appropriate that the regulator should have an objective to support the provision of social housing. However, I do not accept the noble Baroness’s request that it should be the regulator’s role to assess the need to increase the provision of social housing or to make recommendations as to how that might be achieved. There are many other organisations, such as the Chartered Institute of Housing, Savills and Shelter, which publish reports on these important issues at regular intervals.
I am concerned that asking the regulator to fulfil this role would not only be unnecessary but divert resources and attention from its important responsibilities, such as registering providers, setting standards in social housing, assessing risks across the sector, conducting financial checks of providers and carrying out enforcement action where needed. Instead, I believe that the regulator should continue to support the provision of social housing through its work to ensure that private registered providers are financially viable, efficient and well-governed. This in turn helps to ensure that the private registered providers can obtain funding to enable them to deliver more social housing.
Amendment 12, in the name of Lord Foster of Bath—who has already given part of my response—concerns the electrical safety consultation. As the House has already heard, we fulfilled our commitment to consult on electrical safety in social housing and the consultation closed only last week. In my opinion, it would not be right to pre-empt its outcome before carefully reviewing the responses we received. However, the Committee may note that the Electrical Safety Working Group, which included representation from across the social sector, was supportive of mandatory electrical safety checks, and I would not be surprised if the outcome of the consultation chimed with those views. However, it is only fair and reasonable that we do not pre-empt the final consultation.
Amendment 24, in the name of the noble Baroness, Lady Pinnock, relates to directions issued by the Secretary of State to the Regulator of Social Housing. The amendment would require the direction relating to information and transparency to be laid before both Houses. There is already an established process for issuing directions to the regulator, set out in Section 197 of the Housing and Regeneration Act 2008. The process requires that any direction be published in draft and subject to consultation ahead of being formally issued. This provides an opportunity for stakeholders, including parliamentarians in both Houses, as well as members of the public, to have a say on the drafted direction before it comes into force. In our opinion, this already provides sufficient opportunity for scrutiny of the information and transparency directions before they come into effect.
Amendment 27 in the name of the noble Baroness, Lady Hayman of Ullock, relates to timetables for performance monitoring of registered providers. Clause 21 of the Bill enables the regulator to deliver tenant satisfaction measures, including setting dates for the publication of such data and the period it covers. As the body granted legal powers through Clause 21, it is right that the regulator, not the Secretary of State, decide matters relating to timing of performance information. The regulator has already consulted on these matters and will respond in due course.
Amendment 52, tabled by the noble Baroness, Lady Pinnock, concerns scrutiny of the impact of the Bill. The Government recognise the importance of appropriately reviewing the impact of legislation. We will work with the regulator, and the Housing Ombudsman where appropriate, to conduct a full review at the end of one regulatory cycle to determine the impact of the measures introduced. This will be after four years of the new regulatory regime being in place. We committed to that in our regulatory impact assessment, and I am happy to commit to it again today.
The commitment to a review after a four-year cycle is important for two reasons. First, following the passage of this legislation, a number of steps will need to take place before the proactive consumer regime is implemented in full. These include the Secretary of State issuing directions to the regulator and the regulator subsequently consulting on the revised consumer standards. A review after one year would not allow sufficient time for those changes to take effect. Secondly, it is right that we wait for a four-year regulatory cycle, at which point the measures will have had time to take effect and have had full impact on the sector.
Amendments 53 and 65 have been tabled by the noble Baroness, Lady Hayman of Ullock. The former would mean that the entirety of the Act came into force on the day it was passed, and the latter would require an assessment of the impact of this legislation’s timing. The noble Baroness asked me one very important question: why has the Bill taken so long to be introduced? We spent time listening to residents, hearing first hand about their experiences and how they wanted to see change. Over 8,000 residents contributed to these discussions. We published our social housing White Paper in November 2020. This is a complex process and programme, and we want to make sure we get it right, so it will take time for us to fully implement it.
The legislation will have a significant impact on the lives of social housing tenants across the country, and the measures will be implemented at the earliest appropriate opportunity. The majority of the provisions in this Bill will come into force on such a day or days as the Secretary of State may appoint by regulations. The timing of commencement is directly linked to the overall implementation of the strengthened consumer regulation regime, and we need to allow time for the sector to prepare.
The Regulator of Social Housing has already begun its work to develop this new regime. It plans to commence its statutory consultation on the regulatory standards following Royal Assent and the issuance of directions from the Government, with a view to full implementation in 2024. However, the message to registered providers is clear: do not wait for regulation to make changes—act now. I hope that noble lords are satisfied with the responses I have given to the amendments, and I ask that the noble Baroness withdraw her amendment.
Baroness Pinnock (LD)
My Lords, I thank the Minister for her detailed response. I note that my noble friend Lord Foster of Bath is probably the only person this afternoon who is receiving a positive “thumbs-up” response, to his determined campaign for electrical safety. That is one win for my noble friend, and some “maybes” for the rest of us.
I have listened carefully to the answers the Minister gave to the amendments in the name of the noble Baroness, Lady Hayman of Ullock. I will check because some of them sounded acceptable, but I am not sure about leaving the regulator to determine the timing of the impact. I will read Hansard to see whether those issues should be pursued further.
That brings me to Amendment 5, on the sufficiency of housing, which is fundamental to any debate on social housing provision. I am sorry to say that I had a bit of difficulty with the response. It is all very well saying that other organisations provide statistics and scrutinise social housing provision numbers, quality, decency and so on, but we need in our legislation a regulator or the ombudsman to be able to state the facts and comment to the Government—and to have the stature to do so.
I will read what the Minister said carefully, but the essence of the argument seems to be, “There are other people who do it, so why should the Government?” The regulator should be concerned with housing numbers because it is required to think about and has a responsibility for the safety, provision and quality of social housing. Adding “sufficiency” to its list of responsibilities would be a positive move. However, I accept the Minister’s supportive words on not only the number of houses but their suitability. With those comments, I beg leave to withdraw my amendment.
Baroness Hayman of Ullock
“(4A) In making appointments to the Panel, the regulator must give consideration to appointing persons from different regions of the United Kingdom.”Member's explanatory statement
This amendment would ensure regional diversity on the Panel.
Baroness Hayman of Ullock (Lab)
My Lords, I will introduce my three amendments in this group. First, Amendment 6 is supported by the National Housing Federation and the Local Government Association. It would amend Clause 2 to ensure that there is diverse regional representation among the members of the proposed advisory panel and that those members can then provide the regulator with information and advice on issues that may arise or vary at a regional level.
The LGA has further suggested that the Bill could also ensure diversity of councils on the panel in terms not just of region but of authority size, the quantity and quality of housing stock and social housing management arrangements. We agree with the LGA that it is vital that the membership of the panel comprises a diverse range of councils so that consumer issues right across the sector can be effectively represented. However, although we support the panel, we are disappointed that the proposals stop short of making it a permanent national representative body for tenants. Why has the decision been taken not to make this permanent? Do the Government intend to review this at some stage?
Improving tenant engagement and listening to what tenants say is clearly one of the most important lessons from the Grenfell Tower tragedy, so tenants need to be right at the heart of the advisory panel. This is why I have put forward Amendment 7, which says that the panel must be chaired by a tenant with responsibility for agenda setting. I hope that the Minister understands why it would make a huge difference to tenants’ trust and belief if the panel were to really give them a voice.
I thank the noble Lords who supported my Amendment 30: the noble Lord, Lord Young of Cookham, the noble Baroness, Lady Thornhill, and my noble friend Lord Whitty. It seeks to create a power for the Secretary of State to require managers of social housing to have appropriate qualifications and expertise. The fire at Grenfell Tower in 2017 was a stark example of what underregulated and unprofessional management in social housing can lead to. Bringing some level of professionalisation into the housing sector has been argued for consistently and cogently by members of Grenfell United. I thank them for their continued work and persistence and for the time they gave to discuss their concerns in this area with me.
Grenfell United believes that a more professional housing sector is one of the main ways by which to create a fitting legacy for the 72 lives that were so needlessly lost on 14 June 2017. In the social housing White Paper, the Government said that they would
“Review professional training and development to ensure residents receive a high standard of customer service.”
But the Bill introduces no measures that would enable professional standards to be mandated in law. Poorly managed and maintained social housing can cause serious harm to renters’ health and well-being—yet there are no requirements to be properly qualified or to undergo professional development.
Ministers have described social housing as the first social service. Well-managed social housing, offering adequate levels of support to residents, takes pressure off health and social care service as well as early years and school support services. But, first and foremost, we believe that professional qualifications and development should be mandatory for senior managers working in social housing. Qualifications and training should aim to provide housing management staff with the skills and knowledge needed to do the job, as well as instilling the values and ethics needed to deliver a care-centred service for residents.
Having senior staff with the appropriate skills and qualifications would ensure that the teams of housing officers and other junior staff that they manage are professionally run, thereby delivering a quality service for all residents. This would balance the need for professionalisation, while not creating barriers to housing associations and councils finding enough staff. We do not intend this amendment to be prescriptive: it requires regulations to define what types of work would require a qualification.
The Minister will no doubt be aware that the Government are currently conducting a review into professional standards within the social housing sector. We believe that there should be legislative backing to ensure that its conclusions can be implemented and upheld effectively. It is also important that the review is published in time for its recommendations to be considered as part of the development of this legislation, so can the Minister confirm that it will be available during the progress of the Bill?
Since the fire at Grenfell Tower, survivors and thousands of tenants of social housing have demonstrated time and time again that they do not have trust in the regulator on its own. The Government rightly recognised the need for action and accountability following the fire and promised a new deal for social renters. This amendment would allow for the monitoring and enforcement of professional standards in the social housing sector, including clear government direction and accountability. Surely this is an area in which the Minister could agree with us, and perhaps we could work together to take some of these issues further forward.
Finally, I am aware that my noble friend Lord Whitty has Amendment 47 in this group. I assure him that we support what he is trying to achieve with it, and I look forward to hearing more detail from him.
Lord Young of Cookham (Con)
My Lords, I will add a brief footnote to the speech made by the noble Baroness, Lady Hayman, who spoke to Amendment 30, to which I have added my name, as she said. As we have been reminded throughout the debate, Grenfell Tower was a tragic reminder of the need for professional management in social housing. Unlike private tenants, social tenants have few options to move to an alternative landlord if they do not get the service that they are entitled to.
During the passage of the Bill on social care, I urged the Government to do more to drive up professional qualifications in the social care sector so that it could compete more effectively with the health service in the recruitment of staff, develop a proper career structure with improved conditions of service and, as a crucial outcome, drive up the quality of care received by the customers. Much of that argument applies equally to social housing, where many of those employed will come across vulnerable families and where those managing social housing need the capacity that comes with relevant training to ensure that those families get the support that they need.
I am well aware of the counterargument that was deployed in the debate on social care and that may well be deployed against this amendment—namely, that there are many committed people working in the sector who have no professional qualifications but none the less provide a first-class service, and we do not want to lose them. We also do not want to introduce barriers to entry for a service that often finds it difficult to recruit. But I believe that the amendment addresses those objections by requiring those managing social housing to have appropriate professional qualifications or satisfy specified requirements. There is sufficient flexibility, not least in proposed subsection (3), which refers to a
“specified qualification or experience of a specified kind”.
Of course, the amendment only applies to those in a managing role, not others involved in the sector.
Now I believe that the Government are aware of this need to drive up standards and quality of management in the sector, as their White Paper said they would undertake to:
“Review professional training and development to ensure residents receive a high standard of customer service.”
I am sure that the Chartered Institute of Housing, which represents those employed in the sector, would help develop the appropriate modules of training, building on its existing expertise—as indeed would the National Housing Federation. However, at the moment, the Bill is simply silent on this issue, which is highly relevant to the regulation of social housing. As the noble Baroness said, the department has set up a working group to review professional standards, but that is no substitute for the clear statement of intent set out in the amendment. As the noble Baroness said, we need to know when that working group will publish its report.
So what I think we are hoping for from the Minister in response to this amendment is a clear restatement of the principle set out in the White Paper, coupled with some identifiable milestones so we can monitor progress towards that destination, and a commitment to a serious and sustained dialogue with the professional bodies concerned so that we get the details right. I look forward to my noble friend’s response.
Lord Whitty (Lab)
My Lords, my name is attached to both Amendment 30, which was so ably moved by my noble friend on the Front Bench, and Amendment 47. I will not repeat everything my noble friend said, but I endorse all of it.
I will focus on the nature of the problems some tenants of social housing have encountered. In recent media exposés, we have seen serious problems in social housing—both local authority and housing association —of unaddressed conditions of damp, infestation and electrical faults. I will read an extract from a letter I received this morning from a tenant of social housing—I will not identify the landlord. The tenant says, “I have witnessed first hand terrible living conditions and treatment of tenants by my housing association. This includes illegal entry to properties, landlord harassment if a tenant makes an official complaint, poor repairs, failure to deal with severe anti-social behaviour from neighbours, lack of insulation, failure to decently carry out essential maintenance, poor fire safety and huge lies about cladding”.
That is not a unique experience; we have seen enough of it to indicate the decline of the management of social properties in too many areas of local authorities and housing associations. The reasons for this are not clear, but it has been partly about the structure of the industry and because local authorities have been under severe financial pressure, which has starved them of the ability to staff issues such as maintenance and support. Meanwhile, it is also true that some housing associations have become, through mergers et cetera, too large to relate effectively to their tenants and their problems.
When social housing was at its best—for example, in the era that the noble Baroness, Lady Jones, referred to—local authorities and housing associations had substantial in-house expertise in their management and professional roles in areas such as architects, construction, maintenance and social support for tenants and their families. Much of that expertise has gone, due to pressures on local authority budgets and so forth. For example, the lack of construction expertise has put local authorities in the hands of developers when they propose major changes. In those days local authorities effectively had the whip hand in dealing with the building sector, because there was competition between a lot of local building companies—but they are now very much in the hands of the big housebuilders and developers. That changes the social responsibilities, and the result has been a failure of maintenance provision, toleration of damp and unhealthy conditions and, as other noble Lords have referred to, a general disdain for the views and knowledge of tenants. That is why I support Amendment 30.
Baroness Thornhill (LD)
My Lords, before turning to Amendment 30, to which I have added my name, I will make some brief general comments about the amendments and say that we strongly support Amendment 6 in the name of the noble Baroness, Lady Hayman of Ullock, on regional reps. Normally, I am not a fan of what I would call tokenistic representation but I feel in this case that it is absolutely essential because the regional variation in housing is massive. We go so far as to feel that there should be regional panels for precisely this reason. We appreciate that that would be pushing it too far here, but we are the party of regionalism, after all.
With regard to the chairing of the panel, I understand the need to have the tenant’s voice at the heart of this, but our concern is that if it were prescriptive you may not get the best person for the job and that is who we would want for this crucial role. If we have a concern around the panel, to be blunt, it is its size and its remit. We fear that it will just be a talking shop.
Turning to Amendment 47, I wholeheartedly agree with the noble Lord, Lord Whitty, about regeneration, but feel very strongly that a neutrally phrased question should also apply to ballots on stock transfer. I appreciate that stock transfer is an incredibly loaded political issue, but I genuinely believe that tenants should have—and can be denied—the right to change their landlord, as the noble Lord, Lord Young, said. That is especially the case sometimes when the landlord is the council. Instead, we believe that empowering tenants and giving them a stronger voice at all levels might be stronger in cases of both regeneration and stock transfer.
In many ways I am surprised that Amendment 30 is not part of the Bill. To a lay person, it would seem rather puzzling to imagine that any organisation would be able to do the scale of the job that the Bill is asking them to do without a range of suitably qualified senior managers. The challenge is huge and we want them to succeed—more so as many of the general concerns about the Bill, which, as we have said, enjoys wide, cross-party support, are around capability and capacity, whether of the Government centrally or within the sector. Do they, as a whole, have the skills and capacity to effectively deliver what the Bill proposes and what we all expect, not least what is expressed by all those who are part of Grenfell United, who fully support this amendment?
In my 30 years of being involved in local government, I feel that this is one area that has witnessed incredible changes in the housing sector, most notably in the demands placed on it. It was lovely to hear the noble Baroness, Lady Jones, saying how proud her parents were of their council house and to go back to those days when councils and providers were managing well and coping, on the whole. Now they are stretched, on occasion to breaking point, and permanently under pressure.
During this time, Governments have rightly increased statutory responsibilities on councils and housing providers for higher and better standards to meet changing circumstances. As we know and has been evidenced today, providers have obviously been behind the curve and been caught napping.
Social housing is very scarce resource, which, due to the woeful lack of it, has to be rationed. I do not envy anybody in the job of rationing that scarce resource. It means that people turn up at their council at crisis point, which is very challenging to deal with. A day with a housing officer in my early days as a councillor was a real eye-opener.
I conjecture that the training and development of staff is not always the top priority for an organisation under pressure; ironically, it should be. A suitably qualified professional manager would ensure that this was a priority and not a case of “If we can find time for it” or “Turn up to the training if you can”. The attitude of other employees is also influenced by the tone set on training and development by their managers. They can respect their expertise, demonstrated through their qualifications, which, in turn, contributes to the overall culture of the organisation. It is surely at the heart of the Bill to change the culture of any failing organisation. This is why I find it hard to believe that there is no statutory footing for the greater professional management of this most valuable sector, in line with other statutory services, such as health professionals, teachers and social workers.
It is worth noting that, as social housing has become scarcer, it is those in greatest need who are now rightly housed as a priority. Indeed, the social housing Green Paper has, as someone mentioned, described the sector as the “first social service”. Attention to the most vulnerable in our society takes huge skill and expertise and needs to be well managed.
I note that the National Housing Federation has expressed concern about this amendment, citing existing problems with the retention and training of committed and skilled staff and the ever-present, not to be minimalised, financial strain on providers to fulfil the core requirements of the Bill. That is why we believe that this amendment is much needed for the Government to encourage, cajole and push all the relevant parties, including the federation and the LGA, to work together to address this worrying situation as it currently is. We believe it will completely undermine the whole purpose of the Bill if that is not given serious attention. The chair of a tenants’ advisory service recently said that we do not want to look back in five years and realise that we have been simply rearranging the deckchairs on the “Titanic”. I agree with her.
Baroness Sanderson of Welton (Con)
My Lords, I will speak to Amendment 30 in this group, but I first apologise for not being able to speak at Second Reading. Secondly, I declare my interests, as set out in the register, as someone who works with both the Grenfell community and Theresa May, who I shall mention in a moment.
The Grenfell Tower fire exposed a host of social housing issues, but in terms of this amendment it is important to highlight one in particular: the stigma that existed then and exists now, and which will continue to exist unless we take practical steps to do something about it. As the Green Paper on social housing showed, and as Theresa May said as Prime Minister:
“Some residents feel marginalised and overlooked, and are ashamed to share the fact that their home belongs to a housing association or local authority. On the outside, many people in society—including too many politicians—continue to look down on social housing and, by extension, the people who call it their home … Our friends and neighbours who live in social housing are not second-rate citizens.”
But for that issue to be addressed, those friends and neighbours must not be treated like second-rate citizens, not just by those on the outside but those on the inside, whose job it is to manage their homes.
We know from the Grenfell Tower inquiry what happens when the job is not done properly, when there is poor management and maintenance, no care and no respect, and when repeated pleas fall on deaf ears and people begin to lose hope. We also know that this was not a one-off. As the noble Lord, Lord Whitty, alluded to, the work done by Daniel Hewitt of ITV News and Kwajo Tweneboa on social media has proved beyond doubt that this is a widespread and deep-rooted problem.
I am not sure how we can expect the sector to improve unless we take active steps to professionalise it. We need to encourage people into the profession, to instil a sense of pride in what can be a difficult but rewarding career, and we need to recognise the essential part that social housing managers play in creating a thriving community, alongside our teachers, nurses and social workers, all of whom we expect to be qualified. As one resident of Grenfell Tower who was here earlier said, “You wouldn’t send your child to a school where the teacher was unqualified.” A properly functioning social housing system is just as important to a child’s welfare as its education.
As has been mentioned, it was the Conservative manifesto of 1951 that stated that housing
“is the first of the social services”.
It went on to say that
“work, family life, health and education are all undermined by crowded houses.”
The argument then was about numbers, and it still is—but it is also about standards and acknowledging the modern-day complexity of these roles. By registering social housing managers and ensuring that they have relevant qualifications, we can begin to drive up standards. As Shelter has pointed out, it also means that it will be better equipped to support residents suffering from domestic abuse or racial harassment, or who may be caught up in youth violence or harassment by criminal gangs.
The Government have already recognised the need for improvement, and they have launched a review. I appreciate that they need time to respond to that review, but if the response is not going to be available as the legislation progresses, it would be a terrible irony if that became the reason to reject this amendment, which is measured and reasonable in scope. It is not asking for that training to be made mandatory now; it is merely asking that the Secretary of State be given the power to establish requirements for qualifications and training in regulations. That seems reasonable to me, and this is the right legislation in which to place this power. If we miss this opportunity, it could be years before there is another chance. The Grenfell community has waited long enough for the change we promised them.
Doing it now will also allow the Government to be fleet of foot—a rare occurrence—when the time comes for professionalisation, as it surely will. Awareness of the problems in social housing is growing all the time, and with it so will calls for professionalisation. Meanwhile, we should be aware that lawyers representing the bereaved and survivors at the Grenfell Tower inquiry will be proposing professionalisation in their submissions concerning future recommendations, which will be heard later this year.
Instigating this change does not need to involve the creation of a whole new body. As my noble friend Lord Young mentioned, the Chartered Institute of Housing has an existing framework of qualifications, professional registration and a code of ethics and values, and this could all take professionalisation forward. There may need to be some tweaking, of course, but the infrastructure is already there. To that end, will the Government consider this amendment as one which will bring meaningful and lasting change?
I have probably spoken for long enough, but I leave the last words to the Grenfell community. As I have said before in this place, and as is relevant again now, they want Grenfell to be remembered not for what happened on the night but for all the positive actions that have flowed as a result. They believe passionately that professionalisation can be one of the most important elements of the legacy they have fought so hard for, for many years. We owe it to them to give this proper consideration.
Baroness Scott of Bybrook (Con)
My Lords, I thank the noble Baroness, Lady Hayman of Ullock, and the noble Lord, Lord Whitty, for tabling amendments relating to tenant engagement.
I begin with Amendment 6, in the name of the noble Baroness, Lady Hayman, which would require the regulator to consider appointing persons from different regions of the United Kingdom to the advisory panel. I hate to do this, but I point out that the Bill relates to the regulator of social housing in England alone. Therefore, it would be inappropriate to require representation on the advisory panel from the regions across the United Kingdom. That is a technicality that I should point out.
However, I understand that the aim of the amendment is to ensure that the panel is made up of a range of views. The social housing White Paper made it clear that the purpose of the panel was to provide independent and unbiased advice which would support the transformative change needed and build trust with tenants and social landlords across England. I am more than happy to put it on the record that I am clear that this means that the advisory panel has to be properly representative. I know that the regulator is fully committed to ensuring that that is the case. I am also sure that future Ministers will take a keen interest in ensuring that the advisory panel is delivering the broad representation we expect.
The noble Baroness, Lady Hayman, asked whether councils will be on the advisory panel. The Bill specifies a number of groups that must be included on the advisory panel. That includes councils, and we would expect the regulator to seek diverse views, including among local authorities. She also asked whether the Government will review the temporary nature of the advisory panel. As previously mentioned, the new regulatory regime will be reviewed after a four-year regulatory cycle, and that includes the advisory panel and its effectiveness. However, the panel is not envisaged to be a temporary body; it will continue to offer advice to the regulator on the discharge of its functions.
The noble Baroness, Lady Thornhill, said that she believes that prescribing factors that must be considered in deciding who makes up the panel is unnecessary and could tie the hands of the regulator. I agree—in fact, it might hamper the regulator’s ability to balance a range of factors to get the best range of views. The regulator already has several mechanisms for engaging with stakeholders, including a non-statutory advisory panel, which includes engagement with representatives from across regions within England. I hope that this reassures the noble Baroness that the Government are committed to ensuring that the panel is representative, including voices that reflect issues and views from across the country—that is, England.
Amendment 7 in the name of the noble Baroness, Lady Hayman of Ullock, would require a social housing tenant to chair the advisory panel and to have responsibility for setting its agenda. I am sympathetic to what drives this amendment—empowering tenants and ensuring they have a voice, which is what the Bill is all about—but I do not agree that it is desirable for the legislation to specify how the panel should operate or who may lead or set the agenda in this way.
I should make it clear that the panel is intended to allow a collection of diverse voices to share their knowledge and opinions with the regulator. I would also expect the advisory panel, with the regulator, to shape how it works and what it considers. I do not believe that having a tenant set the agenda, as chairman of the panel, is necessary to ensure that the views of tenants are heard. The Government also want the panel to consider the full range of other regulatory issues that the regulator has to tackle. While consumer issues are rightly at the forefront of the Bill, we are determined that the importance of economic regulation should not be diminished. A requirement for a tenant to chair and set the agenda would not support what we are trying to achieve. As I have said, in practice I expect that all members of the advisory panel, along with the regulator, will shape its agenda and how it operates.
I now turn to the important Amendment 30, also in the name of the noble Baroness, Lady Hayman of Ullock, which relates to professionalisation of the social housing sector. It is supported by the noble Baroness, Lady Thornhill, the noble Lord, Lord Whitty, and my noble friends Lord Young of Cookham and Lady Sanderson of Welton, and I will speak more about it in a bit. We know how important it is that social housing staff carry out their roles with a high degree of professionalism. That is why our social housing White Paper committed to review professional training and development in this sector, and to consider the appropriate qualifications and standards for social housing staff in different roles, including senior staff. To inform the review, we established a working group made up of resident groups, landlords, professional bodies and academics. We also commissioned independent research and undertook fact-finding visits to gather a wide range of evidence. We are now considering the most effective means of improving professionalism in the sector.
The noble Baroness’s amendment would allow the Secretary of State to set a requirement for persons engaged in the management of social housing to hold specified qualifications and undertake ongoing professional development, such as participation in or completion of a specified programme or course of training. We agree that these proposals have merit, and that tenants should have access to staff who listen and respond to their needs. That is why is it important that this matter be given proper consideration, which I can confirm very strongly is being given at this time. To answer the question of the noble Baroness, Lady Hayman of Ullock, as I have said, we are working hard to fully assess the merits of different options to address this important issue and we will set out the Government’s preferred approach as soon as possible. I can assure the Committee that I will talk to the Minister personally, whoever that may be, to reflect the views of the Committee on this important issue.
I thank my noble friend Lady Sanderson of Welton not just for her input into this debate but for all the work she has done to support the Grenfell community since the fire. We all know that she has put in a lot of work, time and effort—thank you. This is probably not what the Committee wants to hear, but I will take this on personally and come back to Members who have shown interest before we get to Report with a new Minister.
I turn now to Amendment 47 in the name of the noble Lord, Lord Whitty, which concerns the regulator’s powers to intervene if a ballot on issues such as regeneration and stock transfer is not being conducted reasonably, transparently or equitably. Ballots are an important way for landlords to involve tenants in the decisions they take. We expect consultations to be meaningful and genuinely seek to hear and act on the views of tenants. Guidance is readily available on resident engagement in regeneration, and statutory guidance on local housing authority stock transfers covers consultation requirements.
In addition, tenant involvement and empowerment is a core part of the regulator’s consumer standards. Where a registered provider is proposing a change in landlord or a significant change in management, the regulator expects registered providers to consult in a fair, timely, appropriate and effective manner. The Bill strengthens the regulator’s ability to intervene if a provider is systematically failing to consult fairly with tenants. Tenants will be at the heart of the new consumer regulation regime, and the views of social housing tenants and other sector stakeholders will play a crucial part in shaping it. Following these reassurances, I ask noble Lords not to press their amendments.
Baroness Hayman of Ullock (Lab)
I thank noble Lords for their support, particularly for my Amendment 30, which is an important amendment on a subject the Government have talked about before: professionalisation of the service. I also thank the noble Baroness, Lady Sanderson, for all the work she has done and for the speech she made. She talked about legacy and what the Grenfell Tower community wants to see from this. I shall repeat what I said in my speech, and to which she referred: Grenfell United believes that a more professional housing sector is one of the main ways in which to create a fitting legacy for the 72 lives that were lost. We need to keep that right at the heart of what we are trying to achieve.
I thank the Minister very much for her response. She referred to the review, which is clearly important and shows that the Government are looking seriously at professionalisation. I am pleased that she believes my amendment has merit—that is very important—and that proper consideration will be given to it. As we move through the Bill, this is one area on which we can make some genuine progress and she will have our support in doing so. I beg leave to withdraw the amendment at this stage.
Baroness Scott of Bybrook
“(ba) in subsection (3), omit the words from “not” to the end;”Member’s explanatory statement
This amendment makes a consequential amendment to section 108 of the Housing and Regeneration Act 2008 which is needed following the addition of the new offence by clause 3 of the Bill.
Baroness Scott of Bybrook (Con)
My Lords, the amendments in this group relate to economic regulation and refinements to the regulatory framework, as well as fee-charging powers for both the Regulator of Social Housing and the Housing Ombudsman. Amendments 20 and 46 deliver the social housing White Paper commitment to ensure that the regulator is notified if there is a change in who controls a registered provider. At present, there is no obligation for registered providers to notify the regulator where such a change occurs. This may be detrimental to effective regulation, as a change in control can be a clear indicator of substantial changes to a registered provider’s business model or governance structure.
Amendment 20 sets out the circumstances that constitute a change of control. First, it introduces a new Section 169CC into the 2008 Act. Broadly, this requires the regulator to be notified if more than 50% of the board members of a registered provider change in a 12-month period. Secondly, a new Section 169CD requires notification where a registered provider becomes or ceases to be a subsidiary of another legal person, such as another body. Amendment 46 defines “subsidiary” in relation to this provision. I believe this a sensible change that will ensure the regulator is notified of significant changes that might affect a provider’s business model and/or governance structure.
I turn now to the amendments relating to the Housing Ombudsman. Clause 31 will improve complaint handling in the social housing sector by empowering the Housing Ombudsman to issue new types of orders and placing the complaint handling code on a statutory footing. Amendment 49 seeks to take this further by placing a duty on the Housing Ombudsman to monitor the compliance of its member landlords with the complaint handling code. This will identify the landlords that are not meeting the standards set out in the code. The ombudsman may then issue these landlords with complaint handling failure orders to rectify any issues identified and, if required, refer the matter to the regulator.
Government policy is to maximise the recovery of costs of arm’s-length bodies, which both the Housing Ombudsman Service and the regulator already seek to achieve. Amendments 50 and 51 clarify that the Housing Ombudsman is able to fund all its costs through fees charged to member landlords. This would include the cost of enforcement activities, whether those activities were connected to that member or not, such as the costs incurred by any compliance monitoring activities required to meet the duty set out by Amendment 49. This will maintain consistency with the current funding model for the Housing Ombudsman, which is 100% funded by member landlords.
The Regulator of Social Housing will see substantial growth in its regulatory activity when the new consumer regulation regime is implemented, which means that its costs will increase significantly. As a number of noble Lords pointed out at Second Reading, it is important that the regulator is provided with the funding to enable it to deliver the outcomes this Bill seeks to achieve. However, certain activities are currently not charged for. Amendment 10 will ensure that the regulator can recover an even greater part of its operating costs from the sector.
New subsection (4A) will make clear in the legislation that the powers available to the regulator to charge fees include charging for costs that may be unconnected with the specific fee-payer. For example, this would ensure that the costs of investigation and enforcement activity can be recovered through fees. This amendment also enables the regulator to charge all applicants an application fee, not just those that are eventually successful. The regulator is required to consult on any significant changes to the fees regime, which will enable stakeholders to have their say on how a new fees regime will work. Fees principles are also subject to approval from Ministers.
I turn now to other, more minor amendments in this group. Amendment 25 seeks to remove Sections 198A and 198B of the Housing and Regeneration Act and replaces Clause 20 of the Bill which solely removes the serious detriment test. Amendments 23, 26, 31, 34 to 42, 45, 57, 58, 61, 63 and 64 mean that as well as removing the serious detriment test, the overarching grounds for the use of monitoring and enforcement powers are replaced by appropriate, tailored grounds for each of those powers. These changes do not mark a major change from the existing regime but provide greater clarity on the grounds for the use of the regulator’s powers.
Amendment 43 makes changes which will allow the regulator to use the power to appoint board members where there are none, but an officer remains, addressing the gap that currently exists. This amendment also clarifies that the regulator can appoint officers where a provider has failed to meet a regulatory standard. Amendment 44 makes clear that the regulator does not need to wait until the expiry of a term of appointment of an officer before renewing the appointment. It is vital that the regulator can act decisively and effectively, and Amendments 43 and 44 support this goal.
Amendments 8, 9, 60 and 62 remove redundant text setting out maximum levels of fines for offences under the Housing and Regeneration Act 2008, now that the Legal Aid, Sentencing and Punishment of Offenders Act 2012 has removed these limits in practice.
Amendments 13, 16 and 18 extend existing moratorium provisions to unincorporated charities. The housing moratorium is an important protection as it provides time for the regulator to work with a provider and secured creditors to try to find the best solution where a provider gets into financial difficulty. Amendment 55 clarifies that all charities are subject to the existing accounting requirements in Section 135 of the Housing and Regeneration Act 2008. Section 135 sets out the expectations on charities in relation to their accounts, including, for example, the requirement on a charity to prepare a balance sheet for each period that gives a true and fair view of the state of affairs of the charity.
Sections 129 to 133 of the 2008 Act contain requirements in relation to accounts of registered providers that are companies. Amendment 15 applies these provisions to limited liability partnerships, or LLPs. Section 120 of the 2008 Act sets out requirements for the regulator to notify other relevant bodies where it registers or deregisters a social landlord. At present, the requirements do not apply in relation to registered providers that are LLPs. Amendment 14 extends Section 120 to LLPs. Section 122 of the 2008 Act restricts the making of gifts and the payment of dividends and bonuses by a non-profit registered provider. Amendment 54 expands subsection (6) of this provision, which allows for the recovery of wrongful payment, so that it applies to non-profit registered providers of all types.
These amendments will help ensure that the correct regulatory framework is in place, and that both the Regulator of Social Housing and the Housing Ombudsman are able to recover costs to deliver maximum cost recovery. I commend these amendments to the Committee.
Baroness Pinnock (LD)
My Lords, first, I thank the Minister for the letter she sent prior to the Committee today, explaining the reasons for the 42 government amendments that were tabled during the Recess and which she has had to explain today. I appreciate that they are technical amendments, but I find it a bit concerning that, time and again, government Bills are published without the minutiae of the implications having been checked. The consequence is that we have myriad alterations today. However, I thank the Minister for going through them in detail—it is clearly not her fault that she has had to do so. With that, I accept what she has said.
Baroness Wilcox of Newport (Lab)
The government amendments are mainly of a technical nature, and Her Majesty’s Opposition broadly support their introduction. However, some of them introduce slightly more significant changes, and it is right that the Committee should consider these in more detail. Could the Minister explain the purpose of the amendments which repeal Sections 198A and 198B, and further confirm what consultation, if any, has taken place on these changes?
I also ask the Minister for further information on the operation of Amendment 49, and consequential amendments, which will mean that the Housing Ombudsman monitors its own compliance with the code of practice. In particular, can she explain the safeguards to prevent it marking its own homework—a device I rarely used with my own pupils?
Baroness Scott of Bybrook (Con)
My Lords, I have so much paperwork here, so may I please read that question in Hansard? I will make sure that the noble Baroness receives a timely response. I will also put it in the Library and send it to all Members who have taken part in this debate.
Baroness Scott of Bybrook
(a) in the words before paragraph (a), after “107(6)” insert “or (6A)”;(b) in paragraph (a) omit the words from “not” to the end”Member's explanatory statement
This amendment makes a consequential amendment to section 108 of the Housing and Regeneration Act 2008 which is needed following the addition of the new offence by clause 3 of the Bill.
Baroness Scott of Bybrook
“Power to charge fees(1) Section 117 of the Housing and Regeneration Act 2008 (fees) is amended as follows. (2) In subsection (1)(a), after “fee” insert “for dealing with an application”.(3) After subsection (1) insert—“(1A) The regulator may make dealing with an application for initial registration conditional upon the payment of the fee.”(4) In subsection (2) omit “initial or”.(5) After subsection (4) insert—“(4A) The amount of a fee payable under this section may be calculated by reference to costs incurred, or likely to be incurred, by the regulator in the performance of any of its functions, including costs unconnected with the fee-payer and costs unconnected with registration or regulation under this Part.”(6) In subsection (5)—(a) in paragraph (a), for “expenditure on” substitute “the costs incurred in”;(b) omit paragraph (b) (but not the “and” following it);(c) in paragraph (c), for “to which it relates” substitute “incurred, or likely to be incurred, in the performance of the regulator’s functions”.”Member's explanatory statement
This makes it clear that the regulator may charge fees for dealing with applications for registration (even if unsuccessful) and may require payment in advance. It also makes clear that fees may be set at a level to cover all of the costs of the regulator, including, for example, costs unrelated to the registration process.
Lord Young of Cookham (Con)
My Lords, I cannot help thinking that the government amendments seem to have had an easier time than the amendments from the rest of the Committee.
I want to oppose the proposition that Clause 4 should stand part of the Bill. This is a probing suggestion, following up a point I made at Second Reading about the potential overlap between the role of the Housing Ombudsman on the one hand and that of the Regulator of Social Housing on the other. I am all in favour of empowering social tenants and enabling them to drive up the quality of the housing in which they live and the quality of the management of the social housing stock. However, there is a risk of confusion as the roles of the ombudsman and the regulator begin to merge.
In response to my concerns, when winding up the Second Reading debate, the Minister said:
“I point out that there is a long track record of close working between the regulator and the ombudsman, and we are ensuring effective information sharing between them. The proposals in the Bill will reinforce and strengthen the co-operation that already exists. We are also delivering a communications campaign to tenants so that they know where to go and are well informed”.—[Official Report, 27/6/22; col. 469.]
The department then sent me a document, headed Regulator of Social Housing and Housing Ombudsman’s Roles and Responsibilities. It is some six pages long, indicating that there is clearly a need for a detailed explanation. This document complements a five-page memorandum of understanding, published two years ago.
There are two sentences in the recent document which set out what I thought the respective roles were. One says:
“The regulator does not intervene in individual complaints or mediate in disputes between tenants and landlords.”
This statement simply is not true. The Regulator of Social Housing can intervene in individual complaints. The social housing White Paper expects the Regulator of Social Housing to
“undertake specific, reactive investigations and/or inspections where appropriate. This could be when a serious potential compliance breach has been brought to its attention by tenants”.
The briefing notes that accompanied the Queen’s Speech reinforced this by referring to the powers of the regulator to arrange emergency repairs to a tenant’s home following a survey. By definition, the regulator can do this only if he has intervened in an individual complaint. The regulator also has the means to rectify these complaints himself, as is contained in Clause 24. It is clear from that that the regulator can move from the systemic down to the detailed.
The other sentence is about the ombudsman. The document says that his role is to resolve disputes between tenant and landlord. It would be fine if it stopped at that but, again, his role is far wider and begins to encroach on the role of the regulator. He can move up from the detailed to the systemic. The social housing White Paper says that his remit includes the powers to investigate potentially systemic issues arising through complaints. He has issued a code, setting out good practice for landlords; he can initiate investigations of his own if an individual case is indicative of wider failure, again trespassing on the role of the regulator; he can use insight and data to identify trends in complaint type; he can carry out thematic investigations into issues affecting the sector, producing regular spotlight reports; he can share expertise, insight, experience and learning to influence the sector to drive a positive complaint-handling structure, again overlapping with the role of the regulator. The objectives I have just mentioned are emphasised in the corporate plan for 2022 to 2025 and in Clause 31 of the Bill. It seems that there is a clear risk of confusion, duplication and overlap between these two bodies.
The Explanatory Notes to the Bill refer diplomatically to the overlap to which I have just referred:
“The regulator and the housing ombudsman both have a role in overseeing the performance of social housing landlords”.
Exactly. I note that the memorandum is to be revised—in the words of the document to which I referred earlier—
“to provide clarity following the passage of the Bill.”
I hope we can find some clearer demarcation of the roles which avoids mission creep by both, but also ensures that there is not a gap between the two. One could argue, as the memorandum effectively does, that these two individuals are grown-ups, can work amicably together and can sort out who does what—and I am sure they do. However, I still do not think it right to leave potential overlap and duplication to the good will of two individuals.
My second concern is for the tenants who now have two bodies they can turn to if their complaint to the social landlord is not resolved: the Housing Ombudsman and now the Regulator of Social Housing. The ombudsman can make awards and recommendations, but he cannot, for instance, enter premises to remedy specific failures. If I were a tenant—and particularly if there were a backlog of complaints to the Housing Ombudsman—I would probably head for the Regulator of Social Housing since he has more powers. Is he geared up to cope with this?
In its briefing for this debate, Shelter says it is vital that the regulatory roles of the ombudsman and the Regulator of Social Housing are clearly defined, that tenants and tenant groups understand how to complain and that any complaints process or system is easy to use, accessible and effective. That leads me back to what my noble friend Lord Greenhalgh said at Second Reading:
“We are also delivering a communications campaign to tenants so that they know where to go and are well informed”.—[Official Report, 27/6/22; col. 469.]
This is crucial. Can my noble friend the Minister say a little more about this, as the briefing from Shelter indicates that a tenant with a complaint about his or her social landlord may not know who to go to?
As I said, my opposition to the clause is probing, and I hope that my noble friend can assure me that these concerns will be taken on board.
I have also added my name to Amendment 29, which will be spoken to by the noble Lord, Lord Best, and which deals with the frequency of inspections. The social housing White Paper says that large providers should be inspected every four years, but there is no commitment to this in the Bill. I just want to make one point about this.
When I discussed the amendment with Shelter, before I added my name, I asked it to contact the National Housing Federation, as this obviously affects its members and, as we have heard, has financial implications for them. Shelter replied:
“We were able to meet with the NHF to discuss the amendments last week. They do not have a formal position on the amendments themselves. This is largely because they are a large membership body, and it would require posing the question to all their members.”
However, it did say that it had no real concerns about the amendments and is generally supportive of them, and agrees that more scrutiny and monitoring standards are needed. Its main priority is ensuring that its members are informed of what is in the Bill, to ensure that they are best prepared to implement the changes when they happen.
Its only potential issue was the inspections amendment applying to smaller social landlords. But with the amendment being a regulation-making power and not prescriptive, Shelter continued,
“we feel that it allows the Government/regulator flexibility to have different requirements on inspections for social landlords of different sizes.”
Basically, the National Housing Federation is broadly supportive of this amendment.
Against that background—and with, I am sure, the compelling oratory of the noble Lord, Lord Best—I hope that the Government will respond positively to Amendment 29. In the meantime, I beg to move that Clause 4 be not added to the Bill.
Lord Whitty (Lab)
My Lords, I agree in part with what the noble Lord, Lord Young, says, but we need some degree of clarification. Therefore, I hope that the Government will be able to produce more complex and clear regulations as to the relationship between the two organisations.
It is slightly incongruous that my Amendment 11 is also in this group. It is a simple amendment, and I shall be brief for obvious reasons. It would add, in the designation in Clause 9 of the role of the designated health and safety officer, that mental health and well-being should be taken into account in terms of their duties. It is clear from many of our personal experiences and from the media coverage which the noble Baroness, Lady Sanderson of Welton, recently referred to, that failures to deal with problems in social housing both cause and aggravate mental health problems and cause anguish and distress among tenants and their families. For that reason, we need to write it in the Bill because, in terms of prioritisation on issues with which the designated health and safety officer will be faced, it is important that he or she takes into account the mental anguish and the consequential mental health problems of tenants who are, regrettably and deplorably, in these circumstances.
Lord Best (CB)
My Lords, I will speak to Amendment 29, in my name and the names of the noble Baronesses, Lady Hayman and Lady Thornhill, and of the noble Lord, Lord Young of Cookham, who has already spoken; I am grateful for his comments. The amendment obliges the Regulator of Social Housing to carry out regular, routine inspections of the registered providers of social housing.
The principal justification for regulation at present—with extensive regulation of governance and financial affairs—has been to protect the taxpayer, who has paid for a significant, although much diminished, proportion of the spending by these bodies. But, as the Bill recognises, the very valid justification for effective regulation today is to protect the consumer—the tenant, the resident. This aspect of regulation has been seriously neglected.
Even though most housing associations are charities, and all except the strange new breed of so-called for-profit registered providers exist for the public good rather than their shareholders’ returns, the interests of the consumer still require all these organisations to be subject to the watchful eye of an external, independent agency. Sadly, no organisation is immune to making mistakes or becoming complacent, insensitive, deaf to the voice of their consumers, customers, citizens. This can be an increased hazard for the housing associations that have grown dramatically over recent years, to which the noble Lord, Lord Whitty, made reference; several now own and manage over 100,000 homes, accommodating a population equivalent to that of a major city. This brings accusations of registered providers being out of touch with their residents, lacking local knowledge, and becoming remote and uncaring. Reporting by ITV and others, which has been alluded to already, has uncovered very poor performance in some of the largest housing associations.
Meanwhile, being a relatively small organisation, and supposedly with shorter lines of communication between provider and consumer, is not a guarantee of good practice. After all, in the most serious case of the Grenfell tragedy, the organisation—a tenant management organisation within the council—was relatively small and entirely locally based, but it failed its residents disastrously. An ombudsman service can play a vital role—as the Housing Ombudsman does—in responding to tenants’ complaints. However, this is no substitute for a regulator with the remit and powers to enforce proper standards and good practice in every social housing organisation.
So, given that effective regulation—particularly consumer- orientated regulation—is necessary and valuable, how can we ensure that the new regime introduced by the Bill actually succeeds in delivering decent standards, good management and maintenance services, and sensitive engagement with tenants and leaseholders? Amendment 29 seeks to address this.
Baroness Pinnock (LD)
My Lords, I will first of all speak to Amendment 29 in the name of the noble Lord, Lord Best. My noble friend Lady Thornhill was going to speak but unfortunately has had to leave; she is not feeling too well.
I will just say that it has been eloquently expressed why it is very important that this amendment is included in the substance of the Bill. It gets our wholehearted support and there is no need for me to say any more.
I will also speak to Clause 4 stand part. I added my name to that of the noble Lord, Lord Young of Cookham, after he raised the selfsame issue at Second Reading. It seemed that this was an area of confusion that we need to clarify before the Bill is passed.
The noble Lord, Lord Young of Cookham, explained that the extension of the powers of the regulator will almost certainly lead to confusion about the power of the Housing Ombudsman. They both have responsibility for seeing that social housing landlords treat their tenants fairly, and the regulator has considerable new powers to ensure safe and secure housing, including the power to obtain a warrant to enter a property if a landlord fails to comply, as set out in Clause 24. The regulator has been given huge powers of enforcement. What can the ombudsman do? Similarly in housing as elsewhere, the tenant turns to the ombudsman if there is an unresolved issue, but it does not have those extensive powers, as the noble Lord explained in some detail. It cannot make any practical intervention. All the ombudsman can do is write a report, make recommendations and possibly award compensation, if that is appropriate—that is it.
It is not clear to me, and I do not think it is clear in the Bill, at what stage the tenant should appeal to the ombudsman. Is it as a last resort, where the regulator’s efforts have not provided a full solution—in which case, how will a complaint to the ombudsman help to resolve it? Is it envisaged that the ombudsman is the final arbiter where the regulator has not succeeded? If not, then whom? The section on appeals in the Bill is totally focused on an appeals system for registered providers; there is nothing in it about appeals for tenants. If the ombudsman is the final arbiter for tenants then more needs to be done to clarify the roles, responsibilities and powers of the ombudsman.
I am totally with the noble Lord, Lord Young of Cookham, in what he has said. There is confusion. I am looking at it from the side of the tenant. If there is an unresolved complaint—be it about rent, repairs or whatever the issue—where does the tenant go? They go first to their landlord and, if it is not resolved, they go to the regulator, because it will be a practical issue. The regulator has huge powers, so it ought to be resolvable, but if not, do they go to the ombudsman? What can the ombudsman do? From the tenants’ point of view, this is not as clearly worded as it should be.
I hope the Minister will be able to say that she will go back to the department to sort out how each of these roles will work so that there is no confusion from the tenants’ point of view, which is where I am looking at it from. I support the objection to Clause 4 standing part and look forward to what the Minister will say.
Baroness Hayman of Ullock (Lab)
My Lords, my Amendment 33 is in this group. It would mean that the Secretary of State must bring forward an affirmative SI to make provisions for monitoring the compliance of social housing with the Homes (Fitness for Human Habitation) Act. I think we can all agree that there is not a lot of point in having a standard if it is not complied with. I hope that, by recognising that, the Minister will consider accepting my very simple amendment.
I have also added my name to Amendment 29, so ably introduced by the noble Lord, Lord Best. As he said, it would impose a duty on the social housing regulator to carry out regular inspections of all registered providers to ensure compliance with the regulatory standards. This is incredibly important, which is why I was very pleased to add my name to his amendment. He introduced it in such a way that we are all very clear why it is needed and would be an important improvement to the Bill, if accepted.
As it currently stands, reactive investigations are an important aspect of the system, but, unfortunately, they often come too late and sometimes they are too heavily reliant on other parts of the system revealing issues. We know that self-reporting by landlords can mask the scale or severity of problems and that action is sometimes not taken until it is too late. We need properly designed routine inspections that can be done at short notice so that we can uncover issues in a more timely manner and, most importantly, act as a deterrent to poor service and ensure that good practice is an everyday responsibility for landlords and their staff.
As we have heard from the noble Lord, Lord Best, when the Government introduced the social housing White Paper, they promised routine, Ofsted-style inspections. In this way, we would deliver a truly proactive system of regulation of social housing. As the noble Lord said, if we are genuinely to deliver what the Government seem to want with the Bill, we must ensure that good standards, right across the board, are delivered within the system. Having such inspections would help to achieve that, which is why we fully support his amendment.
I move to Amendment 11, in the name of my noble friend Lord Whitty, which we also strongly support. His amendment to recognise the impact of unsafe or overcrowded conditions on mental health and well-being is incredibly important. A lot is talked about the impact of poor housing standards on physical health; not enough is talked about their impact on mental health, so we strongly support his amendment.
Finally, I come to the opposition to Clause 4 standing part from the noble Lord, Lord Young, who, as always, introduced it very clearly and effectively. He was absolutely right when he said in his introduction that we need clarification of the roles of and relationship between the regulator and the Housing Ombudsman. He talked about the overlapping of their responsibilities and the importance of avoiding confusion and duplication. If this is to be truly effective, everyone must know their role and each role must be effectively delivered. I shall be interested to hear the Minister’s response and to see whether the Bill could be amended by the Government to try to bring clarification so that we do not get confusion once this becomes law.
I finish by saying that we have had a number of excellent discussions today on the Bill and I look forward to working with the Minister to positively move forward the issues we have raised today.
Baroness Scott of Bybrook (Con)
My Lords, I thank my noble friend Lord Young, the noble Baroness, Lady Hayman, and the noble Lords, Lord Whitty and Lord Best, for tabling these amendments, which all relate to changes to the proposed proactive consumer regulation regime. I shall start with the opposition to Clause 4 standing part, raised by my noble friend Lord Young of Cookham. The noble Baroness, Lady Pinnock, and my noble friend Lord Young asked questions on the blurred lines and lack of understanding as to who does what. I shall try to explain.
Lord Young of Cookham (Con)
My Lords, I am grateful to all noble Lords who took part in this debate. As this is the last debate, can I say that my noble friend the Minister deserves commendation for how she picked up this Bill at relatively short notice, has dealt sympathetically with a whole range of issues, and has undertaken to go back to the department with some of our concerns? I am a great fan of my noble friend Lord Greenhalgh, but her style is certainly somewhat different and more user-friendly.
The noble Lord, Lord Best, made the case for Amendment 29. He made two points: that this was the primary request of the Grenfell survivors; and that this was simply holding the Government to their own commitments. We both listened to what my noble friend the Minister said about the importance of not pre-empting anything, that there is no risk of the regulator not doing what was necessary and that it was important that it had operational independence. However, looking at the body language of the noble Lord, Lord Best, during the Minister’s response, it struck me that this might be an issue that he wanted to return to on Report.
Finally, turning to my own objection to Clause 4 standing part of the Bill, I was grateful for what my noble friend the Minister said. She went through the process, whereby a tenant should complain in the first instance to the landlord, and in the second instance to the Housing Ombudsman, and that is quite right. My concern and, I think, the concern of the noble Baroness, Lady Pinnock, was that the tenant might skip the Housing Ombudsman stage and go straight to the regulator, because of the increased powers that it has. Listening to the noble Baroness, I wondered whether the tenant could take the regulator to the ombudsman if the tenant was not satisfied with what the regulator had done.
Again, I am grateful for what my noble friend said in response to our debate. I quote her when she said, “More clarity is required”. I think she said that after the memorandum of understanding has been revised in the light of this Bill, it will then be made statutory. She also said that there is more to be done to inform tenants about how to seek redress, and there are remaining issues about clarity and communication that she will take back to the department. Against those assurances, I have no hesitation at all in withdrawing my objection to Clause 4 standing part and I am more than happy to see it added to the Bill.
Baroness Scott of Bybrook
Member's explanatory statement
This amendment is consequential on the amendment to Schedule 2, page 35, line 35 in the Minister’s name.
“Notice of registration or de-registration
11A In section 120 (notice), in subsection (1)(c), after “charity)” insert “or a limited liability partnership”.”Member's explanatory statement
This amendment requires the regulator to notify the registrar of companies of registration decisions about limited liability partnerships.
“Accounts
11B (1) Section 129 (companies exempt from audit) is amended as follows. (2) In the heading, after “companies” insert “or limited liability partnerships”.(3) In subsection (1)(a), after “charity” insert “or is a limited liability partnership”.(4) In subsection (2)—(a) after “directors of the company” insert “or members of the limited liability partnership”;(b) for “company’s”, in both places, substitute “registered provider’s”;(c) for “which the company” substitute “which the registered provider”.(5) In subsection (3), for “has the same meaning as in” substitute “means accounts prepared in accordance with”.11C (1) Section 130 (exempt companies: accountant’s report) is amended as follows.(2) In the heading, after “companies” insert “or limited liability partnerships”.(3) In subsection (2), for “company’s” substitute “registered provider’s”.(4) In subsection (3)(b), for “company” substitute “registered provider”.(5) For subsection (6) substitute—“(6) In this section and sections 131 and 132—“firm” means any entity, whether or not a legal person, that is not an individual and includes a body corporate, a corporation sole and a partnership or other unincorporated association;“body corporate” includes a body incorporated outside the United Kingdom.”11D In section 131 (exempt companies: reporting accountant)—(a) in the heading, after “companies” insert “or limited liability partnerships”;(b) in subsection (1), for “company”, in both places, substitute “registered provider”.11E (1) Section 132 (application of Companies Act) is amended as follows.(2) In subsection (1)—(a) for “company” substitute “registered provider”;(b) for “company’s” substitute “registered provider’s”.(3) In subsection (2)(e)—(a) for “454(4)(b)” substitute “454”;(b) for the words from “provision” to the end substitute “section (revised accounts and reports),”.11F In section 133 (exempt companies: extraordinary audit)—(a) in the heading, after “companies” insert “or limited liability partnerships”;(b) in subsections (1), (2) and (4), for “company”, in each place, substitute “registered provider”.11G In section 141 (offences), in subsection (6), omit the words from “not” to the end.”Member's explanatory statement
This amendment amends provisions of the Housing and Regeneration Act 2008 relating to accounts of registered providers so they also apply to a provider which is a limited liability partnership.
Baroness Scott of Bybrook
(a) in subsection (1), omit the words from “that” to the end;Member's explanatory statement
Section 108 of the Housing and Planning Act 2016 contains restrictions on when a person may take steps to enforce security over property of a private registered provider. This amendment extends the provisions so they apply to any private registered provider, whatever form it takes.
“(c) omit subsection (3);”Member's explanatory statement
This is consequential on amendments made to section 79 of the Housing and Regeneration Act 2008 by clause 5 of the Bill.
“(d) before subsection (4) insert—“(3A) In the case of a registered provider that is a charity registered under the Charities Act 2011 which is not a body corporate, the reference to the property of the registered provider is to the property held on the trusts of the charity (and for this purpose “trusts” has the same meaning as in the Charities Act 2011, see section 353 of that Act).””Member's explanatory statement
This amendment is consequential on the amendment to Schedule 2, page 35, line 35 in the Minister’s name.
Baroness Scott of Bybrook
Member's explanatory statement
This amendment is consequential on the amendment in the Minister’s name to insert a new clause after clause 16.
Baroness Scott of Bybrook
“Notification of change of control(1) The Housing and Regeneration Act 2008 is amended as follows.(2) Before section 169D (and the heading immediately before it) insert—“Notification of change of control
169CB Application of rules about notification of change of controlThis group of sections does not apply to local authorities.169CC Change in board members(1) A registered provider must notify the regulator if—(a) the board members of the registered provider change (whether as a result of an appointment or removal of a board member or for any other reason), and(b) following that change, any of the circumstances described in subsection (2) arise.(2) The circumstances are that—(a) the number of board members of the provider has increased by more than 50% since the beginning of the relevant period;(b) the number of board members of the provider has decreased by more than 50% since the beginning of the relevant period;(c) more than 50% of the board members of the provider are persons who were not board members of the provider at the beginning of the relevant period.(3) For the purposes of this section, the “board members” of a registered provider are—(a) in the case of a registered charity which is not a registered company, its charity trustees within the meaning given by section 177 of the Charities Act 2011;(b) in the case of a registered society, the members of its committee within the meaning given by section 149 of the Co-operative and Community Benefit Societies Act 2014;(c) in the case of a registered company, its directors within the meaning given by section 250 of the Companies Act 2006;(d) in the case of a limited liability partnership, its members.(4) For the purposes of this section, “the relevant period” is—(a) the period of 12 months ending with the day on which the change mentioned in subsection (1)(a) takes effect (“the 12 month period”), or(b) if the registered provider was not a registered provider throughout the 12 month period, the period—(i) beginning with the day (or, if more than one, the latest day) in the 12 month period on which it became a registered provider, and(ii) ending with the day on which the change mentioned in subsection (1)(a) takes effect.169CD Change in subsidiary statusA registered provider must notify the regulator each time—(a) it becomes a subsidiary of a person, or(b) it ceases to be a subsidiary of a person.””Member's explanatory statement
This amendment places a registered provider under a duty to notify the regulator if certain events occur. The events are ones which may affect control of the provider.
Baroness Scott of Bybrook
Member’s explanatory statement
This is consequential on the amendment, in the Minister’s name, to substitute clause 20 with a new clause.
Baroness Scott of Bybrook
“Failure to meet standards: exercise of intervention powersOmit sections 198A and 198B of the Housing and Regeneration Act 2008.”Member's explanatory statement
Clause 20 of the Bill amends section 198A to remove the test of “serious detriment” before powers can be exercised. This amendment replaces that with a clause repealing sections 198A and 198B. These sections set out general grounds for exercise of powers. Instead, amendments are made to the powers themselves (where necessary) to adjust the grounds on which they can be exercised.
Baroness Scott of Bybrook
Member’s explanatory statement
This is consequential on the amendment, in the Minister’s name, to substitute clause 20 with a new clause.
Baroness Scott of Bybrook
Member's explanatory statement
This amendment is consequential on the amendment, in the Minister’s name, to insert a paragraph 8A into Schedule 3 to the Bill (which contains amendments of section 252A of the Housing and Regeneration Act 2008) and also corrects inconsistent use of language in the paragraph inserted into section 252A.
Baroness Scott of Bybrook
“(za) for subsection (1) substitute—“(1) The regulator may hold an inquiry into the affairs of a registered provider if the regulator suspects that—(a) the affairs of the registered provider may have been mismanaged,(b) the registered provider has failed to meet a standard under section 193, 194 or 194A, or(c) there is a risk that, if no action is taken by the regulator or the registered provider, the registered provider will fail to meet a standard under section 193, 194 or 194A.””Member's explanatory statement
This adjusts the grounds on which the regulator can hold an inquiry and is linked to the repeal of sections 198A and 198B of the Housing and Regeneration Act 2008 (see the amendment, in the Minister’s name, to substitute clause 20 with a new clause).
“6A In section 249 (management transfer), in subsection (1)—(a) in paragraph (a), omit “or”;(b) at the end of paragraph (b) insert “, or(c) the registered provider has failed to meet a standard under section 193, 194 or 194A.””Member's explanatory statement
This adjusts the grounds on which the regulator can require a transfer of management functions and is linked to the repeal of sections 198A and 198B of the Housing and Regeneration Act 2008 (see the amendment, in the Minister’s name, to substitute clause 20 with a new clause).
“8A In section 252A (appointment of advisers to local authorities), in subsection (2)— (a) in the words before paragraph (a), for “thinks” substitute “is satisfied”;(b) at the end of paragraph (d) (inserted by section 9) insert—(e)that the authority has failed to meet a standard under section 193, 194 or 194A,”.8B In section 253 (transfer of land by private registered provider), in subsection (1)—(a) in paragraph (a), omit “or”;(b) at the end of paragraph (b) insert “, or(c) the registered provider has failed to meet a standard under section 193, 194 or 194A.”8C In section 255 (amalgamation), in subsection (1)—(a) in paragraph (a), omit “or”;(b) at the end of paragraph (b) insert “, or(c) the registered provider has failed to meet a standard under section 193, 194 or 194A.””Member's explanatory statement
These amendments adjust the grounds on which the regulator can appoint an adviser to a local authority, require a registered provider to transfer land or amalgamate registered societies and are linked to the repeal of sections 198A and 198B of the Housing and Regeneration Act 2008 (see the amendment, in the Minister’s name, to substitute clause 20 with a new clause).
“(b) in subsection (3), for the words from “that” to the end substitute “that—(a) the affairs of the registered provider have been mismanaged, or(b) the registered provider has failed to meet a standard under section 194.””Member's explanatory statement
This adjusts the grounds on which the regulator can restrict the dealings of a registered provider while an inquiry is in progress and is linked to the repeal of sections 198A and 198B of the Housing and Regeneration Act 2008 (see the amendment, in the Minister’s name, to substitute clause 20 with a new clause).
(a) the affairs of a private registered provider have been mismanaged, or(b) a private registered provider has failed to meet a standard under section 194.””Member's explanatory statement
This adjusts the grounds on which the regulator can restrict the dealings of a registered provider following an inquiry and is linked to the repeal of sections 198A and 198B of the Housing and Regeneration Act 2008 (see the amendment, in the Minister’s name, to substitute clause 20 with a new clause).
“(ba) in subsection (3), for the words from “that” to the end substitute “that—(a) the affairs of the registered provider have been mismanaged, or(b) the registered provider has failed to meet a standard under section 193, 194 or 194A.””Member's explanatory statement
This adjusts the grounds on which the regulator can suspend an officer, employee or agent of a registered provider and is linked to the repeal of sections 198A and 198B of the Housing and Regeneration Act 2008 (see the amendment, in the Minister’s name, to substitute clause 20 with a new clause).
Member's explanatory statement
This amendment is consequential on the amendment to Schedule 3, page 37, line 5, in the Minister’s name.
(a) the affairs of a private registered provider have been mismanaged, or(b) a private registered provider has failed to meet a standard under section 193, 194 or 194A.””Member's explanatory statement
This adjusts the grounds on which the regulator can remove an officer, employee or agent of a registered provider and is linked to the repeal of sections 198A and 198B of the Housing and Regeneration Act 2008 (see the amendment, in the Minister’s name, to substitute clause 20 with a new clause).
Member's explanatory statement
This amendment is consequential on the amendment to Schedule 3, page 37, line 19, in the Minister’s name.
“(aa) in subsection (1)(b), omit the “or”;(ab) after subsection (1)(b) insert—“(ba) in the case of a registered provider which is a registered charity, registered society or registered company, if none of the officers is a board member,(bb) if the regulator is satisfied that the registered provider has failed to meet a standard under section 193, 194 or 194A, or”;(ac) after subsection (1) insert—“(1A) In subsection (1)(ba), “board member” means—(a) in the case of a registered charity which is not a registered company, a charity trustee within the meaning given by section 177 of the Charities Act 2011;(b) in the case of a registered society, a member of its committee within the meaning given by section 149 of the Co-operative and Community Benefit Societies Act 2014;(c) in the case of a registered company, a director within the meaning given by section 250 of the Companies Act 2006.””Member's explanatory statement
This widens the power of the regulator to appoint officers of a registered provider so that an appointment can be made where a provider has breached a regulatory standard or, for some forms of registered provider, where none of the existing officers are a “board member” (as defined).
(i) leave out “on expiry”;Member's explanatory statement
This is to make it clear that the regulator does not need to wait until the expiry of a term of appointment of an officer before renewing the appointment.
“15 In section 269A (local authorities: censure during or following inquiry)—(a) in subsection (3), for the words from “that” to the end substitute “that—(a) the affairs of the authority have been mismanaged, or(b) the authority has failed to meet a standard under section 193, 194 or 194A.”;(b) in subsection (4), for the words from “that” to the end substitute “that—(a) the affairs of the authority have been mismanaged, or (b) the authority has failed to meet a standard under section 193, 194 or 194A.”16 In section 269B (response to censure notice), in subsection (2)(c), after “mismanaged” insert “or it has failed to meet the standard (as the case may be).””Member's explanatory statement
This adjusts the grounds on which the regulator can give a censure notice to a local authority and is linked to the repeal of sections 198A and 198B of the Housing and Regeneration Act 2008 (see the amendment, in the Minister’s name, to substitute clause 20 with a new clause).
Baroness Scott of Bybrook
“Meaning of “subsidiary”(1) In section 271 of the Housing and Regeneration Act 2008 (meaning of subsidiary and associate), for subsections (1) to (5) substitute—“(1) A person (“A”) is a subsidiary of another person “B” if—(a) A is a subsidiary undertaking in relation to B for the purposes of the Companies Acts (see section 1162 of, and Schedule 7 to, the Companies Act 2006), or(b) A would be a subsidiary undertaking in relation to B for those purposes if “undertaking” were defined for those purposes to mean any person.”(2) For the purposes of section 74 of the Housing and Regeneration Act 2008, the amendment in subsection (1) applies in relation to leases granted on or after 10 June 2022.”Member's explanatory statement
This widens the meaning of “subsidiary” in Part 2 of the Housing and Regeneration Act 2008 so, amongst other things, it applies to bodies other than companies.
Baroness Scott of Bybrook
“11C A duty of the housing ombudsman to monitor compliance with a code of practice described in item 11A that it has issued.”Member's explanatory statement
This requires a housing ombudsman scheme to place a duty on a housing ombudsman to monitor compliance with a code of practice on complaint handling (if the ombudsman has issued one).
“(2A) In paragraph 2, in sub-paragraph (1), in item 15, for “expenses of the scheme” substitute “costs of the person administering the scheme and the scheme’s housing ombudsman”.”Member's explanatory statement
This amendment is consequential on the amendment to Clause 31, page 30, line 21 in the Minister’s name.
“(4) In paragraph 11—(a) after sub-paragraph (1) insert—“(1ZA) The amount of a subscription payable by a member may be calculated by reference to costs incurred, or likely to be incurred, by the person administering the scheme and the scheme’s housing ombudsman in carrying out any of their functions, including costs unconnected with the member and costs unconnected with the operation of the scheme.”;(b) in sub-paragraph (1B), for “expenses”, in both places, substitute “costs”;(c) in sub-paragraph (1C)—(i) for “expenses”, in the first place it occurs, substitute “costs”;(ii) for “expenses of the scheme” substitute “costs”.”Member's explanatory statement
This makes it clear that subscriptions payable by members of a housing ombudsman scheme may be set at a level to cover all of the costs of the scheme administrator and the ombudsman, including, for example, enforcement costs and other costs unrelated to the scheme.
Baroness Scott of Bybrook
“10A In section 122 (payments to members etc), in subsection (6), for “registered company or registered society” substitute “registered provider”.”Member's explanatory statement
This expands the provision about the recovery of wrongful gifts or payments so it applies to all non-profit registered providers.
“10B In section 135 (charity accounts), in subsection (1), omit “non-profit”.”Member's explanatory statement
The amendments to section 115 of the Housing and Regeneration Act 2008 made by clause 7 of the Bill remove the automatic designation of charities as “non-profit organisations”. This amendment is to acknowledge that and to ensure that provisions of the 2008 Act about accounts apply to all registered charities, regardless of their designation as “non-profit”.
(a) for “169C”, in both places, substitute “169CD”; Member's explanatory statement
This amendment is consequential on the amendment in the Minister’s name to insert a new clause after clause 16.
“(za) in subsection (2) omit “applicable to it”;”Member's explanatory statement
This amendment removes some words which are not needed and is to achieve greater consistency of language in Part 2 of the Housing and Regeneration Act 2008.
(a) in paragraph (a), omit “applicable to it”;Member's explanatory statement
This amendment removes some words which are not needed and is to achieve greater consistency of language in Part 2 of the Housing and Regeneration Act 2008.
“27A In section 256 (restrictions on dealings during an inquiry), in subsection (2), for “has reasonable grounds for believing” substitute “is satisfied”.”Member's explanatory statement
This amends the language used to express the standard which must be met for exercise of the power in order to achieve greater consistency within Part 2 of the Housing and Regeneration Act 2008.
“27B In section 258 (restrictions on dealings: supplemental), in subsection (3), omit the words from “not” to the end.”Member's explanatory statement
This amendment updates section 258 of the Housing and Regeneration Act 2008 so that it states that an offence under that section is punishable on summary conviction with an unlimited fine (which is currently the case by virtue of section 85 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012).
“28A In section 259 (suspension during inquiry), in subsection (2), for “has reasonable grounds for believing” substitute “is satisfied”.”Member's explanatory statement
This amends the language used to express the standard which must be met for exercise of powers in order to achieve greater consistency within Part 2 of the Housing and Regeneration Act 2008.
“28B In section 264 (offence of acting as an officer while disqualified), in subsection (2)(a), omit “not exceeding the statutory maximum”.”Member's explanatory statement
This amendment updates section 264 of the Housing and Regeneration Act 2008 so that it states that, on summary conviction, an offence under that section is punishable with an unlimited fine (which is currently the case by virtue of section 85 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012).
“28C In section 269 (appointment of new officers), in subsection (1)(c), for “thinks” substitute “is satisfied”.28D In section 269A (local authorities: censure during or following inquiry), in subsection (2), for “has reasonable grounds for believing” substitute “is satisfied”.”Member's explanatory statement
These amend the language used to express the standard which must be met for exercise of powers in order to achieve greater consistency within Part 2 of the Housing and Regeneration Act 2008.
Member's explanatory statement
This amendment is consequential on the amendment, in the Minister’s name, to insert a paragraph 8A into Schedule 3 to the Bill (which contains amendments of section 252A of the Housing and Regeneration Act 2008).
Social Housing (Regulation) Bill [HL]
Tuesday 18th October 2022
(2 years, 2 months ago)
Lords ChamberRead Full debate Social Housing (Regulation) Act 2023 Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: HL Bill 54-I Marshalled list for Report - (14 Oct 2022)
17:18 - Division on Amendment 14 - Ayes: 189 / Noes: 176 - Amendment 14 agreed.
17:50 - Division on Amendment 23 - Ayes: 171 / Noes: 175 - Amendment 23 disagreed.
Baroness Pinnock
Member's explanatory statement
This amendment would require the fundamental objectives to include reference to energy efficiency.
Baroness Pinnock (LD)
I draw the attention of the House to my relevant interests as a vice-president of the Local Government Association and as a local councillor. I start by reaffirming what I have said throughout our deliberations on the Bill: the Liberal Democrat Benches welcome and support the Bill’s purpose. However, there is always room for improvement, as the tabling of 31 government amendments clearly illustrates.
The purpose of Amendment 1 in my name is to ensure that the principle—and thus importance—of energy efficiency is one of the stated priorities and objectives of the regulator. In Committee, the Minister was not convinced by my argument, saying that energy efficiency is being addressed as part of a separate refurbishment programme. I am pleased to see a positive change of heart and a willingness to accept the argument, as demonstrated by the fact that the Minister has added her name to my amendment.
Adding energy efficiency as a key objective enables the regulator to influence those providers who have so far failed to bring their properties up to a C rating. One-third of social houses are in this bracket, and homes in the UK are among the worst insulated in the whole of Europe. Soaring energy prices mean that, even with the Government’s support until next April, homes will have energy bills that are on average two times higher than last winter’s. That will put a huge strain on household finances.
Now that the Government have pulled the universal support for bills after April and support will be more focused, apparently, average bills will be around £4,000 and completely unaffordable for those on lower incomes. An urgent programme to improve energy efficiency in all homes is urgently needed, but more so in homes in the social housing sector. The noble Baroness, Lady Hayman, has a detailed amendment to this effect, Amendment 14, which has been co-signed by my noble friend Lord Foster of Bath. We wholeheartedly agree with it. Will the Minister commit to an urgent programme of improving the energy efficiency of homes in the social housing sector? After all, this will contribute to the Government’s growth agenda in a positive way, and it could save each household around £800 a year.
Amendment 2 in my name relates to the ongoing scandal of fire and building safety remediation. This amendment proposes that the remediation programme in the sector should be monitored by the regulator. In her reply to the same amendment in Committee, the Minister said:
“The department is currently examining options for monitoring and reporting remediation progress in future, including cladding remediation. We strongly believe that decisions in this area should be based on thorough analysis of available options; this will ensure that the function is undertaken by those with the correct skills, expertise and capacity.”—[Official Report, 6/9/22; col. 114.]
Right. Can the Minister provide information on the progress of this proposed monitoring? What reassurance can she provide to those in shared equity arrangements, some of whom are contacting me with grave concerns that they will have a significant liability as a consequence of the arrangements that have been made?
This group includes Amendment 31 in the name of the noble Baroness, Lady Hayman of Ullock, which seeks to put more accountability into the hands of tenants. Obviously, these Benches completely support that amendment.
Finally, I return to the important need for substantial energy-efficiency improvements in the homes of those least able to meet the enormous hike in energy prices. Both the amendment in my name and that of the noble Baroness, Lady Hayman, propose practical solutions. I look forward to the debate on this group and the Minister’s response. I beg to move.
Baroness Hayman (CB)
My Lords, I remind the House of my interests as set out in the register and also note that a member of my family has recently undertaken some work in this field. I thank the Minister; she has been very approachable between Committee and Report and has given a lot of time to this. I am grateful for her attempts to come to some sort of positive conclusion on this.
As the noble Baroness, Lady Pinnock, said, with this group of amendments, we return to the need, which was supported around the House at all earlier stages of the Bill, for a concerted effort to improve energy efficiency in social housing and bring social housing tenants the benefits achieved in terms of warmer, safer, better-insulated and healthier homes and, of course, reduced cost. That cost reduction extends to the Government and taxpayers, who are currently spending eye-watering amounts of money to reduce bills this year, with no benefit for years to come.
I have Amendment 14 in this group, as the noble Baroness, Lady Pinnock, said. I am extremely grateful to the noble Lords, Lord Bourne, Lord Foster and Lord Whitty, who added their names to this amendment, demonstrating that cross-party support. I am sorry that the noble Lord, Lord Whitty, is still unwell and is unable to be with us.
Before focusing on my own amendment, I will say a few words about Amendment 1. I am delighted that the Minister is supporting the amendment from the noble Baroness, Lady Pinnock. It is always helpful to have the importance of energy efficiency made explicit in statute and I welcome that. But I have to say that even if such an addition to the duties of the regulator is technically necessary—and, of course, the Minister argued in Committee that it was not and would be only “symbolic”—it is certainly not sufficient to ensure that we make progress. I am afraid that the history of the last five years suggests that without a firm and specific legislative mandate, we will not make the step change that is necessary.
The Government first promised a consultation on improving energy-efficiency standards for social housing as part of the clean growth strategy in 2017. No such consultation emerged in the following four years, then in last year’s heat and buildings strategy, the Government diluted their commitment to one of “considering” setting a long-term regulatory standard and consulting before bringing any such standard forward. Nothing more has happened, so we are back to where we were in 2017, and social housing tenants and the taxpayer have become increasingly exposed to the costs of much higher energy bills, some of which are not down to global factors but to domestic inaction on energy efficiency.
Lord Bourne of Aberystwyth (Con)
My Lords, I support the amendment in the name of the noble Baroness, Lady Hayman, and in doing so declare my interest as on the register and that I am a member of Peers for the Planet. As the noble Baroness said, the amendment has also been signed by the noble Lords, Lord Foster of Bath and Lord Whitty, and I am sure that I send the best wishes of the whole House to the noble Lord, Lord Whitty, for a speedy recovery.
Let me say something first about energy efficiency before moving specifically to the amendment. In the area of energy efficiency, we are presented with a sweet spot where we can do a considerable amount for so many different areas of activity. First, on energy security, which is clearly a problem for many countries, including our own, we can ensure that we garner and use our supplies sensibly. Therefore, ensuring that energy is sensibly used seems to me to be of paramount importance.
In addition, particularly in this area of activity, by ensuring that energy is conserved we are helping those who are least able to pay for it. That has become more important since the action of the new Chancellor. I applaud the action he has taken in general, but of course it will present a potential headache in six months’ time for people who are unable to pay their energy bills. This is a way of helping in that regard.
In addition, by promoting energy efficiency we are providing jobs for people, which seems a sensible thing to do. Therefore I am unable to understand why the Government do not move to do something constructive in this area. It could be done with very little cost and would show a commitment to tackling climate change, which of course is the most important global area we are looking at.
The Government profess that they are supportive of action to combat climate change. Indeed, they are supportive of the Climate Change Committee and so on. But words are cheap. When it comes to action, we very often find the Government wanting and not providing leadership. I have the utmost respect for my noble friend the Minister. I know her well. I like her. I think she is a good Minister. But the Government are dragging their feet in this area and the lack of strategy is worrying. We have seen where a lack of strategy has led on the economy, and the same will happen in this area if we are not careful. Leadership has been left to Back-Benchers. There has been no leadership from the Government. They have not come up with their own proposals in relation to the amendment we are putting forward for a strategy. Have the Government proposed their own strategy? No. Are they against having a strategy in this area? It would seem so. I will happily give way to the Minister if she is able, at this stage, to say that she will bring forward a strategy at Third Reading —or later today, perhaps. But there is no strategy from the Government. There is a void here and that really is appalling.
We heard the Government say previously that there needed to be consultation, and this is one reason why noble Lords are being invited to vote against the amendment. The amendment provides for consultation. If the Government think it insufficient, let them say that the consultation should be carried out in a different way. But there is a practical, sensible provision for consultation here that I think has the support of the House. If it were not a whipped vote, it would probably go through nem con. I cannot understand why the Government are opposing this. It makes total sense. It is practical, pragmatic and sensible. If the Government do not like parts of the amendment, they should say what they are. As the noble Baroness said, this consultation has been on the stocks for five years. That is an awfully long time in terms of climate change. In another five years, we shall have lost Tuvalu to the world. If we sit back and do nothing, we are signing up to that.
So it is for the Government now to come forward with some leadership in this area. So far, there has been a void and it looks like that will continue. I strongly support this amendment. I invite the Government, even at this 11th hour, to say that they will support it, or come forward with an amendment of their own to ensure that we are able to do something constructive in this area. It is easy to say that you are signed up against climate change, but it is action that is needed, not just warm words.
The Lord Bishop of Chelmsford
My Lords, it is good to see this important Bill continuing its progression through this House. I begin by declaring my specific interests as the Church of England’s lead bishop for housing and as a beneficiary of the Church Commissioners.
I add my support to Amendment 1 in the name of the noble Baroness, Lady Pinnock. As the energy crisis unfolds, it is surely wise to address the issue of energy efficiency in the social housing sector in a systematic way, by including it as a fundamental objective. Many who live in social homes are among those with the lowest incomes, so they are already struggling to meet their energy bills right now. In addition to immediate relief and support, we also need to address energy efficiency to ensure true affordability in the long term.
Amendment 2, tabled by the noble Baroness, Lady Pinnock, would secure continued accountability on progress to remove dangerous cladding and the remediation of fire safety work—an important part of ensuring that a tragedy such as the Grenfell tower fire cannot happen again. As the Archbishops’ commission on housing, church and community rights states in its Coming Home report:
“The Grenfell victims and bereaved families deserve a profound change of culture in the housing sector to make the safety of residential housing stock an absolute priority.”
I also support Amendment 14, tabled by the noble Baroness, Lady Hayman. A government strategy setting out a plan of energy demand reduction for social housing will be a significant step towards reducing energy bill costs and meeting our net-zero targets. Our national commitment to net-zero carbon emissions by 2050 will be achieved only if we are intentional about building to high thermal efficiency standards.
I very much look forward to the Government’s response on these important amendments, and to working with noble Lords across all Benches to address this nation’s housing crisis. Clearly, there is consensus across the House on the importance of addressing the major problems we now face in our social housing sector.
Lord Foster of Bath (LD)
My Lords, I too am delighted to support Amendments 1 and 14, and the others in this group.
As we have heard from other speakers, we are in an energy crisis. Despite the welcome government support —we will be debating that in more detail tomorrow—it is the least well-off who will be hit hardest, many of whom live in social housing. As the noble Lord, Lord Bourne, has pointed out, one of the best ways of helping such people is by reducing their demand for energy in the first place, not least by improving the energy efficiency of their homes, reducing bills, reducing excess winter deaths, improving the quality of life and, as the noble Lord pointed out, increasing the number of jobs.
The Building Back Britain Commission argues that energy bills can be reduced by at least £200 every year by improving a home’s energy performance from level D to C. Many homes start at an even lower level, so the savings would be even greater. Improving the energy efficiency of social housing makes sense, so I am delighted that the Minister has agreed to support the amendment of my noble friend Lady Pinnock, which makes it a fundamental objective of the regulator to include reference to energy efficiency.
However, by itself, that does not go far enough. Amendment 14 fills the gaps, not least by requiring the Government to publish a strategy on reducing energy demand for social housing properties within 12 months of the Bill being passed, with appropriate consultation; requiring a programme to support social housing providers to encourage energy demand reduction; and, crucially, establishing in law a target which ensures that all social housing properties achieve EPC level C by 2030.
I have spoken many times in your Lordships’ House about the need to establish the Government’s own energy efficiency targets in law. I have argued that the retrofit industry that will deliver the Government’s energy efficiency targets, but which has been let down by numerous failed schemes, has lost confidence. The industry has shrunk and energy efficiency work has fallen dramatically. It is the industry itself that argues that to be persuaded to invest in research, training and equipment, it needs the confidence that putting targets into legislation would give.
Baroness Hayman of Ullock (Lab)
My Lords, we believe that this is a very important Bill and broadly, it has our support. Today, we are discussing areas where we think it could be improved. I thank the Minister and her officials for the attention they have provided to our amendments and for the discussions we have had; they have been extremely helpful and we very much appreciate that.
My Amendment 3 would ensure that the panel is chaired by a tenant, and my Amendment 31 would ensure that the Secretary of State introduces “tenant satisfaction measures”. I have tabled these amendments because we believe it is vital that tenants are at the centre of any changes being brought forward through this Bill, that they are consistently listened to and that their concerns taken seriously and acted upon when that needs to happen.
The Government have already committed to introducing a set of tenant satisfaction measures. We know that all stock-holding local authorities will need to be adequately funded by the Government to deliver this new statutory requirement to collect housing-related data, in line with the new burdens doctrine. I thank the Local Government Association for its support for my Amendment 31, on tenant satisfaction. Can the Minister and the Government look at these areas again as we move through the Bill?
The noble Baroness, Lady Pinnock, opened our debate, and we support her Amendment 2. As the right reverend Prelate the Bishop of Chelmsford said, talking about the continued importance of the removal of cladding and remediation around fire safety continues to keep that accountability on the face of everything that we are doing. We must not forget why we are here with the Bill in the first place.
I am pleased that the Government support Amendment 1 from the noble Baroness, Lady Pinnock, but, as other noble Lords have said, the energy demand and efficiency matters raised by various amendments in Committee and on Report are critical, and we believe that the Government need to give further consideration to them. Like the noble Lord, Lord Bourne of Aberystwyth, I do not really understand the Government’s reluctance to act on this issue. We know that it can make a real difference not just to climate change and reducing energy use but to the cost of living crisis that we are facing. Given the recent warnings from the national grid about the prospect of power cuts this winter, the Government need to take this more seriously than they have.
I draw particular attention to Amendment 14, in the name of the noble Baroness, Lady Hayman. As we have heard, it requires the Secretary of State to publish the social housing energy demand strategy, which she introduced extremely thoroughly. She went into some detail about how this can be achieved, why we need it and the importance of this amendment, and other noble Lords have stressed that they strongly agree with the noble Baroness. So again I urge the Minister to take this away and think about whether it is something the Government could do more on.
Like other noble Lords, we are pleased that the Minister has been able to accept Amendment 1 in the name of the noble Baroness, Lady Pinnock, but it simply is not sufficient. I completely agreed with the noble Baroness, Lady Hayman, when she said that we need a long-term strategy, a detailed plan and—as the noble Lord, Lord Bourne, also said—leadership. That is what we need to drive this forward.
I will not go into any more detail—we discussed this a lot in Committee and we have heard from noble Lords today—but, if the noble Baroness, Lady Hayman, wishes to test the opinion of the House on this matter, she will have our full support.
Lord Young of Cookham (Con)
My Lords, I apologise for missing my cue and interrupting the wind-ups. I will speak briefly to Amendments 2 and 14. On Amendment 2, veterans from the Building Safety Bill will recall that much of the debate focused on the impact on social housing of the costs of remediating the defects. This amendment would give the regulator a role in ensuring that this remediation was concluded satisfactorily.
Some of the information asked for in the noble Baroness’s amendment is already available. Figures from the building safety programme published last week showed that all 180 high-rise social housing buildings, bar one, have had the dangerous materials removed. Remediation has started on the final building, but the cladding has yet to be removed. The Government initially expected remediation to be completed by June 2020, so, after a slow start, it seems that real progress has been made, which is welcome. But 37 privately owned blocks still have Grenfell-style cladding five years after the fire.
Turning to funding, can my noble friend confirm that the social sector ACM cladding remediation fund has enough resources to compensate the social housing sector for the costs incurred and that there will be no impact on its development programme or rents as a result of the remediation? It appears that 17 of its buildings will not receive any money from the fund; is there a reason for this? Is it because the remediation was funded by the developers? Are the Government planning to recoup any of the costs to the fund from those responsible? In that context, can my noble friend update the House on the ongoing discussions with the private sector to get it to accept its responsibility for this debacle, with its tragic consequences?
The noble Baroness’s amendment, however, goes further than the removal of unsafe cladding and refers to
“the remediation of other fire safety defects in social housing.”
Will my noble friend say what progress has been made on that front, and in particular how much that will cost and how it will be funded without impacting on rents or development? Presumably the work was undertaken at the same time as the cladding removal, so this information is available.
While the amendment has provided a useful peg for a debate, I am not sure we need it in the Bill. The removal of cladding and fire safety defects are clearly needed to make a building safe—covered in Clause 1 —and the regulator already produces an annual report and accounts, which could include the information in the amendment, but it would be helpful to have some information about funding and the impact on the social housing sector.
Finally, turning to Amendment 14, I, along with others, am a planetary Peer—although flying at a much lower orbit than that of the noble Baroness, Lady Hayman. As the noble Lord, Lord Foster, said, the amendment requires targets and the targets are important, but they require funding. Ideally, the funding to pay for these energy conservation measures should not be at the cost to the new build programme—which brings me to the social housing decarbonisation fund, mentioned by the noble Baroness, Lady Hayman, which was set up to improve the energy performance of social homes in England, including local authority stock.
I know that that fund is the responsibility of BEIS and not of my noble friend’s department, but it is directly relevant to the debate on energy efficiency in social housing. There was a manifesto commitment in 2019 of £3.8 billion to this fund over a 10-year period. Will my noble friend confirm that that is still the case and that the sum has not been eroded in the meantime? What has been the take-up and evaluation of that programme and what assessment has been made of the number of homes that the sum could improve the energy conservation of? If my noble friend cannot answer now, perhaps she will reply in writing.
Finally, I understand that the amendment may be unacceptable to my noble friend, but I wonder whether she can show a little bit of ankle in her reply and indicate that this is not the Government’s final word on this and that as the Bill proceeds downstream in another place there might be the opportunity for further discussion and improvement.
The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)
My Lords, before I turn to the amendments, I will say a few words about the Bill more generally to frame the debate for the rest of today. It is now over five years since 72 people tragically lost their lives in the Grenfell Tower fire. The situation in which the residents of Grenfell Tower were placed was unforgivable. The Bill we are debating is a key step in the department’s response to this tragedy, ensuring that social housing tenants are safe, have decent homes and receive a good service from their landlord.
I must also pay tribute to the work of Grenfell United, which has championed the Bill from the very beginning. The Bill appears before noble Lords today because of the commitment of Grenfell United to these critical issues, which affect millions of tenants up and down the country. It is right that we recognise specifically the leading role that Grenfell United has played.
I will begin with Amendments 1 and 14, and Amendments 33 and 36 in my name, which all relate to energy efficiency. Throughout the passage of the Bill, we have heard from many noble Lords about the importance of energy efficiency in social housing, and I thank the noble Baronesses, Lady Pinnock and Lady Hayman, for their amendments. I turn first to the amendment in the name of the noble Baroness, Lady Pinnock, which advocates including energy efficiency in the Regulator of Social Housing’s fundamental objectives. Having listened to the powerful speeches made in Committee, I have added my name to her amendment and offer two further amendments—Amendments 33 and 36—which we think are necessary as consequential amendments to this.
As an aspect of housing quality, energy efficiency is already implicitly covered by the regulator’s fundamental objectives. The regulator’s home standard requires registered providers to comply with the Government’s decent home standards, which include requirements on energy efficiency. However, having considered further, we believe that these amendments would send a very strong signal to social housing providers and reinforce the broader importance of improving the energy efficiency of homes, to the benefit of communities, this country and the planet.
With the regulator having a specific objective to ensure that social housing maintains an appropriate level of energy efficiency, it will be important that government provides clarity on what standards of energy efficiency are expected of registered providers. That is why I am pleased to announce today that, following on from our 2021 Heat and Buildings Strategy—I say to my noble friend Lord Bourne that we do have a strategy—the Government will consult on energy efficiency in social housing within six months of the Bill receiving Royal Assent. I hope that answers a couple of questions from my noble friend Lord Bourne and the noble Baroness, Lady Pinnock. I say to the noble Baroness, Lady Hayman, that as long as I am a Minister in the department, I will make sure that this time we deliver within the timescale we set out today—because my name is on this.
Lord Foster of Bath (LD)
Can the Minister confirm whether the Government already have their own target in relation to the number of homes that should be brought up to EPC level C, including all fuel-poor homes and those in the social housing sector?
Baroness Scott of Bybrook (Con)
I am not aware that there is a target. I will look to see whether there is one and come back to the noble Lord. As we have heard in this debate, the social housing sector is in fact better than any other sector at getting to EPC level C.
The noble Baroness, Lady Pinnock, and my noble friend Lord Young asked whether we have an energy-efficiency programme and what we are doing about it. We do have an energy-efficiency programme—my noble friend Lord Young of Cookham mentioned it: the social housing decarbonisation fund. In the 2019 manifesto the Government committed £3.8 billion to this over a 10-year period. This will upgrade a significant proportion of the stock that at the moment is below EPC level C up to that standard. The latest funding round was launched in September this year, so it is continuing and ongoing. There is £3.8 billion to do just that.
I now turn to Amendment 2, tabled by the noble Baroness, Lady Pinnock, regarding cladding remediation. Nothing is more important than keeping people safe in their homes. The department continues to work closely with registered providers to facilitate the remediation of unsafe cladding and other fire safety defects. However, we are not persuaded that the type of monitoring suggested by the noble Baroness’s amendment is necessarily appropriate for the Regulator of Social Housing. The regulator is not a specialist building safety body, nor does it collect data on hazards, safety breaches or associated remedial works. As I believe I said in Committee, the department is examining options relating to the monitoring of fire defects, including unsafe cladding. I know we are always saying this, but we will set out our plans in due course and I will keep the noble Baroness updated on those plans. As I said, I will personally keep an eye on them now that I am in the department.
The noble Baroness also asked what progress had been made on the monitoring of cladding for social homes and about shared equity. The Secretary of State made it clear that no leaseholder living in a building of above 11 metres will ever face any costs for fixing dangerous cladding, and that applies to shared ownership too. The Government will provide grant funding for the removal and replacement of unsafe cladding in buildings that are over 11 metres. We have also introduced a new model for shared ownership which will include a period during which the landlord will provide support for the cost of repairs in new-build homes as well. I hope that answers the noble Baroness’s question—I know that I am also answering a further question that she asked earlier in the week on a similar issue.
My noble friend Lord Young of Cookham asked for some details. I think I will need to write to him because he wanted quite a lot of detail. We recognise that some social landlords face significant building safety costs and that they are having to balance their existing budgets to support this. The Government committed over £400 million to fully fund the removal and replacement of unsafe ACM cladding systems on buildings over 18 metres that are owned by registered providers of social housing. The Government have also committed to meeting the costs of removing other types of unsafe cladding on social sector buildings over 18 metres where the financial viability of a registered provider would otherwise be threatened. We are working on it. My noble friend asked me a lot of other questions and I will make sure that we answer those in writing.
The noble Baroness, Lady Hayman of Ullock, has tabled two amendments relating to tenant engagement. I thank her for these because that is what the Bill is all about—tenants. I begin with Amendment 3, which seeks to require a social housing tenant to chair and set the agenda for the advisory panel. As I said in Committee, tenants are at the heart of the Bill. It is vital that we empower tenants and ensure that their voices are heard. I reiterate that the advisory panel is intended to allow a diverse range of individuals to share their knowledge and opinions with the regulator. The views of tenants are absolutely central to this objective.
However, I do not believe that requiring a social housing tenant to chair the advisory panel and set the agenda is necessary to ensure the views of tenants are heard. In line with the White Paper commitments, the panel will listen to, and balance the interests of, the full range of stakeholders, including tenants. We want all members of the advisory panel, along with the regulator, to shape its agenda and how it operates, and decide who is the best person to chair it at any one time; that might mean different chairs for different debates. The panel will provide an essential platform to give tenants a voice, which will be listened to and considered, alongside the opinions of other stakeholders. Tenants will continue to be central to the regulator’s work; it is already enabling tenants to influence the design and implementation of the new regulatory regime through a number of tenant engagement events.
I now move to Amendment 31 from the noble Baroness, which proposes that the Secretary of State introduces tenant satisfaction measures—TSMs—within 30 days of the Bill passing. The regulator has already consulted on and issued a standard for TSMs, which comes into force on 1 April 2023, alongside technical guidance to promote compliance. Tenants will be able to scrutinise the first full set of survey results in 2024 to evaluate the performance of their landlord.
The regulator developed the TSMs regime through a detailed consultation process, gathering over 1,000 responses from stakeholders, including tenants, landlords and trade bodies. Given this detailed process, and the progress that the regulator has already made in implementing TSMs, there is no need for an amendment requiring the Secretary of State to introduce them. In the light of the commitments and points I have made, I hope that noble Lords are reassured and will not press their amendments.
Baroness Pinnock (LD)
My Lords, I thank everyone around the House for a good debate on the issues, particularly those of energy efficiency and the affordability of energy for heating homes. I add my thanks to the Minister for being so open about having a discussion and trying to resolve some of the issues that we have raised. She has been very generous with her time, especially when she has had this Bill put in her lap at the last minute, so to speak. I thank her for the support for Amendment 1 in my name.
On Amendment 2, it is still unclear to me why, if one of the fundamental objectives of the regulator is safety, monitoring the remediation of cladding cannot be included—but there we are. I am pursuing this issue elsewhere, as the Minister well knows, and I shall do so.
The key issue is how very disappointing it is that the Government are apparently unable to support Amendment 14 in the name of the noble Baroness, Lady Hayman. We need a strategy that will work, and clearly we do not have one, otherwise one-third of houses in the social housing sector would not still be well below the EPC level C rating. I am fed up with all this bidding for money at the centre; it is very ineffective. We need a proper strategy to get this done, as Kirklees Council did when I was leader, with the Kirklees warm homes scheme.
With those final comments, I beg to move the amendment.
Baroness Scott of Bybrook
Member's explanatory statement
This amendment is consequential on the amendment in the Minister’s name to insert a new clause before clause 19 inserting a new section 194ZA into the Housing and Regeneration Act 2008.
Baroness Scott of Bybrook (Con)
My Lords, there was an extremely important debate in Committee on the professionalisation of the social housing sector. As a Government Whip at that stage, I committed to speak to the new Minister once in post to let them know the strong views of the House on this issue. The noble Baroness will be reassured to hear that the conversation went well, even if it was a little one-sided.
Let me be clear: the Government support the professionalisation of the sector. We strongly agree that there is a need to improve the behaviours, skills and capabilities of staff in the sector. The Grenfell tragedy and our subsequent social housing Green Paper consultation highlighted that many staff did not listen to or treat residents with respect, provide a high-quality service, or deal appropriately with complaints. That is why we have brought forward Amendments 18 to 39, which address these issues. The amendments give the Secretary of State a power to direct the regulator to set regulatory standards on the competence and conduct of all staff delivering services in connection with the management of social housing. A competence and conduct standard will require landlords to ensure that their staff have the skills, knowledge, experience and behaviours they need to deliver professional services. Qualifications such as those offered by the Chartered Institute of Housing will be one part of how landlords could achieve this, as part of a holistic approach to staff training and development.
Baroness Hayman of Ullock (Lab)
My Lords, I shall introduce my Amendment 23. I thank the Minister for her introduction of her amendments, for listening to the debate on this in Committee and for bringing the amendments forward today. The government amendments really address competence and skills and, to my mind, the industry should already have competence and skills as part of its training and how it operates. The question I ask myself is: is this sufficient or is professionalisation needed?
We know that the Government recognised the need for a professionalised social housing sector in the White Paper back in 2020, but we all need to consider the fact that the Grenfell Tower fire back in 2017 is a stark example of exactly what can happen when we have an underregulated, unprofessional management in social housing. This is why Grenfell United and others believe that professional qualifications in part of the sector is so important. We believe there should be clear recognition of this and that the Government should be driving towards a properly trained professional sector that has ethics and values underpinning it. We know that Grenfell United has made it very clear that the bereaved and the survivors of the fire want this to be their legacy.
We know that poorly managed and maintained social housing can cause serious harm to renters’ health and well-being, yet there are no requirements to be properly qualified or to undergo professional development. As a result, too many tenants are not given a good service or treated with the care and respect they need and deserve. This is not to undermine the many good social housing operators, but unfortunately not everybody is as good. How do we professionalise the sector? This is what my amendment seeks to achieve. We believe that professional development should be mandatory for senior managers working in social housing. Other social professions have this requirement and rules for registration; they have continuous professional development as part of the way they operate while someone is a manager within their sector.
We believe that qualifications and training should aim to provide housing management staff with the skills and knowledge needed to do the job—and to do the job well—as well as instilling the right values to underpin it. If over time you have a better qualified, more professional sector, you will increase the perception of housing management as a valued profession, one that will attract dedicated individuals to a rewarding, if challenging, career.
A concern has been expressed that my amendment will mean that everybody working in social housing will have to be qualified, and that this will be too onerous for the sector to cope with. That is not what my amendment seeks to do. It is deliberately non-prescriptive, to allow for the flexibility needed in a sector where you have diverse businesses, from small almshouses to very large housing businesses. The Minister talked about the importance of flexibility and, if she looks at proposed new subsection (1), she will see that it states that:
“Regulations may provide that a person may not engage in the management of social housing … unless he or she … has appropriate professional qualifications … or satisfies specified requirements”.
Proposed new subsection (3) states:
“A requirement of regulations … may … relate to … the possession of a specified qualification or experience”
or
“participation in or completion of a specified programme or course of training, or … compliance with a specified condition”.
I am trying not to be prescriptive or make life difficult for housing associations and social housing provider but to provide a certainty that managers know what they are doing. It is as simple as that.
We think this should apply at first only to senior management because we believe that having senior staff with the appropriate skills and qualifications will ensure that the teams underneath them, those working in offices and other junior staff, would then be professionally run and deliver a quality service for residents. We believe this would not create barriers to housing associations and councils finding enough staff because the amendment requires regulations to define what types of work require qualifications. Flexibility in the amendment will lead to important change but without being overprescriptive and onerous for housing associations.
We know that housing management is no more complex than other professions that have legal requirements for training and development: for example, social work, healthcare, education—so why not include social housing? The secondary legislation regulations that guide mandatory qualifications in those fields are extensive and there are many different routes to being qualified, with many different expectations depending on the service being delivered. Why not have the same for social housing?
I turn now to some of the Minister’s arguments. Will this make housing associations into public bodies? I understand what she said about this, but I do not believe we have seen concrete evidence to suggest that my amendment on professional qualifications would bring the Government’s role in housing association business over the threshold. She referred to the review, but we have not seen that, so will this make housing association businesses technically public bodies? I am yet to be convinced of this and would like to see more evidence. We know that the economic standards in social housing have been proactively and extensively regulated for some time. Where is the tipping point? Why are the Government so concerned about this?
Finally, I come back to Grenfell. Grenfell United and Shelter, which has supported it throughout the process and the different legislation that has come through, are simply not satisfied with this. They have made it crystal clear—I have a note from them here—that it does not meet their reasonable expectations in this area. They believe that:
“Clear requirements are needed to bring social housing management on a par with other socially important professions, properly safeguard the wellbeing of tenants, and attract dedicated individuals to a meaningful, challenging career.”
It is appropriate to leave those last words to Grenfell United. I urge the Minister to revisit this at some point. However, because I think this is such an important issue for tenants and the survivors and bereaved of Grenfell Tower, I will seriously consider testing the opinion of the House on this matter.
Lord Young of Cookham (Con)
My Lords, I very much welcome the Government’s response to our debate in Committee in tabling government Amendment 4, which is a very welcome step forward. It honours the undertaking my noble friend gave in Committee to
“talk to the Minister personally, whoever that may be, to reflect the views of the Committee on this important issue.”—[Official Report, 6/9/22; col. 139.]
That dialogue turned out to be a monologue.
Before coming to the substance, I will say a quick word about reclassification, mentioned by my noble friend and the noble Baroness, Lady Hayman. It has clearly acted as a brake on the Government’s proposals. I entirely agree that we do not want to see the sector’s borrowing classified as “public sector”, with all the restraint that would follow. However, without getting into the complex theology of what is and what is not public borrowing, instead of this cat-and-mouse game with the ONS, with the Government never quite sure how far they can go before the elastic snaps, why can there not be a civilised dialogue with the ONS in advance? That would give the Government some certainty on how far they could go, instead of having to wait for a retrospective judgment, which is what happened last time. It seems to me a far more sensible approach to engage in dialogue in advance.
Turning to the substance, I agree with much of what the noble Baroness, Lady Hayman, has said. While I believe the general standard of management in the social housing sector is high and the movement is conscious of the need for improvement, we need a framework of professional training such as that proposed in the amendment, which exists for other professions such as education and social care.
For example, a recent article in Inside Housing said that the department had published a list of 18 social landlords against which the Housing Ombudsman had made findings of severe maladministration since September 2021. We have also read of the recent tragic case of a social housing tenant of one of the most reputable housing associations lying dead in her home for two years before she was discovered. An independent report concluded:
“What may have been designed as a service centred on the customer failed to work. Instead, the focus became the processes themselves … The culture of the organisation needs to change.”
That was said about what I believe to be a well-run body. It underlines the need for higher standards and a more professional approach.
Report is not the place to repeat the powerful arguments made in Committee, but it is worth reminding the House that, unlike private tenants, social tenants have few options to move to an alternative landlord if they do not get the service that they are entitled to.
My noble friend referred to the White Paper and the commitment to:
“Review professional training and development to ensure residents receive a high standard of customer service.”
My noble friend said in response to the debate in Committee that her department had set up a working group to review professional standards. Might we know how they are progressing, when the report will be completed, whether it will be made public and how that will feed into the work of the regulator, as proposed in the Government’s amendment? It would also be good to have confirmation that the CIH and the NHF will be involved with the regulator in drawing up standards. Finally, as the department has clearly been in dialogue with the regulator on this matter, can my noble friend in winding up give some indication of the timescale the regulator might adopt in taking this issue forward?
The Lord Bishop of Chelmsford
I rise to express very briefly my support for Amendment 23, in the name of the noble Baroness, Lady Hayman of Ullock. I welcome the Government’s restating at the Bill’s Committee stage their commitment to review professionalisation. However, I want to urge them to accept this amendment, which would help to ensure that appropriate professional qualifications, training and registration are upheld. The challenges we face in the social housing sector require high standards of management which, sadly, we do not always see, and this amendment will help to ensure those.
Baroness Sanderson of Welton (Con)
My Lords, I thank my noble friend the Minister and the Secretary of State for the time and effort they have put into this and other issues; they should be given credit for what they have done. I declare my interest as a community adviser on Grenfell. The Minister has worked with the community in a previous role, and I know she always has their best interests at heart, as well as those of other social housing tenants across the country. However, while I appreciate that the Government’s amendment improves on the current situation, I am afraid that the lack of any professional qualification structure leaves something of a hole—a cavity, if you like—in their plan.
In essence, the Government’s proposal says that requiring the regulator to set a professional standard will drive up knowledge, skills and experience in the sector. It argues that while they are not mandatory, qualifications may be one element of how landlords could achieve this, as part of a wider approach to training and development. I agree: qualifications are not the only way to improve skills and standards, but I am struggling to see how we do it without them, particularly in an area where the need to drive out stigma is so necessary and overwhelming. In any other sector, be it social work or education, qualifications are integral—fundamental, even—to increasing knowledge and, most importantly, to providing a career path. If we want to encourage people into social housing, to take pride in that career, we must give them a way to progress. Without that infrastructure it will be so much harder to bring about meaningful change. Would it not also be a useful indicator of compliance? It is hard to see how the regulator will accurately measure competence across the sector. I welcome the checks and balances provided for in this amendment, but it is unclear on what grounds the regulator will be able to apply sanctions where necessary.
I realise that some of these questions will be for the proposed consultation, but at the moment it all feels a bit woolly. There is constant talk of driving up skills and knowledge, but not enough in practical terms on how to achieve this goal. To that end, as the Bill progresses will the Government consider including a specific request to the regulator to consult experts such as the Chartered Institute of Housing on a suitable qualifications framework?
I am pretty sure that the Minister will say to me that doing so could lead to a reclassification by the ONS. I fully understand the risks involved, as have been mentioned by the noble Baroness, Lady Hayman, and I appreciate that the Government have no control over the ONS’s decisions. However, at the moment we are still talking about a risk, not a certainty, so, as my noble friend Lord Young suggested, is it not possible to consult the ONS on this? Otherwise, we are in a world of “what ifs” and “maybes”, which seems absurd given what is at stake. For as it stands, we seem to be saying that tenants in social housing can expect to send their child to a school where the teacher must be qualified, and to send their parents to a care home where there must be suitably qualified staff, but that the people responsible for running their homes do not need any qualifications at all.
The Government argue that they are not ruling out qualifications, but that providers must be allowed to determine the right mix. I am sure the Minister will understand why there is nervousness about leaving this to landlords’ discretion. Do we really expect them to introduce qualifications voluntarily? This is not just about Grenfell. As I mentioned in Committee, one look at Kwajo Tweneboa’s Twitter account and the neglect and misery it chronicles will tell you all you need to know about the attitude and aptitude of some providers. They are the worst examples, but surely the least likely to equip their staff with qualifications.
Finally, I repeat one more point I made in Committee: what happens if the Grenfell Tower inquiry recommends mandatory professionalisation? Will all the same arguments apply, or will we have to find a way around this later down the line, when we should be doing it now? To that end, while I reiterate my thanks to the Minister and the Secretary of State—I understand that it is a difficult area—I cannot help feeling that on this issue, the department may need to provide us with some more answers.
Baroness Pinnock (LD)
My Lords, this has been a very powerful debate on something that is pretty esoteric: the qualifications of those providing social housing. However, it seems vital for the safety of social housing tenants that the people responsible for the management of their properties know what they are doing. This group of amendments includes alternative ways forward in relation to the importance of raising standards of management and the need for professional qualifications.
On the one hand, the Minister is arguing for a light-touch approach, as set out in her Amendment 10, arguing that there is a risk of reclassification of the sector if the strategy laid out by the noble Baroness, Lady Hayman of Ullock, in her Amendment 23 is followed. But two things come to mind. First, the noble Baroness, Lady Hayman, explained that the approach she has laid out is flexible and combines that with an ambition for higher standards in the sector. Her amendment uses “may” throughout, so it is not a mandatory approach. It is trying to say, “Here is a way forward to raise standards—follow it, sector, and raise standards”. What an ambition that would be.
On the other hand, we have the Minister arguing that there is a risk of reclassification. I have to say that if there is a barrier to raising standards in the management of social housing, it needs to go. We have to find a way around it. We have heard two examples from the noble Lord, Lord Young of Cookham, and the noble Baroness. They have both explained how we can get around this—so let us get around it.
Shelter has highlighted in the wake of the Grenfell tragedy that social housing tenants were concerned not only with safety but with maintenance, repairs and poor living conditions. Social landlords and managers are the first port of call for tenants to raise concerns about standards, so ensuring that senior managers are qualified and have the requisite knowledge and experience will have a trickle-down effect—something I am sure the Minister will approve of. So, let us professionalise the workforce.
In Committee, my noble friend Lady Thornhill—who is unfortunately unable to be here today as she is not well—made comparisons between the workforce of the health and care sector and that of the social housing sector. That comparison rightly reflects the important role of social housing in the well-being of the nation, but, like the health sector, housing and construction are facing shortages of both people and resources. Amendment 23 in the name of the noble Baroness, Lady Hayman of Ullock, would ensure that the Government were able to prescribe mandatory qualifications—but, as I have said, in a flexible way. That would protect tenants and make sure that their homes were safe and fit for habitation, and that tenants’ voices were heard. As has already been said, one of the findings of the Grenfell inquiry was that tenants’ voices were ignored.
The Government have listened to the debate in Committee and the calls from groups such as Grenfell United and Shelter, reflected on their own commitment and brought forward a number of amendments in this group with the aim of raising standards for registered providers and social housing managers. Of course, I welcome this, but the Government’s argument that a balance needs to be struck between safety and workforce supply is, in my view, a false one. Ultimately, the safety of social housing tenants has to be paramount. We need to make sure that the situation is not made worse for tenants by exacerbating problems in the training and retention of staff, but in the end, the quality of managers is what keeps tenants safe.
Baroness Scott of Bybrook (Con)
My Lords, the speeches from across the House today are a tribute to the role that real scrutiny of legislation can play. I personally thank the noble Baronesses, Lady Hayman of Ullock and Lady Pinnock, my noble friend Lady Sanderson and the noble Lord, Lord Best, among others, with whom I have had extremely constructive conversations on this critical issue over recent days. I also met Grenfell United and told them what I have to do and why I have to do it.
I will start by answering a couple of questions. The noble Baroness, Lady Hayman of Ullock, said that her amendment is permissive not prescriptive. Unfortunately, the existence of a power in legislation for the Government to in effect control hiring and firing decisions would still be deemed a government control by the ONS, even if it is permissive and flexible.
A number of noble Lords asked why we cannot ask the ONS about its decision before we make any further decisions—it is a question that I asked too. The ONS is the independent body statutorily responsible for making classification decisions, which includes determining whether bodies are part of the public sector. The ONS will make a formal assessment only once a new policy or regulation has been implemented; it does not classify the impact of policies still under development, so we cannot go to it until the decision is made.
Baroness Pinnock (LD)
I hear what the noble Baroness says, but have the Government actually asked the ONS whether it would be prepared to give an indication of whether the level of reclassification is reached? As others have said, that would really help.
Baroness Scott of Bybrook (Con)
It will not engage, as far as I understand. His Majesty’s Treasury would deal with this and it has advised that we cannot do that, as that is not what the ONS does. The ONS publishes its assessments and its decision cannot be challenged. It will review its decision only in very limited stated circumstances, including when new legislation, policy proposals or machinery of government changes impact the operations of an organisation or, in this case, a sector.
I go back to the point that, in 2015, following further legislation on the social housing sector that had tipped it over, the ONS changed the classification and we had to introduce new legislation again. We do not want to be in that position—that would not be what anybody would want—and the time involved in doing all that would be extensive.
My noble friend Lord Young asked whether the review of professionalisation would feed through to the development of standard. Yes, it will: the review will inform the Secretary of State’s direction to the regulator about the context and objectives for the standard, so it will be used in that way.
My noble friend Lady Sanderson asked whether the Secretary of State could direct the regulator to include qualifications in the standard. Again, directing the regulator to require qualifications would also risk reclassification. However, in setting standards for the competence of their staff, landlords would have to provide assurance that their staff had the requisite capabilities, and I suggest that ensuring that their staff have appropriate qualifications would be a key way of achieving that aim.
Baroness Hayman of Ullock (Lab)
My Lords, having looked at the classification process on the ONS website, I see that it states:
“HM Treasury may … submit policy proposals for classification advice from the Economic Statistics Classification Committee … either on its own behalf if it is the policy lead, or on behalf of another department”.
It looks to me like the issue could have been put to the ONS for advice ahead of the position that we find ourselves in.
Baroness Scott of Bybrook (Con)
We have asked for an indication, but the ONS will give only an indication. As far as I understand it, the indication is that this could tip over into a reclassification.
Baroness Hayman of Ullock (Lab)
Could we perhaps have the official response to the Treasury, if it has put forward a request?
Baroness Scott of Bybrook (Con)
I am more than happy to provide that.
I think that I have answered all the questions. As I have said once already and as I said in Committee—although it perhaps bears repeating—the Government believe in professionalising the social housing sector. As was mentioned, we sent out an all-Peers briefing on Friday setting out the full rationale for what we are doing, why we are doing it and why we are unable to accept the amendment in the name of the noble Baroness, Lady Hayman of Ullock. The qualifications, training and development needed to professionalise social housing cannot be a one-size-fits-all; we must protect landlords’ ability to determine the most appropriate qualifications and training for their staff. The regulator has deep sector expertise and a strong track record of regulating the sector for financial liability, on which it would be able to draw, to ensure that landlords raise professional standards. The introduction of tough sanctions for landlords failing to comply with the new standard will ensure that consistently high standards are achieved across the sector.
To push back against what the noble Baroness, Lady Pinnock, said, I say that this is not light touch, given the enforcement powers and unlimited fines and the fact that the regulator will be looking at tenant satisfaction levels in great detail. If tenants are unsatisfied with their housing provider, they will say so, and at that point the regulator can move in—and the regulator has teeth to ensure the enforcement of specially trained staff, and has unlimited fines if the provider does not comply. There are tough sanctions for failing to comply with the new standards, and I believe that the provisions will ensure that consistently high standards are achieved across the sector.
Finally, the risk of reclassification of the social housing sector is substantial. The proposal to mandate qualifications for staff risks adding £90 billion to the public balance sheet. Reclassification could limit landlords’ ability to invest in new homes and in improving the quality of existing stock and service provision. This would clearly disadvantage tenants and undermine our objective of increasing professionalism in the sector. It is likely that we would want to introduce deregulatory measures to address that. It would weaken the regulatory framework that the Bill creates, and we cannot allow that to happen.
The Government are not trying to hide on this issue. It simply comes down to how we accomplish the outcomes for which we are all looking. I believe that the Government’s approach is the right one. I hope that noble Lords have been persuaded by my arguments.
Baroness Scott of Bybrook
Member's explanatory statement
This amendment is consequential on the amendment in the Minister’s name to insert a new clause after clause 15.
Baroness Scott of Bybrook (Con)
My Lords, this set of government amendments delivers technical changes which will ensure that measures in the Bill operate effectively and consistently.
Amendments 19, 20 and 21 to Clause 24 will ensure that both registered providers and the occupiers of premises will receive the same 48-hour notice period before the Regulator of Social Housing conducts a survey. The noble Baroness, Lady Pinnock, raised the discrepancy in notice periods in Committee. We agree that there should have been no difference between the notice periods that the tenant and landlord receive. I hope that she will welcome these amendments which address this problem.
I turn to the other amendments in this group. Amendments 26 to 30 are a series of changes to Clause 26. These will enable a regulator to carry out emergency remedial action more effectively. Given the urgent nature of these remedial works, these changes are highly important. Ahead of carrying out emergency remedial action, a person authorised by the regulator is required to notify all parties.
Amendment 28 allows all parties to consent to early entry before the minimum advance notice period has elapsed. This ensures that, where all parties are content, there will be no barrier to preventing urgent works starting immediately. Amendment 28 also allows the occupier to consent to a person authorised by the regulator conducting emergency remedial works in advance of the date specified on their pre-entry notice. Amendment 27 is consequential on this change.
Amendment 29 offers greater flexibility to the regulator by making it clear that the person authorised by the regulator to notify parties that emergency remedial works are due does not have to be the same person who carries out the works. Amendment 26 clarifies that, when emergency remedial works affecting common parts are due to take place, a notice is required to be given only in respect of occupied dwellings that have use of the common parts. Amendment 30 is a minor amendment to improve the drafting.
Amendment 6 would remove the requirements for the regulator to decide on the eligibility of registration of a registered provider that has recently converted from a company to a registered society. In such an event, the registered provider’s existing registration remains in place. Amendment 5 is consequential on this change.
Amendment 7 proposes a new clause in relation to the restructuring of a registered provider that is a registered society. It removes a duty on the regulator to make a registration decision where a registered society converts into a company or transfers undertakings to another society that is also a registered provider. Registration decisions are not needed in these circumstances. In the case of a conversion, the provider’s existing registration continues. In the case of a transfer, the transferee is already registered. Where a registered society amalgamates with another or transfers its undertakings to a society that is not also a registered provider, proposed new Section 163ZA provides that the successor body should be treated as registered and designated as a non-profit organisation pending the registration decision. Amendments 8 and 9 are consequential on this change.
These amendments are largely technical in nature. Many of them will support the regulator to deliver effectively on its economic and consumer regulation objectives, while others will ensure greater clarity and consistency in the legislation. I hope that noble Lords will support their addition to the Bill. I beg to move.
Baroness Pinnock (LD)
My Lords, I thank the Minister for putting right what was clearly an oversight in the Bill, whereby landlords were given 48-hours’ notice before entering a property while tenants got only 24 hours.
Baroness Hayman of Ullock (Lab)
My Lords, I reiterate what the noble Baroness has said. It is good that what was said in Committee was listened to. We support the amendments and thank the Minister.
Baroness Scott of Bybrook
Member's explanatory statement
This amendment is consequential on the amendment in the Minister’s name to insert a new clause before clause 16.
Baroness Scott of Bybrook
“Conversion of company into registered society: continuation of registrationIn section 161 of the Housing and Regeneration Act 2008 (company: conversion into registered society) omit subsections (4) to (7).”Member's explanatory statement
If a registered provider which is a company becomes a registered society the body’s registration as registered provider continues. This amendment removes the provisions requiring the regulator to decide whether the registered society is eligible for registration as a registered provider.
“Restructuring of registered societies(1) The Housing and Regeneration Act 2008 is amended as follows.(2) In section 163 (registered society: restructuring) omit subsections (5) to (8).(3) After section 163 insert— “163ZA Restructuring of registered societies: registration of successor bodies(1) This section applies where —(a) a registered provider notifies the regulator of a resolution passed by the provider for the purposes of section 109 of the Co-operative and Community Benefit Societies Act 2014 (amalgamation of societies);(b) a registered provider notifies the regulator of a resolution passed by the provider for the purposes of section 112(1)(b) of that Act (amalgamation of society and company);(c) a registered provider notifies the regulator of a resolution passed by the provider for the purposes of section 110 of that Act (transfer of engagements between societies) and the society to which engagements are transferred is not a registered provider;(d) a registered provider notifies the regulator of a resolution passed by the provider for the purposes of section 112(1)(c) of that Act (transfer of engagements between society and company) and the company to which engagements are transferred is not a registered provider.(2) When the resolution mentioned in subsection (1) (“the relevant resolution”) takes effect, the regulator must decide whether the successor body is eligible for registration under section 112.(3) “The successor body” means—(a) if the relevant resolution is a resolution described in paragraph (a) or (b) of subsection (1), the body created by virtue of that resolution or by virtue of that resolution and other resolutions described in that paragraph, and(b) if the relevant resolution is a resolution described in paragraph (c) or (d) of subsection (1), the body to which engagements are transferred by virtue of the resolution.(4) If the successor body is eligible for registration, the regulator must register it and notify it that it has done so.(5) If the successor body is not eligible for registration, the regulator must notify it of that fact.(6) Pending registration, or notification that it is not eligible for registration, the successor body is to be treated as if it were registered and designated as a non-profit organisation.””Member's explanatory statement
Where a restructuring of a registered provider which is a registered society results in the creation of a new body or in the transfer of the engagements to a body which is not a registered provider, these amendments provide that the regulator must decide whether or not to register the body and describe how the body should be treated pending that decision.
Baroness Scott of Bybrook
Member's explanatory statement
This amendment is consequential on the amendment in the Minister’s name to insert a new clause before clause 16.
Baroness Scott of Bybrook
“Standards relating to competence and conductAfter section 194 of the Housing and Regeneration Act 2008 insert—“194ZA Standards relating to competence and conduct(1) The regulator may set standards for registered providers in matters relating to the competence and conduct of individuals involved in the provision of services in connection with the management of social housing.(2) Standards under subsection (1) may, in particular, require registered providers to comply with specified rules about—(a) the knowledge, skills and experience to be required of individuals involved in the provision of services in connection with the management of social housing, and(b) the conduct to be expected of such individuals in their dealings with tenants.””Member's explanatory statement
This gives the regulator power to set a standard requiring registered providers to ensure that individuals who provide services in connection with the management of social housing have the knowledge, skills and experience to do so and to set out expectations as to how the individuals conduct themselves in relation to tenants. See also the amendment to Schedule 5, page 49, line 32 in the Minister’s name.
Baroness Scott of Bybrook
Member's explanatory statement
This amendment is consequential on the amendment in the Minister’s name to insert a new clause before clause 19 inserting a new section 194ZA into the Housing and Regeneration Act 2008.
Member's explanatory statement
This amendment is consequential on the amendment in the Minister’s name to insert a new clause before clause 19 inserting a new section 194ZA into the Housing and Regeneration Act 2008.
Member's explanatory statement
This is consequential on the amendment to Schedule 5, page 49, line 32 in the Minister’s name.
Baroness Hayman
“Standards relating to energy demand
(1) In section 193 of the Housing and Regeneration Act 2008 (standards relating to consumer matters)—(a) in subsection (2), at the end insert— “(k) energy demand.”;(b) after subsection (2) insert—“(2A) In setting standards relating to energy demand, the regulator shall have regard to the Government’s strategy on reducing energy demand for social housing properties.”(2) The Secretary of State must, before the end of the period of 12 months beginning with the day on which this Act is passed, publish a strategy on reducing energy demand for social housing properties, to include but not limited to the following—(a) achieving a low-carbon heat target, of 100% of installations of relevant heating appliances and connections to relevant heat networks in social housing properties being low-carbon from 2035;(b) achieving an energy-efficiency target, of all social housing properties attaining a minimum EPC C rating by 2030;(c) interim targets relating to the targets in paragraphs (a) and (b) at not less than three-yearly intervals;(d) a programme to support registered social housing providers in engaging with each other, the regulator and a source of advice provided by the Government to encourage energy demand reduction.(3) Before publishing their strategy, the Secretary of State must—(a) consult the Climate Change Committee and its sub-committee on adaptation;(b) publicly consult on the most practical, cost-effective and affordable way of achieving the targets in subsection (2)(a) to (2)(c), and(c) publish an assessment of the long-term impacts of the strategy on tenants of social housing and registered social housing landlords.”
Baroness Hayman (CB)
My Lords, I listened very carefully to the words of the Minister in responding to our earlier debate. I do not have a scintilla of doubt about her sincerity and integrity in offering a consultation, but the House will understand that many of us have been promised consultations and not seen them, or they have not been acted upon. In this area, we were promised the consultation in 2017. It has not happened yet. This amendment would give us a coherent and costed plan for energy efficiency in a sector that needs it very urgently. In view of the support from all Benches—I am particularly grateful to the Bishops’ Benches for joining the political parties—I would like to test the opinion of the House.
Baroness Scott of Bybrook
“(za) to set a standard under section 194ZA,”Member's explanatory statement
This enables the Secretary of State to direct the regulator to exercise the new power to set standards conferred by the new section 194ZA of the Housing and Regeneration Act 2008 (see the amendment to insert a new clause before clause 19 in the Minister’s name).
Baroness Scott of Bybrook
Member's explanatory statement
This is linked to the amendment to clause 21, page 17, line 21 in the Minister’s name and enables the Secretary of State to direct the regulator about the content of the standards set under the new section 194ZA and to direct the regulator to have regard to specified objectives when setting them.
Lord Best
“Inspections(1) The Housing and Regeneration Act 2008 is amended as follows. (2) For sections 201 (inspections) and 202 (inspections: supplemental) substitute—“201 Inspections(1) It is the duty of the regulator to carry out inspections, at such intervals as may be prescribed, of—(a) every registered provider’s performance of its functions in relation to the provision of social housing, and(b) the financial or other affairs of every registered provider.(2) Following each such inspection under subsection (1), the regulator must—(a) assess the performance of the providers, and(b) publish a report of its assessment.(3) Regulations may provide that this section does not apply to specified providers or categories of providers in prescribed circumstances.(4) The assessment of a registered provider’s performance is to be by reference to such indicators of quality as the Secretary of State may devise or approve.(5) The Secretary of State may direct the regulator to devise indicators for the purposes of subsection (4) and submit them to the Secretary of State for approval.(6) The regulator must prepare a statement describing the method that it proposes to use in assessing and evaluating the performance of a registered provider under this section, and submit the statement to the Secretary of State for approval.(7) Regulations must provide that in conducting an inspection of a registered provider under this section, the regulator must have regard to any views expressed to him or her by certain persons or classes of person which must include tenants of the provider.202 Special inspections and investigations(1) The regulator may at any time, where he or she considers it appropriate, conduct a special review or investigation, and must do so if the Secretary of State so requests.(2) A special inspection or investigation is an inspection (other than a periodic inspection) of or an investigation into—(a) the exercise of its functions by a registered provider;(b) the financial or other affairs of a registered provider;(c) the standard of accommodation provided by a registered provider;(d) other matters relating to the governance or performance of a registered provider.””
Lord Best (CB)
My Lords, Amendment 17 is in my name and those of the noble Baronesses, Lady Hayman of Ullock and Lady Thornhill, whose support is much appreciated.
This amendment, first tabled in Committee, would oblige the Regulator of Social Housing to carry out regular inspections into the affairs of all social landlords. The objective of such inspections would be to ensure that the new regime introduced by the Bill, with its emphasis on consumer protection for residents—the missing element in the current regulatory regime—was actually achieved. By visiting social landlords and talking with residents, inspections would enable the regulator to see whether its set of standards was being properly met and to take action if not.
The Government have previously mentioned Ofsted-style inspections, perhaps every four years and maybe covering providers with 1,000 or more homes. Such statements in press releases are all very well but are not a substitute for a requirement on the regulator set out in the Bill.
We have all been deeply affected by the efforts of the Grenfell survivors, represented by Grenfell United supported by Shelter, to secure real change as a lasting legacy for the 72 lives lost. They have made the case tenaciously. Without a requirement in the Bill for regular inspections, this key component in support of the Bill’s intentions could evaporate. Without a basis in law, the regulator could not be challenged in the courts if it failed to inspect an organisation large or small. The Grenfell families want to ensure that their efforts have made a difference, and this needs to be evidenced by a legal duty for the regulator to conduct regular, routine inspections.
Meetings have been held with the Minister and the Bill team. As a result, the Government devised Amendments 22 and 38, which come close to fulfilling the ambitions of Grenfell United and its supporters at Shelter. They require the regulator to make a plan for regular inspections, spelling out the basis for them, their frequency and their variations for different cases and circumstances, and they ensure proper consultation with tenants and their representatives.
The Minister has been involved with Grenfell families for many years and is clearly deeply committed to meeting their wishes in so far as she is able. The new government amendments on inspections are intended to secure the outcome sought by Grenfell United and I am extremely grateful to the Minister for bringing them forward. It may be that, on reflection, further tweaks would be helpful when the Bill moves through its Commons stages—Shelter’s excellent briefing on this theme illustrates possible additional refinements— but at this moment I am delighted to support the Government’s amendments and will not take my Amendment 17 to a vote.
In conclusion, I hope that all those who have suffered so much as a result of the disgracefully poor management of those Grenfell homes will recognise that it is their efforts that have improved the Bill in this regard. More than this, it is their perseverance, eloquence and sincerity that have led to this whole legislative change. Because of their courage and perseverance, hundreds of thousands of those living in social housing will now benefit from the significant extra dimensions to their protection from poor landlords that this Bill will accomplish.
Baroness Pinnock (LD)
My Lords, my noble friend Lady Thornhill is not well and is unable to be here today. She put her name to the amendment to which the noble Lord, Lord Best, has just spoken, so I am speaking on her behalf as much as anything.
These amendments are really important, because at the heart of the debate is the safety of social housing tenants. It is a similar debate to the one we have just had about whether there should be more professional qualifications for housing managers. Like that one, it is based on the social housing White Paper, in which the Government have suggested introducing Ofsted-style inspections for social landlords. This is, in essence, what the amendment in the name of the noble Lord, Lord Best, proposes. In mandating inspections but leaving their frequency to the Secretary of State, and allowing them to exempt certain providers, Amendment 17 is robust but workable.
There was widespread support across the House for the same amendment in Committee, with organisations such as the National Housing Federation and the Chartered Institute of Housing welcoming stronger and more proactive regulation of the consumer standards. As the CIH stated in its briefing, it is vital that the regulator has the resources to undertake these inspections. Ultimately, these inspections will help not only to avoid the catastrophic lapses in safety that led to the Grenfell tragedy—among others, but obviously Grenfell is by far the worst—but to strengthen the ability of the social housing sector to provide warm, secure and affordable housing.
The Government have tabled Amendments 22 and 38, and the Minister has again shown that she is listening and seeking to respond to what was said in Committee. But in the opinion of these Benches, the government amendments do not appear as robust as the one tabled by the noble Lord, Lord Best. Inspections are not mandated; rather, the plan must outline whether they “should” take place and at what frequency. The regulator
“must take appropriate steps to implement the plan.”
Perhaps the Minister can outline what the steps could be. What are these “appropriate steps”? What teeth does the regulator have to implement inspections? Will the Government review these provisions to determine whether they have been successful or whether further steps will need to be taken to make sure that inspections are happening? What timeframe will we see for the plan? When will it be published and how often should it be reviewed? There are lots of questions, and lots of answers are needed if we are to be able to judge whether the proposals from the Government are sufficiently robust.
Given that tenants, providers and the Government all seem to agree on the need for more proactive regulation, we on these Benches hope that the government amendments will be all that is necessary for inspections to be frequent and effective. We just hope that we will not look back and wish we had used this opportunity to further strengthen the law on this issue, as the amendment from the noble Lord, Lord Best, would allow us to do.
I want to end the debate in this House on this very important Bill by recognising, as others have done, the powerful commitment that Grenfell United has made to making the Government and the rest of us understand the importance of social housing being of the highest quality and safe and secure, with managers who know what they are doing and with a regulator who has teeth. None of us ever again wants to be party to a terrible tragedy like that which occurred in June 2017.
Baroness Hayman of Ullock (Lab)
My Lords, I shall be brief because much has been said that needs to be said, and we had quite a debate on this in Committee. I thank the noble Lord, Lord Best, for the amendments he put down in Committee and again on Report, and for all the hard work and time he has put into moving this issue forward so that we have reached a stage where the Government have recognised that more needed to be done in this area. I thank the Minister for her amendments and for recognising that inspection is a critical part of making progress on standards in social housing.
We are now reaching the end of the debate at Report, so I would just like to say a couple of things. The noble Baroness, Lady Pinnock, asked a number of questions; I will not add to them but will wait to hear the Minister’s response. I thank again the Minister and her officials, as I did at the beginning of today’s debate, for her personal commitment and time on this Bill, and for her efforts where she has been able to make progress—for example, on this issue and in some other areas. It is appreciated by all of us who want this Bill to be as good as it can possibly be.
The noble Lord, Lord Best, ended in the way that we ought to end this debate, which is to recognise why we are here today. It is because of those who suffered so much during the Grenfell tragedy not giving up and keeping going and pushing us politicians and others on what needed to change in the social housing sector. This Bill is a credit to them. On that note, I thank everybody for the debate and for their time today.
Baroness Scott of Bybrook (Con)
My Lords, I thank the noble Lord, Lord Best, for his Amendment 17 relating to inspections and for the time he has given me and my officials on this issue; it was important. He knows so much about this sector, and it was really very useful to spend time with him, as it was useful to spend time with many other noble Lords on a number of issues here. I thank them so much for their time.
Lord Best (CB)
Everything that should be said has been said, and I am very glad that we have finished on the note of thanking those in Grenfell United. Over so many years such persistence has been shown in getting us to the point we are at today, and we are all very grateful to them. I beg leave to withdraw the amendment.
Baroness Scott of Bybrook
Member's explanatory statement
This amendment is consequential on the amendment in the Minister’s name to insert a new clause before clause 19 inserting a new section 194ZA into the Housing and Regeneration Act 2008.
Baroness Scott of Bybrook
(a) to the registered provider, and(b) if the premises are occupied, to the occupier (or any one of the occupiers).”Member's explanatory statement
This provides for occupiers of premises to be given 48 hours’ notice of the first exercise of the power to enter to carry out a survey (as opposed to 24 hours). This places occupiers in the same position as registered providers of the premises concerned.
Member's explanatory statement
This amendment is consequential on the amendment to clause 24, page 19, line 9 in the Minister’s name.
Member's explanatory statement
This amendment is consequential on the amendment to clause 24, page 19, line 9 in the Minister’s name.
Baroness Scott of Bybrook
“Inspection plan(1) The Housing and Regeneration Act 2008 is amended as follows.(2) After section 201 (inspections) insert—“201A Inspection plan(1) The regulator must make a plan as regards—(a) the descriptions of registered provider that should be subject to regular inspection under section 201,(b) the intervals at which regular inspections should be carried out under that section, and(c) the circumstances in which registered providers should be subject to inspections under that section other than regular inspections.(2) The plan may make different provision for different cases, circumstances or areas.(3) The regulator must take appropriate steps to implement the plan.(4) The regulator must—(a) keep the plan under review,(b) when appropriate, revise or replace the plan, and(c) publish the plan and any revised or replacement plan.”(3) In section 215 (use of intervention powers), after subsection (1) insert—“(1A) In determining whether the regulator has complied with subsection (1) in relation to its power to arrange for inspections under section 201(1), a plan published under section 201A may be taken into account.””Member's explanatory statement
This imposes a duty on the regulator to produce, publish and take appropriate steps to implement a plan relating to the carrying out of both regular and one-off inspections of registered providers of social housing. It requires the regulator to keep the plan under review and to update it as appropriate.
Baroness Hayman of Ullock
“Persons engaged in the management of social housing to have relevant professional qualificationsAfter section 217 of the Housing and Regeneration Act 2008 (accreditation), insert—“217A Professional qualifications and other requirements(1) Regulations may provide that a person may not engage in the management of social housing or in specified work in relation to the provision of social housing unless he or she—(a) has appropriate professional qualifications, or(b) satisfies specified requirements.(2) Regulations specifying work for the purpose of subsection (1) may make provision by reference to—(a) one or more specified activities, or(b) the circumstances in which activities are carried out. (3) A requirement of regulations under this section may, in particular, relate to—(a) the possession of a specified qualification or experience of a specified kind,(b) participation in or completion of a specified programme or course of training, or(c) compliance with a specified condition.(4) Regulations may make provision for any of the following matters (among others)—(a) the establishment and continuance of a regulatory body,(b) keeping a register of social housing practitioners,(c) education and training before and after qualification,(d) standards of conduct and performance,(e) discipline and fitness to practise,(f) removal or suspension from registration or the imposition of conditions on registration,(g) investigation and enforcement by or on behalf of the regulatory body, and appeals.””Member's explanatory statement
This amendment seeks to create a power for the Secretary of State to require managers of social housing to have appropriate qualifications and expertise.
Baroness Hayman of Ullock (Lab)
My Lords, I have listened very carefully to the Minister’s response to my amendment. However, my strong feeling—which is supported, as I said, by Grenfell United—is that professionalism is very important in the industry. I do not believe that the Government’s amendments go far enough, so I would like to test the opinion of the House.
Baroness Scott of Bybrook
Member's explanatory statement
This amendment is consequential on the amendment in the Minister’s name to insert a new clause before clause 19 inserting a new section 194ZA into the Housing and Regeneration Act 2008.
Baroness Scott of Bybrook
Member's explanatory statement
This amendment is consequential on the amendment in the Minister’s name to insert a new clause before clause 19 inserting a new section 194ZA into the Housing and Regeneration Act 2008.
Baroness Scott of Bybrook
Member's explanatory statement
This is to make it clear that notice of entry to carry out works on common parts needs to be given under this provision in respect of dwellings which have use of the common parts only if the dwelling is occupied.
Member's explanatory statement
This is consequential on the amendment to clause 26, page 26, line 18 in the Minister’s name.
Member's explanatory statement
This is to make it clear that the authorised person who gives the notice need not be the same authorised person who exercises the power to enter.
“(6A) An authorised person may not enter premises in reliance on a pre-entry notice—(a) before the date (or the first date) specified in the notice, or(b) within 24 hours of giving the notice,except where the relevant person in respect of the notice consents.(6B) In subsection (6A), “the relevant person” in respect of the pre-entry notice means—(a) in the case of a pre-entry notice required by subsection (2)(a) or (b), the occupier (or any one of the occupiers) of the premises or dwelling; (b) in the case of a pre-entry notice required by subsection (2)(c) or (d), the person (or each person) to whom a pre-entry notice is required to be given.”Member's explanatory statement
This enables persons who are entitled to receive a pre-entry notice to consent to early entry to premises for emergency remedial action to be taken.
Member's explanatory statement
This is to aid the reader by pointing them to the provision under which a pre-entry notice is given.
Baroness Scott of Bybrook
“(za) in paragraph (a), for “to 198B” substitute “to 198”;”Member's explanatory statement
The amends section 192 of the Housing and Regeneration Act 2008 to reflect the repeal of section 198B by clause 22 of the Bill.
Baroness Scott of Bybrook
Member's explanatory statement
This is to make it clear that the regulator’s power to set standards extends to setting standards for registered providers as to the energy efficiency of accommodation, facilities and services provided in connection with social housing.
“(c) omit subsection (3).”Member's explanatory statement
This is consequential on the amendment to Schedule 5, page 49, line 32 in the Minister’s name.
“17A In section 194 (standards relating to economic matters), omit subsection (3).”Member's explanatory statement
This is consequential on the amendment to Schedule 5, page 49, line 32 in the Minister’s name.
Member's explanatory statement
This is linked to the amendment to Schedule 5, page 49, line 25 in the Minister’s name and is to make it clear that the power of the Secretary of State to direct the regulator about the setting of standards extends to standards relating to the energy efficiency of accommodation.
“18A In section 198 (supplemental provisions about standards), after subsection (5) insert— “(6) In setting standards the regulator must have regard to the desirability of registered providers being free to choose how to provide services and conduct business.””Member's explanatory statement
This avoids repetition in the Housing and Regeneration Act 2008 by including in one place (section 198) provision which is currently included in sections 193, 194 and the new section inserted by clause 19 of the Bill. There are consequential amendments removing the provision from those sections.
“21A In section 216 (consultation), in paragraph (b), at the end insert “of social housing”.”Member's explanatory statement
This makes clear that the regulator’s duty to consult bodies appearing to represent the interests of tenants before giving guidance about the use of its intervention powers is a duty to consult bodies appearing to represent the interests of tenants of social housing.
“21B In section 217 (accreditation)—(a) in subsection (4)(b), after “193” insert “or 194ZA”;(b) in subsection (6), after “193” insert “or 194ZA”.”Member's explanatory statement
This amendment is consequential on the amendment in the Minister’s name to insert a new clause before clause 19 inserting a new section 194ZA into the Housing and Regeneration Act 2008.
Social Housing (Regulation) Bill [HL]
Monday 31st October 2022
(2 years, 1 month ago)
Lords ChamberRead Full debate Social Housing (Regulation) Act 2023 Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: HL Bill 54-I Marshalled list for Report - (14 Oct 2022)
Baroness Scott of Bybrook
That the Bill be now read a third time.
The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)
My Lords, I will take a moment to do one last piece of housekeeping on the state of the Bill. My department has been working closely with the Welsh Government to ensure that they are kept abreast of the Bill’s progress and implications. Two legislative consent memorandums have been lodged with the Senedd Cymru indicating that consent should be given for this Bill. My officials will continue to engage with their colleagues in the Welsh Government and I hope that, by the time the Bill leaves the other place, legislative consent will have been given by the Senedd Cymru.
Baroness Scott of Bybrook (Con)
My Lords, I thank noble Lords on all Benches—noble friends behind me and noble Lords across the House—for their co-operation on this Bill. I view the Bill as essential to bringing much-needed and long-overdue change to the social housing sector—long overdue because it has been more than five years since the Grenfell Tower fire. I thank in particular all members of the Grenfell community, who have pushed so hard and contributed so much in shaping the Bill. I hope it will stand as part of the legacy of Grenfell and play its part in ensuring that such a tragedy never happens again.
It is my sincere hope and belief that the Bill will create a strong and proactive consumer regulation regime that will drive up standards in social housing and help tenants and the Regulator of Social Housing hold landlords to account.
However, it is important that the Government remain open to new ideas from Peers from across the House, and those within the industry. We listen to the points raised by Peers in this Chamber and during valuable meetings between debates. Consequently, we tabled two important amendments. The first gives the regulator powers to set standards for competence and conduct for staff working in social housing. This will ensure that staff have the knowledge, skills and experience to deliver a high-quality service for tenants. I am grateful for the contributions from the noble Baronesses, Lady Hayman of Ullock and Lady Wilcox of Newport. The second amendment imposes a duty on the regulator to publish and take reasonable steps to implement a plan for regular inspections. The regulator had previously committed to this but I am glad that we have enshrined it in legislation. This will give tenants confidence that landlords will be required to deliver on the standards imposed on them and be held accountable if they do not. Again, I should like to thank the noble Lord, Lord Best, for his determination to see this included in the Bill.
Turning now to the amendment on energy efficiency in the name of the noble Baroness, Lady Hayman, I recommit to the House that we will consult on energy efficiency in the sector within six months of the Bill becoming an Act. We continue to support the sector in becoming more energy efficient but remain firm in our belief that this amendment is not the right way to achieve this. However, I must respect the will of this House on this issue and I thank the noble Baroness for bringing what is clearly an important issue to the fore. I thank all Members from the Front Benches opposite and my noble friends here for their wisdom and commitment. Lastly, I thank my noble friend Lady Bloomfield of Hinton Waldrist for her support beside me since Committee, which has been invaluable.
I am sure noble Lords will also join me in thanking the Bill team for their engagement, in particular Patrick, Ed, Dan and Elena. I also thank Marcus from my private office and Ruhena, Josh, Matthew, Shayne, Ellen, Richard, Mette, Richenda, Will, Nici and Jim—I hope I have not missed anybody—who have all provided invaluable support to a very rookie Minister with her first Bill. I also extend my thanks to all the policy officials as well as the legal team, ably led by Clare, and to the parliamentary counsel, who worked tirelessly to get this Bill to where it is.
It is important to remember that we are only half way there with the Bill. I wish it a swift journey through the other place, and hope that Members there will debate and consider it in a thoughtful, passionate, detailed and courteous manner, as we have done here. I reassure noble Lords that I remain open to further meetings with them to discuss this important legislation and look forward to picking this up again in what I hope will be a very brief discussion following its passage through the other place. I beg to move.
Baroness Hayman of Ullock (Lab)
My Lords, this is a really important Bill and I will briefly say some thank yous. I thank all noble Lords who took part to improve the Bill as it made its passage through this House. I thank, as the Minister did, Grenfell United, Shelter and the residents who suffered most from Grenfell and have worked so hard to bring this new legislation forward, alongside the Government. I thank my noble friend Lady Wilcox for her great support. I also support the Minister; this may have been her first Bill, but we have worked very constructively together and I thank her for her approach to the Bill, her approach to the House and for her time and that of her officials.
Baroness Pinnock (LD)
My Lords, I had better remind the House of my relevant local government interests, as set out in the register. Throughout the Bill, we have supported its purpose. We have simply worked hard to try to make what we believed were essential improvements. Of course, in the area of energy efficiency, the amendment from my group was accepted by the Government and the Minister. I know that housing campaigns across the country were very pleased that it was accepted as a key priority for the regulator.
I thank the Minister for coming in at the deep end, taking on the Bill, and being so helpful in enabling pre-reading discussions on it and amendments that we wished to table. It always eases the path of a Bill if we can do that. I therefore look forward to the next time, when we might also be able to work together constructively for the benefit of people out there.
I record my thanks to the Grenfell Tower campaigners. Despite the terrible tragedy that they experienced, they have never faltered over the last five years in their determination to see action on improving social housing. Here we have a Bill that should make social housing safer and fairer for tenants. I look forward to it coming back unamended from the other end.
Social Housing (Regulation) Bill [Lords]
Monday 7th November 2022
(2 years, 1 month ago)
Commons ChamberRead Full debate Social Housing (Regulation) Act 2023 Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: HL Bill 54-I Marshalled list for Report - (14 Oct 2022)
The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
I beg to move, That the Bill be now read a Second time.
The Social Housing (Regulation) Bill, which was, of course, first introduced in the other place, is one of a number of steps that the Government have taken in the aftermath of the dreadful tragedy that occurred at Grenfell in 2017. Everyone in the House was shocked by what happened on that night, when 72 people lost their lives in one of the most horrific civilian tragedies that has ever occurred in these islands. The suffering of the victims of that tragedy is almost impossible to relate, and the testimony, forbearance and endurance of the survivors and the bereaved, of relatives and residents, is very much in all our minds as we consider how we can appropriately learn lessons from the tragedy, put right what went wrong and ensure at last that those who suffered receive justice.
Florence Eshalomi (Vauxhall) (Lab/Co-op)
I welcome the Secretary of State back to his position. I say that because I think he did make some progress on the cladding issue when he was Secretary of State previously. He will be aware that there are still no personal evacuation plans for disabled people, although the former-former Prime Minister confirmed that the Government would take up all the recommendations of the Grenfell inquiry. Will the Secretary of State please look at that?
Michael Gove
I am grateful to the hon. Lady, who, as well as doing fantastic work on the Select Committee in trying to ensure that appropriate progress has been made on matters such as building safety, has been a very effective advocate for her constituents in this regard. Let me emphasise that in the wake of the Grenfell tragedy the Government have to undertake a significant body of work, and the hon. Lady is right to hold us to account for the speed with which we do it. There is work that needs to be done on building safety overall. We have introduced legislation—the Fire Safety Act 2021 and the Building Safety Act 2022—in order to take forward some of the recommendations that were already being generated by the inquiry, and indeed in some cases we did not have to wait for those recommendations to know that we needed to act.
The hon. Lady mentioned a very important factor: the personal evacuation plans. Again, this is a difficult and sensitive question. A number of those affected by the Grenfell tragedy were individuals living with disabilities. It is critical to ensure that the correct regime is in place for those individuals so that they are safe in the homes in which they live—and they deserve to be safe—and also to ensure that were disaster to strike, the fire and rescue services would be able to ensure they could be evacuated safely.
I have heard some of the concerns expressed by residents and others about the Home Office’s response to recommendations on personal evacuation plans. I think it important for me to work with the new Home Office Minister dealing with this issue—the Under-Secretary of State for the Home Department, my hon. Friend the Member for Derbyshire Dales (Miss Dines)—in order to ensure that we listen to what residents have said and, I hope, do better. Listening to what residents have said is critical to our whole approach to what happened in Grenfell, and to broader concerns about the quality of social housing and the safety of those in social housing that that tragedy underlined our need to act on.
Several hon. Members rose—
Michael Gove
I am more than happy to give way to my hon. Friend the Member for Walsall North (Eddie Hughes), who did so much to put these things right when he was a Minister. I will give way to everyone else in due course.
Eddie Hughes (Walsall North) (Con)
It was an absolute privilege to work with the Secretary of State and to be tasked with converting the Social Housing White Paper into the robust legislation that we see before us today. Having listened to the podcast on the Grenfell Tower inquiry, may I ask whether the Secretary of State agrees that one of the overriding ambitions of the Bill is to ensure that social housing tenants are treated with respect at all times, and that we remove any stigma that is associated with such tenure?
Michael Gove
As ever, my hon. Friend is 100% spot-on. Even before the Grenfell tragedy, it was clear that the way in which tenants were being treated in social housing in far too many cases, and—it pains me to say this—particularly in Kensington, was simply not good enough. We have vivid documentary evidence of the fact that the tenant management organisation that was responsible for the refurbishment of Grenfell simply did not listen to tenants and behaved in a high-handed fashion. Their safety was not given the importance it deserved. A number of residents, including Ed Daffarn of Grenfell United, a survivor of that night, were very clear about the risks that were being run, but they were not listened to. One of the most powerful lessons of the tragedy is the need for us to ensure that social housing tenants feel that their voice is being heard. As my hon. Friend for Walsall North said, any high-handed and aloof behaviour exhibited by some towards people who are the most deserving of our protection should end, and I hope that it will.
Marsha De Cordova (Battersea) (Lab)
I, too, welcome the Secretary of State back to his position. May I return briefly to the intervention from my hon. Friend the Member for Vauxhall (Florence Eshalomi) about personal evacuation plans for disabled people? As the Secretary of State knows, the Home Office did not expect that recommendation. Is it his view that those plans should be in place for disabled people living in high-rise blocks?
Michael Gove
We do need to look again at the position. I have to be careful because the Home Office is a separate Department and I am not the Secretary of State there, but I do know that the new Home Secretary and the new Minister responsible for fire safety appreciate and understand the need to look closely at the concerns that tenants expressed on the previous position. I have to say that the previous position was taken in good faith, but we need to pay attention to the concerns expressed.
Andy Slaughter (Hammersmith) (Lab)
I am sure that we all want social landlords, and indeed all landlords, to be held to account when they fall short. Does the Secretary of State accept that there may be a problem with some financial penalties? We may end up punishing tenants twice: once for having a bad landlord and again by having funds withheld. I can give a specific example from my constituency. A social landlord is failing financially so is penalised by not being able to bid for the building safety fund, with the consequence either that fire safety works do not get done, or that properties are not sold or developed and new properties are not built. Will he look at that specific instance and see whether we can avoid penalising tenants in that way?
Michael Gove
The hon. Gentleman makes the fair point that there are lots of pressures on registered social landlords and housing associations. The Bill is there to ensure that all emulate the best, but I appreciate that with pressures to increase supply, pressures on building safety and pressures to deal with the poor-quality stock that many have inherited, we need to be sensitive. I am sure that the regulator will be, in the application of any fines, if the correct action is not being taken.
Jim Shannon (Strangford) (DUP)
I thank the Secretary of State and welcome him back to his position; I look forward to his significant contribution to this issue. Obviously it is good for lessons to be learned, but it is also good to share them. Northern Ireland does not have the same number of high-rise apartment blocks as London or elsewhere across the United Kingdom, but we have some—Housing Executive, housing association and some private. Has the Secretary of State on his return been able to share the information about better safety with all the regions, particularly Northern Ireland?
Michael Gove
I am grateful to the hon. Gentleman for raising that. This legislation applies to housing associations and social landlords in England, of course, but in my other role as Minister for Intergovernmental Relations, I have talked to Ministers and officials in the devolved Administrations about some of these building safety questions. We all have a shared interest in getting those right. Of course we respect the nature of devolved competence, but we also want to make sure that some of the insights, particularly about how we deal with developers, can be operationalised UK-wide.
Mr Mark Francois (Rayleigh and Wickford) (Con)
Post what the Secretary of State rightly described as the absolute tragedy of Grenfell, if he were to be presented in this debate this evening with evidence that a housing association continues to take a complacent attitude to the fire safety of its tenants, would he regard that as a very serious matter indeed?
Michael Gove
I certainly would. My right hon. Friend is absolutely right that housing associations and other social landlords have to take safety incredibly seriously. This legislation is intended to ensure that they do. If housing associations or other social landlords are not taking safety, and particularly fire safety, seriously, I would be most grateful if he and others would share such information with me. He has been a uniquely assiduous constituency MP and his concern for the vulnerable and voiceless is such that he will raise his voice on their behalf. We will do everything we can to act.
Before going on to the meat of the Bill, I should say that, as a number of Members have rightly pointed out, a range of issues need to be tackled in the wake of the Grenfell tragedy. As well as legislating on building safety, we need to make sure that there is action, particularly from some of those with direct responsibility for fixing the problems that they helped to create. I am grateful to the two Secretaries of State who succeeded and preceded me here, my right hon. Friends the Members for Tunbridge Wells (Greg Clark) and for Middlesbrough South and East Cleveland (Mr Clarke). In office, both accelerated the efforts we were undertaking to ensure that developers who were responsible for buildings that were not safe accept the responsibility for remediating those buildings.
There have been some indications from some speaking apparently on behalf of developers that, because of the global economic headwinds we are all facing—there may be an impact on supply; there may be an impact on their bottom line—they feel that the weight of obligation that has been placed on their shoulders should perhaps be lessened somewhat. Let me make clear from the Dispatch Box that it cannot be the case that economic conditions, which affect us all, are being used by developers, or anyone else, to shuffle off their obligations.
Similarly, there are freeholders who have direct responsibility to the leaseholders in the buildings they ultimately own to remediate those buildings—that is their legal obligation. This Parliament passed laws to ensure that they fulfil that obligation. There are some freeholders—organisations of significant means—that are, again, trying to delay or dilute their responsibilities. That is simply not acceptable. I hope that across the House we make it clear that, yes, these are tough economic times, but they are very tough economic times for the most vulnerable in our society, and there is no way that plcs and other organisations with healthy balance sheets and surpluses, and CEOs who are earning handsome remuneration, can somehow use global economic conditions as an excuse for shuffling off their responsibility. That just will not do. All of us across the House will work to ensure that the work of remediation is done and that there will be no hiding place for those responsible.
In bringing forward the Bill, I want to thank, first of all, all colleagues in the other place who contributed to improving it while it was there. I am sure that in Committee there may well be amendments from Back-Bench colleagues across the House that can contribute to improving it. My colleagues in the other place were grateful to those noble colleagues who contributed to the enhancement of the Bill. In particular, I want to thank Lord Greenhalgh, who, as building safety and fire safety Minister, introduced the Bill and served with such distinction in the Department.
I thank my hon. Friend the Member for Walsall North for all the work he did, and not just on this Bill but on legislation on the private rented sector and on homelessness. I thank my right hon. Friend the Member for Newark (Robert Jenrick) for his work, when Secretary of State, on the White Paper that preceded the Bill. In particular, I also want to thank my right hon. Friend the Member for Maidenhead (Mrs May). Her actions in the immediate aftermath of the Grenfell tragedy, along with the moral leadership she has shown, set in train a programme of reform to ensure that those in social housing got the full attention of the Government. That has ensured the Bill is before us today.
I also want to thank two campaigners who, in the course of the last year, have shone a light on some of the worst conditions in social housing, and have reminded us all how important it is to ensure that our regulator has teeth. First, Kwajo Tweneboa is a young man who I think all of us in this House have seen campaigning with eloquence and passion. Having grown up in social housing, he has acted as a voice for those who may have been overlooked and underserved in the past. Secondly, Daniel Hewitt for ITV News has worked with Kwajo and others to ensure that registered social landlords who have not been performing their duties adequately are held up to proper scrutiny.
It is of course important to acknowledge that there are a number of different aspects of the social housing debate that the Bill does not cover. It does not cover the whole question of future supply. We will have an opportunity to debate that in this House in the weeks and months to come. It is also important to stress that the overwhelming majority of those who work in social housing are doing a fantastic job. The overwhelming majority of those who work in housing associations and in all the arm’s length management organisations that help to provide social housing are dedicated professionals. They have nothing to fear from the Bill and, indeed, everything to gain. It is the case, however, that some 13% of homes in the social rented sector do not meet the decent homes standard, and that is simply too high a figure. We need to make sure action is taken to deal with that. I should say, by contrast, that the proportion of homes in the private rented sector estimated not to meet that standard is 21%, which is why legislation to improve conditions in the private sector is so important and, again, the work of my hon. Friend the Member for Walsall North and others has been so critical.
A series of steps are taken in the Bill to ensure that we can more effectively regulate the sector. First, the Bill makes sure that what has been called the serious detriment test no longer applies. In the past, a very high bar had to be met before the regulator could investigate complaints. We are removing that test, lowering the bar and making it easier for tenants to feel that their concerns are being investigated.
The second significant measure is that we are ensuring that the cap on fines under which the regulator hitherto operated—just £5,000—is lifted so that unlimited fines can be levied. I know that the regulator will take account of the comments made by the hon. Member for Hammersmith (Andy Slaughter) and others to ensure that fines are targeted and proportionate, but the potential for the regulator to levy unlimited fines will concentrate minds as few other things will for some of the significant players in the sector that need to up their game.
We will also shorten to two days the period of time for inspections, which was hitherto four weeks, to ensure that tenants who have concerns can feel that they are being addressed more quickly. We will require performance improvement plans from housing associations and others that are found wanting. Critically, safety will become a fundamental objective for registered social landlords and a named individual in each RSL will be responsible for health and safety, thereby making sure there is clearer accountability where it has been fudged in the past.
Thanks to amendments tabled in the House of Lords, we are introducing a new standard for competence for people who work in the field. There has been a lively and important debate about the need for higher professional standards in housing. I completely agree; evidence from what happened in the run-up to Grenfell showed that some of those who were responsible for safeguarding and improving social housing did not have the basic standards of professionalism that are required.
We need to proceed with sensitivity, because the standard of qualification and degree of professional training required for someone at the heart of a major registered social landlord may of course be different from that for someone who is operating a small alms house or other charity provider, but there is a clear need for greater professionalisation. We will work with colleagues to ensure that we have fit-for-purpose legislation.
Jim Shannon
I thank the Secretary of State for his comprehensive speech. It has become apparent from things we read in the paper and from television programmes that some of the councils responsible for enforcement in respect of safety in properties are finding themselves financially stretched to deal with the massive issues that come their way. Does the Bill provide some help, whether by financial or other means, to ensure that councils can deal with the enormous issues that they have to deal with? I can understand why they are sometimes overwhelmed.
Michael Gove
The hon. Gentleman makes an important point. Indeed, local authorities have in the past been found wanting when it comes to building control. The most recent spending review included significant additional sums for local government, but we are all aware that inflation and other pressures are putting considerable strain on local government finances. It is my commitment to work with local government, particularly in England but, of course, throughout the United Kingdom, to make sure that the most vital statutory functions can be well funded. I will of course work with the Northern Ireland Local Government Association and others to make sure that we can provide the support that is required.
The legislation will make sure that the voice of tenants is more effectively placed at the heart of regulation and policy making overall. The establishment of an advisory panel will draw widely to ensure that the regulator and the Department understand the concerns of social tenants. Indeed, the regulator will be in the vanguard of a greater level of transparency in respect of the level of service provided by individual social landlords.
Legislation on its own can achieve a lot but not everything, and I am conscious that my Department has a responsibility, as Grenfell United and others have pointed out, to make sure that there is wider awareness of the power, and path, for complaints. I am glad that there has been greater awareness of the way in which complaints can be made, that those complaints are being acted on more quickly, and that registered social landlords such as Clarion, which have been on the receiving end of complaints, have responded more quickly. My Department has been responsible for making sure that there is a wider awareness of how to deal sensitively with examples of anti-social behaviour. It continues to work with local government and with registered social landlords—alongside the work of the ombudsman—to ensure that there is a better appreciation of what tenants require.
The legislation was originally conceived of, generated and brought forward by my right hon. Friend the Member for Maidenhead as one of a number of measures to ensure that we do right by the bereaved, the survivors and the relatives of those in the Grenfell tragedy, but there is still much to do. I am very conscious that more than five years on from that tragedy, work is still in progress and we need to expedite it, but I know that the inquiry, which formally concludes this week, will be in a position—thanks to the testimony of so many brave people—to hold us and future Governments to account.
Across the House, the spirit in which we will take the legislation forward and examine it in Committee will be one of commitment to honour the memory of those who lost their lives and of a determination to ensure, “Never again”.
Lisa Nandy (Wigan) (Lab)
May I be the first to welcome the right hon. Gentleman back to his place. I very much enjoyed sparring with him over the Dispatch Box last time. I also particularly enjoy these very rare moments when the House can come together in political consensus to deliver on something of enormous importance to people outside this place. I look forward to working with him and the team to make good on the promises that we made to people all those years ago.
Apparently, when the right hon. Gentleman arrived back in the Department, he told civil servants that he was getting the band back together. The Department has now had seven line-ups since the Bill was first promised—amazingly, that is officially more reinventions than the Sugababes. I look forward to us going “Round Round” again. The Under-Secretary of State for Levelling Up, Housing and Communities, the hon. Member for Bishop Auckland (Dehenna Davison), is shaking her head. I gather that she is a Taylor Swift fan, so I promise her that I will try to get some Taylor Swift references in next time.
The Secretary of State will know that since he last held office, the job has got much harder, but the Bill, which the Labour party strongly supports, has got much better, in large part thanks to Baroness Hayman and our colleagues in the other place, who have worked together in genuine cross-party spirit to strengthen the hand of social housing tenants.
For 120 years, social housing has provided the foundations of a decent, secure life for millions of people across Britain—a home for life, handed back into common ownership to be passed down through the generations. Labour believes that that is part of our inheritance and an ideal—one that empowers people to live the richer, larger and more dignified lives that they deserve—worth fighting for.
It should, then, shame a nation that in 2020 one in seven social homes in London, along with many others across the country, do not even meet the Government’s decent homes standard. As the Secretary of State knows —he paid tribute to the incredible work of Dan Hewitt at ITV—the reality is one of children growing up in squalid, damp and overcrowded homes that would not be out of place in the Victorian era.
When people in social housing have tried to sound the alarm, they have too often been completely ignored. Nothing has brought that into sharper relief than the appalling tragedy at Grenfell Tower and the treatment of the residents who—along with many others—tried to sound the alarm over many, many years. Today, we remember the 72 people who lost their lives on that day, and those whose lives were changed for ever and who live with those memories. We pay tribute to the work that they have done to get us this far. But they want more than remembrance; they want justice and a lasting legacy. That includes setting right a system that has failed them and failed many, many others. It is a system where concerns were repeatedly ignored, where the value of lives was weighed against the value of profits on a balance sheet and could come out the poorer, and where, in one of the wealthiest cities in the world, just a few miles from the centre of power, those concerns could be rendered completely invisible by decisionmakers just a few miles away.
For far too many people in this country and for social housing tenants, the reality is that they too often hold none of the cards. That is simply wrong. When they challenge bad practices, they should not have to fight the system. They should feel the whole system pulling in behind them.
That is why we welcome and support the Bill. It is also why we believe that tenants deserve the strongest legislation that this House can provide. Let me take three areas where we know the Bill can be improved and strengthened. We welcome the establishment of an advisory panel, but tenants should be at the centre of that, setting the agenda, not just responding to it, and we will bring forward measures in Committee to seek to ensure that that is the case. We welcome, too, the progress that the Secretary of State referred to that was made in the other place on the professionalisation of standards in the social housing workforce, but we know that that could be further improved and further strengthened. I was genuinely interested to hear the Secretary of State raise concerns about the impact that that might have on smaller providers. It is a very different reason than the one given in the other place for why the Government felt that it was not possible to strengthen those provisions. Perhaps that is something that we can work together on to resolve. Finally, rights are no good without the means to enforce them. The regulator must have the resources necessary to do the job, and we will be bringing forward measures in Committee, which we hope the Government will support, in order to ensure that that is the case.
Most of all, we want to see the Government get on with the job. It has been five years since Grenfell, four years since the Green Paper, and three years since promises were made in the Conservative party’s election manifesto. How can it possibly be the case that we are approaching the end of 2022 and we still do not know when the measures in the Bill will come into force? This is a short Bill addressing an area of clear political consensus. We have a Secretary of State in post again who has a reputation for getting things done when he sets his mind to it. It took him seven months to scrap court fees, six months to ban microplastics, and three months to pass the entire Academies Act 2010, using powers normally reserved for passing anti-terrorist legislation. It has been well over a year since he was first appointed to this post. Why is this less of a priority?
The Bill is an important part of solving the housing crisis, and we need to get on with it, but it is only one piece. It seeks to address the imbalance of power in social housing and the appalling conditions in social housing that too many people have to endure, but there are 1 million people languishing on the social homes waiting list, struggling with those same power imbalances and squalid housing conditions in the private rented sector and watching their rents soar completely out of control. The only way to deal with that is to build more social homes, but the record has been indefensible. Every year since this Conservative Government took office, an average of 12,000 social homes have been lost from our housing stock. The Secretary of State knows it, and, to give credit to him, he has acknowledged that we need more social homes.
“The availability of social housing is simply inadequate for any notion of social justice or economic efficiency.”
Andy Slaughter
My hon. Friend is making an excellent speech. As she has correctly said, the biggest problem with social housing is that there is not enough of it. The past 12 years have seen under-investment in the social housing grant and many properties being lost to the system—many associations are selling off properties because of the multiple demands of having a development programme that they cannot fulfil, of having poor conditions of properties and of having overcrowding in their stock. That means that, increasingly, they are looking at more and more desperate measures. Although the measures in the Bill are welcome, what we really need is to see social housing restored to its pre-eminence as the first port of call, rather than the last port of call, for people in housing need.
Lisa Nandy
I thank my hon. Friend for his intervention and for the work that he has done over many years to highlight the housing crisis in this country. He is absolutely right; it is not just that we are not building enough, but that far more social homes are being lost from the social housing stock. I pay tribute to the many Labour councils that are seeking to do something about that, even in very tough times. In Salford, Ipswich, Southwark and Doncaster, house building has continued and the social housing stock continues to grow. When Labour was in Government we built double the amount of social homes than are currently being built. When we come back into Government, whether in a few months’ or a few years’ time, we will finish that job and restore social housing to the second largest form of housing tenure, where it belongs.
The Secretary of State acknowledged the problem in his speech. I agree with him, but that was back in February and still very little has been done. That is why I press him on the urgency of passing the Bill and getting this done. There is much more to turn our attention to. He sat in the Cabinet in 2010 that cut the budget of the affordable homes programme by 60%. He has served multiple Prime Ministers who cut local authorities’ budgets to the bone and imposed social rent cuts that have hampered their ability to build and invest. It is time to finally get this legislation on the statute book so that we can turn our attention to tackling the housing crisis.
Nothing matters more than a home. Security in your own home, the right to make it your own and the right to live somewhere fit for human habitation are non-negotiable. Housing is not just the market—it is a fundamental human right. Any Government worthy of the office would take action right now to mend that deliberate vandalism of our social housing stock, restore it to the second largest form of tenure and finally get developers to sign fire safety pledge contracts. The deadline for that passed months ago.
We must get on with this and release people from the misery of not knowing whether they live in a safe home. Leaseholders face appalling charges and uncertainty, trapped in homes that they thought were forever homes but have become a prison. We must abolish the feudal, archaic leasehold system and replace it with a commonhold system fit for modern Britain. We must make good on the promises to hand power back to private rented tenants, starting with abolishing section 21 no-fault evictions and proper, decent home standards fit for the 21st century.
Families across this country are desperate to escape their housing conditions. Many are desperate to get on to the housing ladder, but a few weeks ago their Government crashed the economy and mortgage payments were sent through the roof. For hundreds of thousands of people, the dream of home ownership has gone up in smoke.
Surely, the absolute bare minimum that any Government worth their salt ought to deliver is for every single person in this country to have a decent, safe, warm home and the power to drive and shape the decisions that affect their lives—and nowhere more so than in respect of the housing that they inhabit. The Government have recognised the need to empower social housing tenants and to improve safety and standards in social housing, and they will get no complaints from us about that.
There is, finally, political consensus that the scandalous conditions in which far too many families are forced to live are not just unacceptable but a stain on modern Britain. We welcome that recognition, even though it has taken too long to get here. There is so much more to do. We need to now get on with the job.
Mrs Theresa May (Maidenhead) (Con)
I join others in welcoming the Secretary of State for Levelling Up, Housing and Communities back to his role. I thank him for the understanding that he previously showed and continues to show of the importance of social housing issues, and for the kind remarks he made about me.
I welcome the Bill, which has been a long time in the making, but which, critically, responds to the concerns about social housing, the attitude of some social housing landlords and the interaction between social housing tenants and landlords. Those concerns have existed for too long, but they were brought into sharp focus by the terrible tragedy of the fire at Grenfell Tower in 2017.
In the immediate aftermath of the fire at Grenfell Tower, one of the things that became very clear to me in talking to people from the estate, survivors and others was that the people responsible for managing the homes in Grenfell Tower—not just the council, but the tenant management organisation—simply failed to listen to the comments, remarks and concerns that tenants were raising about safety issues. It was not just a one-off comment that a tenant might have made; it was comments, remarks and concerns being raised time and again by the tenants, and no action was taken.
Of course, that was not confined to Grenfell, or even the wider North Kensington estate. Particularly when Housing Ministers were listening to tenants across the country, we saw and heard that that experience was mirrored up and down the country. As has been referred to, my Government published the social housing Green Paper in 2018 and launched a call for evidence as part of a review of social housing regulation. That led to the social housing White Paper in late 2020 and now, at last, we have the Bill.
What was clear throughout that process was that, while many tenants had a positive experience to report, there was a problem at the heart of our social housing system. That is why I welcome the Bill as a means of strengthening the regime of social housing regulation. By the introduction of the new consumer regulatory regime, which will be more proactive, and in enhancing the economic regulatory role and providing new enforcement powers to strengthen the regulator’s role, it aims to ensure that landlords do not just listen but, critically, act when problems are raised. Crucially, the Bill puts the emphasis on making the tenants the focus of landlords’ work, with a particular priority rightly given to safety issues. By enhancing transparency and accountability, the Bill will help to set a different balance between the interests of the tenants and those of landlords, and emphasise the delivery of services to the tenants.
So far, all well and good, but there is an area where I hope the Government will accept there is a desire from many that they should go further. It is an area that the Secretary of State has already referred to: the question of the professionalisation of the sector. I am aware that the Government introduced amendments to address this issue in the other place, and that an amendment from Baroness Hayman of Ullock to go further was narrowly defeated, but I am not convinced that the Government’s proposals fully address the issue.
The Government have introduced requirements for the social housing regulator to set regulatory standards on staff competence and conduct. Once in force, the regulator, in the words of the Minister in the other place, would
“proactively seek assurance that providers are meeting them.”—[Official Report, House of Lords, 18 October 2022; Vol. 824, c. 1029.]
That was an alternative to the other approach, which has been supported by Grenfell United and others, of the Government mandating professional qualifications.
I have looked at the Government’s arguments. The Government have said that the sector is so diverse that mandating a set of qualifications or a single qualification would be too restrictive, that there is no single qualification that would meet the diverse needs of the sector—the Secretary of State referred to that—and that landlords need to have the flexibility to determine what qualifications their staff need. It was also argued that this would make it harder to recruit staff and that there was a risk that it would lead to staff who did not have the right attitudes and behaviours. I find all those arguments extraordinary. Social housing is provided for those in need. Why is it that in other social professions staff are required to be suitably qualified and to be prepared to accept an ethos, a code of ethics or values, yet we are not willing to require that of those employed to manage the homes, particularly the safety of homes, that social housing tenants are living in?
What is more, it is all very well saying that professionalisation would lead to the wrong attitudes and behaviours, but the very reason that we have the Bill today and that we are discussing it is that there are too many people managing social housing with the wrong attitudes and behaviours. I fail to see how making the management of social housing professional—requiring people to have qualifications, saying it is a valuable and worthwhile career, ensuring people have the knowledge and skills needed to do the job—leads to worse outcomes. Professionalising social housing management would, over time, mean that the perception of the role would change. It would come to be seen as a worthwhile career, and would attract more dedicated people interested in what would be seen as a valued profession.
As for the argument that one qualification could not cover all the roles, I am sure the Secretary of State, with his intellect, will soon be able to destroy that argument. There are many ways that that can be approached. We can limit the role that we initially set the qualifications for—to, say, senior management—and allow further qualifications to be developed. We could set up a range of qualifications. They are many ways in which that issue can be addressed; it is not insoluble.
Behind these arguments lies something critical to providing a better future for social housing and social housing tenants, and it has already been referred to by my hon. Friend the Member for Walsall North (Eddie Hughes): we need to remove the stigma of living in social housing. Those who live in social housing should be able to feel proud of where they live, and not feel that people are judging them because they live in social housing. Ensuring the professionalisation of the management of social housing would send a clear message of the value that Government attach to social housing, and the importance of ensuring that those charged with looking after the homes of others have the skills necessary to do that. If we do not care who manages social housing, it is easy to think that we do not care about those who are living in social housing. If we care about those who manage social housing, we show that we care about those who are living in social housing.
Mr Francois
I pay tribute to all the work that my right hon. Friend has done in relation to Grenfell, which has been of great importance. I declare an interest as someone who grew up in a council house. I have great sympathy with the argument she makes. Does she agree that as well as qualifications a key thing is attitude, and that people who run housing associations need to have a positive attitude to their tenants and not, as is sometimes the case, a negative one?
Mrs May
I absolutely agree. The problem we have seen, and that we saw at Grenfell, was that the attitude was that negative one of just ignoring tenants and not listening to what they were saying. It is essential that people have the right attitude, and see social housing tenants as people who are living in those homes. If people have concerns about their homes and their safety, those concerns should be listened to.
Another objection has been raised about the possibility of professionalisation requiring qualifications for those managing social housing: it would lead to the reclassification by the Office for National Statistics of all social housing providers as public bodies. None of us wants that to happen, and I know the angst that the issue causes in Government, having been there when the last change in the classification of social housing took place. However, no one knows definitely that the ONS would reclassify it in that way, and no one seems to know where the tipping point is regarding how much extra regulation would move such providers into the category of public bodies. Can the Government achieve professionalisation in a way that does not lead to reclassification? Can the regulations be rebalanced to ensure that professionalisation can be brought in and that tipping point is not reached? I welcome the commitment that the Secretary of State made in his speech to work across the House to find solutions and see whether we can find a way through this. I hope that, during the remaining stages of the Bill, the Government will have that conversation with the ONS and will actively seek to table amendments that allow for proper professionalisation of the sector without reclassification.
This important Bill aims to deal with inequities that have been there for too long. It should lead to deeper concern for the needs of social housing tenants, and a greater willingness of all those who are managing social housing to listen to their tenants. However, we should also all aim to remove the stigma that is attached to social housing. That would be of real benefit to all involved. I believe that the professionalisation of social housing management would be a real legacy for the 72 who sadly lost their lives on that fateful night in June 2017.
Helen Hayes (Dulwich and West Norwood) (Lab)
The need for secure, genuinely affordable social housing is one of the biggest issues facing my constituents. It forces too many of them into the instability of temporary accommodation, it blights the health of constituents forced to live in damp, overcrowded accommodation and it holds back children and young people who are unable to fulfil their potential at school because of the conditions at home. So I support the principles of this Bill, the strengthening of regulations that it will deliver and its potential to improve the quality of existing homes, but it is not a solution to the whole of the housing crisis that we face—a housing crisis that deepens and worsens with every passing year. Without central Government investment in new, genuinely affordable social housing and the proper regulation of the private rented sector, my constituents will continue to suffer.
I want to speak today about an amendment that I will be tabling to the Bill, which I hope the Government will support. The amendment, which is supported by Shelter and the National Housing Federation, seeks to ensure additional protection for secure social housing tenants who are forced to move home due to a threat of violence. My constituent Georgia found herself in those circumstances. Georgia and her children were happy in their housing association home, where they had lived for nine years, when her oldest son was threatened by gang members who came to the flat one Saturday afternoon while Georgia was at work. She worked for the NHS. Georgia went to the police, who told her that her son’s life was at risk and she had to move immediately for his safety. Her whole life and those of her children were turned upside down in that instant.
Georgia’s local council provided temporary accommodation in another borough, but it was really poor quality and without enough space for her sons to study properly. She had been there for a year when her case came to my attention. The move and the place that they were forced to live in took a terrible toll on Georgia and her children. Having referred her to the council for temporary accommodation, Georgia’s housing association began steps to end her secure tenancy, essentially sending her to the bottom of the housing list, facing a wait of many years before there would be any chance at all of being offered another secure tenancy.
My amendment would create a new obligation on social landlords, whether councils or housing associations, to protect the tenancy rights of secure tenants who have had to move due to a risk of violence, and create a new duty on them to co-operate with each other when a tenant needs to move area for their own safety. These simple measures will mitigate the already serious and traumatising effects of serious violence, particularly gang- related violence, on families. It will help to prevent one moment in a young person’s life from destabilising their whole family and help them to focus on getting the support they need. It will stop families needlessly entering an already overwhelmed social housing waiting list and minimise the time spent in temporary accommodation.
In the end, after more than a year in temporary accommodation and following my intervention, Georgia and her children were rehoused by their housing association within a week, but not before they had suffered horrific consequences. There are some details of this case that it is not appropriate for me to share in this Chamber. I hope that colleagues will believe me when I say that Georgia and her family suffered consequences that no family should ever have to bear as a result of the destabilisation that they faced.
I have encountered similar cases in which families know that their secure tenancy will be at risk if they move due to a risk of violence, so they avoid that by sending the young person who is at risk of violence away to live with family or friends. Again, the amendment would give security to those residents: there would be a limit to the instability they face and help to prevent a crisis from turning into a tragedy. There are too many families in my constituency who are suffering the trauma of serious violence in our communities, and it is the responsibility of all of us to do everything possible to mitigate its impacts. This amendment would do that. Georgia’s law would help to ensure that other families did not suffer as Georgia’s family have, and I commend it to the House.
Mr Mark Francois (Rayleigh and Wickford) (Con)
I welcome the Secretary of State back to his position. He was once described as a member of the Notting Hill set. I will be saying a lot about Notting Hill Genesis housing association this evening, but—to paraphrase Emperor Hirohito—not necessarily to its advantage.
I am grateful to have been called to speak on this new Bill to improve the regulation and safety of social housing, not least because I have raised concerns about the issue before. In reiterating them, I declare an interest of sorts as someone who grew up in a Basildon council house in the 1970s and 1980s.
In my experience, registered social landlords such as housing associations vary greatly in quality. Some are really rather good, with sound management, attention to detail and a commitment to pay close attention to the welfare of their tenants. Others are very different. As a constituency MP, I have had some very poor experiences—like my right hon. Friend the Member for Maidenhead (Mrs May), it would appear—of how they have treated my constituents, their tenants.
In fairness, regulators vary in quality, too. Some of them—such as Ofsted, which inspects schools, and the Care Quality Commission, which inspects hospitals, other medical facilities and care homes—are clearly taken seriously and even respected by those whom they seek to regulate. I believe that we need an organisation that displays equal rigour in the regulation of social housing. It must be a good thing to have a tougher regulator with greater powers to hold to account housing associations and the people who run them, some of whom are extremely well paid, for the service that they provide. That is why I am happy to support the Bill tonight.
The military have a concept called ground truth. In simple English, the term describes what goes on in reality—on the ground—rather than on a general’s PowerPoint presentation, perhaps thousands of miles away. In other words, it is what really goes on in practice, rather than in abstract policy or theory. I will illustrate my argument by sharing with the House three examples of ground truth from my constituency that relate to social housing.
The first example concerns the quality of housing maintenance, or rather the lack of quality. Basildon Borough Council, including the town of Wickford in my constituency, has a relatively large social housing stock, including several thousand properties that were transferred across when the Commission for the New Towns was dissolved in the 1990s. In 2016, the council signed a highly valuable contract with Morgan Sindall, a major corporation, for the maintenance of its social housing stock. According to its latest annual report, the group chief executive of Morgan Sindall, Mr John Morgan, received a total remuneration package last year, including a bonus, of some £2.7 million.
Morgan Sindall’s housing maintenance arm, Morgan Sindall Property Services, has been maintaining the properties for about six years with relatively few complaints. A year or so ago, however, I suddenly started to receive a torrent of complaints from Wickford constituents about the timeliness and quality of their repairs. In some cases, it has taken Morgan Sindall many months and multiple visits from numerous employees to carry out even basic repairs for social housing tenants.
The situation is clearly completely unacceptable. I have received complaint after complaint from constituents over the past year or so, particularly about the poor response from Morgan Sindall to requests for assistance. The principal reason appears to be that Morgan Sindall restricted its visits to undertake repairs during the covid-19 pandemic to emergency or highly urgent cases. That has allowed a considerable maintenance backlog to accumulate, totalling thousands of cases, which it is obviously now struggling to clear—hence the massive increase in tenants’ complaints.
In fairness, last week I met Mr Alan Hayward, the managing director of Morgan Sindall Property Services, who personally assured me that the company is negotiating an improvement plan with Basildon Council to return its service to something more akin to its pre-covid performance. We agreed that in future I would report all complaints directly to him and copy in the council to seek much swifter redress for aggrieved tenants. We will have to wait and see how the situation pans out, but clearly things cannot continue as they are. My rent-paying constituents deserve a much better service from Morgan Sindall; I am seeking to ensure that they receive one, including by raising the matter this evening.
Secondly, on competence, I have raised in the House the very poor management provided by Notting Hill Genesis—a housing association that needs much tighter regulation or, ideally, to be taken over by someone else who knows what they are doing. Notting Hill Genesis is run by a chief executive who, according to its annual report, earns total remuneration, including pension emoluments, of more than £300,000 per annum, which is almost twice that of the Prime Minister. Some housing association chief executives earn considerably more than that.
In particular, I have highlighted the poor management of a sheltered housing unit in Rayleigh named Sangster Court, which has been nicknamed “Gangster Court” by locals because of the way in which Notting Hill Genesis extorts money from its tenants for what they believe—as residents have told me—is a very poor service in return. On my last visit, I was especially concerned to hear complaints from the residents about fire safety—so much so that I wrote to our very proactive police, fire and crime commissioner, Mr Roger Hirst, to urgently request a fire inspection by Essex County Council Fire and Rescue Service. The results of the subsequent inspection, which I will send to the Secretary of State, were damning, with multiple serious deficiencies identified that Notting Hill Genesis has had to rectify and comply with.
One of those deficiencies included having to replace inadequate fire doors in the building. The company has just written to me to confirm that that will take some 16 weeks. Post the Grenfell tragedy and with the subsequent Grenfell inquiry drawing to a close, I would much rather that those vital safety improvements were undertaken in 16 days. That illustrates the tin-eared approach that, in my experience, is characteristic of Notting Hill Genesis and its senior management. I wonder whether the non-executive directors of that organisation are content with the lacklustre and complacent reply that I received, especially concerning the fire safety of their residents. I am intrigued to know what, if anything, they intend to do about it and what the Secretary of State is minded to do about it.
I hope that the tougher social housing regulator that is envisioned in the Bill will prove much better at holding failing housing associations such as Notting Hill Genesis more firmly to account; or, even better, will help to encourage someone more competent within the sector to take them over and materially up their game as a result.
Thirdly, again on safety, the Secretary of State will appreciate that a facet of substantial modern housing developments is that they now often include a sizeable portion of social housing, usually administered by housing associations. One such development is the new Bloor Homes development, off Ashingdon Road in my constituency. That has a highly complex and controversial history, which I shall not attempt to recount here in detail, as it could take literally all evening. Suffice it to say, Bloor won on appeal despite intense local opposition, including from me as the local MP. Although it has planning permission, it is seeking to fell a 100-year-old oak tree to create an entrance to the new estate directly opposite both an infant and a junior school, which between them, accommodate more than 500 staff and pupils.
As clauses 10 and 11 of the Bill relate directly to safety, including, presumably, that of the tenants in the new development whose children would be likely to use the schools that are just opposite, the House should know that the headteachers of both schools issued a joint letter last Thursday that included the following statement:
“We experienced a frightening glimpse into the future, when on Friday 21st October the pavement access was reduced in readiness for the tree removal. The situation was carnage, and it was only through our dedicated teaching staff actively marshalling pedestrians and on-coming traffic that there was not a serious accident.”
Safety must be paramount. With the tree occupied by protesters and the local community up in arms, the whole sorry episode is rapidly degenerating into a public relations disaster for Bloor Homes, which is repeatedly described by my constituents as “arrogant”, or often far worse, and which appears to have desperately little regard for the feelings of the local community, its locally elected councillors or, indeed, its local MP.
Despite its uncompromising attitude, I genuinely appeal to Bloor in the House of Commons tonight, even at this 11th hour, to reconsider its approach and facilitate a redesign of the junction to save the tree and, even more importantly, to ensure the safety of the pupils—some of whom are as young as five—at both the schools. A company with even the slightest regard for its public reputation would surely attempt to do so, but this is Bloor Homes, so we shall have to wait and see.
In conclusion, I welcome the Bill because it seeks to create a tougher and more effective regulator for the social housing sector, in which many of my constituents, as well as the constituents of colleagues across the House, continue to live. In my experience, some housing associations, such as Sanctuary, which is under new leadership and is actively considering requiring tenants to sign off repair work so that the contractor is not paid unless and until the repair is completed satisfactorily, are gradually getting better, while others such as Notting Hill Genesis appear to be getting worse.
Having spoken to headteachers post Ofsted inspection, or hospital managers after a visit from the Care Quality Commission, I have no doubt that when their regulator turns up they take the visit extremely seriously indeed. I would like to see a similarly powerful social housing regulator whose objective is to ensure a better and safer service for tenants, and which housing associations and the like dare not ignore. I wish this important Bill and the Ministers in charge of it Godspeed and good luck.
Florence Eshalomi (Vauxhall) (Lab/Co-op)
The issue that we are discussing is quite personal for me. I think back to when we lived in temporary accommodation. We were placed, from Brixton, in a B&B in King’s Cross. My late mother was one of those women who made sure that you never missed school. We always had to take the tube from King’s Cross to Brixton to go to school. When we were finally rehoused—my mum, my two sisters and me—it felt like the fairy tale, with the security of our own home, somewhere that was safe, somewhere that was warm, somewhere where we could push the key into the lock and know that this was our home, which was vital for the stability that we had growing up.
It saddens me that many of the constituents I now represent in Vauxhall do not have that. It saddens me that, as the MP for Vauxhall, the majority of my casework relates to housing. It saddens me that, many years after I grew up on a council estate in Brixton, the conditions and state of some of the properties in which my constituents live has not improved. It saddens me, because I know that as a country we should and can be doing better for those tenants living in social housing. It saddens me that there is still such a big stigma for people who live in council housing. When I visit them, I see them taking so much pride in their home: they are people who decorate their home, and they lay out their pictures so I can see their children and families. They are people who have so much pride in their home, but the way in which they are discussed by some councils and housing associations shows that they are treated with disregard. They are treated as the lowest form of people because they live in social housing. That should not be happening, and the tone in which we debate and talk about social housing tenants really matters.
A number of people living in social housing continue to pay their rent and service charges on time. A number of those people are always in credit, as my late mother was, yet when they contact their landlord or housing association they are sometimes met with a barrage of abuse. They are told, “Why are you complaining?”, and meet a barrage of annoyance. We need to change that, and one way in which we can do so is by introducing regulation. The Bill is long overdue, and it contains really good measures, which I welcome, but the reality is that this long-awaited regulation will not happen if we do not have the right funding.
Another area that we need to look at is safety across the social housing sector. Tenants living in social housing raise these issues time and time again, but they are often dismissed until there is a fatality—we know that that has happened in some cases. We have seen what happened when residents living in Grenfell Tower complained about fire safety. I have consistently raised issues relating to fire and the evacuation of disabled people. My inbox is filled with messages from so many people in my constituency who to this day have unsafe cladding and fire defects in their property. Imagine the mental toll it takes on someone’s mindset when they go to sleep every night with their young child or elderly family member that they care for, knowing that there are safety defects in their property.
There is also the mental stress that people are facing. A number of my constituents are unable to remortgage. Every time the Bank of England base rate goes up, their mortgages go up. They are stuck, prisoners in their own homes that they have saved for and worked two or three jobs in some cases to buy. They dreamed of owning their own home, only to see it all shattered, because that dream has now turned into a nightmare, whether it is leasehold legislation, service charges or bills for unsafe cladding—all things that it is within our power to tackle.
Coming back to the key issue of the state of some of our social housing, it is important to say that over the past 12 years, sadly, we have not seen that investment going into social housing. The repairs and maintenance contracts have been divvied up by different landlords. With some of those repairs and maintenance contracts, they even have the audacity to charge my local council, Lambeth, and not actually carry out the work. We hear stories of tenants waiting two or three hours on the phone trying to get people to come out and do repairs. We hear stories of tenants missing a day’s work, only for the people not to turn up to carry out those repairs. When tenants complain, they are met with the same disdain. This cannot go on.
I hope that we can move forward on this and make sure that we recognise that tenants living in social housing deserve the best standards of living, deserve to be listened to, deserve to be able to challenge their housing associations and landlords, and deserve the compensation that, in some cases, they should have received long ago, if we look at the state of their housing.
My only question to the Minister in discussing this matter is this: can she commit to allocate those urgent resources to the regulator to allow it to perform effectively its inspections and any other new duties that arise from the Bill? If not, I know that many tenants I represent will continue to write to me, because all of this discussion will be in vain. Many tenants will be watching this debate today, hoping that the Minister will give them that reassurance, and I hope that we do not have to come back here in a year’s time to discuss and debate the same thing.
Marco Longhi (Dudley North) (Con)
In welcoming this Bill on behalf of all my social housing tenants in Dudley, I wish to acknowledge and place on record the hard work of my good friend, my hon. Friend the Member for Walsall North (Eddie Hughes) while he was a housing Minister. I know that he approached that work with a great deal of passion and dedication. I also note the contribution of my right hon. Friend the Member for Maidenhead (Mrs May)—and, indeed, her contributions today—with whom I very much agree.
If there is one thing that I know will unite this House, it is the desire of all our constituents to have a safe home, receive high-quality services and be treated with dignity and respect, but for too long I have received many emails and letters from social tenant constituents complaining of long delays for repairs, poor communication with their landlords and housing officers who are seemingly not interested. I think of a recent communication with one of my constituents in Dudley whose internal wall plastering collapsed on her child in April. We are now in November and still no repair has been made.
I am not here to criticise all social landlords or housing officers, as many do exemplary work to ensure their tenants are treated with dignity and respect and are assisted in a timely manner. I know that officers in the Dudley homelessness team work extremely hard to ensure constituents have a roof over their heads and they do not find themselves on the streets.
While the House would usually see me standing here arguing for less state intervention, I believe this Bill is in fact necessary. It goes a long way to driving up standards and ensuring that social landlords fulfil their obligation to a high standard and in a timely fashion. The Bill grants the regulator power to issue social landlords with performance improvement plan notices if they fail to meet standards or if there is a risk they will fail to meet standards—much like Ofsted does in schools. Tenants will be able to request to see copies of their landlord’s improvement plan, and if the landlord fails to comply with improvement plan notices, they could be issued with enforcement action or a fine, or have to pay compensation. In any other situation, this process would be commonplace, so it is right for that to be introduced for social housing.
Marsha De Cordova (Battersea) (Lab)
It is a pleasure to follow the hon. Member for Dudley North (Marco Longhi). I think all hon. Members on both sides of the House would agree that everybody should have a home that is safe, warm, of a decent standard and genuinely affordable, yet we know that many people live in homes that are not safe and certainly fall way short of even the Government’s decent homes standard.
Years of funding cuts to local authority budgets, as well as the four years during which the Government imposed a 1% social rent cut on local authorities, have inevitably taken their toll. The pandemic also hit housing revenue accounts hard, which has led to a huge issue in relation to the standard of social housing, but it is fair to say that the standard of most social homes was falling long before the pandemic—it has been going on for years.
In my constituency, housing and housing repair make up my biggest casework issue—every month, when I do my reports, it is always housing repair—and the same housing associations are always in question. More than 5,000 properties in my constituency are managed by housing associations. Many constituents raise issues about the standard of housing and about the poor customer service. Tenants are being made to feel that they should be grateful to have a home, and that the poor, substandard conditions and the management of those homes are not things that they have any right to question or even complain about. If this Bill goes some way to alleviate the challenges that they face, that can only be a good thing, because those challenges have had a devastating effect on tenants’ mental health and wellbeing.
One constituent has spent more than two years trying to get repairs to his home. He has been making complaints, but there has been no resolution, so he has had to live with a hole in his kitchen ceiling since January 2020. It really should not have taken an intervention from me to have that rectified. It should never be down to our offices, which can make things happen, to ensure that social housing providers fix the problems that their tenants face. Providers have a duty to ensure that the housing that they provide is of a decent standard because, as all hon. Members would agree, people do not live in those homes rent free; they pay rent and, in many cases, service charges.
The Grenfell fire made us all aware of the consequences of inaction when people living in social housing are disregarded and their complaints are consistently ignored. Such a tragedy should never have happened in our country in 2017—the year that I was elected. I pay tribute to Grenfell United and all the bereaved families and survivors of that tragic event. The Government promised justice and committed to ensuring that Grenfell would never happen again, but more than five years on from that tragedy, they have still not secured justice and no one has really been held responsible for what happened.
Many people, including my constituents, still live in unsafe homes that are not fit for habitation. It is right that we are debating the Bill, but it is long overdue, because the Government have failed in that. The Government’s Green Paper on a new deal was published in 2018—four years ago—so we are still going very slowly, at a snail’s pace.
The Bill is very important and should have been introduced earlier. If we want to deliver transformational change for social housing tenants, improve the quality of housing and ensure better regulation of the sector, the Bill needs to be improved. I am pleased that will happen in Committee, but I want to make a few points about the Bill as it stands.
There is nothing in the Bill to address the low levels of supply of social homes. There are thousands of people on the waiting list in Battersea. The reality is that for 12 years the Tories have not only failed to build social homes, but overseen the loss of homes at an unprecedented scale. Between 2010 and 2021, more than 134,000 homes for social rent were either sold or demolished, without any direct replacement. On average, that is a net loss of over 12,000 genuinely affordable homes every year, which is scandalous.
As has been said, it is over five years since the Grenfell fire. The Bill is too late for those people, and that is why I want the Minister to provide commitments on the timings for introducing the necessary regulations to ensure that the measures are enforced. Although the sector could act in response to the Bill’s changes, the Government should not and cannot rely on good will alone.
I mentioned earlier the issue of customer service, which many of my constituents continue to raise with me. Baroness Hayman was right when she said in the other place that
“housing management is no more complex than other professions that have legal requirements for training and development”.—[Official Report, House of Lords, 18 October 2022; Vol. 824, c. 1032.]
The Bill as amended in the other place still does not guarantee that staff will be appropriately qualified or engaged in training and development so that they can provide the best level of service. Why will the Government not commit to ensuring that all staff are properly trained?
The regulator’s inspections, which we all welcome, are a vital part of the Bill, and they must deliver the change that tenants so desperately need. They are the main way to check that providers are abiding by the law and responding to concerns. Although I welcome the amendment agreed in the other place, I believe that more information is needed on how the regulator will conduct routine inspections on all its landlords to ensure that consumer standards are always met. Will the Minister give more detail on how the new inspections regime will actually work and be delivered? I would also like her to commit to sufficient new resources, because this will only work if investment is made and resources allocated to allow the regulator to effectively perform its inspector role and any other new duties that may arise as a result of this Bill. The Secretary of State talked about fire safety. I would like the regulator’s remit to be expanded to make sure that it will monitor building and fire safety.
As I have said, there are a lot of good things in the Bill and it is welcome, but it needs to be improved. It is a shame that it has taken so long, but we are where we are and I hope that, as the Bill continues its passage through the House, it can be improved in many ways to ensure that tenants, regardless of whether they are in social housing or the private rented sector, are at the heart of it, because they are the ones who really matter.
Helen Morgan (North Shropshire) (LD)
On behalf of the Liberal Democrats, I too welcome the Secretary of State back to his position. I also broadly welcome the Bill. Above all, I congratulate everyone who has campaigned so effectively for these improvements following the terrible tragedy of the Grenfell fire, more than five years ago now, on their tenacity and tirelessness. However, I must repeat the question asked by Members on both sides of the House: what has taken the Government so long? Providing fairness and accountability for people living in social housing should have been a much higher priority, and we would have liked to see the Bill much, much sooner.
I want to say something about local government funding. The pandemic has significantly increased the financial pressure on local authorities, and that is being exacerbated by rampant inflation and high interest rates. While everyone is committed to improvements in the rights of tenants in social housing and their ability to hold their landlords to account, there is an urgent need for clarity on how that will be delivered and funded, given the stressed state of many council budgets. It is essential for the Government to find ways of filling the funding gap for local authorities to ensure that the most vulnerable people are protected.
At the beginning of the pandemic, the Conservative Government promised that no one would lose their home as a result of it, but now there are nearly 1.2 million people on council housing waiting lists. According to research carried out for the Local Government Association and its partners, every pound invested in a new social home generates £2.84 in the wider economy, with every new social home generating a saving of £780 a year in housing benefit. It makes sense to allow councils freedom to deal with the social housing need in their communities, and I urge the Minister to consider this as a matter of urgency.
A study published last December by the National Housing Federation found that one in five—about 2 million—children in England were living in homes that were cramped, unaffordable or unsuitable, and that 8.5 million people in England were facing some sort of housing need. However, that urgent need is not being met by the provision of new social housing in England, not least because local authorities do not retain 100% of the proceeds of houses sold under the right to buy.
As a brand-new MP at the beginning of this year—and with an inbox full of emails about social housing issues—I was astonished to learn, on meeting members of my local housing association, that homes bought by tenants under the right to buy were often immediately let by their owners into the private rented sector. When there are nearly 12 million households on social housing waiting lists, that is, in my view, a failure of policy. Measures to support home ownership should not lead to a reduction in the overall number of affordable social rented homes. Any loss of social rented housing risks pushing more families into the private rented sector, as well as driving up housing benefit rents and spending, and compounding the homelessness crisis. I therefore urge the Secretary of State to allow local authorities and housing associations to retain 100% of the proceeds of houses sold under the right to buy, in order to maintain and build the stock of social housing as appropriate for the needs of their communities.
We have discussed the urgent and pressing issue of the cost of living crisis on many occasions recently in this place. It seems that the Government have missed an opportunity to ensure that homes provided in the social housing sector are not unnecessarily expensive to heat or unnecessarily cold to live in. Moreover, about 21% of our carbon emissions come from our inefficient homes, of which social housing is often the worst offender. On the basis of personal experience, I can testify that the windows are easily the most problematic element.
In 2015, the Conservatives abandoned the Liberal Democrats’ zero- carbon homes policy, as a result of which 1 million homes have been built that cost more to heat and emit more carbon dioxide than they need to. So where are the provisions in the Bill to retrofit our social housing with insulation, and ensure that newly built social housing is warm and affordable? While including energy efficiency in the regulator’s objectives is a welcome step, it is clear that more could be done to reduce fuel poverty and help us achieve our net zero objectives.
There are some other items on my wish list—they may be for future legislation, but I would like to mention them. Along with colleagues on both sides of the House, I want to hear a firm commitment to ending no-fault evictions of those in both private rented accommodation and social housing. I also want the dangerous cladding that still affects much of the social housing stock to be dealt with as a matter of urgency, and I want to see an extension of the safeguards applying to faulty electrical appliances to online marketplaces, so that we can ensure that a terrible tragedy like Grenfell does not happen again because of unsafe appliances in people’s home.
In conclusion, the direction of travel in the Bill is certainly welcome, albeit a little overdue, and I urge the Secretary of State to work with parties across the House to improve it further.
Rebecca Long Bailey (Salford and Eccles) (Lab)
I broadly support the Bill, but as it stands its scope is clearly too narrow to address the crisis in social housing, as I think the Secretary of State accepts.
I would like to focus briefly on one issue. The Bill proposes a new access to information scheme, which would make social housing providers more accountable to their tenants and regulator. However, it appears that the scheme falls short of making social housing providers truly accountable as council providers have to be, as it does not bring social housing providers under the remit of the Freedom of Information Act 2000. Without being subject to that Act, social housing providers can refuse and have refused to be transparent about important elements of their business practices, even though they are receiving public money through rent and support.
Indeed, in 2021 Greater Manchester Law Centre ran an investigation into covid evictions in which it sent freedom of information requests to 23 social housing providers across Greater Manchester. It found that six social housing providers claimed not to be classified as public authorities and that they were therefore not subject to freedom of information requests—they refused to answer. Some 13 failed to reply at all. It is clear that the Bill must be amended to make social housing providers subject to the 2000 Act. I hope that the Secretary of State and Minister will make that simple yet necessary amendment as the Bill proceeds to Committee.
More widely, I have serious concerns that the Bill fails to address the crisis. When the news broke of the shocking and tragic death of two-year-old Awaab Ishak in Rochdale, I am sure that, like me, many Members were shocked to their core. Little Awaab’s lungs had been exposed to damp and mould in the flat where he lived with his family, and it was found that his death was directly linked to those poor living conditions. The court recently heard that Awaab’s family battled the problems at their home for a number of years, even before Awaab was born. Indeed, they had filed a disrepair claim against the housing association.
What is clear is that Awaab’s death should have brought great anger to this country—one of the richest economies in the world. It should have been a moment of reckoning: the instigation of a national mission for decent homes that would have seen the rapid deployment of Government funding to build new homes and bring existing ones to a decent standard. But sadly, I do not think we have yet seen such promises from the Government—indeed, we face threats of further austerity over the coming weeks. Although the Bill suggests a regime of routine inspections of social housing, we have yet to see any detail about how that will actually be delivered and funded.
Along with other Salford MPs and our city Mayor, I wrote to all our housing providers because we were extremely worried. We asked for urgent reports detailing the quality and condition of each of the properties that our housing associations manage, evaluated against the decent homes standard. But the fact is that years of effective cuts and freezes on rents without Government funding to match have meant that housing associations often do not have the resources to inspect properties routinely, let alone upgrade them regularly to the standard required.
Let us also remember that in 2010 funding for new social rented housing stopped completely and that an affordable rent tenure was introduced, in which homes are rented at up to 80% of their market rent. As Inside Housing has reported, although many housing associations tried to use their own funds to keep building some social rented homes, in 2010 nearly 36,000 social rented homes were started; the next year, after funding cuts, that number reduced to just over 3,000. The National Housing Federation and Crisis have shown recently in their research that 90,000 new social rented homes need to be built every year, but a lack of funding has meant that only about 5,000 are being built.
In the meantime, how can any of us in this House be sure that our local residents are not living in the same conditions as little Awaab’s family, stuck in old, unsuitable properties that are riddled with issues? The fact is that at the moment we cannot be sure, because unless our residents come to us directly we do not know. When that occurs, it is usually because they feel they have not been listened to. They have tried everybody else first and felt that every single door has been shut firmly in their face.
Although we of course all have positive success stories of issues being addressed quickly by housing associations—I have worked with some brilliant housing association personnel in Salford—we also have myriad cases in which they have not been dealt with, there is not enough funding to deal with the issues, or the resident needs to be rehoused and there is simply nothing suitable available for them.
It would take me many hours to go through my list of cases, but let me give a few examples. I have cases of young families living in high-storey tower blocks without baths for their children because there are no suitable properties for their needs and they have been put in properties that are suitable for those with medical needs and given wet rooms instead. I have residents who have been told that they cannot open the windows at their properties properly because the window is too heavy and might fall out.
I have residents living in freezing buildings this winter where all the cladding has been removed but not yet replaced because the Government at first refused to fund its replacement. The local housing association had to secure a loan to carry out the works, and now structural issues have been identified that need urgent repair. Not only were the residents refused Government help during the fire safety crisis in the first instance, but there is now no additional Government support for them as they face a winter of sky-high energy costs because their buildings have no cladding. Many report to me that they are now just not putting the heating on, which is quite frightening.
I also have reports of people battling mice and rats. They should be moved out of their properties but there are no other houses available to put them in. I have elderly people with mobility issues who have been placed in upstairs flats when they need a ground-floor property to have any semblance of quality of life. Again, no suitable properties are available.
The list is endless. Social housing has been fundamentally crushed by this Government over the past 10 years. In the city of Salford alone we have almost 6,000 households on our housing register and there are 108 bids per property advertised. What does that mean? It means that families are crammed into unsuitable accommodation because there is simply nothing else available. Those who do get properties are supposedly the lucky ones who should be grateful for what they have received, while the housing team creaks under the volume of people who have not been so lucky and are desperate to find a decent home to live in.
As the cost of living crisis bites, a crisis is coming down the tracks this winter in the shape of social housing rent affordability. The Salford City Mayor and deputy mayor, along with Salford MPs, recently wrote to the Government to request a social rents freeze across the board and that they make available the funding to deliver this locally. We have yet to receive any semblance of a response from the Government.
Yes, I support the Bill. It goes some way towards regulating the sector, but it does not tackle the root causes of the problems that my local residents face, it will not provide the homes and repairs that they need now, and it will not ensure that a decent, warm, safe and secure home should be a right for all. Only a change in Government will do that.
Siobhain McDonagh (Mitcham and Morden) (Lab)
It is an honour to follow my hon. Friend the Member for Salford and Eccles (Rebecca Long Bailey).
I should say at the outset that I welcome this Bill—but my goodness, it is long overdue. As always, context is key. Here we are reinventing the wheel after the coalition Government battered our social housing system from pillar to post. They abolished the Audit Commission and the housing inspectorate in the bonfire of the quangos and slashed the social housing budget by 50% overnight. The idea that the former right hon. Member for Tatton has been seen in Downing Street fills me with fear.
But reinvent the wheel we must. I have said many times in this House that my inbox is filled with social housing and disrepair cases, but now it is bursting. There is even a weekly meeting of my office staff and Clarion Housing Association to monitor disrepair cases one by one. I sometimes feel as if I work for Clarion Housing Association.
The spark was the appalling disrepair of the Eastfields estate in Mitcham, which made national news last year thanks to the tireless campaigning of my constituent Kwajo Tweneboa. He lived in a property overtaken by mice, cockroaches, damp and mould. Tragically, his father passed away of cancer while still in that house. Kwajo says that he asked for help before he died, but nobody listened.
Before focusing on the measures in the Bill, it is important to put them in context. Let us take the example of a tenant living in a home in disrepair, with a leak in the roof. The tenant starts by raising a case of disrepair with their landlord. They take a day off work to wait for a knock on the door that does not come. Frustrated, they follow up with a call centre, but no one there knows their name, their case or their home. Meanwhile, their roof continues to leak. They enter a multi-stage written complaints process in which they are careful not to mention the threat of legal action, which would shut their case down immediately. Throughout each stage, the roof continues to leak.
Still no joy? The tenant could turn to the ombudsman, but it will look at the process, not the disrepair. The next obstacle block is the need for a signed form from a designated person such as an MP or a councillor, or an eight-week wait if such a form is not secured. More hurdles, more bureaucracy, more leaking from the roof. Eight weeks on, the ombudsman is not looking at whether the leak has been fixed, but at whether the process has been correctly followed. Can the Under-Secretary of State for Levelling Up, Housing and Communities, the hon. Member for Bishop Auckland (Dehenna Davison) honestly say that she would have the patience to follow that process if she had water dripping through her ceiling electrics? I certainly cannot.
The tenant instead takes their complaint to the housing regulator. As it stands, however, the regulator states that it
“can only take action against a landlord when it has made significant, systemic failure that breaches the standards we have set”
and that
“Although our role is not to resolve individual disputes between tenants and landlords we signpost tenants, or their representatives, who have individual complaints, to the Housing Ombudsman Service.”
That is the same ombudsman that is checking whether the process has been followed.
Can the Minister imagine how frustrated tenants must be by this point, and how bad the leak has become? The whole process requires the patience of a saint, the tenacity of a five-star general, an endless amount of mobile phone data, a laptop to email, and a postgraduate degree in bureaucracy. I wholeheartedly welcome the Bill because a strengthened regulator could not be more urgently needed.
Will the Minister commit to allocating sufficient new resources to the regulator to allow it to perform its inspection role effectively as a result of the Bill? Can she give any more details on how the new inspections regime will be delivered and funded? Let us be under no illusion: the measures in the Bill do not build a single new socially rented home. We now have 1.15 million households on social housing waiting lists across the country, but just 6,566 new social homes were built last year—one of the lowest numbers on record—and at that rate, it will take 175 years to give everyone on the waiting list a socially rented home.
I welcome the Bill, which I will follow closely as it passes through the House. I hope we pass it quickly, because the roof is still leaking.
Jim Shannon (Strangford) (DUP)
May I say what a joy it is to sew into this debate? Any Member who runs a very busy constituency office will know what a huge chunk of their appointments and casework is taken up by social housing. I fully support the Bill that we have before us tonight. I thank both the right hon. Member for Maidenhead (Mrs May) for her contribution in pushing the Bill forward, and the hon. Member for Walsall North (Eddie Hughes), who is not in his place, for playing such an instrumental role. I also thank all the Members who have contributed to the Bill as they have played a significant and helpful role in taking it forward.
What we have before us tonight is a consensus of opinion. The tragedy at Grenfell, which so blighted the United Kingdom, brought this matter to a head. The fact that the Bill is in front of us tonight indicates just how important it is to deal with what happened.
I declare an interest as chair of the healthy homes and buildings all-party parliamentary group. I have a deep interest in this issue and in how we can do things better not just because it is a constituency matter for me back home, but because it is important in this place, too. I understand that the Bill is for England and Wales and not for us in Northern Ireland, but I seek from the Minister an assurance that whenever the Bill is completed it will be shared with all the regional Administrations, especially the Northern Ireland Assembly, where it could be instrumental in making things better. The same is true for Scotland as well. Making things better is the purpose of the Bill and it is what I would love to see happening.
I wish to give a Northern Ireland perspective on the matter, although I am ever mindful that the Minister has no responsibility for that. Let me explain what the Bill is about, how it can be replicated in Northern Ireland and why it is important. The facts are clear. There is a social housing crisis before our very eyes. We do not have enough housing—enough suitable housing for families, for vulnerable children with special needs who cannot share a bedroom with a sibling. We do not have enough warm well-built housing in areas with schools, shops and all the necessary parts of life within walking distance, or with good infrastructure links for those who do not drive or cannot drive and for those who cannot afford to keep a house. We do not have enough affordable apartments for young people needing to move for a job or for their mental health—this in a society that is coming down with mental health issues. That applies to my constituency anyway. We simply do not have enough housing stock, and what we do have unfortunately does not cut it.
Let me give a snapshot of Northern Ireland and of social housing in my own local council area. I recognise very clearly, as others have said, the importance of social housing. For many people, it is probably the only option they have, so it has to be a good option.
The snapshot of social housing in my area shows that approximately 650 units of temporary accommodation were acquired to meet the significant increase in demand, and that 150 void properties were brought back into use as furnished hostel accommodation. At the end of March 2021, there were around 117,000 live housing benefit claims. Again, that shows us why social housing is so important. Housing benefit enables people to get that social housing, and so it is really important for us in Northern Ireland. There were 18,000 new housing benefit claims assessed in the year to 31 March 2021. In the past year, almost 110,000 emergency home repairs were carried out. Again, many Members, including the hon. Member for Mitcham and Morden (Siobhain McDonagh) who spoke before me, have talked about that leak in the roof. We deal with leaks in the roof every day not just because of the rain, but because they are a fact of life.
The number of applicants on the waiting list and in housing stress in the borough increased during 2020. By March 2021, there were about 3,100 applicants on the waiting list for Ards and North Down Borough Council, with 2,144 in housing stress. The social housing market does not meet this need. The difficulty we have in my area is that a number of landlords have decided to sell their rental properties to make the most of the bump in house prices. Of course prices are coming down now—by 10%, according to the figures in the press last week. Some people think those prices could fall by as much as 30%. Whatever value has been made in housing over the past two years could evaporate very quickly. Houses have been sold and potential rental accommodation has been sold as well. That and the inevitable increase in rent means that a lack of one or two-bed suitable housing sees a single person paying £625 per month—that is the figure in my constituency—for a terraced home. Local housing allowance or housing benefit is just over £404, so a single person has to find another few hundred pounds to make rent, never mind pay for gas, electric and food. That comes at a time when energy prices are going through the roof.
The Bill cannot alleviate all our problems, but it can go some way to making them better. Those who are working and not entitled to housing benefit are in an awful predicament; there simply is not the affordable housing for the low-income person or family. There must be a push to getting housing stock in the market up to scratch.
I agree with the Bill, but my fear is that, while public sector housing landlords will bid for more money to meet their obligations, private sector landlords will simply decide that selling is their best option. I can understand that someone wants to make a profit on a property that they have bought, or wants to let a property go because they can no longer afford to keep it, but perhaps the Minister can give us some indication of how we can prevent that from happening and build our stock, rather than lose it.
The Government must ensure that, along with the rights and proper regulations contained in the Bill, there is support for those landlords who let affordable housing and want to meet their obligations, but do not want to spend more than the house is worth. The hon. Member for Dudley North (Marco Longhi) said that not every landlord is a bad landlord—we must remember that they are not. Many are committed to making properties better. Sometimes we have to work with the landlord to see how we can help them to move forward.
We must provide help for social housing tenants to access improvements and schemes that are part funded by a designated fund, and ensure that those who simply cannot get social housing can find affordable housing that is fit for standard. That must be done in co-operation with landlords who are not making a killing, charge an affordable rate, yet simply cannot bear the entire cost of double-glazed windows or anything else that is essential.
I understand that the Bill will be discussed and regulations will be brought forward in the near future. The hon. Member for Dulwich and West Norwood (Helen Hayes) referred to an amendment that she will table. It is an excellent amendment and, if accepted by Government, it will be a positive step in the right direction. I ask the Minister to consider the scheme that I have outlined, which cannot be abused and will retain affordable housing stock, rather than cause the sale of yet more housing stock.
Matthew Pennycook (Greenwich and Woolwich) (Lab)
It is a pleasure to close this debate for the Opposition. I thank all those who have contributed and echo the sentiments expressed at the outset by my hon. Friend the Member for Wigan (Lisa Nandy) about the other place. As they always do, their lordships brought a considerable amount of expertise to bear in scrutinising the Bill. As a result, it has already been improved in several important respects. I thank them, in particular our friend Baroness Hayman of Ullock, for their efforts and for the constructive, cross-party approach adopted throughout the proceedings.
It would be remiss of me if I did not also use this opportunity to pay tribute, on behalf of the Opposition, to the work of Grenfell United and the Grenfell Foundation, who have pushed at every turn for this legislation to come forward and to ensure it is made as robust as possible. Lastly, I commend the contribution of all those who have been a voice for social housing tenants over so many years, including campaigners such as Kwajo Tweneboa, ITV’s Daniel Hewitt and many hon. Members in the Chamber this evening.
There have been a number of excellent contributions in the debate. In total, I counted 10 speeches from Back Benchers, some of them incredibly powerful, and all of them in complete agreement that the Bill should proceed, and at pace. That such agreement exists across the House reflects a shared understanding that the lives of far too many social housing tenants are blighted by poor conditions, and far too many social landlords fail to treat their tenants with the dignity and respect that they deserve.
As the shadow Secretary of State, my hon. Friend the Member for Wigan, made clear, given the scale of the problem, the Opposition regret how long it took the Government to bring this legislation forward. It is now more than five years since the horror of Grenfell, more than four since the Green Paper was issued, and nearly two since the White Paper was published. Surely, time could have been found earlier to pass what is, after all, a short and uncontroversial Bill, but one of real significance for millions of social housing tenants across the country.
That criticism aside, the Opposition welcome the Bill and what it contains. We are determined to see it strengthened in a number of areas, so that standards in social housing markedly and rapidly improve, tenants are able to pursue effective redress and we can better respond to pressing issues such as the problems of serious violence highlighted by my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes). We will work with the Government to secure its passage today.
As we have heard, the Bill has three distinct aspects: first, it introduces a new consumer regulation regime; secondly, it overhauls the existing economic regulatory regime; and, thirdly, it provides the social housing regulator with new powers to enforce both. The second of those parts is entirely unproblematic, and as such I will only speak to the first and the third.
The provisions that relate to the new consumer regulatory regime comprise the bulk of the Bill, and they have understandably been the focus of many of the contributions in this debate. In general terms, we very much welcome the stronger and more proactive consumer regulations the Bill provides for. There are specific issues in relation to each that we intend to raise in Committee, but we welcome changes to the housing ombudsman powers, the introduction of new duties for social landlords relating to electrical safety checks, the requirement that registered providers nominate a designated person for health and safety issues, and the measures relating to the provision of information to both tenants and the regulator.
We support the expansion of the regulator’s current fundamental objectives to include those of safety, transparency and, following the well-deserved success of Baroness Hayman’s amendment on standards relating to energy demand, energy efficiency. There would, however, appear to be a difference of opinion between the Government and ourselves on whether it may be appropriate to add additional objectives, not least the monitoring of building safety remediation works, and we will seek to explore that matter in Committee.
We very much welcome the establishment of the advisory panel to provide independent and unbiased advice to the regulator and to proactively raise wider issues affecting social housing regulation. However, we are clear that the role of the panel should be enhanced, and we will press in Committee for its composition and functioning to be revised in order that it provides a more effective conduit for the voice of tenants and gives them a greater role in shaping national policy.
Lastly, we welcome the concession made by the Government in the other place in relation to professional training and qualifications, and the resulting inclusion of clause 21. However, and here I reference the very strong argument made by the right hon. Member for Maidenhead (Mrs May), we believe the Government need to go further if we are to be certain that the Bill will expedite the professionalisation of the sector, and we will be seeking in Committee to strengthen the Bill to that end.
The provisions that relate to the regulator’s enforcement powers and strengthening them are critical to ensuring both the consumer and the economic regulatory regimes function effectively. Again, while there are measures that we will press the Government to consider—for example, giving the regulator the power to order compensation to tenants—in general terms we very much welcome what is proposed in allowing for unlimited fines for non-compliance, the deregistration of social landlords, performance improvement plans, emergency repairs in instances where a tenant faces an imminent health and safety risk, and the removal of the serious detriment test.
We support the introduction of regular inspections, and I commend Lord Best on his work in the other place to strengthen the Bill in relation to them. However, the Bill still does not set out the scope of such inspections or how frequently they should take place. We are convinced it will need tightening in Committee if tenants are to have confidence that landlords will be monitored appropriately. We also remain concerned, and this is a point that several hon. Members made in the debate, about the very real risk that the regulator will struggle to discharge its new functions given the volume of individual tenant complaints it is likely to receive once its remit has been expanded. In particular, we are concerned it will not be adequately resourced to perform its new inspections role. That is why we are convinced that the Government must consider more carefully how they can help to ensure the regulator is not overburdened—for example, by doing more to enable tenants to enforce repairs themselves—and that it has the resources it will require to carry out its enhanced role, such as by allowing it to retain the proceeds of any fines levied to help fund its work.
Before I conclude, I want to touch very briefly on an issue rightly raised by the shadow Secretary of State in her remarks, and that is social housing supply. By means of reduced grant funding, the introduction of the so-called affordable rent tenure, increased right-to-buy discounts and numerous other policy interventions, the Government have engineered the decline of social housing over the past 12 years, presiding over an average net loss of 12,000 desperately needed, genuinely affordable homes each and every year throughout that period. We fully appreciate that this Bill is not the appropriate vehicle for reversing that decline, but we are also very clear that it cannot be silent on the issue. Provisions could be included in the Bill to help to identify the precise level of need that now exists across the country for social rented homes, and to make suggestions about how a Government serious about tackling the housing crisis can meet that need. We intend to explore that in Committee because, despite the fine words in the White Paper and the usual comforting but ultimately hollow rhetoric deployed by the Secretary of State, the Government are doing nowhere near enough to deliver the volume of social homes our country needs.
To conclude, the Bill is long overdue but wholly necessary and we are pleased it will progress today. Those currently living in poor-quality, badly managed social housing need a better deal. Just yesterday, I received an email from Nicola, a constituent living in Woolwich whose landlord is a member of the G15 group of London’s largest housing associations. She felt she had no other choice than to contact me as her MP because for nearly two weeks she has had water pouring down her walls and over her plug sockets, without any meaningful action on the part of her landlord. As we have heard in the debate, cases like Nicola’s are not a rarity, but an all too frequent occurrence. The Grenfell community know more than anyone that poorly managed and underregulated social housing can have fatal consequences. Only last week, as my hon. Friend the Member for Salford and Eccles (Rebecca Long Bailey) mentioned, details were published about the death of two-year-old Awaab Ishak following prolonged exposure to damp and mould in the social home his family rented in Rochdale. We must overhaul the regulation of social housing to protect the health, safety and wellbeing of tenants across the country because everyone has a basic right to a decent, safe, secure and affordable home.
We will work constructively with the Government on the Bill, but we will also do everything in our power to further strengthen it because tenants deserve the most robust piece of legislation that this House can possibly deliver. For today, we welcome its progress in the hope that it will mark a turning point in the protection, empowerment and de-stigmatisation of those living in England’s 4 million social homes.
The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Dehenna Davison)
I sincerely thank Members across the House for their valuable contributions to the debate, but also for the constructive nature in which they have engaged with this crucial legislation. I was pleased to hear that Members from across the House support the principles of the Bill. It is imperative that we get it on to the statute book quickly, so it can deliver the change the sector needs and the change we all know tenants deserve.
It is right that I add my voice to that of my right hon. Friend the Secretary of State for Levelling Up, Housing and Communities, the shadow Secretary of State, the hon. Member for Wigan (Lisa Nandy), the shadow Minister, the hon. Member for Greenwich and Woolwich (Matthew Pennycook), and many other Members across the House: Grenfell United and the community as a whole have displayed incredible courage and determination over the last five years, turning their own terrible experiences into important and lasting change. Their tireless endeavour has helped to bring this historic legislation before Members today and I wholeheartedly commend them. The Bill is part of their legacy and the legacy of the 72 who sadly lost their lives. The residents in the tower were put in an appalling situation that never should have occurred. We have a duty to ensure that it never happens again.
My hon. Friend the Member for Walsall North (Eddie Hughes) is no longer in his place, but spoke passionately about the fact that all social tenants should be treated with respect, a sentiment that all of us across the House certainly share. I put on record my thanks for all the work he did in this particular policy area.
A few Members spoke about the stigma around social housing. We absolutely need to reduce it. It was mentioned by the hon. Member for Wigan, my right hon. Friend the Member for Maidenhead (Mrs May) and the hon. Member for Vauxhall (Florence Eshalomi). I particularly thank the hon. Member for Vauxhall for sharing her own story. It is clear that she is incredibly passionate about this issue and I hope she will continue to campaign on it with the vigour she has shown to date.
My hon. Friend the Member for Dudley North (Marco Longhi) rightly praised those working in the social housing sector and I share that praise. We have heard tales today of bad practice, but that is very much a minority of people working in the sector. We need to recognise the hard work and dedication of those across the sector to ensure their tenants are in safe and secure housing and are protected. He was also right to say that social landlords must fulfil their obligations. He rightly raised improvement plans and the new fines that will be put in place as part of the Bill.
We have heard from across the House examples of bad practice. My right hon. Friend the Member for Rayleigh and Wickford (Mr Francois), the hon. Member for Strangford (Jim Shannon), the hon. Member for Salford and Eccles (Rebecca Long Bailey), the hon. Member for Battersea (Marsha De Cordova) and the hon. Member for Mitcham and Morden (Siobhain McDonagh) raised examples from the experiences of their own constituents. I must add my voice in praising Kwajo for his tireless campaigning. Stories like his prove why it is so crucial that we pass the Bill today.
The hon. Member for Dulwich and West Norwood (Helen Hayes) spoke of Georgia’s law. I cannot begin to imagine how difficult Georgia and her son’s experience must have been, but I would be grateful for the opportunity to sit down with the hon. Member to discuss that further before we get to the Committee stage.
A number of Members discussed whether we should go further on the professionalisation of the sector, including my right hon. Friend the Member for Maidenhead. I add my sincere thanks to her for her steadfast campaigning since the terrible tragedy occurred in June 2017. The Government firmly believe that the housing sector should have competent and respectful staff who can meet tenants’ needs and deliver high-quality services. That is why we ran a professionalisation review from January to July this year. It brought together tenant representative groups, including Grenfell United, trade bodies such as the Chartered Institute of Housing, landlords, and housing academics to consider the optimum approaches to staff development in the social housing sector. The review was informed by independent research that mapped the current qualifications and training landscape. The review concluded that there was no one-size-fits-all qualification that encompassed every facet of the social housing sector’s requirements, although I note the point raised by my right hon. Friend the Member for Maidenhead about whether it is possible to develop a slightly more detailed set of proposals on those qualifications.
My right hon. Friend also raised a point about potential reclassification by the Office for National Statistics, and rightly outlined a concern we have in Government about the risk that could bring to taxpayers, particularly the fact that £90 billion of debt could be brought on to the public ledger, which is a very real consideration for us. She asked whether it was possible to engage with the ONS, and whether any engagement had already occurred. The ONS will only make a formal classification decision on new policy or regulation once that has already been implemented. In exceptional circumstances, the Government can ask the ONS to perform a policy proposal review, but as the policy is currently still being developed, we are not in a position to request that formal review. The risk assessment that we have undertaken is based on our work with the Treasury classification team, who work closely with the ONS and have in-depth knowledge of the classification framework and its application to the social housing sector. I would be happy to sit down with my right hon. Friend and discuss the issue further before the Bill goes to Committee.
Inspections were raised by a number of hon. Members, including my right hon. Friend the Member for Rayleigh and Wickford and the hon. Member for Battersea. The regulator has committed to delivering regular consumer inspections as part of the new proactive regime. Inspections will help the regulator to hold landlords to account and take action where necessary, ultimately driving up the standard of service delivery to tenants. The Government tabled an amendment in the Lords to put that commitment into law, which gives the regulator a duty to publish and take reasonable steps to implement a plan for regular inspections. The system of inspections will be based on a risk profile to ensure that those landlords at greatest risk of failing, or where failure might have the greatest impact on tenants, are subject to greater oversight. As part of that, the regulator will aim to inspect landlords with more than 1,000 homes every four years. We have had a positive response from stakeholders, including Lord Best and Shelter, since we placed that measure in the Bill.
Let me touch quickly on supported housing. The Government are investing £20 million in a supported housing improvement programme to drive up quality in that sector. My Department is actively engaging with my hon. Friend the Member for Harrow East (Bob Blackman) and the charity Crisis, which is campaigning passionately on this issue, to see how we can address the problems raised. Social housing supply was raised by the hon. Members for Wigan, for Hammersmith (Andy Slaughter), for Battersea, and for Salford and Eccles. The provision of affordable housing is an existing part of the Government’s plans to build more homes and provide aspiring homeowners with a step on to the housing ladder. Our £11.5 billion affordable homes programme will deliver thousands of affordable homes for both rent and to buy right across the country. The Levelling Up White Paper committed to increasing the supply of social rented homes, and a large number of the new homes delivered through our affordable housing programme will be for social rents.
Mr Francois
I congratulate the new Minister who is admirably summing up what I thought was a remarkably thoughtful, consensual and non-partisan debate. On a slightly lighter note, can we do something about the name of the social housing regulator? It does not have to be off-roof, or even roof-off, but could we have something a bit snappier that might strike fear into the hearts of complacent housing association chief executives, of whom there are sadly still too many?
Dehenna Davison
I will certainly take that suggestion on board. If my right hon. Friend has any ideas, I will accept them on a postcard or via WhatsApp. He now has a mission to come up with a snappy name.
The hon. Member for North Shropshire (Helen Morgan) raised the subject of energy efficiency. Baroness Hayman tabled a successful amendment in the other place that ties the Government into producing a strategy on energy efficiency in the social rented sector within 12 months of Royal Assent. We are considering how to address that new provision in the Bill and will update the House shortly.
The hon. Members for Vauxhall, for Wigan, for North Shropshire and for Mitcham and Morden touched on the resourcing of the regulator. We are firmly committed to ensuring that the regulator has the resources that it needs not only to deliver the new consumer regulation regime but to ensure that it continues to regulate its economic objectives effectively. We have made an additional £4.6 million available in 2022-23 to support the new regime. We will potentially be introducing changes to the fee regime, which will be subject to consultation to ensure that the regulator is funded appropriately.
The hon. Member for Strangford, as always, adopted a constructive approach, wanting to ensure that those in Northern Ireland learn the lessons of the terrible tragedy of Grenfell and that they can benefit from some of the incredible measures that we are bringing forward in the Bill. He will have heard the Secretary of State speak about his engagement with devolved Administration Ministers and officials; I hope that that has provided him with some assurance.
We have heard today how a Bill with a relatively small number of clauses can have such a large impact. Addressing housing in this country is central to our levelling-up mission. It is essential that social tenants live in safe, good-quality homes provided by responsible, well-run registered providers. I am pleased to be closing this insightful Second Reading debate; seeing how passionately Members across the House feel about the Bill only reinforces its importance. I look forward to taking the Bill through Committee and working with shadow Ministers and all interested Members across the House so that we can bring real, lasting change to the social housing sector.
Question put and agreed to.
Bill accordingly read a Second time.
Social Housing (Regulation) Bill [Lords] (Programme)
Motion made, and Question put forthwith (Standing Order No. 83A(7)),
That the following provisions shall apply to the Social Housing (Regulation) Bill [Lords]:
Committal
(1) The Bill shall be committed to a Public Bill Committee.
Proceedings in Public Bill Committee
(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Tuesday 13 December 2022.
(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.
Consideration and Third Reading
(4) Proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which those proceedings are commenced.
(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.
(6) Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and Third Reading.
Other proceedings
(7) Any other proceedings on the Bill may be programmed.—(Nigel Huddleston.)
Question agreed to.
Social Housing (Regulation) Bill [Lords] (Money)
King’s recommendation signified.
Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),
That, for the purposes of any Act resulting from the Social Housing (Regulation) Bill [Lords], it is expedient to authorise the payment out of money provided by Parliament of—
(1) any expenditure incurred under or by virtue of the Act by the Secretary of State, and
(2) any increase attributable to the Act in the sums payable under any other Act out of money so provided.—(Nigel Huddleston.)
Question agreed to.
Social Housing (Regulation) Bill [Lords] (Ways and Means)
Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),
That, for the purposes of any Act resulting from the Social Housing (Regulation) Bill [Lords], it is expedient to authorise the charging of fees.—(Nigel Huddleston.)
Question agreed to.
Social Housing and Regulation Bill (First sitting)
Tuesday 29th November 2022
(2 years ago)
Public Bill CommitteesRead Full debate Social Housing (Regulation) Act 2023 Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 29 November 2022 - (29 Nov 2022)
The Chair
We are now sitting in public and the proceedings are being broadcast. Hansard colleagues will be grateful if Members could email any speaking notes to hansardnotes@parliament.uk. All the normal rules apply.
Today, we will consider the programme motion on the amendment paper and then a motion to enable the reporting of written evidence for publication. I am sure we can take those matters formally, without debate. I first call the Minister to move the programme motion standing in her name, which was discussed yesterday by the Programming Sub-Committee for the Bill.
Ordered,
That—
(1) the Committee shall (in addition to its first meeting at 9.25 am on Tuesday 29 November) meet—
(a) at 2.00 pm on Tuesday 29 November;
(b) at 11.30 am and 2.00 pm on Thursday 1 December;
(c) at 9.25 am and 2.00 pm on Tuesday 6 December;
(d) at 11.30 am and 2.00 pm on Thursday 8 December;
(e) at 9.25 am and 2.00pm on Tuesday 13 December;
(2) the proceedings shall be taken in the following order: Clauses 1 to 13; Schedule 1; Clause 14; Schedule 2; Clauses 15 to 35; Schedule 3; Clauses 36 to 38; Schedule 4; Clauses 39 and 40; Schedule 5; Clauses 41 to 44; new Clauses; new Schedules; remaining proceedings on the Bill;
(3) the proceedings shall (so far as not previously concluded) be brought to a conclusion at 5.00 pm on Tuesday 13 December.—(Dehenna Davison.)
Resolved,
That, subject to the discretion of the Chair, any written evidence received by the Committee shall be reported to the House for publication.—(Dehenna Davison.)
The Chair
Copies of written evidence that the Committee receives will be made available in the Committee Room and circulated to Members by email.
We will now begin line-by-line consideration of the Bill. A selection and grouping list for today’s sittings is available in the room. It shows how the clauses and selected amendments have been grouped for debate. Amendments grouped together are generally on the same or similar issues. Please note that decisions on amendments do not take place in the order they are debated, but in the order that they appear on the amendment paper. The selection and grouping list shows the order of debates. Decisions on each amendment and on whether each clause should stand part of the Bill are taken when we come to the relevant clause.
A Member who has put their name to the lead amendment in a group is called first. Other Members are then free to catch my eye to speak on all or any of the amendments in that group. A Member may speak more than once in a single debate. At the end of the debate on a group of amendments, I shall call the Member who moved the lead amendment again. Before they sit down, they will need to indicate whether they wish to withdraw the amendment or to seek a decision on it. If any Member wishes to press another amendment in the group to a vote, they will need to let me know in advance.
Clause 1
Fundamental objectives
Matthew Pennycook (Greenwich and Woolwich) (Lab)
I beg to move amendment 13, in clause 1, page 1, line 5, at end insert—
‘(aa) after paragraph (a) insert—
“(aa) to ensure the provision of care and support services in supported exempt accommodation and in temporary accommodation are adequate, well-managed, safe, and of appropriate quality,”’.
This amendment would ensure that support services provided to residents of supported exempt accommodation and temporary accommodation for those properties that already fall within consumer regulation are adequate and of an acceptable quality.
The Chair
With this it will be convenient to discuss new clause 8—Standards relating to supported and temporary accommodation—
‘(1) The Housing and Regeneration Act 2008 is amended as follows.
(2) In section 192 (Overview)—
(a) in paragraph (a), after “social housing” insert “, supported exempt accommodation and temporary accommodation”
(3) In section 193 (Standards relating to consumer matters)—
(a) in subsection (1), after “social housing” insert “or accommodation to which subsections (1A) to (1D) applies”
(b) after subsection (1) insert—
“(1A) The Secretary of State, after consultation with the regulator, may by order bring into consumer regulation accommodation managed or in the control of a registered provider that falls within subsection (1C) or subsection (1D).
(1B) An order under subsection (1A) may apply to either subsection (1C) or (1D) only or to both and orders commencing either can be made separately at different times and for any part of England.
(1C) The accommodation to which this subsection applies is supported exempt accommodation as defined by regulations under subsection (1E).
(1D) The accommodation to which this subsection applies is temporary accommodation as defined by regulations under subsection (1E).
(1E) The Secretary of State may by regulations set out the classes of accommodation that fall within subsection (1C) or subsection (1D) and may define each class by reference to the Housing Benefit Regulations 2006 or the Universal Credit Regulations 2013.”
(c) in subsection (2), after paragraph (2)(d) insert—
“(da) standards relating to supported exempt accommodation or temporary accommodation,”’.
This new clause would ensure that providers of supported exempt accommodation and temporary accommodation who are registered with the regulator and charge market rents covered by housing benefit are brought within the scope of the new consumer regulatory regime.
Matthew Pennycook
It is a pleasure to begin our line-by-line consideration of the Bill with you in the Chair, Sir Edward, and in a Committee with a considerable amount of housing expertise, which I hope will put us in good stead for further improving the Bill. The Opposition have consistently maintained that the Bill is uncontroversial legislation, and we welcome it and the measures it contains.
We desperately need to build more social homes, but we also need to ensure that our existing stock is of good quality and well managed. Almost half a million social homes fail to meet the Government’s decent homes standard and, as that standard is not a requirement, it is almost impossible to enforce.
The Regulator of Social Housing can and does react to systemic failings among registered providers—for example, the request for evidence issued in relation to damp and mould following the coroner’s report into the death of two-year-old Awaab Ishak in 2020—but at present it has no proactive way of regulating consumer standards. The spotlight of media attention, tenant campaigning or intervention by individual hon. Members should not be required to trigger the appropriate response to substandard conditions in social housing, yet that is all too often the case.
To ensure that tenants are properly protected by a robust, effective system of regulation, major reform is needed. Indeed, it is long overdue, and the Secretary of State was right to concede, in the wake of Awaab’s untimely death, that the Government have been too slow to toughen regulation in this area.
Despite its limited number of clauses, the Bill is therefore of real significance for millions of social housing tenants across the country. That is why the Opposition regret how long it took the Government to bring it forward, and it is why we want to see it on the statute book as soon as possible. To that end, we want to see the Committee to sit no longer than is absolutely necessary. However, we are determined to see the Bill strengthened in a number of areas, so that standards in social housing markedly and rapidly improve, tenants are able in practice to pursue and secure effective redress, the collective voice of tenants is heard more audibly and they have a greater role in shaping national policy, and we are better able to respond to pressing issues affecting some of those living in social housing, such as serious violence.
We owe it to the bereaved and the survivors of Grenfell, Awaab’s family and all those social tenants currently living in appalling conditions to pass the most robust legislation that the House can possibly deliver. To that end, we have tabled a limited number of amendments in key areas, the intention of which is to persuade the Government to reflect sincerely on how the Bill might be improved still further. Although we intend to work constructively with Ministers to secure the Bill’s speedy passage out of Committee, we expect the Government to give serious consideration to the arguments that we make in respect of those amendments.
Amendment 13 and new clause 8 relate to supported exempt accommodation and temporary accommodation. The new clause would provide the Secretary of State with the power to bring properties let at market rents by non-profit making providers of supported exempt or temporary accommodation registered with the regulator into the scope of consumer regulation. It would allow Ministers to do so at a time of their choosing and on an area-by-area basis as required. The amendment would extend the regulator’s fundamental objectives to the care and support services provided by supported exempt and temporary accommodation in relation to properties that already fall within the scope of consumer regulation.
I want to be clear at the outset that these proposals do not seek to extend the scope of the regulatory framework provided for by the Bill to all non-registered supported exempt and temporary accommodation providers in a way that could place unreasonable burdens on the regulator. Rather, they would apply only to those landlords who are registered, or entitled to register, with the regulator as non-profit making providers because they let some properties at below market rents—that is, social housing.
The purpose of these two related proposals is to address an existing loophole that, unless addressed, will remain a problematic gap in the consumer regulatory regime after the Bill has come into force. It is that non-profit making providers of supported exempt or temporary accommodation can let properties at market rents that are eligible for housing benefit support on the basis that “more than minimal” care, support or supervision is being provided, without those properties coming within the scope of consumer regulation.
We know that the regulatory gap is currently being exploited by unscrupulous providers. The three biggest registered providers of non-commissioned exempt accommodation in Birmingham last year, Reliance Social Housing CIC, Ash-Shahada Housing Association Ltd and Concept Housing Association CIC, received £159 million in housing benefit payments for 16,370 market rent properties that fell outside consumer regulation. They were able to operate those properties free from the fear of intervention on consumer standards grounds, because they collectively operate 310 properties—in Reliance’s case, it is just six—at below market rents.
As a result of the regulator being unable to enforce against poor performance by providers in relation to market rent properties that they operate on the basis of consumer standards, the regulator can enforce against bad practice in such cases only on grounds of economic viability. It has done so—for example, it found the large, Birmingham-based Reliance to be non-compliant with the governance and financial viability standard in October last year. However, Opposition Members struggle to understand why the Government have not enabled the regulator to take action against supported exempt and temporary accommodation providers letting units at market rents who fail to meet expected standards, using the tools provided for by the new proactive consumer regulatory regime introduced by the Bill, given that permitting it to do so would simply provide an additional weapon in the regulator’s arsenal when it comes to clamping down on unscrupulous providers.
It is true that clause 8(d) tightens the definition of what constitutes a non-profit making provider. That should help to ensure that some of the most flagrant abuses, such as out-of-balance portfolios, can be clamped down on. However, it will not end all instances of rogue providers gaming the system by letting some properties at below market rents, registering as non-profit making providers on that basis, and then operating far larger numbers of substandard market rent properties outside the scope of consumer regulation. For example, those with more balanced portfolios—presumably even if that were achieved on the basis of a split of 51% of properties let non-profit and 49% for profit—will escape the provisions of clause 8 that I just referred to.
We recognise that the Government support, as we do, the Supported Housing (Regulatory Oversight) Bill introduced by the hon. Member for Harrow East. I am pleased that the hon. Gentleman is on the Committee with us. His Bill will enhance local authority oversight of supported housing and thereby enable local authorities to drive up standards in their areas. However, it does not contain provisions to close the particular loophole that is the focus of amendment 13 and new clause 8. As such, if the Government do not accept our amendments or bring forward their own to tackle the loophole in question, enforcement action on the part of the regulator in these cases will be confined to matters of economic regulation.
One element of our concern about the gap in the proposed consumer regulatory regime that the amendments seek to address is that, once the hon. Gentleman’s Bill has received Royal Assent, rogue providers of supported exempt accommodation will be incentivised to exploit this loophole further, as it will be one of the last remaining loopholes because their operations will be hampered by the range of measures in the hon. Gentleman’s Bill. Using the Bill before us to address the issue of supported exempt and temporary accommodation landlords who are already partially regulated would also close down the loophole more quickly than would be possible by doing so through the Supported Housing (Regulatory Oversight) Bill, because it will be some time before that Bill is in Committee, and the detailed regulations required to give it full effect will take some time to be passed.
If the Government were persuaded of the merits of the argument underpinning amendment 13 and new clause 8, they could determine to deal with supported exempt accommodation and temporary accommodation separately. We ultimately decided that the amendments should cover both, because there is good evidence to suggest that the loophole is being increasingly exploited by private temporary accommodation providers, in particular those providing nightly paid temporary accommodation, who often describe themselves as social landlords but who are exempt from consumer regulation in relation to substandard properties they let at market rents at great cost to the taxpayer.
Dealing with supported exempt accommodation and temporary accommodation together is also an attempt to pre-emptively address the scenario in which the Government accept that properties let at market rents by registered non-profit making providers of supported exempt accommodation should be covered by consumer regulation and legislate to that end, but, by setting aside market rent temporary accommodation let by registered non-profit providers, ensure that that becomes an obvious target for rogue providers seeking to escape consumer regulation standards.
I appreciate fully—I expect that the Minister will respond along these lines—that the Government will be reluctant to re-open at this stage of the Bill’s proceedings what and who falls within the ambit of the new consumer regulatory regime, but surely they cannot believe that the Bill as drafted ensures that support services beyond general management that are provided to residents of supported exempt and temporary accommodation will be of acceptable quality, or that non-profit making registered providers can simply ignore consumer standards when it comes to those properties let at market rents eligible for housing benefit support.
The issues that are the subject of these two amendments will need to be addressed if the Government are serious about clamping down on rogue providers who take public money while failing vulnerable people. I hope that the Minister can signal that the Government are minded to act either by accepting the amendments or by bringing forward their own in due course.
The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Dehenna Davison)
It is a pleasure to serve under your chairmanship today, Sir Edward. I am incredibly grateful to the shadow Minister, the hon. Member for Greenwich and Woolwich, for the constructive way he has embraced this debate, for the Opposition’s broad support for the Bill, and for his commitment to ensuring that the regulator is as robust as it can be. On that point, we have certainly found some early agreement.
As the hon. Member outlined, amendment 13 would extend the remit of the regulator to the care and support provided to residents in supported exempt accommodation and temporary accommodation, while new clause 8 would extend the remit to those types of accommodation when they are not social housing but are held by a registered provider.
Temporary accommodation and supported housing that meets the definition of social housing is already regulated under the regulator’s standards, and the Care Quality Commission already regulates the provision of personal care in supported housing. The support needs of people in supported housing are wide, varied and often complex compared with those living in general needs accommodation. That is why we are supporting targeted measures in the Supported Housing (Regulatory Oversight) Bill, introduced by my hon. Friend the Member for Harrow East, to tackle the issues we are seeing in supported housing. I echo the shadow Minister’s comments; I am very grateful that my hon. Friend is bringing his incredible expertise to the Committee.
While there are many excellent supported housing providers, the Government recognise that there are some rogue supported housing landlords. Let me be completely clear for the record: any abuse of the supported housing system will not be tolerated. The Supported Housing (Regulatory Oversight) Bill will introduce national standards to be applied to supported housing and to give local authorities new powers to introduce licensing schemes and other enforcement powers.
Temporary accommodation is a key safety net for homeless households in this country. The homelessness code of guidance is clear that, at a minimum, temporary accommodation must be free from all category 1 health hazards, as assessed by the housing health and safety rating system, and it must be suitable for all members of the household. Households have the right to request that the council reviews the suitability of their accommodation.
Siobhain McDonagh (Mitcham and Morden) (Lab)
On temporary accommodation for homeless families and the code of guidance, who enforces the code? Who knows whether councils are living up to it? Who inspects the accommodation with a third eye to see whether it meets the standards?
Dehenna Davison
I will follow that up with the hon. Member in writing after our sittings today.
Dehenna Davison
As I have just outlined, I will write to the hon. Member to pick up her point following today’s sittings.
The focus of the Regulator of Social Housing is on regulating the standards for registered providers of social housing. I believe that the regulator should remain focused on that vital role, and that greatly expanding its scope to include temporary accommodation could be a significant risk to its expertise. I do not believe that expanding the scope of the regulator into those areas, as proposed by the amendments tabled by the hon. Member for Greenwich and Woolwich, is the right way to address them. The regulator should continue to focus on ensuring that registered providers provide safe and high-quality social housing for tenants and on delivering the new consumer regime.
On that basis, I ask the shadow Minister to consider withdrawing his amendments today, but with a commitment from me to follow up with him before Report to see whether anything more can be done.
Bob Blackman (Harrow East) (Con)
It is a pleasure to serve under your chairmanship, Sir Edward. I thank the Minister and the shadow Minister for their compliments about me and my Bill. No doubt we will be debating it in one of these Committee Rooms in the not too distant future.
One concern about the position on supported housing is the number of regulators that get involved already. There is almost a confusion of regulation. There is another problem: as we legislators seek to plug gaps, the rogue landlords seek alternative ways of making huge amounts of money. We already know that nearly £1 billion in housing benefit was paid out last year on supported housing in exempt accommodation. Clearly, that was for people who are vulnerable and need help and support. They are from a wide variety of different backgrounds. They might be recovering drug addicts; they might be people who became temporarily homeless or people who have had mental or physical health problems. I could go through a long list of people, but they are vulnerable and need help and support.
However, I have a concern about the proposed amendments. They seek to plug a gap, but are they comprehensive enough? We need more discussion to make sure we have a comprehensive measure that includes everything and makes it clear who the regulator is. Given the interventions by the hon. Member for Mitcham and Morden, we want to make sure, as a Committee and as legislators, that the laws we introduce are actually enforced.
Eddie Hughes (Walsall North) (Con)
The shadow Minister made a very interesting point, and I believe his case has some merit. We have invested in pilots in several areas of the country so that we can explore the case more fully. When the Levelling Up, Housing and Communities Committee looked at the procedure, there was some frustration on the part of Members about the fact that we cannot easily compartmentalise the breadth of people who are supported in the accommodation, so a range of organisations have oversight of the quality of the accommodation provided, supported or otherwise. We need further work to be done through the pilots to make sure that any intervention we make does not have unintended consequences for the providers who provide excellent quality supported accommodation.
Bob Blackman
I thank my hon. Friend for that intervention. Clearly, while the amendments may have good intentions, he makes a good point. We do not want the good providers, who are doing a fantastic job in supporting people to rebuild their lives, to face unnecessary burdens and regulation. It behoves the movers of amendments such as these to ensure that we have covered all those bases.
We must therefore ask: even though the amendments look superficially beneficial, do we have a comprehensive series of measures that plugs all the loopholes and does not burden good providers? Rogue providers are smart; they will look at any gaps in the law and for all opportunities to exploit the system and vulnerable people. The sensible thing would be to withdraw the amendment and have further discussion so that, together, on a cross-party basis, we can make sure that the Bill ends up in the right place.
Siobhain McDonagh
I support the amendments tabled by my hon. Friend the Member for Greenwich and Woolwich. At the moment, we have two things going on. First, we have exempt accommodation, where private property developers access vulnerable people and place them in houses in multiple occupation, cream off large amounts of housing benefit and provide no support to those individuals. They are exploited and left until the police, in many cases, or mental health services come along and take them away. Secondly, neighbourhoods are completely terrorised by people who are vulnerable but unable to control their behaviour, and absolutely nobody regulates that.
I represent a suburban south-west London constituency. Do not get me wrong; properties are not cheap, but they are cheaper than in other bits of London. Companies such as Stef & Philips are exploiting wholesale every loophole and making large amounts of money to bring fear and distress to neighbourhoods and to the residents who occupy those premises.
Last week, a lady who lives in the Pollards Hill area came to my surgery. The 1930s semi-detached house next door to her had been converted into an HMO for five vulnerable tenants. There were no bins to collect the rubbish and no facilities to ensure people could live adequately. She lives next door and has cancer. One of the residents in that home had pulled a knife on her only the day before, and all the other vulnerable tenants in the house had to stay locked in their rooms to avoid that individual. Stef & Philips are making hundreds or thousands of pounds every week from that property.
In Ravensbury, another ward in my constituency, on Malmesbury Road, the same company had a man who was so vulnerable that the police raided the property and had to withdraw because he had a crossbow and they needed firearms support. The whole street was blocked off. That is St Helier estate, for any hon. Members who may know it. It is a beautiful local authority estate built after the first world war to provide homes fit for heroes. The house is beautiful, but not as an HMO for five vulnerable people. People in the street are terrified. Who knows how terrified the other residents in the property are? The company’s balance sheet goes up and up while people go out to work to pay ever-higher tax rates to sustain that company in exploiting people.
Sarah Owen (Luton North) (Lab)
My hon. Friend is making excellent points. That is the human impact of the lack of regulation and enforcement on rogue providers that are making millions out of very vulnerable people. Their impact is felt not only by the individuals who are being harmed, but by entire communities. Does she agree that although we do not want regulation for regulation’s sake, we need not just regulation but enforcement for those who are getting away with this scot-free right now? We do not just need legislation; we need the ability to enforce and act.
Siobhain McDonagh
I absolutely agree with my hon. Friend. If there is no regulation, this will just grow and grow. As mortgage interest rates go up and business for buy-to-let landlords becomes less profitable, more people are going to look at providing this style of housing, because they can exploit the housing benefit system. If that is not happening in the constituencies of all the hon. Members of this Bill Committee, it will be coming to them soon.
Eddie Hughes
The point I am about to make is non-political, given that I am going to use the example of Labour-led Birmingham Council. That council did pilot work, and its scrutiny committee, which was chaired by a Labour member, subsequently published a report. It was able to identify a number of improvements that it could make within the existing legislation. I fully appreciate that legal challenge is an option for landlords who have their claims turned down. However, the council was able to reduce the number of people coming through the pipeline to provide this type of accommodation, and it was able to improve the quality of that accommodation. There is some room for councils who are prepared to focus on this, to improve outcomes for local people within the framework of the existing legislation.
Siobhain McDonagh
I turn to Aves housing association, which was run by a man who was exposed by the BBC for running a former supposed housing association that is in fact a commercial enterprise. It specialises in parts of Pollards Hill and Longthornton in my constituency, which neighbour Croydon, and it routinely takes very vulnerable people to live in houses that are simply not big enough for conversion. It accesses people’s universal credit accounts and takes their money. When the housing benefit department at Merton Council discovered that, it decided not to pay housing benefit to Aves residents. That might seem sensible to most Committee Members. However, that then meant that 92 vulnerable people were not having their rent paid, so were vulnerable to eviction—at which point, Merton Council’s housing department and adult social services departments would have collapsed. Local authorities are in a bind. Do they take notice of what is going on—in which case, they get responsibilities they cannot meet—or do they turn a blind eye because, in the end, that is the only way they can manage?
Bob Blackman
The hon. Member is making a very clear case about the problems in her constituency. One problem that local authorities face is that they have no powers to prevent such properties from being turned over in this way. Does she agree that one issue we have to deal with, which is not addressed in this amendment, is that local authorities need powers? Those powers might be around planning permission to do with HMOs and HMO regulation, to control the type of housing that she quite rightly describes as being a challenge in her area; or they might be over a licensing system to make sure that the operators of supported housing projects are fit and proper persons who will not exploit their position.
Further, data-sharing should be spread across the country. These rogues might well jump from Merton to Croydon to somewhere else, because they know that the local authority does not know about them. However, that is not within the scope of the amendment, although it is in the scope of my Bill, which I will be debating later. Although we would all agree that the issues that the hon. Member has raised are a scandal and need to be addressed, we must be clear that that is not within the scope of the amendment.
Siobhain McDonagh
I believe that the regulator should have power to look at this area of housing. It is all very well for councils to get more powers, and I would be the first to agree with that, but many councils already have a lot of powers that they cannot use because they cannot afford to. They do not have access to social housing units. They do not have access to the level of environmental health officers that they need. They do not have access to the number of planning officers they need in the area of planning enforcement.
Sarah Owen
My hon. Friend hits the nail on the head. The pilot work that the hon. Member for Harrow East just spoke about is fantastic. We will take whatever we can from that and learn, but the point is that the councils and authorities that did that work had to have extra resources to use their existing powers. This is not just about legislating and enabling local authorities to have more powers; it is also about them having the funds and resources to use those powers.
Siobhain McDonagh
Absolutely, and I know the hon. Member for Harrow East will be aware of how few London councils ever prosecute anybody under their current powers. It is about regulation, but it is also about local authorities being able to use their powers. In the light of the recent Budget, local authorities’ powers will become even less well used if their finances continue to be squeezed.
Let us go back to Aves in Pollards Hill and Longthornton. I met the regulator and spoke about Aves and my concern about the exploitation of tenants. The regulator said to me, “We completely agree with you, but there is nothing we can do. We do not have the power to do anything.” Either we give the regulator the powers and do something about it, or we go on talking about it in a well-meaning way while the problem exponentially grows. I, for one, want to see some action rather than none.
Maggie Throup (Erewash) (Con)
It is a pleasure to serve under your chairmanship, Sir Edward. I think this is an important Bill. Amendment 13 and new clause 8 relate to supported exempt accommodation and temporary accommodation when provided by providers that are the subject of other parts of the Bill. The hon. Member for Greenwich and Woolwich made a very good case.
The hon. Member for Mitcham and Morden made a passionate speech, and I think we can all relate to what she was saying, because we all have examples in our constituency of providers who sound very legitimate and credible, but after they are looked into, it turns out that they are not. They are fly-by-nights who are just taking the opportunity provided by the loophole in regulations. We can all cite examples of HMOs that have been passed by councils because the councils do not have the powers to stop them. The impact on neighbourhoods is quite dire, and it really does destroy local communities.
While I appreciate the intentions behind the Opposition’s amendments, I think the better place to close the gaps in regulation would be in the Bill from my hon. Friend the Member for Harrow East. This measure is obviously needed, but I think this Bill is the wrong place for it. I hope to speak later about some of the specific issues in my constituency and the importance of regulating the providers and ensuring the provisions of the Bill are met, because they are so needed.
Matthew Pennycook
That was an incredibly informed and helpful debate. I just want to say at the outset that we fully appreciate how complex an area of law and regulation this is. I have done enough of these Committees to know that the Minister is not going to simply stand up and accept the amendments we have cobbled together just on the basis of my speech, however good it might have been.
I will try to respond to the points made, which I take in the constructive spirit they were offered in. I do not think many of the points made get to the heart of what the amendments are driving at. I agree with the hon. Member for Harrow East: there is a plethora of regulators in housing and planning generally, and I am concerned that we are creating overlap and confusion in various ways. I will come to how that might be true in relation to the ombudsman and the regulator when we discuss clause 5, but that is absolutely a point.
The Minister made the point well: the private Member’s Bill of the hon. Member for Harrow East, the Supported Housing (Regulatory Oversight) Bill, includes a range of targeted measures to address the scandal—we all agree it is a scandal—of rogue providers of exempt accommodation and temporary accommodation in many cases. However, as I made clear, that Bill does not address this gap. The hon. Member for Erewash said that if it is not covered by these amendments, it can be done via the Supported Housing (Regulatory Oversight) Bill, but it is not in that Bill. Perhaps it will end up in that Bill after Committee stage, in which case we will be entirely happy with that being a vehicle for it rather than this Bill, but it needs to be addressed.
Dehenna Davison
Absolutely, we will take this away. I would be grateful for the expertise of all on the Committee, including the hon. Member for Mitcham and Morden, who made an incredibly passionate case. Let us have a roundtable discussion about how best we can take this forward following Committee.
Matthew Pennycook
I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Question proposed, That the clause stand part of the Bill.
The Chair
With this it will be convenient to discuss the following:
New clause 2—Regulator duty to report on safety defects—
‘(1) In fulfilling its consumer regulation objective under section 92K of the Housing and Regeneration Act 2008, the regulator must report to the Secretary of State on actions taken by registered providers to remediate unsafe external wall systems and other historic fire safety defects in social housing.
(2) A report produced under this section may make recommendations to the Secretary of State on further action required to sufficiently address identified issues.’
This new clause would ensure that in meeting its fundamental objective to support the provision of social housing that is well-managed and of appropriate quality, the regulator would be required to report to the government on the progress of building safety remediation.
New clause 3—Regulator duty to support provision of social housing—
‘(1) In fulfilling its economic regulation objective under section 92K of the Housing and Regeneration Act 2008, the regulator must–
(a) within six months of this Act receiving Royal Assent, and
(b) at intervals of no more than three years thereafter
provide a report to the Secretary of State on whether the supply of social housing in England and Wales is sufficient to meet reasonable demands.
(2) A report produced under this section may make recommendations relating to how to ensure that the provision of social housing in England and Wales is sufficient to meet reasonable demands.’
This new clause would ensure that in meeting its fundamental objective to support the provision of social housing sufficient to meet reasonable demands the regulator would be required to report to the government on adequacy of social housing supply.
Dehenna Davison
Clause 1 relates to the fundamental objectives of the Regulator of Social Housing and adds safety and energy efficiency of tenants’ accommodation and transparency. New clauses 2 and 3 seek to take that further and expand the role of the regulator into new areas.
New clause 2 relates to monitoring the remediation of unsafe cladding and other fire safety defects in the social housing sector. I want to make clear from the outset that nothing is more important to this Government than making sure people are safe in their homes. The tragic, horrendous case of Awaab Ishak, which we are all unfortunately now familiar with, has highlighted the crucial role of registered providers of social housing in making sure that happens.
The Bill sits alongside other key reforms that we have introduced in response to the Grenfell Tower fire, including the Building Safety Act 2022 and the Fire Safety Act 2021. New clause 2 is incredibly well intentioned, given what it seeks to achieve, but the Bill is not the correct vehicle for it. A duty should be placed on the Regulator of Social Housing to undertake such monitoring. The regulator is not a specialist fire or building safety body. The proposed new clause would be a significant expansion of the regulator’s remit. Currently, the regulator does not have the expertise to fulfil that function effectively.
The question of who should undertake that kind of role is, however, an important one for Government. The Department is evaluating options on how best to monitor and report on the progress made in remediating unsafe cladding and other fire-safety defects. It is important that the work is done at pace, but thoroughly. I understand that hon. Members will be keen to study its outcomes and implications for future policy, but I must reiterate that it would be improper to pre-empt it while it is ongoing by allocating responsibility for that highly important function without the benefit of fully understanding the options. We need to ensure that that work is undertaken by those with the correct skills, expertise and capacity. My concern with new clause 2, therefore, is that it would make for a hasty decision that might mean we do not achieve the desired outcomes in the optimal way.
I turn to new clause 3. The hon. Member for Greenwich and Woolwich is right to draw attention to the importance of increasing the supply of social housing. In the levelling-up White Paper, we made it clear that we want to
“increase the amount of social housing available over time to provide the most affordable housing to those who need it.”
Our £11.5 billion affordable homes programme will play an important role in achieving that aim, as will the measures we have taken to support increased council house building.
For its part, the regulator has an objective to support the provision of sufficient social housing. It discharges that role through its work to ensure that private registered providers are financially viable, efficient and well governed. In turn, that helps providers to obtain funding to enable them to deliver more social housing. However, I do not agree that we should make the regulator responsible for assessing the adequacy of social housing provision in England or, indeed, in Wales. I am concerned that such an additional role could divert resources away from the activities that should be the focus for the regulator, which is setting standards for social housing so that landlords are clear about expectations on them to deliver quality of housing, to monitor compliance with those standards and, where necessary, to undertake relevant enforcement action.
Organisations outside Government often publish their own analysis of the level of need for social housing. There are a number of different approaches to assess that, and not necessarily a single right answer. I am therefore not convinced that the regulator stepping in to provide its own assessment is the right approach. It should focus on the task at hand and on standards, quality and enforcement. On that basis we would not want to accept new clauses 2 and 3.
Matthew Pennycook
I thank the Minister for her explanation of the clause and for the response to the two new clauses tabled by the Opposition. As the Minister has made clear, with a view to providing for a stronger and more proactive consumer regulatory regime, the clause expands the regulator’s fundamental objectives as set out in the Housing and Regeneration Act 2008 to include those of safety, transparency and—following the well-deserved success of Baroness Hayman’s amendment in the other place on standards relating to energy demand—energy efficiency.
My response to the case that the Minister made against new clauses 2 and 3 has, thankfully, pre-empted a number of the points she has just made. New clause 2 seeks to ensure that in meeting its fundamental objective to support the provision of social housing that is well managed and of appropriate quality, under proposed new subsection (3)(a) of the amended 2008 Act the regulator would also be required to report to the Government on the progress of building safety remediation in the social housing sector.
According to the Department’s own figures, every one of the 160 social sector buildings identified as having unsafe aluminium composite material—ACM—cladding, similar to that which covered Grenfell Tower, have been remediated through the social sector ACM cladding remediation fund. When it comes to buildings in the social sector with unsafe non-ACM cladding systems, we know that, as of 31 October, 251 have applied for Government funding for remediation. Alarmingly, as things stand, not a single one of those 251 buildings has been remediated.
Perhaps more worryingly, we have no estimate of the total number of social sector buildings with unsafe non-ACM cladding systems, because social landlords can apply for Government funding only if the costs of remediation are unaffordable or if there is a threat to their financial viability. We have no idea whatsoever how many social sector buildings have other non-cladding building safety defects.
There is a wider debate to be had outside this Committee about social landlords’ restricted access to funding for non-ACM remediation work, given the impact that has on social tenants, whose rent payments are contributing to the costs of the works required, and on providers in terms of upgrade and maintenance works, services provided such as welfare advice and the supply of new social homes.
However, all new clause 2 seeks to achieve is to make the regulator—which, as a result of the Bill will now have to perform its functions with a view to supporting the provision of social housing that is safe—report to the Secretary of State on the progress of remediating unsafe external wall systems and other historical fire safety defects in social housing, and provides it with the opportunity to make recommendations to the Secretary of State on further action required.
Speaking for the Government in the other place in response to a similar amendment in the name of Baroness Pinnock, Baroness Scott of Bybrook argued, as the Minister just has, that the type of monitoring sought by new clause 2 would not be “appropriate” for the regulator to undertake because
“it is not a specialist health and safety body.”—[Official Report, House of Lords, 6 September 2022; Vol. 824, c. 114.]
I am afraid that we find that argument wholly unconvincing.
New clause 2 does not seek to impose a duty on the regulator to carry out inspections of social sector buildings that are either potentially unsafe or identified as unsafe and in need of remediation or to physically monitor the progress of remediation works. As such, it does not require the regulator to possess the relevant professional skills, expertise and capacity necessary for assessments of that nature. All it would require is that the regulator be responsible for reporting to the Government on the progress of remediation in respect of social sector buildings—on the overall number of such buildings identified as having defects and the progress of whether they have started and completed remediation.
Given that the regulator already collects data from registered providers to inform its regulation of standards, and that the Bill ensures that one of the regulator’s new fundamental objectives will be the safety of buildings, we believe it is entirely reasonable and appropriate to task it with reporting to the Government along these lines.
As the Minister made clear, the Government have been at pains over recent months to stress they are examining options for monitoring and reporting remediation progress in future. Yet, as we consider the Bill today, neither the Department nor the new Building Safety Regulator is providing accurate data with regard to the scale of the building safety challenge in the social housing sector, or progress toward meeting it; no firm proposals have been brought forward by the Government to address that gap; and we have no guarantees that appropriate measures will be forthcoming any time soon, although I take at face value what the Minister has just said.
The Bill rightly ensures that the provision of safe, high-quality social housing will be integral to the function of the regulator’s role. There can be no more important task in respect of social housing—I think we are agreed on this point—than to ensure that buildings that are either covered in combustible material or riddled with other non-cladding safety defects are made safe. New clause 2 would ensure the regulator monitors progress to that end and reports to Government. I urge the Minister to rethink. If the Government are not minded to amend the Bill as new clause 2 seeks, I urge them to bring forward other proposals for monitoring this important element of the remediation drive in the near future.
I turn to new clause 3. In a similar way to how new clause 2 seeks to place additional requirements on the regulator in relation to its fundamental objective to support the provision of social housing that is well-managed and of appropriate quality, new clause 3 seeks to ensure that, in meeting its fundamental objective under the 2008 Act to support the provision of social housing that is sufficient to meet reasonable demands, the regulator would also be required to report to the Government on the adequacy of social housing supply.
The problem to which this new clause relates is well known. While more people than ever are struggling to afford a secure place to live, nowhere near enough social homes are being built. Almost 1.2 million households in England are now languishing on a housing waiting list. The Green Paper that foreshadowed the Bill stated:
“Social housing remains central to our supply ambitions.”
Despite that, the Government are doing nowhere near enough to deliver the volume of social homes our country needs.
Not only are the Government failing to build the volume of social homes that we need, but by means of reduced grant funding, the introduction of the so-called affordable rent tenure, increased right-to-buy discounts and numerous other policy interventions, we would argue that they have actively engineered the decline of social housing over the past 12 years. The result is that not only were fewer than 6,000 social homes constructed last year but over 21,000 were sold or demolished—a net loss of 15,000 desperately needed genuinely affordable homes.
Bob Blackman
I agree with the shadow Minister that the provision of affordable social housing in this country is far too low. It has been far too low for far too long. That has been the case not just under this Government, but under successive Governments for more than 30 years.
The shadow Minister has put forward his case, and he quoted one report claiming that 145,000 units are required per year. The Levelling Up, Housing and Communities Committee and I have always taken the view that 90,000 units per year would be required just to get us back to where we should be. From that perspective, it is clear that there needs to be more investment in affordable social housing, and we need to get to a point where people have a place they can call home, a rent that they can afford, and the option to buy when their circumstances allow.
The new clauses seem to put extra burdens on the regulator, for example by requiring them to report on the amount of social housing there should be in this country. I do not think that is an appropriate role for the regulator. It is right that organisations, such as those the shadow Minister quoted—Shelter, Crisis, CIH and others—should be reporting and commenting to Government, but I do not think it is the role of the regulator to report to Government.
I think the role of the regulator is quite clearly to report on the condition of social housing. I hope as we go through the Bill—and I will challenge the Secretary of State on this particular issue—we will see some amendments that strengthen the role of the regulator to ensure that social housing providers are performing as they should be. That means providing a high-quality standard of accommodation. We have heard about what has happened in Rochdale, but the issue of the condition of property is not confined to Rochdale. It goes up and down the country.
We need to see dramatic improvements in the provision of not only the quantity of social housing, but the conditions within those units. It is a sheer scandal in this country that we are paying huge salaries to social housing providers who are pocketing the money while providing a very poor service for their tenants. We need to call them to account. I believe that comes through the role of the regulator. That is the way it should be. I hope we can see some strengthening of the Bill on that point through Government amendments, at least when we get to Report stage.
On safety defects, there is clearly an issue about data, performance and the funding of removing unsafe cladding and dealing with fire safety defects. The hon. Member for Greenwich and Woolwich will know that I have been on this case for quite some time—since before Grenfell. One of the key issues here is about whether the regulator should be reporting on it, but frankly I think the regulator should be enforcing it. They should be making sure the providers actually do their job of providing safe accommodation for people.
While I recognise that the new clauses are well-intentioned, I do not think they hit the nub of where we need to be going. I hope the Government will come forward with some new clauses to strengthen the Bill when we get to Report stage, particularly in light of the scandal in Rochdale and the conditions people are facing up and down the country.
Siobhain McDonagh
Thank you, Sir Edward, for your generosity in calling me. I realise I registered quite late that I wanted to speak.
Why are we sitting here in this Bill Committee today? We are sitting here because, under the coalition Government’s bonfire of the quangos, we set fire to the housing inspectorate and the Audit Commission in the belief that no regulation of damp or mould growth in properties was required, that all the adjudicator had to do was look at the financial structure of housing associations, and that that would be enough. What a terrible error that has been.
In my constituency, the largest social housing provider is Clarion Housing Association. After an ITV news programme about some of its standards, it was referred to the regulator. The regulator’s decision was that it could not investigate because there was not a systemic problem. That is where we have got to. How many of us were distressed by Awaab Ishak’s death? How many of us know that we have plenty of social housing units in our constituencies with the same damp and mould growth problems? At the moment we have no form of regulation that can tackle that.
The adjudicator does not go out and look at properties or inspect procedures. The adjudicator is interested in the financial structures. I would never argue that we should not look at the financial viability of a housing association, but I also want to know what it does when it has problems of damp and mould growth. I want to know that a Government inspector goes out and sample-tests and looks at properties.
We would never accept an Ofsted that did not inspect schools or a Care Quality Commission that did not go in and inspect hospitals, care homes or local authority social services, but we have accepted that the regulator has no responsibility for going into social housing properties and inspecting their conditions.
When we look at reducing regulation, we must remember Awaab Ishak, and remember that we do not have a regulator in our country that would do anything about that.
Dehenna Davison
I will be brief and just say that I recognise the arguments made by the shadow Minister, but I hope he recognises the arguments that I made in my opening statement. I have made a commitment to my hon. Friend the Member for Harrow East that before Report we will sit down to discuss the issues further and make sure the regulator has the teeth it really needs.
Question put and agreed to.
Clause 1 accordingly ordered to stand part of the Bill.
Clause 2
Advisory panel
Matthew Pennycook
I beg to move amendment 14, in clause 2, page 1, line 18, at end insert—
“(2A) The Panel may provide information and advice to the Secretary of State about, or on matters connected with, the regulator’s functions and wider issues affecting the regulation of social housing (whether or not it is requested to do so by either the regulator or the Secretary of State).”
This amendment would enable the Panel to provide information and advice and to proactively raise issues affecting social housing regulation more generally directly to the Secretary of State.
The Chair
With this it will be convenient to discuss amendment 15, in clause 2, page 2, line 17, at end insert—
“(8) The Panel must be chaired by a tenant of social housing.
(9) The Chair is responsible for setting Panel meeting agendas.
(10) The majority of persons appointed to the panel must be tenants of social housing.”
This amendment would ensure that tenant representation on the advisory panel is mandatory and that tenants are able to influence effectively what information and advice is presented to the regulator in respect of issues affecting social housing regulation.
Matthew Pennycook
For all its technical complexity, the Bill is ultimately about those who live in social housing and overhauling regulation to ensure that they are treated fairly by landlords who are well run, responsive, transparent and accountable. In considering the detail of the Bill, we must never forget that the impetus for it was the deaths of 72 men, women and children in the early hours of 14 June 2017. Those 72 human lives were ended in an inferno fuelled by the highly combustible cladding system installed on the outside of the tower block in which they lived, despite the fact that tenants had repeatedly sounded the alarm about the building’s safety defects and the fact that warnings were going unheeded.
I have met and spoken to Grenfell United, as I assume the Minister and many other Members have. I once again pay tribute to them and the wider Grenfell community. I know that what the survivors and the bereaved are determined to achieve is not only justice, but lasting change in how social housing is regulated and the power that tenants themselves can exercise. We firmly believe that the empowerment of tenants must be at the heart of the Bill, and we believe that a key test of its robustness is whether it establishes mechanisms that will enable tenants to influence in practice the regulator’s approach to regulating standards; to shape any future changes to regulatory standards and codes of practice; and to proactively raise wider issues affecting social housing regulation and policy, not just with the regulator but with Ministers.
The Government ostensibly agree that tenants are at the heart of the Bill, and Ministers have repeatedly assured us that one of its primary objectives is to give social housing tenants a voice and ensure that it is listened to. Yet when it comes to providing ways in which tenant representatives can exert a measure of control over the work of the regulator, shape the future direction of the regulatory arrangements that the Bill establishes and proactively influence national regulation and policy so as to shape the services that tenants receive from their landlords, we feel that the Bill is somewhat lacking in ambition.
Dehenna Davison
I am grateful to the shadow Minister for making his case for amendments 14 and 15. Amendment 14 seeks to enable the advisory panel to provide information and advice and to raise issues affecting social housing regulation directly with the Secretary of State. The social housing White Paper made it clear that the purpose of the advisory panel was to provide independent and unbiased advice specific to the regulator on matters connected to regulation. Clearly, the views of tenants are central to that objective.
As the hon. Gentleman outlined, in parallel we also established the social housing quality resident panel, which will provide an opportunity for us to hear from tenants. The aim of the resident panel is to enable tenants to share their views directly with Government and Ministers on their approach to improving the quality of social housing, and on whether the Government’s interventions will deliver the changes that they want to see.
The resident panel is made up of 250 social housing residents from across the country and from diverse backgrounds. They met for the first time last week on 26 November, and will meet approximately monthly over the coming year, with opportunities for the agenda to be shaped by panel members. At that meeting, residents told the Secretary of State for Levelling Up, Housing and Communities, my right hon. Friend the Member for Surrey Heath (Michael Gove), that the most important issues to them were how repairs are dealt with, how landlords are held to account and how complaints are handled by their landlords and the housing ombudsman. The Department’s resident panel and the regulated advisory panel have a specific role and remit to ensure that tenants’ views are properly represented to both Ministers and the regulator.
Amendment 15 seeks to require a social housing tenant to chair the advisory panel and have responsibility for setting the agenda that the panel considers. It also seeks to ensure that social housing tenants comprise the majority of panel members. We share the notion that it is vital that tenants’ voices are heard, but it is important that the advisory panel considers the full range of regulatory issues that the regulator has to tackle. That means that we need to allow a diverse collection of voices to share their knowledge and opinions with the regulator.
Consumer matters are rightly at the forefront of the Bill but, equally, working to resolve some of the economic issues should not be diminished. Legislating for a tenant to chair and set the agenda and requiring the majority of the panel members to be tenants would not support what we are trying to achieve with the advisory panel. I am concerned that being too prescriptive in legislation about how the advisory panel must operate may prevent the panel from having the flexibility to decide how it best operates. In practice, I expect that all members of the advisory panel, along with the regulator, will shape how it works and what it considers.
We are committed to ensuring that tenants can effectively engage with the Department and the regulator, and that tenant voices are at the heart of social housing regulation and policy, but we do not feel that amendments 14 and 15 are necessary to achieve that so I ask the shadow Minister to withdraw them.
Matthew Pennycook
I thank the Minister for that helpful response, and I take on board the concerns she raised about the amendments.
I am slightly concerned about the lack of what we would consider to be true tenant empowerment. The quality resident panel is important, but it only lasts a year, so how will we get ongoing tenant engagement with the work of the regulator to inform how it operates, to shape future regulation, which is part of its remit, and to raise future issues of concern to tenants nationally, in terms of social housing regulation and policy? We do not think the Bill allows for that, and in all honesty I cannot understand the Government’s objection to allowing the advisory panel to notify Ministers directly, rather than the regulator, in certain rare circumstances. As the Minister said, the panel is at present constituted by the regulator, which appoints its membership, and it can only provide views directly to the regulator. We think there are some circumstances in which it may need to do otherwise. I hope the Minister takes away those points.
Eddie Hughes
Although there might be some deliberation about this mechanism, there are several mechanisms through which resident organisations are able to engage with Ministers and the regulator. I am delighted to see representatives of Grenfell United in the Public Gallery. There is a regular opportunity to meet Ministers, although it is not prescriptive and perhaps not as frequent as many would like, but the Government are certainly determined to build on it.
Matthew Pennycook
We recognise that Ministers meet tenants and tenant representatives frequently. My concern is that if tenants on the advisory panel have an issue that they feel is sufficiently serious that they need to bring it to the attention of Ministers, rather than the regulator, they should not have to rely on attempting to get a meeting with Ministers. There should be a mechanism through which they can put serious issues on the desk of the Secretary of State or the Minister if they feel that they, as well as the regulator, need to know about them. That is the point we are trying to address with amendment 14.
On amendment 15, I understand the Minister’s concerns about being too prescriptive, but I urge the Government to go away and think again about the membership of the advisory panel. I appreciate fully the need to have a diverse panel, but as I read clause 2(4), there is nothing on the face of the Bill to prevent the Government from putting one tenant or tenant representative on the panel and leaving it at that. There is no minimum quota for tenants, and we want tenant voices to be properly represented.
Bob Blackman
The shadow Minister is making a good point. We want to empower tenants, but his proposal could have an unintended consequence. Supposing tenant representatives on the board cannot agree among themselves who will be the chair, the panel could meet, but obviously that would be a difficult situation. There may potentially be social tenants from various parts of the country, representing different organisations. It is therefore not appropriate to prescribe a chair on the face of the Bill; that would defeat the objective. It might well be that we could find some suitable wording about the number of representatives, but I do not think we should force the panel to have a particular individual or representative as the chair.
Matthew Pennycook
The point about obvious issues around tenant representation and selection is well made, although those issues exist for the quality residents panel and the 250 members it selects. They have existed every time we have tried to create a body that gives voice to residents, so I do not think they are insurmountable. I welcome the fact that the hon. Gentleman thinks a minimum level of tenant representation on the panel is a good thing, and I urge the Government to think again about that.
We ultimately want to achieve tenant empowerment on the advisory panel so that tenants can be confident that, when the advisory panel gives information and advice to the regulator about the new system of regulatory standards, its voice is properly heard and it can bring issues to the attention of Ministers if required. I hope the Government will take away the points we have made about the amendments. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Dehenna Davison
Clause 2 makes it a requirement that the regulator will engage with a wide range of stakeholders, including tenants and landlords. It also sets out expectations about who should be represented on that panel. It is not just about the regulator asking a group of people for views once it has already made up its mind about what it wants to do. The panel is designed to be used to test and shape the regulator’s thinking. For example, we expect the regulator to engage the panel on the design and implementation of new consumer standards. The clause also empowers the panel to raise issues directly with the regulator that its members consider important. I hope the Committee will support the clause.
Question put and agreed to.
Clause 2 accordingly ordered to stand part of the Bill.
Clause 3 ordered to stand part of the Bill.
Clause 4
Power to charge fees
Dehenna Davison
I beg to move amendment 1, in clause 4, page 3, line 40, leave out “follows” and insert
“set out in subsections (2) to (6)”.
This amendment is consequential on Amendment 2.
The Chair
With this it will be convenient to discuss the following:
Government amendment 2.
Clause stand part.
Dehenna Davison
Clause 4 and Government amendments 1 and 2 deal with the regulator’s fee-charging powers. As we heard from a number of hon. Members on Second Reading, the Regulator of Social Housing must be provided with the necessary funding to enable it to deliver the outcomes the Bill is designed to achieve.
Once the new consumer regime is implemented, the regulator will see substantial growth in its regulatory activity, which means its costs will increase significantly. It is Government policy to maximise the recovery of costs of arm’s length bodies, so clause 4 will refine the existing fee-charging power to allow for the cost of some additional functions to be recovered, and to charge fees that cover costs of activities that may not be connected to the specific fee payer, such as the cost of investigation and enforcement. Any significant changes to the design of the regime will be consulted upon and require ministerial approval.
Government amendments 1 and 2 also address the regulator’s fee-charging powers. The amendments remove specific provision allowing the regulator to charge following the completion of inspections, if authorised by the Secretary of State by order. The existence of that special provision relating to fees for inspections is no longer necessary given the changes we are making to the regulator’s general power to charge fees. That power will now allow it to cover the cost of inspections in its fees for initial and continued registration.
Leaving the provision in legislation erroneously risks causing confusion and casting doubt on the regulator’s ability to set fees to cover inspections as part of its general fee-setting power. As such, the change serves to ensure that there is greater clarity and consistency in this legislation.
Clause 4 establishes the parameters to the regulator’s fee-charging powers and makes clear that it can charge the sector for costs that may be unconnected to the specific fee payer. Government amendments 1 and 2 support clause 4 by delivering a technical change that will ensure there is no confusion over the powers available to the regulator to deliver maximum cost recovery. On that basis, I commend the clause to the Committee and beg to move the amendments.
Matthew Pennycook
I thank the Minister for that explanation of Government amendments 1 and 2. As she makes clear, clause 4 amends section 117 of the Housing and Regeneration Act 2008 to clarify the extent of the regulator’s fee-charging powers. New subsection (4A) adds to the 2008 Act and makes it clear that the regulator has the power to recover the cost of activities it does not currently charge social housing providers for.
If I understood the Minister correctly, Government amendment 2 revises section 202 of the 2008 Act because the powers in new subsection (4A) are sufficiently broad to cover charging providers fees for inspections. In short, as I hope she agrees, this is just a tidying-up exercise, the rationale for which is that the power is being omitted from section 202, concerning inspections only, because it more properly fits within section 117, concerning fees generally, to ensure that references to fee charging are all in one place in the 2008 Act. If that is the case, and amendment 2 in no way prevents the regulator from charging fees for inspections, we take no issue with it, because it is important that the regulator is able to charge fees to cover the significant costs involved in overseeing the comprehensive and rigorous Ofsted-style inspections regime that the Bill introduces.
The amendment raises wider issues relating to the resourcing of the regulator. Since the Bill’s publication, we have consistently expressed concern about the very real risk that the regulator will struggle to discharge its new functions and that it will not be adequately resourced to perform its enhanced role, in particular in relation to inspections. Prior to the Bill’s publication there were already concerns, expressed by the Select Committee and others, as to whether the regulator had the resourcing, skills and capacity to continue to regulate economic standards adequately, given the complex financial and corporate structures proliferating in the sector.
The new consumer regulatory regime will impose significant burdens on the regulator. The Minister stated on Second Reading that the Government are
“firmly committed to ensuring that the regulator has the resources that it needs not only to deliver the new consumer regulation regime but to ensure that it continues to regulate its economic objectives effectively.”—[Official Report, 7 November 2022; Vol. 722, c. 83.]
She also suggested that the Government were potentially minded to introduce changes to the fee regime to ensure that the regulator is funded appropriately. We accept that the Government have made limited additional funding available this financial year to support the new regime, but we are concerned that there may still be a resourcing challenge for the regulator. I would welcome any further assurances from the Minister that the regulator will have all the resources it needs to discharge the enhanced functions that the Bill requires of it.
Dehenna Davison
I am grateful to the shadow Minister for raising the question of resourcing. We touched on this on Second Reading, as he highlighted. He is right that in this financial year we are providing £4.8 million to aid the regulator in its vital work, but this is why it is so important that we get the fee charging regime right—to ensure that the regulator is properly resourced. As we have discussed today, on Second Reading and in the other place, the regulator needs the teeth to be able to do its job, and a huge part of that is resourcing. He is right that, effectively, we are tidying the legislation up to make it a bit neater and ensure further clarity, so I hope he will support these amendments.
Amendment 1 agreed to.
Amendment made: 2, in clause 4, page 4, line 16, at end insert—
‘(7) In section 202 of the Housing and Regeneration Act 2008 (inspections: supplemental) omit subsections (4) to (7).’—(Dehenna Davison.)
This amendment repeals the provisions of the Housing and Regeneration Act 2008 which provide specific powers to enable the regulator to charge registered providers of social housing fees for inspections.
Clause 4, as amended, ordered to stand part of the Bill.
Clause 5
Relationship between regulator and housing ombudsman
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
I will be brief, but there is an issue that we want to highlight in relation to clause 5, which is about the relationship between the regulator and housing ombudsman. Clause 5 amends the Housing and Regeneration Act 2008 and the Housing Act 1996 to add measures on the relationship between the two bodies, so that they can exchange information quickly and effectively to provide better protection for tenants, all of which is entirely to the good and uncontroversial. However, consideration of the clause provides me with an opportunity to seek clarification from the Minister about the precise role of each body in the reformed regulatory regime that the Bill establishes.
Taken at face value, the role of each body is clearly delineated: the regulator regulates registered providers in England, while the housing ombudsman seeks to resolve complaints from individual residents about their registered provider. The regulator operates on a top-down basis, and the housing ombudsman operates on a bottom-up basis. However, when one considers how the reformed regulatory regime will operate in practice, things start to appear somewhat more complicated.
First, if my reading of the Bill is correct, the regulator appears to be able to intervene in individual complaints. Clause 31, for example, enables the regulator to arrange for an authorised person to take emergency remedial action in respect of individual premises following completion of a survey. Presumably, it is therefore necessary for the regulator to receive a complaint from a tenant who fears they are at risk of an imminent serious health and safety risk. Otherwise, how could the regulator order the necessary survey of a given premises? It may be that that is not the case, and it will be for the ombudsman to refer an individual complaint to the regulator to allow them to make use of the provisions in clause 31; if that is the case, it is not clear from the Bill.
Secondly, following revisions to the housing ombudsman scheme enacted in September 2020, the ombudsman has a responsibility to publish a complaint handling code, enjoys a new power to issue complaint handling failure orders that can relate to a landlord’s overall complaint-handling policy and, crucially, has the ability to investigate beyond an initial complaint to establish whether evidence might indicate a systemic failing by a registered provider. It may be that the ombudsman can address such systemic failings on the part of registered providers on the basis of suggested changes to their policies only with the regulator responsible for exploring whether changes to their systems are necessary, but again that is not immediately clear in the Bill.
Eddie Hughes
I understand the point that the hon. Gentleman is making, but it is based on the premise that these bodies operate in a completely siloed fashion. The relationship between them is a fluid one; they speak regularly and consider complaints and points that have been raised, which come to them from either direction. They work in a collaborative fashion and are then able to identify who should best proceed with a particular case. Obviously, it is governed by a memorandum of understanding, but it is a much more fluid and collaborative arrangement than that.
Matthew Pennycook
I thank the hon. Gentleman, and I fully understand his point. I met with senior staff from the housing ombudsman yesterday, and we were talking precisely about the ways in which the respective roles operate and how they could be clarified. What these examples seek to illustrate is that there is still an obvious risk of overlap and duplication of roles in respect of these two bodies. One could argue, as the hon. Gentleman just has, that those issues can be resolved by means of updating the non-statutory memorandum of understanding that already sets out the functions of both organisations and how they work together, but that throws up two distinct issues in and of itself.
First, is it appropriate for us to leave these matters to the two bodies themselves to resolve, rather than clarifying on the face of the Bill the precise role of each body in the new regulatory regime, so as to avoid the duplication of functions and potential gaps in coverage—even if only in the short term, before they update that memorandum of understanding to reflect the new regulatory system of proactive consumer regulation?
Secondly, I am sure that hon. Members have been contacted by tenants who are aware that the Bill is progressing through the House. The expectations around the Bill are such that, after it receives Royal Assent, tenants who feel that they have not secured appropriate redress by means of a standard complaint to their landlord and believe that their grievance might be systemic in nature will understandably be uncertain about whether they should approach the ombudsman or the regulator with their complaint. I appreciate that the Department is alive to the risk, has produced guidance in the form of a fact sheet and is apparently delivering a communications campaign to tenants so that they know where to go and are well informed but, without greater clarity prior to Royal Assent about the precise roles of each body in the regime established by the Bill, I fear that neither will be sufficient to prevent a large degree of confusion. When debating this matter in the other place, Baroness Scott of Bybrook conceded that fears about confusion of the kind that I alluded to are legitimate, and that greater clarity is required as a result; yet, despite her promise to take the matter back to the Department, the Government are not amending the Bill to provide greater clarity or committing to take any further concrete steps—that I am aware of, at least—to ensure that confusion will be avoided.
As Shelter and others have argued, it is essential that the roles of the regulator and the housing ombudsman are clearly defined, that tenants and tenant groups understand the appropriate way to make complaints and that any complaints process or system is easy to use, accessible and effective. I would be grateful if the Minister provided greater clarity today and, if not today, in writing. I hope that, in general terms, she will assure me that the issues that I have highlighted will be both considered and acted on by the Department before the Bill receives Royal Assent.
Dehenna Davison
I am grateful to the shadow Minister for raising his concerns and giving me the opportunity to provide some clarity. We will take it from the experience of one particular tenant, if we may. If a tenant has a complaint, they should first go to their landlord but, if that complaint cannot be resolved between tenants and the landlord, it can be escalated to the housing ombudsman to investigate individual complaints from tenants. If the ombudsman’s investigation finds instances of maladministration on the part of the landlord, the ombudsman can issue orders to that landlord to put things right for the complainant. That can include requiring the landlord to pay compensation to the complainant or to undertake repairs.
If an investigation raises a potential breach of a regulatory standard or there is evidence of systemic failure by the landlord, the ombudsman can refer the matter to the regulator. In situations where the regulator has concerns that the provider is failing to maintain the premises in accordance with the regulatory standards, it can conduct a survey and, following the implementation of this Bill, arrange for emergency repairs to remediate the issue in cases where there is a risk of serious harm to tenants that is not being addressed by the landlord.
Matthew Pennycook
That is useful clarification. If I have correctly understood what the Minister is saying, emergency remedial action under clause 31 of the Bill stems, in the first instance, from a referral from the ombudsman. Let us think about that process in detail. To get to the ombudsman, a tenant would have to exhaust all stages of their resident provider’s internal complaints process, which is three stages in most cases. It takes about a year to get through it. They would then have to go to the ombudsman, who has a huge backlog. Clause 31 is about emergency remedial action that poses an imminent threat to health and safety. I urge the Government to think again about how, in particular, clause 31 operates because tenants will need to give notice to the regulator about specific clause 31 failures far quicker than the process she has just described.
Siobhain McDonagh
The situation gets even more complicated when a tenant exasperatedly says, “I want to go to a lawyer” and then the whole thing closes down.
Matthew Pennycook
We are testing the patience of Sir Edward and the rules, but the point my hon. Friend highlights is a genuine one about the complication of legal matters and whether tenants abandon complaints at whatever point, which I hope adds to the weight of the point that I have just made. It is not immediately clear, and we have to be clear with, most importantly, tenants once this Bill is in force about where they go and how they can seek redress under the provisions of the Bill as quickly as they need to. As I said, in the case of clause 31, the process the Minister has described does not seem like it is fast enough to ensure that emergency remedial action of the kind provided for by clause 31 will happen. I hope the Government will take this and those other points away.
Dehenna Davison
Again, I am grateful to the shadow Minister and to the hon. Member for Mitcham and Morden. On the shadow Minister’s point about communications ensuring that tenants know where to go and how this process works, we have been working with organisations that represent landlords, social housing residents and the housing ombudsman service. We delivered communications and marketing campaigns in 2021 and this year to ensure that social housing residents were aware of how to make a complaint and how to seek redress where appropriate. We are putting in the work through communications to ensure that tenants understand the process, but I have heard his points on timeliness and I will endeavour to take that away.
Question put and agreed to.
Clause 5 accordingly ordered to stand part of the Bill.
Clauses 6 to 9 ordered to stand part of the Bill.
Clause 10
Appointment of health and safety lead by registered provider
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
Clause 10 is not contentious, and we broadly welcome it, but I would appreciate some clarification from the Minister on a specific issue arising from it. At present, proposed new section 126B ensures that
“The functions of the health and safety lead”
are to
“monitor the provider’s compliance with health and safety requirements”
and to notify the provider’s responsible body of any material risk to or failures of compliance, and to advise on steps to ensure the provider addresses them.
As Ministers may be aware, the Local Government Association, among others, has inquired what—if any—channels of communication or reporting mechanisms will exist between the health and safety leads of registered providers and the regulator itself. The LGA also highlighted the obvious need for sufficient new burdens funding in the case of local authority landlords. Will the Minister provide answers today or in writing to the following questions? First, did the Government intend to establish any direct permanent relationship between the regulator and RP health and safety leads? Secondly, what is the rationale for not requiring health and safety leads to report any material risks or failures of compliance directly to the regulator, as well as the responsible body, as a matter of course? Thirdly, can the Minister guarantee that the Government will make sufficient new burdens funding available to local authorities to fully implement the provisions in the clause?
Dehenna Davison
I will follow up in writing with a bit more clarity and specific detail on the questions the shadow Minister has raised.
Question put and agreed to.
Clause 10 accordingly ordered to stand part of the Bill.
Clause 11
Electrical safety standards
Question proposed, That the clause stand part of the Bill.
Matthew Pennycook
We welcome the Government’s decision, in response to concerns raised during the passage of the Building Safety Act 2022, to carry out a consultation on the introduction of mandatory checks on electrical installations for social housing at least once every five years and to include measures within this Bill to partially implement such checks—only partially, because the section of the Housing and Planning Act 2016 that this clause seeks to amend is concerned with properties let by landlords, not owner-occupier leaseholders. That is an important distinction, for reasons I will explain.
As we know, there is currently no legal requirement in England for social landlords or leaseholders to undertake electrical safety checks of their dwellings. The situation is distinct from that in the private rented sector, where the Housing and Planning Act introduced mandatory safety checks on electrical installations at least once every five years.
We know that fires in numerous tower blocks, including Grenfell, Shepherd’s Court, and Lakanal House, were caused by electricity. Home Office fire data shows a consistently high level of accidental electrical fires in high-rise buildings with 10 or more flats. Campaign groups such as Electrical Safety First have been at pains to stress that those buildings were mixed-tenure buildings containing an assortment of owner-occupier leasehold and social rented units and that there is therefore a case, given that the fire safety of a building depends on the safety of all the units within it, for ensuring parity in electrical safety standards across all tenures in high-rise residential blocks.
The Government’s own consultation on this issue noted that the National Federation of ALMOs supported introducing electrical safety requirements for owner-occupiers in mixed-tenure blocks and highlighted that properties being considered by authorities for London’s right to buy-back programme often have electrical installations that are
“in a state of significant disrepair.”
Given that we know that many high-rise social housing blocks contain owner-occupied flats owned on a leasehold basis, it surely cannot be right that a leaseholder living next door to a social renter will not have their electrical installations mandated to be checked every five years. To put it another way, what good is having the electrical installations of two thirds of a building checked every five years if the other third is not? The risk of a potentially life-threatening fire obviously does not discriminate by tenure.
Bob Blackman
This is a very significant point, particularly with what happened at Grenfell. We should reflect on that carefully. Who does the hon. Gentleman suggest should carry out the inspections and how would they be enforced? One of the problems that is clearly still relevant is people buying second-hand white goods that are not safety checked, which could then be faulty and cause electrical fires. In his research, has the hon. Member come up with any proposals as to how this measure could be implemented and work could be undertaken?
Matthew Pennycook
I thank the hon. Gentleman for that point—it is a point well made. I do not have a comprehensive answer to hand. There are provisions in this clause that apply to mandatory electrical safety checks for social rented properties. There are similar requirements in place for the private rented sector. My instinct is that it would seem obvious that those could be applied to the owner-occupier sector in a way that the provisions in the clause perhaps could not be. Whatever way we cut it, what we want to see are mandatory checks on all electrical installations in all units in high-rise buildings, because, as I said, fire does not discriminate between tenure. I hope the Minister will take the points away for further consideration.
Dehenna Davison
The shadow Minister is right to highlight the consultation, which concluded in August. It included a call for evidence seeking views on whether leasehold properties in mixed tenure social housing blocks should have mandatory five-year checks. My hon. Friend the Member for Harrow East was right to say that we need to get this mechanism right to ensure that people living in mixed-use blocks are protected. I am grateful to the shadow Minister for his pragmatism on this point. We are still assessing the responses to the consultation, so it is a bit too early to say what the outcome will be and we do not wish to pre-empt it. However, we will announce further details as the work progresses, and I will endeavour to keep the shadow Minister informed.
Question put and agreed to.
Clause 11 accordingly ordered to stand part of the Bill.
Clauses 12 and 13 ordered to stand part of the Bill.
Schedule 1 agreed to.
Clause 14 ordered to stand part of the Bill.
Schedule 2 agreed to.
Clauses 15 to 20 ordered to stand part of the Bill.
Ordered, That further consideration be now adjourned.—(Julie Marson.)
Social Housing and Regulation Bill [ LORDS ] (Second sitting)
Tuesday 29th November 2022
(2 years ago)
Public Bill CommitteesRead Full debate Social Housing (Regulation) Act 2023 Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 29 November 2022 - (29 Nov 2022)
The Committee divided: - Ayes: 7 / Noes: 9 - Question accordingly negatived.
The Committee divided: - Ayes: 7 / Noes: 9 - Question accordingly negatived.
The Committee divided: - Ayes: 6 / Noes: 9 - Question accordingly negatived.
The Chair
With this it will be convenient to discuss new clause 4—Persons engaged in the management of social housing to have relevant professional qualifications—
“After section 217 of the Housing and Regeneration Act 2008 (accreditation) insert—
‘217A Professional qualifications and other requirements
(1) The Secretary of State may, by regulations, provide that a person may not engage in the management of social housing or in specified work in relation to the provision of social housing unless he or she—
(a) has appropriate professional qualifications, or
(b) satisfies specified requirements.
(2) Regulations specifying work for the purpose of subsection (1) may make provision by reference to—
(a) one or more specified activities, or
(b) the circumstances in which activities are carried out.
(3) Regulations made under this section may, in particular, require—
(a) the possession of a specified qualification or experience of a specified kind,
(b) participation in or completion of a specified programme or course of training, or
(c) compliance with a specified condition.
(4) Regulations may make provision for any of the following matters—
(a) the establishment and continuance of a regulatory body;
(b) the keeping of a register of qualified social housing practitioners;
(c) requirements relating to education and training before and after qualification;
(d) standards of conduct and performance;
(e) discipline and fitness to practise;
(f) removal or suspension from registration or the imposition of conditions on registration;
(g) investigation and enforcement by or on behalf of the regulatory body, and appeals against the decisions or actions of the regulatory body.”’
This new clause would require managers of social housing to have appropriate qualifications and expertise.
The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Dehenna Davison)
As I said on Second Reading, the Government are fully committed to driving up housing management standards by improving the professional behaviours, skills and capabilities of all staff in the sector. The Grenfell tragedy and our subsequent social housing Green Paper consultation highlighted the fact that many staff did not listen to or treat residents with respect, provide a high-quality service or deal appropriately with complaints. The circumstances surrounding the death of Awaab Ishak have once again shown the tragic consequences that can occur when staff lack empathy and when tenants are not listened to. That is why clause 21 makes provision to enable the Secretary of State to direct the regulator of social housing to set standards for the competence and conduct of social housing staff. Registered providers will be required to comply with specified rules concerning the knowledge, skills and experience of social housing staff. They will also be required to comply with specified rules concerning the conduct expected of such individuals when dealing with tenants. Those factors are crucial in determining the quality of services provided to tenants.
Our approach offers a holistic solution to the issue of professionalisation. It champions the value of skills, knowledge and experience, and maintains landlords’ flexibility in choosing the most appropriate training programmes and qualifications to equip their workforces. The standards set under this clause will ensure that social housing staff develop the core skillsets and behaviours required to treat tenants with the empathy and respect that they deserve. They will also empower staff to take appropriate action to support tenants.
New clause 4, tabled by the shadow Minister, takes a different approach to achieving professionalisation. It gives the Secretary of State the power to stipulate, through regulations, that a person
“may not engage in the management of social housing or in specified work in relation to the provision of social housing unless he or she—
(a) has appropriate professional qualifications, or
(b) satisfies specified requirements.”
As both myself and the Secretary of State set out on Second Reading, there is a real risk that mandating qualifications for all housing management staff would lead to the reclassification of housing associations to the public sector. The sector is close to the threshold for reclassification, and we saw that happen in 2015. Since then, a number of deregulatory measures have had to be taken before housing associations could be reclassified back to the private sector.
To make this point very clear, reclassification would bring around £90 billion of debt and all housing association annual spending on to the public ledger, and would likely reduce the ability of housing associations to improve the quality of their stock and build new homes. We have to be mindful of that risk and that outcome, which could be harmful to tenants.
However, we have listened carefully to the arguments made both in this House and the other place in support of mandatory qualifications. As I committed to do on Second Reading, I met with my right hon. Friend the Member for Maidenhead (Mrs May) to discuss this issue before the Bill reached Committee stage. We are continuing to look at whether there is any scope to include qualifications requirements in the competence and conduct standards without triggering reclassification. If we can identify a solution, then we will be able to bring that forward on Report.
We continue to believe that the existing provisions in the Bill, which will enable us to direct the regulator to set standards for the competence and conduct of all staff, will be an effective means of professionalising the sector. Our approach has been informed by the findings of our professionalisation review, which we will publish in full early next year. There is no doubt that housing management qualifications are an important aspect of professional development for some staff. Our review heard no clear evidence that such qualifications in and of themselves lead to better staff behaviours or improved tenant experiences. Qualifications such as those offered by the Chartered Institute of Housing will be an important part of how landlords ensure their staff have the skills, knowledge, experience and behaviours they need to deliver professional services, as required by the competence and conduct standards. Qualifications will sit alongside external and in-house training and more informal developmental tools such as staff supervision, mentoring and reflective practice.
Our review findings echoed what we heard after the Grenfell tragedy and more recently in relation to the death of Awaab Ishak—that what tenants most want and need is for all of the staff they deal with, whether housing managers, officers, or contact centre staff, to treat them with respect and empathy, to listen carefully and take appropriate and timely actions in response to their issues and concerns. We heard that these behaviours, and the interpersonal skills and attitudes that underlie them, are more likely to be achieved through a combination of organisational culture change led by senior executives and boards, adoption of codes of ethics and values, delivery of bespoke on-the-job training and effective supervision by experienced staff, than they are necessarily by formal qualifications.
The review also highlighted how important flexibility is in designing staff development programmes, given the sector’s diverse structures, operating models, role types, and breadth of service provision. Mandating qualifications for all housing management staff could hinder landlords in delivering the right mix of qualifications, training and development for their staff. Through the review we also heard that mandating qualifications for all staff would likely add to the recruitment and retention challenges faced by many landlords. Recruiting staff who have the right attitudes and aptitudes is more important to building a caring and empathetic workforce than employing people who possess formal qualifications. So we are concerned about the recruitment issues in that regard.
The standards that we are bringing forward will drive a holistic and organisation-wide approach to professional development, and deliver the empathetic, forward-looking and professional housing services the sector deserves, with staff who treat tenants with respect and act swiftly to remedy issues.
Dehenna Davison
Two to choose from—I give way to my hon. Friend the Member for Harrow, East.
Bob Blackman
The clause refers to the standards and competence that we expect to be achieved in this sector, and the amendment goes further and expands on them. However, it is silent on sanctions when they are not achieved. It is all very well having qualified people, but, if they do not perform properly, sanctions have to be available and directions by the Secretary of State should be possible. I wonder whether my hon. Friend will look at how we might strengthen the position when we get to Report stage.
Dehenna Davison
I am grateful to my hon. Friend. I will respond to him and then perhaps I will have answered the question that my hon. Friend the Member for Walsall North wanted to ask. It is right that the regulator must have the right powers in place to deal with breaches of its standards. With regard to competence and conduct, the Bill enables the regulator to require providers to produce and implement a performance improvement plan to be approved by the regulator. If a provider fails to implement a plan, the regulator can issue an enforcement notice and levy an unlimited fine if that notice is not complied with. So the regulator will have teeth to ensure the kind of conduct that we expect. I hope that that answers the question from one hon. Friend.
Eddie Hughes
Anyone who has listened to the Grenfell Tower inquiry—especially the podcast, which provides a great summary of the challenges that were faced—will know that a number of tenants encountered members of staff who simply were not appropriately qualified to carry out their role. As a result, the tenants did not get the experience, support and help that they so rightly deserved. So, while I fully appreciate that it is appropriate to recruit for aptitude—this is a vocational area for many—it is incredibly appropriate to make sure that staff are trained for their role.
Dehenna Davison
I am grateful to my hon. Friend. His expertise on this matter is welcome to all of us, and I thank him for all the work that he did as Minister on this really important body of work. He is right. That is why we have taken this away and are looking at what more we can do around professional qualifications, without that risk of reclassification. I hope that, following Committee stage, I will be able to report on what progress we have made before we reach Report stage.
It is important that we get this process right. We will continue the dialogue that we have already started with key stakeholders such as Grenfell United, Shelter and the CIH before we issue a statutory consultation on the direction itself. The regulator will then also consult on its draft standard before it comes into force. This Committee can be assured of our intent to take on board fully the views of both tenants and providers in developing the way forward. I have already spoken a little about compliance and sanctions if standards are not complied with, so I will leave that point there.
To summarise, the Government’s ambition is to build an empathetic, qualified and skilled social housing workforce. We want to bring about a wholesale organisational and cultural change, which we all recognise is desperately needed. We remain firm in our belief that our approach and the clause will deliver the professionalisation of the social housing sector, but we will of course continue to explore options for qualification requirements that would not trigger reclassification and would deliver the right outcomes for tenants. I commend the clause to the Committee and, on the basis of what I have outlined, I ask the shadow Minister not to move his new clause.
Matthew Pennycook (Greenwich and Woolwich) (Lab)
We welcome the concession made by the Government in the other place on professional training and qualifications, and the resulting inclusion of the clause in the Bill. However, if we are to be certain that this legislation will expedite the professionalisation of the sector, we are absolutely convinced that the Government need to go still further.
As the Minister said, the clause amends section 194 of the Housing and Regeneration Act 2008 by adding a proposed new section allowing the regulator to set regulatory standards on the competence and conduct of social housing managers, and making it clear that such standards may require providers to comply with specified rules relating to knowledge, skills and experience. However, the clause as drafted includes no requirement for those involved in the management of social housing to meet objective professional standards. We therefore agree with, among others, Grenfell United and Shelter, that it therefore risks introducing an insufficiently high bar for registered providers in respect of the professional training that they implement.
New clause 4 seeks to strengthen the Bill in relation to professionalisation by amending section 217 of the 2008 Act, concerning accreditation, to require managers of social housing to have appropriate objective qualifications and expertise.
Sally-Ann Hart (Hastings and Rye) (Con)
On professional qualifications, I completely understand that we need to have properly qualified people overseeing those in social housing and giving them support, but most professions—whether lawyers, accountants, firemen or police—have a professional body. What professional body does the hon. Gentleman propose should be behind social housing, because I do not think that there is one, is there?
Matthew Pennycook
I will touch on that. The Chartered Institute of Housing does a considerable amount of work in this area. For reasons I will come on to, however, the review that it is undertaking perhaps does not go as far as we need in the ways in which we think this legislation must be amended to drive professionalisation along the lines that many groups are calling for.
As I was saying, we think it is vital that those requirements should be put on the face of the Bill. As a result of the progressive residualisation of social housing over the past 40 years, it is now overwhelmingly let to those most in need. According to the latest English housing survey data, half of social renters are in the lowest income quintile, compared with 22% of private renters and 12% of owners; more than half of all households in such tenure have one or more members with a long-term illness or disability; and more than a quarter are 65 or over. We also know—this is certainly the case from my own post bag—that many social tenants find themselves facing intimidation by criminal gangs, domestic abuse and racial harassment, and that a minority are in desperate need of urgent moves to escape serious youth violence. We will return to that point when we debate new clause 1 in the name of my hon. Friend the Member for Dulwich and West Norwood.
As a result of frequently having little voice or power, and because there is a chronic shortage of social housing, tenants have few if any options to move if they receive an unprofessional service from their landlord. They face significant barriers when it comes to challenging poor conditions. We therefore must do more to ensure that those managing the homes of social tenants are properly qualified to do so and that they have undergone the necessary training, for example in anti-discriminatory and anti-oppressive practice, to ensure that they are treating tenants fairly and providing them with the necessary support. We rightly expect those working in other frontline services, such as education and social care, to have the professional qualifications and training necessary to carry out their work effectively, and to undergo continuous professional development. We should expect no less for those managing social homes.
Bob Blackman
The shadow Minister is applying quite a long list of prescriptions, and I think Members on both sides of the Committee would probably agree with much of what he is saying. One of the problems with putting such provisions into the Bill is that they are very difficult to amend at a future time. I accept that what he is proposing now is that regulations “may” be made; I wonder whether a better approach might be for a Government amendment to set out that regulations may be made. The prescription he has put in his new clause could then be made under regulation and, therefore, be easier to amend in the event that matters change. Otherwise, we would have to introduce primary legislation.
Matthew Pennycook
I do not want to engage the hon. Member in a prolonged discussion about “may” and “must”—we had enough of that with his private Member’s Bill. We are open to a discussion about how to proceed, but what we need at this stage is a commitment from the Minister that the Government are going to move on objective professional qualifications and training, rather than leaving the Bill as is. If that requires regulations to be moved in due course, we would be open to that, but let us see what the Government bring back on Report.
We will press our new clause to a vote at the appropriate moment to underscore how strongly we feel that this is one of the areas on which the Government must move by Report stage, to ensure that the legislation is as robust as it can possibly be.
Dehenna Davison
I will keep this brief. I am grateful to the shadow Minister for outlining his concerns, which were mentioned on Second Reading. The commitment I can give is that we are seriously looking at the issue and seeing how far we can go without that risk of reclassification. I appreciate his reasoning behind wanting to push the new clause to a vote; I hope in the meantime that he will be inclined to change his mind before we get to that point.
Question put and agreed to.
Clause 21 accordingly ordered to stand part of the Bill.
Clause 22
Standards relating to information and transparency
Question proposed, That the clause stand part of the Bill.
The Chair
With this it will be convenient to discuss new clause 9—Application of Freedom of Information Act 2000 to registered providers—
“(1) Within six months of this Act receiving Royal Assent, the Secretary of State must by order designate registered providers of social housing as public authorities for the purposes of the Freedom of Information Act 2000.”
This new clause would bring registered providers of social housing within the scope of the Freedom of Information Act 2000.
Dehenna Davison
It is essential that social housing tenants should be able to access relevant information about their landlords and their homes. Greater transparency will empower tenants and drive providers to improve service delivery. Clause 22 extends the standard-setting powers of the Regulator of Social Housing to cover information and transparency. The clause will enable the regulator to deliver key social housing White Paper commitments, including setting standards relating to the new access to information scheme. We also expect information and transparency standards to include requirements for registered providers to share information on how landlords spend their income, executive pay and breaches of the standards.
When a provider is failing to meet these standards, the clause ensures that the regulator can take strong enforcement steps, including penalties, compensation and requiring changes in the management of the provider. Extending the regulator’s power to set regulatory standards to include standards on information and transparency will empower tenants to hold their landlord to account and strengthen overall consumer regulation.
New clause 9 seeks to require the Secretary of State to extend the Freedom of Information Act 2000 to registered providers of social housing, via statutory instrument, within six months of Royal Assent. I do not believe the amendment is necessary or advisable. The Government have worked closely with stakeholders to agree plans to deliver the access to information scheme for tenants of housing associations and other private registered providers, as promised in the social housing White Paper.
The new scheme will enable tenants of private registered providers and their representatives to request information from their landlords in a way similar to that available under the 2000 Act. It will also impose similar obligations on private registered providers. Tenants of private registered providers will be able to request information from their landlord on anything relating to the management of their homes. The new scheme will be integrated into the regulatory environment, tailored to the needs of tenants, and enforced as part of the regulator’s consumer standards.
If a tenant is unhappy with how a landlord has dealt with their request for information, they will be able to take their complaint to the housing ombudsman. The process will be the same as for other complaints, ensuring ease of use and accessibility for tenants. The ombudsman also has a strong understanding of the social tenant and landlord relationship, and an established relationship with the Regulator of Social Housing. Additionally, local authority providers, which would fall under the new clause, are already subject to the Freedom of Information Act 2000 as public bodies.
Finally, extending freedom of information to registered providers would increase the level of Government control exercised over the sector. We are back to the potential argument around reclassification, which we are keen to avoid. The access to information scheme that we have laid out does not carry the same reclassification risk. On that basis, although I commend the excellent clause, I ask the hon. Member for Greenwich and Woolwich to consider not pressing his new clause to a vote.
Matthew Pennycook
At the outset, I should thank the Greater Manchester Law Centre for its support in drafting the new clause, the purpose of which is to probe the Government’s rationale for not using the Bill to bring registered providers of social housing within the scope of the Freedom of Information Act—other than local authorities, which, as the Minister rightly said, are already subject to it—and to press the Government to reconsider.
As the Minister is no doubt aware, this matter has been a perennial cause of concern. In 2011, the coalition Government announced that they would consult housing associations on bringing them within the scope of the Act; however, no further action was taken—almost certainly as a result of housing associations objecting. The issue resurfaced in the wake of the Grenfell Tower fire as a result of the Information Commissioner’s Office reporting to Parliament that it had experienced difficulties in accessing information relating to social housing and to the Kensington and Chelsea Tenant Management Organisation because the information was not covered by the Freedom of Information Act. The Information Commissioner at the time, Elizabeth Denham, made it clear that
“housing Associations are currently not subject to Freedom of Information Act because the Act does not designate them as public bodies. It is clear to me that this is a significant gap in the public’s right to know”.
We believe that she was right to highlight that gap, which remains to this day.
It is not simply that the public do not enjoy rights that they have never had; in the cases of housing associations that have had local authority stock transferred to their management, tenants and the public have lost freedom of information rights that they previously enjoyed when those homes were under local authority control. As I expected, the Minister has made the case that the issues are addressed by the provisions in clause 22 relating to information and transparency; however, those provisions are limited both in scope and specificity in terms of who may request the disclosure of information—it would appear that only tenants themselves have access to it, while journalists and others would not—and how the scheme will operate in practice.
Eddie Hughes
Perhaps the Minister can clarify this, but I understood that it was not just tenants, but people who were acting on their behalf. Can we confirm that? [Interruption.]
The Chair
Order. There is a Division in the House, so we will have to break for 15 minutes or so. We will resume as quickly as people can get back.
Matthew Pennycook
Before we suspended, the hon. Member for Walsall North pressed me on what he felt was an inaccuracy in my statement that journalists were not covered by the provisions. The Division has given me a chance to look at both the Bill and the explanatory notes. Unless he can find one, I see no mention of tenants or their representatives in the Bill. The provision in question, on page 18 of the Bill, merely states:
“the provision of information to their tenants of social housing”.
If it is the case that tenant representatives, including a broad definition of what that entails—including journalists—can access the information in question, that would be welcome.
However, not only is clause 22 limited to tenants themselves, but it provides no guarantees that an information and transparency scheme will be established. All it specifies is that the regulator “may set standards” for RPs in relation to those matters.
Although we can debate the efficacy of clause 22 in terms of whether the regulator’s ability to set standards relating to the provision of information and transparency will significantly increase RP accountability, it is clear that the clause does not provide for anything akin to that facilitated by the freedom of information regime. As the Information Commissioner’s Office put it, on welcoming the commitment to provide some information to tenants, the scope of the proposed access to information scheme
“appears narrower than FOI in a number of significant ways”.
The arguments against bringing housing associations within the Bill’s scope have been that it would inevitably result in reclassification by the Office for National Statistics and that RPs would be overwhelmed with FOI requests. However, the Scottish Government’s decision to extend coverage of Scotland’s freedom of information legislation to registered social landlords there, following a 2017 consultation—despite opposition from a majority of the housing associations affected—appears to undermine both those counter-arguments. A 2021 report by the Scottish Information Commissioner following the changes made there found that social landlords had responded well to being covered by the legislation, with a significant majority of organisations surveyed making it clear that they were responding effectively, were publishing more information as a result of FOI and were not overwhelmed with requests, with 57% reporting a small impact on staff workload. Importantly, despite being subject to the Freedom of Information Act, Scottish providers remain classified as private non-financial corporations by the ONS.
There are numerous examples from across the country of RPs either ignoring or refusing outright to respond to reasonable requests from tenants for information on a range of issues, including fire safety and health hazards, on the basis that they are not covered by the Freedom of Information Act. I note what the Minister said about tenants’ ability to take such concerns to the housing ombudsman, but we have already discussed what a lengthy and time-consuming process that is. Given that local authority RPs are already covered by FOI, we cannot understand why non-local authority RPs are not brought within the scope of that Act. Given that one of the central aims of the White Paper and the Bill is to engender a culture of transparency and accountability among RPs and that clause 22 is far narrower in scope than FOI, we believe it would be beneficial to the public if housing associations that are not publicly owned are brought within the scope of the 2000 Act. The UK Information Commissioner’s Office agrees, stating as recently as January 2022:
“The ICO believes that housing associations that provide social housing should be covered by the Freedom of Information Act 2000 in the same way as housing provided by local authorities. We believe access to information laws should remain relevant and appropriate to how public services are delivered.”
I hope that the Minister has listened carefully to the arguments about the new clause, in particular the Scottish experience, and I look forward to her response. I will not press the new clause to a Division at this stage. Depending on her reply, we may return to it on Report.
Dehenna Davison
I am grateful to the shadow Minister for outlining his case so coherently. I go back to points that I made earlier. On the point about tenant representatives, it is certainly the intent that they will be able to make those requests on behalf of tenants. In some cases, that could include journalists—the hon. Member specifically commented on them. I hope that provides some assurance about intent. I am grateful to the hon. Member for not pressing the new clause to a Division for now.
Question put and agreed to.
Clause 22 accordingly ordered to stand part of the Bill.
Clause 23 ordered to stand part of the Bill.
Clause 24
Standards relating to energy demand
The Chair
The Government indicated an intention to vote against the Question that the clause stand part of the Bill by tabling an amendment to leave out the clause.
Matthew Pennycook
The proposed tenant satisfaction measures scheme, as outlined in the social housing White Paper and underpinned by the provisions in the clause, has the potential to be an extremely useful tool for tenants, both in gaining a better understanding of their landlords’ performance and in providing feedback that can assist in driving up standards. We support it.
Given the diversity of providers across the social housing sector, however, a sufficient degree of standardisation of the collecting, processing and presenting of the information relating to the new tenant satisfaction measures is crucial. If steps are not taken to ensure a prescribed collection method for obtaining the information in question so that, when published, it allows for rigorous like-for-like comparison, the obvious risk is that the TSM scheme will struggle to facilitate an accurate and fair comparison of performance between RPs, and its use as a means of informing regulation will be compromised. The regulator itself has acknowledged the potential limitations of the scheme, owing to the variation in methods of data collection and sampling across different organisations.
The question, therefore, is what might be done to address those potential pitfalls to ensure that the TSM scheme works as effectively as it can. I will be grateful if the Minister could give us a sense of how the Government believe that a degree of standardisation might be imposed upon the TSM process to facilitate an accurate and fair comparison of performance between providers. Also, she might ask her officials to consider whether it would be appropriate for the Government to commit to asking the regulator to review the method of collecting, processing and presenting the information in question within a certain timeframe, following any directions issued under proposed new section 198C coming into effect.
Dehenna Davison
I will write to the shadow Minister following our sitting to give him further clarity about the clause.
Question put and agreed to.
Clause 27 accordingly ordered to stand part of the Bill.
Clause 28
Surveys
Dehenna Davison
I beg to move amendment 4, in clause 28, page 22, leave out lines 3 to 8 and insert—
“(8) Equipment or materials taken onto premises by virtue of subsection (7) may be left in a place on the premises until the survey has been carried out provided that—
(a) leaving the equipment or the materials in that place does not significantly impair the ability of an occupier to use the premises, or
(b) leaving the equipment or the materials on the premises is necessary for the purposes of carrying out the survey and it is not possible to leave it or them in a place that does not significantly impair the ability of an occupier to use the premises.”
This adjusts the power to leave equipment etc on premises so that it can only be left in a place that significantly impairs the ability of occupiers to use the premises if there is no other place on the premises it can be left which doesn’t impair such use.
The Chair
With this it will be convenient to discuss the following:
Government amendments 5 to 11.
Clause stand part.
Dehenna Davison
The regulator has an existing power to arrange for a survey of a premises where it suspects that a landlord may be failing to maintain the premises in accordance with its standards. The clause takes steps to ensure that those important surveys can take place more promptly by reducing the notice period required from 28 days for landlords and seven days for tenants to 48 hours for both parties. These are minimum requirements, and in the majority of cases the regulator would seek to give more than the minimum notice period, but the changes ensure that the regulator can act quickly in the most serious cases.
The clause also includes a power for the regulator to seek a warrant for entry when necessary, meaning that surveys can take place when required to ensure that the regulator can identify problems and take appropriate action. In the most serious cases, following a survey the regulator will be able to arrange for emergency remedial action to take place, as set out under clause 31, to address an imminent risk to the health and safety of tenants if the provider fails to take action required by the regulator.
Committee members may be aware that we have stipulated in the Bill that equipment or materials can be left on the premises only if it is necessary for the survey or emergency remedial action to go ahead, or otherwise if that does not significantly impair an occupier when using the premises.
Government amendments 4 to 11 are common-sense amendments designed to ensure that regulatory activities do not unnecessarily obstruct or inconvenience residents of social housing. Our changes are slight and intend to strengthen the Bill’s provisions to the benefit of tenants. They require that even if it is necessary to leave equipment or materials on the premises for surveys or emergency remedial action, they must not be left in a way that causes significant inconvenience to occupiers if they can be left in another place where this inconvenience does not occur. This means that thought must be given to minimising the impact of a survey or works on occupiers, including the impact on a tenant’s use of the common parts.
Those small, technical changes are intended to ensure that a survey or emergency remedial action can be conducted, but in such a way that is mindful of the impact on tenants and courteous to them. I commend the amendments to the Committee.
Amendment 4 agreed to.
Amendments made: 5, in clause 28, page 22, line 8, at end insert—
“(9) Where the premises include common parts of a building, references in subsection (8) to the ability of an occupier to use the premises include the ability of an occupier of a dwelling that has use of the common parts to use those parts or the dwelling.
(10) In this section, “common parts”, in relation to a building, includes the structure and exterior of that building and any common facilities provided (whether or not in the building) for persons who occupy the building.”
Where a survey is carried out on premises which include common parts of a building this amendment requires the effect on the ability of occupiers to use their dwellings and the common parts to be considered in determining whether equipment or materials can be left on the premises while the survey is carried out.
Amendment 6, in clause 28, page 22, leave out lines 31 to 36 and insert—
“(5) Equipment or materials taken onto premises by virtue of subsection (4) may be left in a place on the premises until the survey has been carried out provided that—
(a) leaving the equipment or the materials in that place does not significantly impair the ability of an occupier to use the premises, or
(b) leaving the equipment or the materials on the premises is necessary for the purposes of carrying out the survey and it is not possible to leave it or them in a place that does not significantly impair the ability of an occupier to use the premises.”
This adjusts the power to leave equipment etc on premises so that it can only be left in a place that significantly impairs the ability of occupiers to use the premises if there is no other place on the premises it can be left which doesn’t impair such use.
Amendment 7, in clause 28, page 22, line 36, at end insert—
“(5A) Where the premises include common parts of a building (as defined in section 199A), references in subsection (5) to the ability of an occupier to use the premises include the ability of an occupier of a dwelling that has use of the common parts to use those parts or the dwelling.”—(Dehenna Davison.)
Where a survey is carried out on premises which include common parts of a building this amendment requires the effect on the ability of occupiers to use their dwellings and the common parts to be considered in determining whether equipment or materials can be left on the premises while the survey is carried out.
Clause 28, as amended, ordered to stand part of the Bill.
Clause 29
Inspection plan
Matthew Pennycook
I beg to move amendment 16, in clause 29, page 23, line 36, leave out lines 36 to 39 and insert—
“(a) the inspection of every registered provider within four years of the commencement of this Act,
(b) the inspection of every registered provider at intervals of no longer than four years thereafter, and”.
This amendment would ensure that the regulator is required to carry out regular inspections of every registered provider.
Matthew Pennycook
We strongly support the introduction of routine inspections of social landlords. We therefore welcome clause 29. I would like to take the opportunity once again to commend the efforts of Lord Best in the other place and the perseverance of Grenfell United, which ensured that the Bill was strengthened.
Routine inspections of social housing landlords must be central to the new consumer regulatory regime introduced by the Bill if tenants are to have confidence that landlords will be monitored appropriately and deterred from risking breaches that could undermine health and wellbeing. The welcome removal of the serious detriment test in its entirety through the provisions in clause 26 legally allows the regulator to adopt a proactive approach to monitoring and enforcing consumer standards.
In our view, such an approach should be premised on inspections that are at short notice, rigorous, thorough and that include direct engagement with tenants who can highlight issues of concern, thereby helping the regulator determine whether a given provider is meeting the enhanced consumer standards introduced by the Bill.
Clause 29 amends section 201 of the Housing and Regeneration Act 2008, adding a new section 201A to require the regulator to make, and take appropriate steps to implement, a plan for carrying out inspections. The plan must be published, kept under review, and revised or replaced where appropriate. However, the nature of the plan and issues such as the types of RPs that should be subject to regular inspections, the frequency of those inspections, and the circumstances in which RPs should be subject to ad hoc inspections are not prescribed on the face of the Bill, instead being left to the regulator to determine in due course.
While we recognise the need for the regulator to have a significant degree of discretion when it comes to formulating the inspections plan, we believe that the Bill should be more prescriptive in two important respects. First, we believe it is essential that the Bill make clear that all RPs, large or small, will be subject to inspections by the regulator. Secondly, we believe it is essential that the Bill ensures that each RP will be subject to routine inspections.
Amendment 16 seeks to achieve both those objectives by specifying which landlords will be inspected and the maximum duration of time between each inspection they are subject to. It does so by replacing proposed new section 201A(1)(a) and (b) of the Housing and Regeneration Act 2008, as inserted by clause 29—for those following in the Bill, that is lines 36 to 39 on page 23—with a requirement that every RP must be inspected within four years of the commencement of the Act and then inspected at intervals of no longer than four years thereafter.
We believe it is entirely reasonable to detail in the Bill the minimum expectations for the regulator’s inspections plan. The policy paper published alongside the Bill in June made clear that it would enable Ofsted-style inspections of social housing providers by the regulator. The Education Act 2005 that introduced those inspections specified that every school in England would be subject to them and that they would be inspected on a routine basis at least once every three years. Amendment 16 takes that arrangement and applies it to RPs, subject to the enhanced consumer standards introduced by the Bill.
The amendment deliberately does not specify the precise frequency of inspections, merely requiring that they take place at least once every four years—the timeframe proposed by the Government in their 2020 White Paper in relation to the largest landlords. In doing so, the amendment would allow the regulator to determine the precise frequency and nature of individual inspections based on the size of the landlord and its risk profile as determined by means of desktop review.
We believe amendment 16 would preserve the regulator’s operational independence and flexibility when it comes to formulating and implementing the inspections plan now required by clause 29, while strengthening the clause to ensure that key minimum expectations are specified and that tenants can have real confidence in the new inspections regime as a result. I hope the Minister will consider accepting it.
Dehenna Davison
Clause 29 commits the regulator to the delivery of regular inspections by providing it with a duty to publish, and take reasonable steps to implement, a plan for regular inspections. The clause will reinforce the regulator’s commitment to deliver the policy objective set by the social housing White Paper, while ensuring the regulator has the freedom to design the inspections regime following engagement with the sector.
As members of the Committee know, a key part of our efforts to drive consumer standards is the introduction of routine inspections by the regulator for the largest landlords. Inspections will help the regulator to hold landlords to account and intervene where necessary, ultimately driving up the quality of homes and services provided to tenants. That measure is integral to the success of the proactive consumer regime facilitated by the Bill.
However, I cannot accept amendment 16, which seeks to introduce a specific duty for the regulator to conduct inspections of all RPs every four years. As I have said, clause 29 puts the Government and the regulator’s shared commitment to inspections into legislation, through requiring the regulator to publish and take reasonable steps to implement an inspections plan. The clause also ensures that the regulator maintains a level of operational flexibility to allow it to respond on a risk basis to significant developments in the sector.
The regulator is committed to developing a robust approach to inspections, and continues to develop the details of how it will manage consumer inspections via a process of targeted engagement with the sector and social housing tenants. I do not feel that we should bind the regulator’s hands by putting into legislation detailed requirements about inspections that would pre-empt the work it is currently undertaking.
The system of inspections will be based on a risk profile to ensure that those landlords at greatest risk of failing, or where failure might have the greatest impact on tenants, are subject to greater oversight. As part of that provision, the regulator will aim to inspect landlords with more than 1,000 homes every four years. We will, of course, hold the regulator to account to deliver and implement its inspections plan, and the regulator continues to be accountable to Parliament for the delivery of its statutory objectives.
Bob Blackman
Clearly, the providers with the most complaints against them to the regulator will be placed most at risk. In my view, some could be subject to an annual inspection, while providers that are doing a really good job and do not warrant an inspection could be left, although, clearly, if there were complaints, the inspection could be brought forward. Is that my hon. Friend’s understanding of how this will work? Obviously, the regulator will have limited resources to ensure that standards are improved.
Dehenna Davison
Absolutely—this is all about driving up standards. The plan is that the regulator will aim to inspect landlords with over 1,000 homes at least every four years, and those at highest risk could be subject to more frequent inspections. As I say, the regulator is doing detailed work to see how best to implement the measure, and it is important that we let it get on with that work before putting anything into the Bill. On that basis, I hope that the shadow Minister will withdraw the amendment.
Siobhain McDonagh (Mitcham and Morden) (Lab)
I rise to support amendment 16 on the basis of 17 years’ experience of Ofsted. We know that unless a school knows that Ofsted is coming, problems begin. A substantial proportion of outstanding schools that were not inspected for five years have recently been graded as needing improvement. Organisations need to know that somebody is coming, and coming in a reasonable time.
I simply do not understand why we would oppose registered providers being inspected once every four years, or why we would choose to inspect large housing associations but not smaller ones. Are housing associations with 1,000 tenants or fewer not just as susceptible to poor standards, and are those residents not entitled to live under the same inspection regime?
If regulation just requires looking at the paperwork, things can be made to look brilliant. Who here has not been told by their housing provider that it does not have a problem because 80% of tenants say that its repairs system is fantastic? When we dig into the detail, we appreciate how few people respond to customer service requests and just how hard some of our constituents find it to complain or get themselves heard. We need a clear and strong inspection regime.
Eddie Hughes
The hon. Lady makes a valid point. That is why we will do customer satisfaction surveys that have been agreed with the regulator. The format has been agreed. We will be able to compare housing associations and their relative performance in order to drill down and improve that performance. I understand her point, but the Government are making significant strides with the regulator to try to drive up customer and tenant engagement to ensure that we are genuinely getting the opinion of the majority, rather than a minority.
Siobhain McDonagh
That is not possible. We cannot construct a customer survey as emphatic or successful as that, because we have a broad span of residents and tenants, with different lives that determine whether they fill in forms. We as politicians, and people who deliver leaflets and get others to do so on our behalf, know that some people will always respond and others never will, even if, objectively speaking, they need to do so.
Sara Britcliffe (Hyndburn) (Con)
Surely, if a tenant is aggrieved with the process, they are likely to fill in the survey response.
Siobhain McDonagh
I have been an MP for 25 years and a member of the Labour party for 42 years. I am really interested in political communication and getting people to respond. I have to tell the hon. Member that a substantial number of people will never respond, and it is often those who live in the most dire circumstances. If we are serious about improving standards, we need the most structured inspection system that we can afford—I appreciate that it is public money.
I do not deny that anything done in the Bill is a step forward and an improvement, but if we are going to spend public money on behalf of some of our most vulnerable constituents, we want to make it the best-spent money that we can. Let us get it right. We are not starting with a clean piece of paper; we are starting with 17 years of experience with Ofsted and years of experience with the Care Quality Commission. We know a great deal about how inspection regimes work.
Dehenna Davison
On the point about making sure we get the system right, the hon. Lady mentioned public funds, which is clearly a crucial issue. That is precisely why the regime is being designed so that those who are most at risk will be inspected more frequently. That includes not just larger landlords but smaller landlords where there is a clear indication of issues that have been found previously. Inspections can also be done on a more reactive basis. If a report goes to the regulator to suggest that there is a specific issue with a smaller landlord, the risk profile will be there and the landlord could be inspected much more frequently.
Siobhain McDonagh
I am glad that there will be reactive inspections. I am not suggesting that there should not be. What I am saying is that, along with reactive inspections, there should be a regular and rigid routine of inspections. That way, everybody knows that they will have an inspection once during a four-year period. That does not seem to me to be over-regulation, certainly given recent events in social housing stock.
Matthew Pennycook
I have to say that I am slightly disappointed with the Minister’s speech. I am not convinced by her arguments. There is clearly a debate here about how prescriptive we should be in the Bill as to the regulator’s functions. I am convinced that we need to be slightly more prescriptive. I say that for a couple of reasons.
First, my hon. Friend the Member for Mitcham and Morden made a good point on the size of providers. It has certainly been my experience that some of the smaller providers are the most egregious when it comes to standards, partly because they do not face the reputational risk, or the extent of investigations by Members of Parliament or others into their activities, that some of the larger providers do. I do not think the size of providers should play a part in who is inspected.
We think it is important that all providers are inspected within the four-year period. I absolutely agree with my hon. Friend: it is not enough to base a reactive inspections regime, to the extent that that is a part of the process provided by the clause, on surveys or desktop studies alone. We do not leave schools out of the Ofsted inspections process because we are not getting complaints about them. We inspected all schools routinely within a certain period.
Secondly, to the extent that the amendment is prescriptive, I do not think that it is particularly onerous on the regulator. All we are asking for is an inspection within four years of the Bill receiving Royal Assent and every four years thereafter. That four-year timeframe was proposed by the Government in their White Paper; we did not pluck it out of thin air. I think it is entirely reasonable to ask for an inspections regime to take place on that basis. If the regulator needs the resources to carry out those inspections, let us ensure that it has them. However, I struggle to understand why the Government do not feel they can add an element of prescription to the inspections plan in the way that amendment 16 proposes. We will therefore press the amendment to a Division.
Question put, That the amendment be made.
Matthew Pennycook
We welcome the introduction of performance improvement plans as a sensible measure to drive up standards where registered providers are falling short. I would, however, like to raise a few issues in relation to how these plans will work in practice.
We note that the tenant is provided with a copy of the performance improvement plan, which is drawn up where a registered provider has failed to reach a statutory standard for properties under their responsibility, only if the tenant makes a written request for one. Given the strong case for ensuring that all affected tenants know how their landlord is performing and what decisions they are making, we question whether that is sufficient. We note that this matter was also explored during Committee stage in the other place.
In the material it supplied in relation to consideration of the Bill, the Chartered Institute of Housing argued:
“Consideration should be given as to how tenants will be alerted should any poor performance lead to the regulator requiring a performance improvement plan”.
The Local Government Association has also put on record its desire to see the publication of guidance on the regulator’s requirements and timescales for preparing and implementing performance improvement plans.
In the light of these points, I hope the Minister could clarify, either today or in writing—I am happy to take another letter from her—the operation of the provisions in this clause in relation to the following. First, how will tenants be notified if the poor performance of their registered provider leads to the regulator initiating the process of preparing an improvement plan? Will tenants, for example, have the chance to input their views about the problems identified and the measures specified for improvement in these plans?
Secondly, what is the rationale for specifying that tenants can only request a copy of the plan if they require one, rather than being provided with the plan as a matter of course along with any information about what it is, why it came about and what changes they can expect to see as a result—an arrangement that strikes us as more in keeping with the aims outlined in the Government White Paper? Thirdly, is the Minister able to tell us when the guidance on the regulator’s requirements and timescales for preparing and implementing performance improvement plans will be published? Lastly, does the Minister expect that performance improvement plans will be used as a first resort to give underperforming landlords the chance to improve before the regulator considers more punitive measures?
Dehenna Davison
I am grateful to the shadow Minister for his questions. I will follow up in writing and provide some more clarity. Where there is a performance improvement plan in place, the provider is required to publish that, so it will be freely available to tenants and, indeed, to members of the public.
Question put and agreed to.
Clause 30 accordingly ordered to stand part of the Bill.
Clause 31
Emergency remedial action
Matthew Pennycook
I beg to move amendment 17, in clause 31, page 27, line 28, leave out “may” and insert “must”.
This amendment would ensure that emergency remedial action takes place on every occasion where the conditions in subsections (2) to (4) of section 225B inserted by clause 31, are met rather than being discretionary.
Matthew Pennycook
Amendment 17, in my name and that of my hon. Friend the Member for Luton North, is extremely straightforward, and I will therefore be very brief in speaking to it.
Clause 31 relates to emergency remedial action. It amends section 225 of the Housing and Regeneration Act 2008, adding new sections 225A to 225H, which enable the regulator to arrange for an authorised person to take emergency remedial action in instances where a tenant faces an imminent health and safety risk. We strongly support it. The purpose of amendment 17 is simply to ensure that emergency repairs of the kind proposed must take place, rather than may take place—with apologies to the hon. Member for Harrow East, we return to the “may” and “must” distinction—on every occasion where the relevant conditions have been met.
It is worth briefly touching on what those conditions—as set out in proposed new section 225B(2) to (4)—are, because they are stringent, which is why we think that the regulator should be required to act in all instances. For the premises of a social housing provider to be considered appropriate for possible emergency remedial action under clause 31, a survey of its condition must have been completed; the premises must have been found to be improperly maintained; its condition has to have been found to cause an imminent risk of serious harm to the health or safety of the tenants who reside in it or neighbouring residents; and the provider has to have failed to comply with an enforcement notice requiring it to take action to bring the premises up to standard.
Our contention is that any premises managed by any provider found to have satisfied all those tests should automatically receive emergency repairs, rather than merely be considered for them. As such, we think the replacement of the offending “may” with a “must” is vital. I hope the Minister will give the issue considered thought.
Dehenna Davison
It is the responsibility of every registered provider of social housing to ensure that they provide safe and decent housing to their tenants. That means maintaining properties in accordance with the Regulator of Social Housing’s standards and addressing problems issues quickly where problems are identified.
Where a provider cannot or will not address issues that risk the health and safety of tenants, it is essential that the regulator can act. The clause therefore allows the regulator to authorise persons to enter a property and conduct emergency remedial works in cases where failings risk causing serious harm to tenants. For the regulator to do so, it must first conduct a survey of the premises, be satisfied that the provider has failed to maintain the premises in accordance with relevant standards and that the failure poses a serious health and safety risk, and give an enforcement notice requiring those failures to be addressed. If those grounds are met, the regulator may step in and take emergency remedial action. The amendment moved by the shadow Minister would mean that the regulator must take emergency remedial action when the relevant grounds are met.
I have made it clear several times that nothing is more important to the Government than keeping people safe in their homes. Sadly, however, I cannot accept the amendment, because we feel it is essential that the regulator retains the independence and flexibility to determine where it is appropriate to use the power set out in the clause. That reflects regulatory best practice, whereby the regulator has the operational independence to regulate the sector effectively by deciding which of its enforcement powers to use in any given case.
Matthew Pennycook
If a provider has failed all the tests in the clause, what other powers might the regulator use if it did not feel that emergency remedial action was necessary? What other things might it do to address a series of failings that triggered its ability to act along the lines we have discussed?
Dehenna Davison
We have talked, for example, about enforcement notices and possible fines, which are clearly measures available to the regulator. One of the things that we are concerned about at this stage—this has been drawn out at various points today—is binding the hands of the regulator. We do not want to commit it to one course of action.
Maggie Throup (Erewash) (Con)
Does the Minister agree that we are providing the framework for the regulator? As politicians, we should not be telling it how to do its job. If we make the regulations and powers strong enough and give the regulator teeth, whether the word is “may” or “must” becomes irrelevant, because it will take action anyway.
Dehenna Davison
My hon. Friend makes the point extremely well and much more strongly than I did. She is absolutely right. We are setting out the framework of what the regulator can use and will have access to. It will have a full suite of powers available to ensure that it is looking out for tenants and that they are in the best possible housing.
To summarise, we do not wish to bind the hands of the regulator too stringently. We want to give it a suite of powers and the operational independence to choose which powers to use. On that basis, I ask the hon. Member for Greenwich and Woolwich to consider withdrawing his amendment.
Matthew Pennycook
I appreciate the Minister’s concern about binding the regulator too rigidly. I push back slightly against the point made by the hon. Member for Erewash: I think it is wrong to say—the experience of recent years shows this—that just because we give a regulator a power, it necessarily uses it, and certainly not in a proactive way. At this stage, however, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Amendments made: 8, in clause 31, page 29, line 41, leave out from beginning to end of line 6 on page 30 and insert—
“(5) Equipment or materials taken onto premises by virtue of subsection (4)(b) may be left in a place on the premises until the emergency remedial action has been taken provided that—
(a) leaving the equipment or the materials in that place does not significantly impair the ability of an occupier to use the premises, or
(b) leaving the equipment or the materials on the premises is necessary for the purposes of taking the emergency remedial action and it is not possible to leave it or them in a place that does not significantly impair the ability of an occupier to use the premises.”
This adjusts the power to leave equipment etc on premises so that it can only be left in a place that significantly impairs the ability of occupiers to use the premises if there is no other place on the premises it can be left which doesn’t impair such use.
Amendment 9, in clause 31, page 30, line 6, at end insert—
“(6) Where the premises include common parts of a building (as defined in section 225C), references in subsection (5) to the ability of an occupier to use the premises include the ability of an occupier of a dwelling that has use of the common parts to use those parts or the dwelling.”
Where emergency remedial action is taken on premises which include common parts of a building this amendment requires the effect on the ability of occupiers to use their dwellings and the common parts to be considered in determining whether equipment or materials can be left on the premises while the work is carried out.
Amendment 10, in clause 31, page 30, leave out lines 29 to 36 and insert—
“(5) Equipment or materials taken onto premises by virtue of subsection (4) may be left in a place on the premises until the emergency remedial action has been taken provided that—
(a) leaving the equipment or the materials in that place does not significantly impair the ability of an occupier to use the premises, or
(b) leaving the equipment or the materials on the premises is necessary for the purposes of taking the emergency remedial action and it is not possible to leave it or them in a place that does not significantly impair the ability of an occupier to use the premises.”
This adjusts the power to leave equipment etc on premises so that it can only be left in a place that significantly impairs the ability of occupiers to use the premises if there is no other place on the premises it can be left which doesn’t impair such use.
Amendment 11, in clause 31, page 30, line 36, at end insert—
“(5A) Where the premises include common parts of a building (as defined in section 225C), references in subsection (5) to the ability of an occupier to use the premises include the ability of an occupier of a dwelling that has use of the common parts to use those parts or the dwelling.”—(Dehenna Davison.)
Where emergency remedial action is taken on premises which include common parts of a building this amendment requires the effect on the ability of occupiers to use their dwellings and the common parts to be considered in determining whether equipment or materials can be left on the premises while the work is carried out.
Clause 31, as amended, ordered to stand part of the Bill.
Clauses 32 to 35 ordered to stand part of the Bill.
Schedule 3 agreed to.
Clauses 36 to 38 ordered to stand part of the Bill.
Schedule 4 agreed to.
Clauses 39 and 40 ordered to stand part of the Bill.
Schedule 5 agreed to.
Clauses 41 to 43 ordered to stand part of the Bill.
Clause 44
Short title
Amendment made: 12, in clause 44, page 37, line 10, leave out subsection (2).—(Dehenna Davison.)
This amendment removes the privilege amendment inserted by the Lords.
Clause 44, as amended, ordered to stand part of the Bill.
New Clause 1
Regulator duty to ensure continuity of secure tenancy in cases of threat to safety
“(1) The Housing and Regeneration Act 2008 is amended as follows.
(2) After section 92K insert—
‘92KA Duty to ensure continuity of secure tenancy in cases of threat to safety
(1) This section applies where—
(a) a registered provider of social housing has granted a secure tenancy of a dwelling-house in England to a person (whether as the sole tenant or a joint tenant), and
(b) the registered provider is satisfied that there is a threat to the personal safety of that person or of a member of that person’s household which means there is a risk to their personal safety unless they move.
(2) When subsection (1) applies, the regulator must ensure that the registered provider grants the tenant a new secure tenancy which is–
(a) on terms at least equivalent to the existing tenancy; and
(b) in a dwelling where the threat to the tenant’s personal safety does not apply.
(3) In this section, a “threat to personal safety” means any threat of violence, including in circumstances of—
(a) domestic abuse where the perpetrator does not live at the same address as the victim;
(b) an escalating neighbour dispute;
(c) a threat of targeted youth or gang violence.
(4) In assessing the threat under subsection (1)(b), the registered provider must act in accordance with any relevant police advice provided to–
(a) the registered provider,
(b) the tenant, or
(c) any member of the tenant’s household.
(5) In the event that a registered provider is unable to ensure the provision of an appropriate new secure tenancy pursuant to subsection (2), the regulator must ensure that the registered provider concerned co-operates with other registered providers to ensure an appropriate new secure tenancy is provided in a timely manner.’”—(Helen Hayes.)
This new clause would require the regulator to ensure that tenants whose safety is threatened are granted alternative accommodation by their housing provider on equivalent terms to their existing tenancy. It also requires the regulator to ensure that a provider which is unable to provide appropriate alternative accommodation co-operates with other providers to do so.
Brought up, and read the First time.
Helen Hayes (Dulwich and West Norwood) (Lab)
I beg to move, That the clause be read a Second time.
It is a pleasure to serve under your chairmanship, Sir Edward. The new clause proposes a small but significant amendment to housing law to give additional security to social housing tenants who suffer the consequences of a threat of serious violence. The clause arises from my experience of representing my constituent Georgia, an NHS worker whose teenage son was threatened by gang members. Georgia was a housing association tenant who had lived in her home for nine years. She and her children were happy in their home, which she had recently redecorated—then her neighbours told her that one afternoon, while she was at work, they had heard loud banging on her door. Georgia eventually coaxed out of her son the information that he had witnessed something that local gang members had not wanted him to see, and they had come to her home looking for him. Georgia contacted the police, who told her that she had to move immediately for her family’s safety. She got in touch with her housing association, which told her that it was the council’s responsibility to provide emergency housing. The council placed Georgia and her children in temporary accommodation, which was in another borough, of poor quality and expensive. Georgia’s children did not have enough space, the flat was damp and dirty, it was hard for her children to do their homework and Georgia started to suffer from panic attacks that affected her work.
By the time that Georgia’s friend got in touch with me because she was worried about Georgia’s health and the wellbeing of her children, they had been in the temporary accommodation for six months, and her housing association had started the process of ending her tenancy because she was no longer living in her flat. The consequence of this, in the context of the UK’s housing crisis, would have been Georgia and her children being added to the statistics of homeless households, in temporary accommodation—potentially indefinitely—and at the bottom of the housing waiting list. No one should become homeless because their child is threatened.
In one London borough, 47 housing association tenants—at the time that I did this research, earlier this year—have required homelessness assistance from the council as a result of a threat of violence since 2019. Across the country, that means that thousands of families have had to leave their home each year, with their secure tenancies potentially at risk, on top of having to rebuild their lives in a new area. Homelessness is fundamentally destabilising, involving the loss of a sanctuary and a place in one’s community. It is deeply traumatising to have to make an emergency move because of a threat of violence and start again somewhere else. Our housing system should do everything possible to help families in such circumstances to make the transition to a new, permanent home as soon as possible to limit the harm caused by that threat.
I am delighted that the new clause has the support of both Shelter and the National Housing Federation. Shelter has also highlighted the case of Corey Junior Davis, or CJ, whose mum had asked her housing association for an urgent move after her son had been threatened and told her that he feared for his life. CJ’s mum had done everything possible to keep her son safe, including sending him to stay with relatives in a different area, but six months after her initial request, while they were still waiting for a move, CJ was shot and killed. I have also met several constituents who have sent their children away to keep them safe, because they know what the consequences of an emergency move to temporary accommodation would mean and they fear those consequences. That is not a choice that any parent should have to make.
The new clause would have the effect of requiring social landlords to protect the tenancy rights of secure tenants who have had to move due to a threat of serious violence, and would place a duty on social landlords to co-operate in a situation in which the tenant’s current landlord does not hold stock in an area that is considered safe for the tenant to move to. The threshold for these new duties to be triggered is that the police consider an emergency move to be necessary. Georgia was troubled by what had happened to her son, but it had not occurred to her that she would have to move out of the home that she loved until the police said that that was necessary to safeguard her child’s life. The group of people who would be protected by the new clause are not net additional demand on the social housing system; they are already secure social tenants, and the current social home that they are vacating would of course be returned to the landlord to be let to a new tenant.
There are many reasons why people become homeless due to no fault on their part. The clause will not protect all of them, but I am tabling this new clause for two reasons. The first is that the loss of a secure social tenancy, and effectively going to the bottom of an impossibly long housing waiting list, is far too high a price to pay for being the victim of a threat of violence. Georgia and her children suffered a grave detriment, simply because some violent gang members decided to threaten her son. The second is that serious violence is a scourge on the lives of all those that it affects. Far too many young people are living with the deep trauma of things that they have witnessed or friends that they have lost to knife or gun crime. We have a duty to do everything possible to stop the cycle of violence and the trauma that it causes in our communities. Supporting the victims of threats of violence to regain stability and move on with their lives is one way in which we can do that. Plunging victims into the unstable, often appalling, world of temporary accommodation has the opposite effect. We have the opportunity to change that.
Bob Blackman
Does my hon. Friend—I classify her as my hon. Friend because we have co-operated on so many other things—not accept that one of the problems is the shortage of suitable accommodation? I had a similar event in my constituency: a family was encouraged by the police to seek alternative accommodation, the registered social landlord said, “We don’t have any,” and naturally there was a problem as a result. Does she accept that providing suitable accommodation within a reasonable distance that allows children to go school, perhaps, and the tenant to get to work will be very challenging? I wonder whether she has considered that she is putting the onus on the registered social landlord to provide that. They may not operate within suitable areas, or may not be able to get co-operation from another registered social landlord. Would it not be better to have a range of potential organisations that might provide accommodation in what are, as she said, exceptional circumstances, rather than putting the onus on the registered social landlord?
Bob Blackman
I understand that, Sir Edward, but this is an important issue that merits further explanation.
Helen Hayes
I thank the hon. Member for that intervention. The new clause would impose a duty of co-operation on registered social landlords, which is designed to deal exactly with such a circumstance, where accommodation cannot be found that is safe for the tenant within the area in which the current landlord holds property. These are of course very challenging cases. I have certainly come across constituency cases in which the tenant simply cannot bring themselves to move from their home because the consequences are so dire for them, even when an offer has been made in an area that is considered by the police to be safe for them.
The new clause will not resolve every single circumstance, but in Georgia’s case, when I phoned a senior director in her large registered housing provider she was provided with a new tenancy in a safe borough, and signed that tenancy within a week. With greater will on the part of registered providers, and I believe that placing a duty would prompt that greater will, much more can be done to stop the cycle of violence in our communities.
Matthew Pennycook
I rise briefly to support my hon. Friend’s new clause, Georgia’s law. She made an extremely powerful case for it. I believe that it is sensible and proportionate, and will have a significant impact. I am sure that many hon. Members present have dealt with the kind of cases that she outlined—I certainly have. We are talking about a small but significant minority of tenants in England, but they find themselves, as the hon. Member for Harrow East said, in the exceptional circumstances of a police referral. All the new clause asks for is the protection of their tenancy rights, which should not be lost when they are forced to move, and greater co-operation between registered providers.
It is no surprise that the new clause is supported by organisations such as the NHF and Shelter. I think this is a very strong new clause, and I very much hope that the Government are minded to act on this issue, if not today then on Report. It is a crucial provision and will benefit the lives of many of our constituents.
Dehenna Davison
I am grateful to the hon. Member for Dulwich and West Norwood for tabling the new clause and for her engagement on the issue some weeks ago when we met to discuss it. I am grateful to her for raising the case of Georgia and her boys, and that of CJ. They are both horrendous cases, which give us all food for thought. I thank her for her words on the need to reduce violence more widely. That is something I am incredibly passionate about on a personal level too.
Before I begin, I want to clarify some technicalities. The new clause would provide protection where registered providers have granted their tenants secure tenancies. Secure tenancies are only granted by local authorities, so we will talk to the intention of the new clause, which is I believe around assured tenancies, as well as those in secure tenancies given by local authorities that are registered with the regulator.
We do not expect anyone who is threatened with violence to feel like they cannot move to safety for fear of losing their security of tenure. There are already a number of policies in place that seek to protect people at risk of violence who are in need of urgent rehousing. If a local authority grants a victim of domestic abuse, for example, a new tenancy for reasons connected with the abuse, it is required to give them a secure lifetime tenancy, rather than a tenancy with a fixed term.
Local authorities are also required to give people who need to move for their safety reasonable preference for social housing under section 166A(3) of the Housing Act 1996. Chapter 4 of the statutory guidance encourages local authorities to give additional preference or high priority to those fleeing violence, including intimidated witnesses, those escaping serious antisocial behaviour and people fleeing domestic violence.
By extension, those protections can be applied to private registered providers through duties to co-operate with their local authority in housing people with priority. Most private registered providers let 50% to 100% of their tenancies via nominations from their local authority. The current approach, which considers applicants for social housing on a case-by-case basis, and retains some flexibility, is the most appropriate means of determining whether a household should be granted a new tenancy.
The new clause would have the effect of requiring registered providers to relocate tenants and provide them with a new tenancy agreement. As we know, there are sadly many people with urgent housing needs who need to move immediately—for example, families who are living in conditions that pose a serious risk to their health. Going further than the existing protections by requiring registered providers to prioritise people fleeing violence above others would undermine some of the flexibilities given to housing providers to respond to the specific requirements of those in urgent need of social housing locally.
It is a fundamental right of the landlord to determine who they grant a tenancy to and who lives in their property. Retaining that right is key to registered providers being able to achieve their goal of creating safe and stable communities. It is therefore important to retain some flexibility for social landlords to decide their policy on allocations and who to house. That is integral to the effective functioning of the wider system.
Finally, as I am sure the hon. Member for Dulwich and West Norwood will be aware, we are taking steps to reform tenancy law to protect the security of tenure for social tenants. After section 21 is removed, all tenancies given by private registered providers will have greater security of tenure.
On that basis, I ask the hon. Lady to withdraw the new clause. I am very willing to work with her to see what more can be done in this area to prevent any more cases like that of Georgia and her boys emerging.
Helen Hayes
I thank my hon. Friend the shadow Minister for his support for the new clause. I am grateful to the Minister for her engagement and discussions prior to Committee stage, and for her comments just now. I would be more than happy to work with the Minister to resolve any drafting clarifications and on the intention of the new clause.
The Minister mentioned existing protections, but surely if they were working as they should, cases such as Georgia’s would simply not be arising in their current number. When I first spoke to the local authority that covers the part of my constituency where Georgia was resident, it said that registered providers, housing associations, fall back on the local authority’s duty to provide emergency accommodation. It says that happens all the time, and that there is no regard for what happens to the tenant, given all the destabilisation that comes from a very long time in temporary accommodation.
Certainly in London, on paper the local authority has a duty to provide emergency accommodation and then to rehouse that resident. There is nothing in the priority need criteria, however, that would have given Georgia or her family any significant level of priority need—certainly not a sufficient level of priority, because the violence would not have been taken into account. She was housed with a roof over her head in another borough, where it was thought it was safe for her to be. As it turned out, it was not safe for her, but it was judged to be a borough distant from where the initial threat was made. There was nothing in her circumstances to give her a level of priority band above about band C. She was never going to be rehoused, and because of the consequence of a threat to her son, she went from being a secure tenant in a very stable situation to facing, realistically, an indefinite period of time in temporary accommodation.
I simply do not believe that that situation is fair, and the current system is not functioning as it should. I acknowledge that there are many people who need to move and that our housing system is absolutely full of people who have a pressing and real need to do so. We also have a duty as a society to prevent harm from serious violence, and that is why that additional protection is needed over and above the current protections in law outlined by the Minister. I am happy to withdraw the new clause, but it is my intention to re-table it on Report, when I will divide the House if there is insufficient evidence of progress, because I strongly believe that this needs to get on the statute book. I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
New Clause 4
217A Professional qualifications and other requirements
“After section 217 of the Housing and Regeneration Act 2008 (accreditation) insert—
‘217A Professional qualifications and other requirements
(1) The Secretary of State may, by regulations, provide that a person may not engage in the management of social housing or in specified work in relation to the provision of social housing unless he or she—
(a) has appropriate professional qualifications, or
(b) satisfies specified requirements.
(2) Regulations specifying work for the purpose of subsection (1) may make provision by reference to—
(a) one or more specified activities, or
(b) the circumstances in which activities are carried out.
(3) Regulations made under this section may, in particular, require—
(a) the possession of a specified qualification or experience of a specified kind,
(b) participation in or completion of a specified programme or course of training, or
(c) compliance with a specified condition.
(4) Regulations may make provision for any of the following matters—
(a) the establishment and continuance of a regulatory body;
(b) the keeping of a register of qualified social housing practitioners;
(c) requirements relating to education and training before and after qualification;
(d) standards of conduct and performance;
(e) discipline and fitness to practise;
(f) removal or suspension from registration or the imposition of conditions on registration;
(g) investigation and enforcement by or on behalf of the regulatory body, and appeals against the decisions or actions of the regulatory body.’”—(Matthew Pennycook.)
This new clause would require managers of social housing to have appropriate qualifications and expertise.
Brought up, and read the First time.
Question put, That the clause be read a Second time.
Matthew Pennycook
I beg to move, That the clause be read a Second time.
This is, quite consciously, a probing amendment. As a result of the Regulation of Social Housing (Influence of Local Authorities) (England) Regulations 2017, the amount of local authority influence over private registered providers was reduced through the loss of local authority voting rights and restrictions on the percentage of officers a local authority may nominate as board members. The rationale for that reduction of influence was that it was necessary for the Government to relinquish sufficient control to allow the Office for National Statistics to reverse its 2015 classification of housing associations into the public sector following the Cameron Government’s decision to force registered providers to cut social sector rents by 1% a year for four years, with all that that entailed for the ability of social landlords to fund essential services, spend on repairs and maintenance, carry out retrofit work and build new social homes. If you recall, Sir Edward, it was done as a means of slashing the housing benefit bill.
Dehenna Davison
As the shadow Minister rightly outlined, new clause 5 seeks to ensure representation of tenants and councillors on the board of registered providers. While I agree with the sentiment behind the amendment—that we must ensure that the voice of social housing tenants is heard loud and clear in matters that affect them—I am afraid I must disagree that it is the best approach to take.
Tenants speak from their lived experience, which can bring a different and valuable perspective to that of other board members. They should be listened to at all stages of decision making. However, we do not think that mandating the inclusion of a tenant board member is necessarily the best way to achieve that aim.
Eddie Hughes
I have some experience of this, having been a councillor representative on the board of Walsall Housing Group at a time when it was a prescribed position. I distinctly remember a couple of instances prior to my being on the board when the Conservative spot was decided by random voting or people having been coerced into filling it. That seemed completely inappropriate.
When I became chair of the board of that group, we took a different view—to adopt a skills-based approach, determining that some of the skills would be best met by those who had experience of being a tenant. It was not prescribed that we were saving places for tenants; it just became a natural order of business that they would have the appropriate skills and experience to fill some of the vacancies on the board. Speaking from personal experience, too prescriptive an approach can sometimes lead to unintended consequences: people filling a place just because they need somebody under a certain heading to fill it.
Dehenna Davison
I thank my hon. Friend for setting out his own experience. It is an area the Government are very concerned about, and it comes back to the Committee’s debate today about how prescriptive we should be in the Bill.
Some housing providers already have tenants on boards, and they have been effective in championing residents’ voices, but this is not the case for everyone. Tenant board members are required to put their legal duties as a board member before their role as the representative for residents, which can cause confusion and conflict. Other structures can be just as successful and involve a more diverse range of tenants in decision making. That can range from formal consultations, focus groups and local events to appointed board observers and membership of panels focused on scrutiny, procurement or complaints that feed in at all stages of the decision-making process. We want to retain a flexible approach that promotes tenant empowerment and engagement for all tenants without forcing the statutory duties of a board member on a single individual.
The Regulator of Social Housing already sets standards for the outcomes that landlords must achieve in respect of tenant engagement. It will review, consult and update them as part of the new consumer regulation regime. The regulator will also ask landlords to demonstrate how they engage with tenants and require them to report on tenant satisfaction measures, as part of their assessment and inspection of landlords in the new regime. That is important because for the first time it makes tenants’ experiences a measure by which housing providers will be judged and held to account by the regulator.
There will also be improved transparency measures for tenants to be able hold their landlord to account. They need to know how it is performing and what decisions it is making. That information needs to be easily available. Earlier today we touched on the access to information scheme that we will introduce. That will enable tenants of private registered providers to request information from their landlords.
In addition, we have made funding available for a residents’ opportunities and empowerment programme, which will provide training to residents across the country on how to engage effectively and hold landlords to account. I hope that I have provided enough reassurance for the shadow Minister to withdraw his new clause.
Matthew Pennycook
I thank the Minister for that useful response and the hon. Member for Walsall North for his contribution. The Minister touched on an interesting issue when exploring the details of the Bill before today. There is not only potential for confusion but potential conflict about the role of a board member, particularly in the case of an elected councillor.
I was interested to read when looking into the death of Awaab Ishak that two councillors were removed by the board of Rochdale Boroughwide Housing for drawing attention to their concerns about buildings being pulled down—I am not saying that was anything specifically related to his death, but it related to concerns they had about a particular decision by the provider that was in conflict with their role.
In general terms, I understand the concern about being too prescriptive. This area should perhaps be kept under review. Whether it is best practice by some registered providers, guidance or whatever it might be, it is important to keep under review how to ensure that we can get the most representative and effective board of registered providers. As I said, this is a probing new clause. I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
New Clause 6
Standards relating to consumer matters
‘(1) Section 193 of the Housing and Regeneration Act 2008 is amended as follows.
(2) In subsection (2)—
(a) after paragraph (d) insert—
“(da) major repair or improvement works,
(db) estate regeneration,
(dc) service charges,”
(b) after paragraph (ga) insert—
“(gb) advice and assistance in relation to the prevention of homelessness,”
(c) after paragraph (h) insert—
“(ha) provision for urgent transfer of tenancies in relation to tenants affected by domestic abuse or other violence”’.—(Matthew Pennycook.)
This new clause would allow the regulator to set standards in relation to major repair or improvement works, estate regeneration, service charges, homelessness prevention, and urgent moves for residents at risk of violence.
Brought up, and read the First time.
Matthew Pennycook
I beg to move, That the clause be read a Second time.
In rising to speak to the final new clause, I thank hon. Members for their indulgence. They have listened to me a lot today.
Matthew Pennycook
Absolutely right.
We finish with an important new clause. It relates to what comes under the rubric of consumer standards as defined by the Bill. Since its initial publication in June, the Bill has been improved in several important respects. Today we have urged the Government to go further in relation to some areas and we will continue to do so, but we welcome the introduction of the consumer standards in relation to safety, transparency, competence and conduct.
However, there are other matters of real importance to social tenants that the Bill, as drafted, does not extend new consumer standards to. They include major repairs or improvement works, estate regeneration, service charges, advice and assistance in relation to the prevention of homelessness and urgent moves resulting from the risk of domestic abuse or serious violence.
New clause 6 simply seeks to ensure that the regulator has the freedom to set standards for registered providers in respect of each of those areas of housing management by amending section 193 of the Housing and Regeneration Act 2008 to include them within the scope of what is considered a consumer matter.
There is arguably a need for the regulator to carry out a thorough consultation about consumer standards to better understand what housing management issues currently matter most to tenants. However, we know both from organisations providing housing support, guidance and expert advice services and, I would argue, from our own postbags, that the issues covered by new clause 6 are important to tenants. There is an arguable case for placing them in the Bill to at least allow the regulator, which has probably consulted and developed them, to set consumer standards in relation to some of these issues at a later date. I look forward to the Minister’s response.
Dehenna Davison
As the shadow Minister outlined, the new clause seeks to amend the Regulator of Social Housing’s powers to set consumer standards in a number of ways. All the issues that he raised are important. Although I cannot accept the amendment, I will seek to address the issues raised in turn.
On major repairs and improvements, all social housing landlords should be delivering decent social housing and prioritising repairs and improvements that need to be made to ensure that housing is up to standard. The regulator is already able to set standards relating to the nature, extent and quality of accommodation, and the facilities and services, provided. That can include specified rules about maintenance, which would cover major repairs.
The regulator’s current homes standard already requires registered providers to provide a repairs and maintenance service that meets the needs of tenants, with the objective of getting repairs and improvements right the first time. The regulator will consult on and revise the standards following the passage of legislation and the issuance of Government directions.
On estate regeneration, let me be clear that I agree that landlords should be adequately planning for major regeneration projects and delivering planned maintenance. However, including that area as part of the regulator’s standard-setting remit is not necessary. As I have noted before, the regulator already has the powers required to set standards required relating to maintenance and repairs. Those standards apply to all homes, regardless of whether they are part of a regeneration project.
Existing legislation also enables the regulator to set standards relating to the contribution of landlords to the environmental, social and economic wellbeing of the areas in which their property is situated, which relates closely to the intended outcomes of regeneration projects. The regulator already sets expectations about neighbourhood management in its consumer standards and will be consulting on revised expectations under the proposed new standards, once the Bill has been passed.
It remains the responsibility of landlords to effectively manage their stock and deliver decent housing for their residents. We believe that a specific standard-setting power for regeneration is unnecessary. Effective asset management is already a focus of the in-depth assessments that the regulator conducts, which mean that landlords have to demonstrate to the regulator that they are able to maintain adequate levels of investment in the homes that they are responsible for.
I turn to service charges. The Government’s policy statement on rents for social housing encourages registered providers of social housing to keep any service charge increases within the consumer prices index plus 1% per year—the current limit on annual increases in social housing rents—in order to help ensure that charges stay affordable. Following our recent consultation on social housing rent increases, the Chancellor announced as part of his autumn statement that the Government will cap the increase in social rents at a maximum of 7% in 2023-24. In line with the proposal set out in our consultation, we will amend the policy statement to encourage providers to apply the 7% limit to any service charge increases in 2023-24.
Our policy statement also states that tenants should be supplied with clear information on how service charges are set; in the case of social rent properties, providers are expected to identify service charges separately from the rent charge. The new clause is not necessary to facilitate the regulator’s requiring that transparency from providers.
Furthermore, service charges are already governed by legislation in the Landlord and Tenant Act 1985, which states that service charges can be charged only to the extent that they are reasonably incurred and that enforcement of that is via the courts. Consequently, it is not appropriate or necessary to add to the Bill a specific standard-setting power relating to service charges.
I move on to the issue of homelessness. Let me be crystal clear: the Government are committed to preventing homelessness, and I commend my hon. Friend the Member for Walsall North on the incredible work he did on that as a Minister. Since the introduction of the Homelessness Reduction Act 2017, more than half a million households have been supported into secure accommodation. We are investing £2 billion over the next three years into addressing homelessness and rough sleeping, and in September we published our bold new strategy “Ending rough sleeping for good”. We have also provided £316 million this year for the homelessness prevention grant, which local authorities can use flexibly to meet their homelessness objectives—including to work with providers to prevent evictions.
I am not in a position to accept the new clause, as I believe the existing legislation is sufficient to achieve the outcome that the hon. Member for Greenwich and Woolwich is seeking. The regulator’s existing tenancy standard already requires social landlords to develop and provide services that will support tenants to maintain their tenancy and prevent unnecessary evictions. The regulator’s standards will be consulted on and updated following the passage of legislation and the issuance of Government directions. Consequently, homelessness prevention is already a priority for providers; the regulator plays a vital role in support.
I move on to the urgent transfer of tenancies in cases of domestic abuse and violence. Again, to be absolutely clear we do not expect anyone who is threatened with violence to feel that they cannot move to safety for fear of losing their security of tenure. A range of measures are therefore already in place to protect people at risk of violence and in need of urgent rehousing, some of which I have already outlined that in earlier contributions.
Chapter 4 of the statutory guidance encourages additional preference to be given to those fleeing violence, including people fleeing domestic violence, and private registered providers have a role in housing such people through their duties to co-operate, as I outlined earlier.
I will not rehash any more of the arguments that I made in response to the hon. Member for Dulwich and West Norwood and her new clause 1. However, I should add that in schedule 5 to the Bill, we are already amending the regulator’s standard-setting powers to include policies and procedures in connection with behaviour that amounts to domestic abuse within the meaning of the Domestic Abuse Act 2021.
For all the reasons I stated, I do not believe that the amendments to the regulator’s standard-setting powers are necessary. I ask the hon. Member for Greenwich and Woolwich to withdraw his new clause.
Matthew Pennycook
I thank the Minister for that response. I am somewhat reassured by it, to the extent that she has laid out—in considerable detail, in some cases—the ways in which some of the issues of concern flagged in the new clause are appropriately covered by the standards, guidance, policies and procedures. My reservation is about whether those existing processes have the effect that would be achieved by allowing the regulator itself to set standards and consumer standards.
Given how complex an issue this is, I will take away the Minister’s response and look at it in more detail, but I reserve the right to come back to the issue on Report. We think it is important that some of these real issues of concern to tenants be given due consideration when it comes to whether they are brought within the new regulatory regime to be established by the Bill. I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
Question proposed, That the Chair do report the Bill, as amended, to the House.
Dehenna Davison
I have my Oscars-style speech of thanks to give before we finish today. First, a huge thank you to you, Sir Edward, for chairing the Committee so successfully and professionally, and for keeping us all in check. We are MPs; we always need someone to keep a good gaze over us to ensure that we are behaving.
I thank all members of the Committee for a constructive debate. One of the most reassuring things has been that there is such cross-party consensus in recognising that the Bill is absolutely needed and that we can all very much get behind its aims.
I thank the Clerks for their stellar work and my officials, who have been brilliant at speedily giving me all the information that I need. I thank the fabulous Whip, my hon. Friend the Member for Hertford and Stortford, again for keeping us in check on the Government Benches.
I also say a huge thank you to Grenfell United, Shelter and others for their engagement on this important legislation. As the Minister, I feel grateful to have had the opportunity to take the Bill through Committee. I look forward to its coming back on Report; as I said, I will engage with Members before that point.
In my final breath, I say a massive good luck to both teams tonight. I am sure most people know which one I am supporting.
Matthew Pennycook
Briefly, Sir Edward, I thank you for your chairmanship of the Committee and the Clerks for all their work to prepare us. I thank the Minister for the constructive tone in which she approached the debate, and all hon. Members for the considerable amount of expertise and insight put forward in our debates. I, too, thank all the organisations, not least Grenfell United, that sent us their views and engaged with us on what they see as important in how the Bill could be strengthened.
As I said at the start, the Bill is uncontroversial and we welcome the vast majority of measures. We want to see it strengthened and we have made the case for that today. We will continue to make the case on Report for those areas of the Bill where we want to see further improvement, but I am glad that it can make swift progress to its next stage.
The Chair
I thank you for being so expeditious. My fellow Chair, who is a Scot Nat, has had an easy ride.
Question put and agreed to.
Bill, as amended, accordingly to be reported.
Social Housing (Regulation) Bill [Lords]
Wednesday 1st March 2023
(1 year, 9 months ago)
Commons ChamberRead Full debate Social Housing (Regulation) Act 2023 Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Consideration of Bill Amendments as at 1 March 2023 - large print - (1 Mar 2023)
16:32 - The House divided: - Ayes: 179 / Noes: 273 - Question accordingly negatived.
16:46 - The House divided: - Ayes: 180 / Noes: 273 - Question accordingly negatived.
16:57 - The House divided: - Ayes: 180 / Noes: 276 - Question accordingly negatived.
The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Dehenna Davison)
I beg to move, That the clause be read a Second time.
Madam Deputy Speaker (Dame Rosie Winterton)
With this it will be convenient to discuss the following:
Amendment (a) to new clause 1, after “Social housing leases:” insert “prescribing and”.
Amendment (b) to new clause 1, after “comply with all the prescribed requirements” insert
“under regulations made under this section and section 10B”.
Amendment (c) to new clause 1, after “regulations under subsection (3) insert “or section 10B”.
Amendment (d) to new clause 1, after “sections 68 and 72 of that Act).”, insert—
“(8) Any provision of a lease or of any agreement relating to a lease (whether made before or after the grant or creation of the lease) is void to the extent that it purports—
(a) to exclude or limit the obligations of the lessor under the covenant implied by section 10A(2), or
(b) to authorise any forfeiture or impose on the lessee any penalty, disability or obligation in the event of the lessee enforcing or relying upon those obligations.
(9) Where in any proceedings before a court it is alleged that a lessor is in breach of an obligation under the covenant implied by section 10A(2), the court may order specific performance of the obligation (regardless of any equitable rule restricting the scope of that remedy).
(10) Where a lease to which this section applies of a dwelling in England forms part only of a building, the implied covenant has effect as if the reference to the dwelling in subsection (1) included a reference to any common parts of the building in which the lessor has an estate or interest.”
Amendment (e) to new clause 1, leave out line 50.
Amendment (f) to new clause 1, leave out lines 79 to 81.
These amendments seek to strengthen Gov NC1 by clarifying the relevant prescribed requirements at 10A(2), making clear the extent of their application, inserting non-avoidance and non-penalisation provisions and detailing where courts may order specific performance of certain obligations.
Government new clause 2—Power of housing ombudsman to issue guidance to scheme members.
Government new clause 3—Action after inspection.
Government new clause 4—Secretary of State’s duty to give direction about providing information to tenants.
New clause 5—Persons engaged in the management of social housing to have relevant professional qualifications—
‘After section 217 of the Housing and Regeneration Act 2008 (accreditation), insert—
“217A Professional qualifications and other requirements
(1) The Secretary of State may, by regulations, provide that a person may not engage in the management of social housing or in specified work in relation to the provision of social housing unless he or she—
(a) as appropriate professional qualifications, or
(b) satisfies specified requirements.
(2) Regulations specifying work for the purpose of subsection (1) may make provision by reference to—
(a) one or more specified activities, or
(b) the circumstances in which activities are carried out.
(3) Regulations made under this section may, in particular, require—
(a) the possession of a specified qualification or experience of a specified kind,
(b) participation in or completion of a specified programme or course of training, or
(c) compliance with a specified condition.
(4) Regulations may make provision for any of the following matters—
(a) the establishment and continuance of a regulatory body;
(b) the keeping of a register of qualified social housing practitioners;
(c) requirements relating to education and training before and after qualification;
(d) standards of conduct and performance;
(e) discipline and fitness to practise;
(f) removal or suspension from registration or the imposition of conditions on registration;
(g) investigation and enforcement by or on behalf of the regulatory body, and appeals against the decisions or actions of the regulatory body.”’
This new clause would require managers of social housing to have appropriate qualifications and expertise.
New clause 6—Application of Freedom of Information Act 2000 to registered providers—
‘Within six months of this Act receiving Royal Assent, the Secretary of State must by order designate registered providers of social housing as public authorities for the purposes of the Freedom of Information Act 2000.’
This new clause would bring registered providers of social housing within the scope of the Freedom of Information Act 2000.
New clause 7—Regulator duty to ensure continuity of secure and assured tenancy in cases of threat to safety—
‘(1) The Housing and Regeneration Act 2008 is amended as follows.
(2) After section 92K insert—
“92KA A Duty to ensure continuity of secure and assured tenancy in cases of threat to safety
(1) Duty to ensure continuity of secure and assured tenancy in cases of threat to safety
(a) a registered provider of social housing has granted a secure tenancy or assured tenancy of a dwelling-house in England to a person (whether as the sole tenant or a joint tenant), and
(b) the registered provider is satisfied that there is a threat to the personal safety of that person or of a member of that person’s household which means there is a risk to their personal safety unless they move.
(2) When subsection (1) applies, the regulator must ensure that the registered provider grants the tenant a new secure tenancy which is—
(a) on terms at least equivalent to the existing tenancy; and
(b) a threat of targeted youth or gang violence.
(3) In this section, a “threat to personal safety” means any threat of violence, including in circumstances of—
(a) domestic abuse where the perpetrator does not live at the same address as the victim;
(b) an escalating neighbour dispute;
(c) a threat of targeted youth or gang violence.
(4) In assessing the threat under subsection (1)(b), the registered provider must act in accordance with any relevant police advice provided to—
(a) the registered provider,
(b) the tenant, or
(c) any member of the tenant’s household.
(5) In the event that a registered provider is unable to ensure the provision of an appropriate new secure tenancy pursuant to subsection (2), the regulator must ensure that the registered provider concerned co-operates with other registered providers to ensure an appropriate new secure tenancy is provided in a timely manner.”’
This new clause would require the regulator to ensure that tenants whose safety is threatened are granted alternative accommodation by their housing provider on equivalent terms to their existing tenancy. It also requires the regulator to ensure that a provider which is unable to provide appropriate alternative accommodation co-operates with other providers to do so.
New clause 8—Regulator duties relating to supported exempt and temporary accommodation—
‘(1) The Housing and Regeneration Act 2008 is amended as follows.
(2) In section 192 (Overview), in paragraph (a), after “social housing” insert “, supported exempt accommodation and temporary accommodation”.
(3) In section 193 (Standards relating to consumer matters), in paragraph (a), after “social housing” insert “, supported exempt accommodation and temporary accommodation”.
(4) After section 195 (Code of practice) insert—
“195A Regulation of codes of guidance issued by the Secretary of State
The regulator shall have a duty to inspect local housing authorities as to their compliance with any code of guidance issued by the Secretary of State under section 182 of the Housing Act 1996”’.
This new clause would enable the regulator to set standards for the provision of supported and temporary accommodation, make the regulator responsible for enforcing any Code of Guidance issued by the Secretary of State relating to local authorities’ duty to provide temporary accommodation, and give the regulator the ability to inspect local authorities for compliance.
New clause 9—Review of impact of this Act—
‘(1) The Secretary of State must, within one year of the passing of this Act, carry out a review of the impact of this Act.
(2) A review under this section must make an assessment as to whether the Act has improved the safety and quality of social housing both in its own terms, and in comparison to the safety and quality of housing in the private rented sector.’
This new clause would require the Government to undertake a review of the impact of this Act.
Amendment 41, in clause 1, page 1, line 10, at end insert—
“(d) after paragraph (d) insert—
‘(da) to safeguard and promote the interests of persons who are or who may become homeless in relation to the provision of social housing.”’
This amendment would add to the regulator’s remit an additional objective of safeguarding and promoting the interests of persons who are or who may become homeless in the context of the provision of social housing.
Amendment 42, page 1, line 10, at end insert—
“(2) In section 92K of the Housing and Regeneration Act 2008 (fundamental objectives), after subsection (3) insert—
‘(3A) In undertaking its objective under subsection (2)(b) the regulator must report to the Secretary of State at least every three years on whether the provision of social housing in England and Wales is sufficient to meet reasonable demands, and must make recommendations to the Secretary of State on how to ensure that the provision of social housing is so sufficient.
(3B) The Secretary of State must lay before Parliament a copy of any reports prepared by virtue of subsection (3A).
(3C) In undertaking its objective under subsection (3)(a) the regulator must report to the Secretary of State on the progress of the removal of unsafe cladding and the remediation of other fire safety defects in social housing, and may make recommendations to the Secretary of State on further action required.”’
This amendment would include in the regulator’s objective a requirement to report to the Government on the removal of cladding. It would also require the regulator to report to the Government on the adequacy of the stock of social housing, and lay a copy of any such report before Parliament.
Amendment 37, in clause 2, page 1, line 18, at end insert—
“(2A) The Panel may provide information and advice to the Secretary of State about, or on matters connected with, the regulator’s functions and wider issues affecting the regulation of social housing (whether or not it is requested to do so by either the regulator or the Secretary of State).”
This amendment would enable the Panel to provide information and advice and to proactively raise issues affecting social housing regulation more generally directly to the Secretary of State.
Amendment 38, page 1, line 19, leave out “subsection (2)” and insert “subsections (2) and (2A)”.
This amendment is consequential on Amendment 37.
Amendment 36, page 2, line 17, at end insert—
“(8) The Panel must be chaired by a tenant of social housing.
(9) The Chair is responsible for setting Panel meeting agendas.
(10) The majority of persons appointed to the Panel must be tenants of social housing.”
This amendment would ensure that tenant representation on the advisory panel is mandatory and that tenants are able to influence effectively what information and advice is presented to the regulator in respect of issues affecting social housing regulation.
Government amendments 4 to 10.
Amendment 39, page 17, line 16, leave out clause 21.
Government amendments 44 to 47, 11 and 12.
Amendment 40, in clause 28, page 23, leave out lines 23 to 26 and insert—
“(a) the inspection of every registered provider within four years of the commencement of this Act,
(b) the inspection of every registered provider at intervals of no longer than four years thereafter, and”.
This amendment would ensure that the regulator is required to carry out regular inspections of every registered provider.
Amendment 43, in clause 30, page 28, line 39, leave out “24” and insert “48”.
This amendment is intended to probe why an authorised person must only give 24 hours’ notice to tenants under this section, whereas providers are given 48 hours’ notice.
Government amendments 13, 2, 15 to 34, 14, 35, 1 and 3.
Dehenna Davison
I am proud to be here today opening the Report stage of the Social Housing (Regulation) Bill. The Bill has been long awaited, but I hope we can all agree that the time we have taken to engage with tenants and stakeholders has helped us to ensure that the Bill is as robust as possible. I am grateful that Grenfell United, Shelter and others are able to join us today as the Bill reaches its Report stage. I must pay tribute to them for their steadfast campaigning on this crucial legislation. I am also grateful to Members from across the House for the incredibly constructive way in which they have approached this legislation. Thanks to the strength and breadth of engagement, we have tabled a number of amendments and new clauses to reinforce the Bill even further, and I will begin with new clause 1, on Awaab’s law.
Chris Clarkson (Heywood and Middleton) (Con)
As one of Rochdale borough’s two MPs, I thank the Minister’s Department for the speedy and sensitive way it has dealt with this, and I am sure that that would be echoed by the hon. Member for Rochdale (Tony Lloyd), who sadly cannot be here for this debate. Can I ask my hon. Friend to give an assurance that once this legislation is passed, social housing tenants can have confidence that the homes they are provided with are fit for habitation in a way that simply has not been the case up to now?
Dehenna Davison
I am grateful to my hon. Friend not just for his contribution today but for the way in which he engaged with us following this incredibly tragic case. This legislation is designed specifically to ensure that terrible cases like that faced not only by Awaab but by the Grenfell United community do not happen again, and that tenants have the protection and the respect they deserve from social housing providers.
I know I am not alone in saying that I was deeply shocked by the tragic death of Awaab Ishak. The death of a child is always heartbreaking, and its having been entirely preventable makes it even more devastating. My thoughts remain with Awaab’s family in the difficult time that they have been going through. This terrible case has thrown into sharp relief the need for this Government to continue steadfastly in their mission to drive up the quality of this country’s social housing and, crucially, to rebalance the relationship between tenants and landlords. Within the Government we are well aware that, unfortunately, damp and mould are not the only hazards that can pose a threat to social residents’ health. For example, excessive cold and falls caused by disrepair in homes are among the top five hazards found in homes in England.
That is why the Secretary of State has tabled the Government new clause for Awaab’s law, which not only addresses the concerns underpinning the Awaab’s law proposals but goes further by enabling the Government to introduce new requirements on landlords to act on a broader range of hazards. We will take a power for the Secretary of State to set out in secondary legislation requirements for landlords to rectify hazards or rehouse residents within a certain time. Our new clause will empower tenants to challenge their landlords for inaction. It inserts an implied covenant into tenancy agreements that landlords will comply with the requirements prescribed in regulations. This will empower landlords to deal with hazards such as damp and mould in a timely fashion, knowing that if they fail to do so they can face a legal challenge from residents.
It is crucial that any new measures to address the issues of damp, mould and other hazards putting residents’ health at risk are proportionate and evidence-based and deliver the right outcomes for social residents in the long term. That is why we intend to consult on these new requirements, including time limits, within six months of Royal Assent and to lay the secondary legislation as soon as possible thereafter.
We are also tabling new clause 4 and Government amendments 1 and 11 to 14, which will ensure that the Regulator of Social Housing sets standards for landlords and provides tenants with information about how to make complaints and about their rights as tenants. To demonstrate our commitment to this, we have included a duty for the Secretary of State to issue a direction to this effect within six months of the Bill receiving Royal Assent.
I turn now to the important matter of professional standards in the sector. Grenfell United has long campaigned for mandatory qualifications to be introduced in the sector to ensure that professional standards are consistently high across the sector and to bring social housing into line with other frontline services such as social work, teaching and health and social care. At the earlier stages of the Bill I made it clear that we had to proceed cautiously on mandatory qualifications, as there was an identified risk that requirements could lead to housing associations being reclassified by the Office for National Statistics to the public sector, which in turn would hamper their ability to invest in improving the quality of existing homes and in building new stock.
However, I have made it clear in this process that we are here to listen and take on board comments from stakeholders and Members from across the House. We took heed of the arguments made by Grenfell United and Shelter and by those who spoke so passionately in both Houses on this matter. The tragic death of Awaab Ishak also underlined how vital it is that we use every lever at our disposal to deliver the consistently high level of professional standards that tenants deserve. Since the Commons Committee stage, we have worked incredibly hard to find a solution. I am grateful to Grenfell United and Shelter for their ongoing work with us on this issue and to my right hon. Friend the Member for Maidenhead (Mrs May) and my noble Friend Baroness Sanderson. I am proud to stand here today having tabled Government amendments 44 to 47 to deliver qualification requirements to improve the experience of social housing tenants.
We agree with the Government that the regulator should retain a high degree of operational independence and flexibility in formulating and implementing the inspections plan now required by clause 28, but we believe the Government are making a mistake in refusing to mandate the two basic requirements that we have proposed: namely, an inspection for all landlords irrespective of size at least once every four years.
Andy Slaughter (Hammersmith) (Lab)
My hon. Friend is making a powerful speech. On new clause 6, he knows that I have an interest in freedom of information, and I introduced a private Member’s Bill to do just this. The Freedom of Information Act applies to housing associations in Scotland, the Information Commissioner supports that, and there were endless examples in what the Campaign for Freedom of Information gave us in preparation for this debate of housing associations just refusing or ignoring requests from tenants about fire safety, damp and mould and other issues. Why should they be treated differently from council tenants, and why will the Government not adopt the FIA, which is designed exactly for this purpose, rather than use their own scheme, which would do a pale reflection of that in trying to enable tenants can find out basic information about their own safety?
Matthew Pennycook
I thank my hon. Friend for that intervention; I could not have put it better. We are seriously concerned that clause 22 does not have the same effect as bringing providers within the scope of the Freedom of Information Act. We think that tenants, and tenant representatives and those acting on their behalf, should be able to enjoy those rights, so that they can get information of the kind that, as he rightly says, providers regularly refuse to give to tenants.
Before turning to the Government amendments that have been tabled since the Bill left Committee, I wish to speak briefly to new clauses 7 and 8, which stand respectively in the names of my hon. Friends the Members for Dulwich and West Norwood (Helen Hayes) and for Mitcham and Morden (Siobhain McDonagh). I turn first to new clause 7, or “Georgia’s law”, as my hon. Friend the Member for Dulwich and West Norwood has named it, in reference to a constituent of hers who was forced into temporary accommodation for an extended period as a result of her teenage son being threatened by gang members at their family home.
In our view, new clause 7 is a sensible and proportionate amendment that would make a real difference to a small but significant minority of tenants in England who find themselves in the exceptional circumstance—I must stress that fact—of a police referral as a result of being subject to the threat of serious violence. Its effect—the protection of existing tenancy rights in the case of a forced move linked to a threat of violence and greater co-operation between registered providers to rehouse those affected in a social home—is clearly not unduly onerous, and the Government’s argument that such a measure would cause insurmountable problems with local authority allocations policies is entirely unconvincing.
The Minister gave a guarantee in Committee that the Government would work with my hon. Friend
“to see what more can be done in this area to prevent any more cases like that of Georgia and her boys emerging.”––[Official Report, Social Housing (Regulation) Public Bill Committee, 29 November 2022; c. 66.]
It is therefore incredibly disappointing that the Government have not been willing to bring forward an amendment of their own to ensure that others do not have to experience what my hon. Friend’s constituents were forced to go through. As such, if my hon. Friend pushes her new clause 7 to a vote, we will of course support it.
We also support new clause 8, because while we recognise that the Government are taking steps to address the issue of unscrupulous providers of supported accommodation by means of the Supported Housing (Regulatory Oversight) Bill, promoted by the hon. Member for Harrow East (Bob Blackman), we are in full agreement with my hon. Friend the Member for Mitcham and Morden that the regulator should have the ability to inspect temporary accommodation. There is statutory guidance designed to ensure that existing minimum standards are met for all temporary accommodation, but we know that in practice bed and breakfasts, hotels and shared houses used by local authorities across the country to house homeless families are frequently substandard and often hazardous, because that guidance is rarely adhered to.
The truth is that with almost 100,000 households, and now more than 125,000 children, living in temporary accommodation, according to the Department’s own figures, local authorities have little leverage when it comes to deciding what standards they are willing to accept. A huge amount needs to be done to decrease the demand for temporary accommodation across the country, most of which is well outside of the scope of this Bill. But in the short term, stronger regulation and inspections could make a real difference, and in the most extreme cases they could save lives. On that basis, we support new clause 8.
Finally, I turn to the Government amendments that have been tabled in recent weeks. The bulk of them are uncontroversial and largely technical, and we support their incorporation into the Bill. I do, however, wish to touch upon Government new clause 1. Awaab Ishak’s untimely death from prolonged exposure to mould in the house his parents rented from Rochdale Boroughwide Housing should never have occurred and the fact that it did, frankly, shames our country. The coroner was right to call it a “defining moment”, but it falls to this House to ensure that it truly is. It is therefore essential that we legislate to compel landlords to act quickly to remedy hazards of the kind that ultimately killed Awaab.
The regulator’s initial findings on damp and mould in social housing, published on 2 February, estimated that up to 160,000 social homes have notable problems with it, and a further 8,000 have hazards so severe that they pose a serious and immediate risk to health. Given the scale of the problem, landlords who fail to proactively review the homes and buildings they manage or lease for hazards, who deal with tenant complaints relating to such hazards ineffectively, or who blame damp and mould on lifestyle choices and myriad other factors, rather than taking responsibility, cannot be tolerated.
Government new clause 1 is a laudable effort at amending the Bill to ensure that social housing providers are forced to investigate and deal promptly with hazards that are a danger to the health of tenants. As the Minister said, it would allow the Secretary of State, by regulation, to set timescales to which social landlords must adhere in respect of remedying hazards or be in breach of a tenancy agreement, as well as specify what kinds of action must be taken. Enforcement will, of course, depend on access to legal representation, and in many cases legal aid, Government new clause 1 nevertheless provides an enforceable right that enhances the provisions contained in the Homes (Fitness for Human Habitation) Act 2018, introduced by my hon. Friend the Member for Westminster North (Ms Buck). We commend the Government for tabling the new clause and we support it in principle.
However, we are convinced that Government new clause 1 could be strengthened in several important respects, and to that end we have tabled amendments (a) to (f). Taken together, they would set out on the face of the Bill the location of the relevant prescribed requirements at proposed new section 10A(2); make clear the extent of their application; detail the circumstances in which any provision of a lease or any agreement relating to a lease is void; and clarify where courts may order specific performance of certain obligations. We believe those changes would improve the clarity and functionality of Government new clause 1 and thereby make it stronger, and we hope the Government will give serious consideration to accepting them.
To conclude, this is without question an important and urgently needed piece of legislation, and we are extremely pleased it will complete its passage today. Everyone has a basic right to a decent, safe, secure and affordable home, and it is our sincere hope that by overhauling the regulation of social housing by means of this Bill, we will better protect the health, safety and wellbeing of social tenants across the country. We welcome the numerous concessions that the Government have made throughout the passage of the Bill, but we believe it is not yet the most robust piece of legislation that this House can possibly deliver, the achievement of which has been our objective from the outset. We will shortly have the opportunity to amend it further so that it is, and I urge the House to come together to that end.
David Simmonds (Ruislip, Northwood and Pinner) (Con)
May I start by drawing the House’s attention to my entry in the Register of Members’ Financial Interests and, in particular, my role as a vice-president of the Local Government Association? That is an important starting point for why I so strongly welcome this Bill and commend the Government team, especially for new clauses 1 and 2, which are going to be the main focus of my contribution this afternoon.
It was immensely useful, and terrifying, having served as a London local authority councillor and as an office holder in the LGA, to see the things that we learnt about the regulation of our housing market following the Grenfell disaster. Local authorities across the country will welcome the fact that this Bill begins to bring a degree of definition to the situations where regulation that perhaps in the past had been vague could apply, and a greater degree of rigour, which enables a greater degree of accountability in respect of landlords who may be falling short in their responsibilities.
I wish to flag up the fact that some issues remain to be addressed, because although the model of Ofsted as a regulatory framework is a good one, the weakness of Ofsted is that it focuses its inspections through the role of the local authority and the local authority’s powers in a diverse and complex education market are limited, just as they are in the context of a very diverse and complex housing market. I would simply say that, following the situation at Grenfell where large numbers of landlords suddenly realised that they would be required to address quite serious safety issues, we saw a number of examples around the country where private landlords with substantial blocks that were entirely occupied by tenants on social leases through the local authority essentially put those blocks into liquidation and walked away. Therefore, there was a need for a local authority in those kinds of situations to step in. How we deal with perhaps sharp business practices by landlords, who may seek, under a single brand, to register large numbers of individual properties or developments separately to try to evade—at least to some degree—the scope of regulation will be an ongoing challenge, and one that we already face in the buy-to-let market.
Bob Blackman (Harrow East) (Con)
I thank my hon. Friend for the consultative way in which she has guided the Bill through the House. Having gone through the Lords and now reached Report, the Government have tabled four new clauses and a substantial number of amendments. What consideration is she giving to the consultation that will be needed on those new clauses with the organisations involved, to make sure we get the regulations right when she brings forward the secondary legislation?
Dehenna Davison
I am grateful to my hon. Friend not only for his intervention but for the constructiveness and diligence with which he conducted himself in Committee, which we can all agree was done with the best of intentions to get the best for social housing tenants. He is right that we need to make sure the process is done correctly, which is why we will be working with the sector and key stakeholders to get this absolutely right, while committing to ensuring that professional qualifications are required for the executives and managers of social housing providers to make sure that tenants get the experience they deserve.
The qualification requirements will be delivered through the competence and conduct standards, for which we have already made provision in the Bill. The new provision will require housing managers and senior housing executives to have, or to be working towards, a housing management qualification at levels 4 and 5 respectively. Qualifications must be independently regulated by Ofqual or, in the case of senior housing executives, can be a foundation degree. Relevant staff who are not already qualified will have to enrol on and complete the appropriate qualification within a specified timescale, which will be set following consultation.
We are setting qualification requirements for housing managers and executives because they are responsible for, and are best placed to drive, the delivery of high-quality professional services through their management of frontline housing officers, repairs and maintenance staff and customer service staff; through the day-to-day decisions they make about the delivery of services to tenants; and, crucially, through their ability to drive culture and change across their organisations. It was imperative that we found a way to introduce requirements that will not increase the risk of reclassification. By tightly defining the roles in scope and the qualifications that will be required, and by enabling staff to gain qualifications in post, we have been able to achieve that.
Importantly, the new requirement for managers and senior executives will work in tandem with the competence and conduct standards, which already require that the standards will have a broad application, requiring landlords to take appropriate steps to ensure all their staff involved in the provision of housing management services, including housing officers and repairs and maintenance staff, have the skills, knowledge, experience and behaviours needed to deliver professional, high-quality services to tenants.
The combination of competence and conduct standards for all staff and qualification requirements for all housing managers and senior executives will drive change throughout organisations. Together, they will deliver the transformation of the sector’s culture, staff professionalism and service standards that we all want to see.
New clause 3 adds requirements relating to the production and publication of an inspector’s report following the completion of an inspection. Currently, following the completion of an inspection carried out under section 201 of the Housing and Regeneration Act 2008, the inspector is required to produce a report and the regulator is required to share that report with the registered provider. The new clause provides that, instead, the inspector must produce a summary of findings, as well as a report, on any matters specified by the regulator. The regulator will then be required to share the summary and any report with the provider, and it may also publish all or part of these documents.
Crucially, new clause 3 gives the regulator the flexibility to decide, on a case-by-case basis, whether a full inspector’s report is necessary or whether a shorter summary of the inspector’s findings is sufficient. The changes also allow the regulator to specify matters for the inspector to report on, allowing it to use its expertise and understanding of a provider’s risks to determine the nature of inspections that should be carried out. The regulator continues to develop its approach to inspections and will work closely with the sector in this process.
New clause 2 and Government amendments 2 and 3 will give the ombudsman explicit statutory power to issue and publish guidance on good practice, alongside the power to order landlords to complete a self-assessment if the ombudsman has received a relevant complaint about the landlord. We believe these amendments are necessary in the light of the recent tragic case of Awaab Ishak. The housing ombudsman can play an important role in raising awareness of the key issues it sees within the complaints it receives, such as on damp and mould. This power will enable the ombudsman, following a complaint, to challenge social landlords to consider and improve their service to residents by ordering them to complete a self-assessment against the good practice guidance. This provides greater weight to the good practice guidance and should prevent further issues from arising. It will also mean that a great number of issues should be resolved at an earlier stage.
Government amendments 4 to 10 and 15 to 34 concern housing moratorium procedures, as set out in the 2008 Act, and restrictions on insolvency procedures imposed by the Housing and Planning Act 2016. The powers of the Regulator of Social Housing in the event of a provider experiencing financial difficulty offer important protections for the social housing sector and protect social housing tenants by helping to ensure they can remain in their home. The housing moratorium provides time for the regulator to work with a provider and secured creditors to produce the best outcome in such a scenario.
It is essential that the legislation works as effectively as possible, and that we use this opportunity to make some technical changes that will help to ensure this. Amendment 4 will ensure there is no gap between the occurrence of an insolvency-related event and the beginning of a moratorium so that a provider cannot dispose of land. Amendments 6 and 8 make it clear that the regulator can both extend the moratorium and impose a further moratorium where it has made inquiries but has been unable to locate any secured creditors of the registered provider.
Amendment 9 relates to the process by which proposals about the future management of a registered provider made during a moratorium are put in place. It clarifies how the process works in a scenario where the regulator is unable to locate any secured creditors to agree the proposals. Not every registered provider will have secured creditors and, as such, the amendments will ensure that legislation continues to work effectively and that processes are clear in those cases.
Amendments 15 to 34 concern the giving of notices. They contain provisions on the signature and content of notices, and they provide powers for the regulator to deal with notices that have not been validly signed. Amendment 35 is a technical amendment relating to data protection, and it introduces a provision that clarifies the relationship between data protection legislation and part 2 of the 2008 Act.
I hope hon. Members see the importance of all the Government amendments before the House today and will support them, because I firmly believe they will make the Bill even stronger to deliver the high standards that we are all looking for in social housing and that we know all tenants deserve.
Matthew Pennycook (Greenwich and Woolwich) (Lab)
I rise to speak to the new clauses and amendments in my name. I join the Minister in welcoming Grenfell United, Shelter and others to the Public Gallery.
There is a shared recognition across the House that the lives of far too many social housing tenants are blighted by poor conditions and that, although there are good social landlords, too many still routinely fail their tenants. That shared understanding has underpinned the consensus across both sides of the House that the Bill is both necessary and urgently required.
Since the moment the Bill was finally published in October 2022, the Opposition have been clear that we support it and that we wish to work constructively with the Government to see it make rapid progress. Yet at every stage, we have been at pains to convey our strong feeling that the Bill could be strengthened in a number of areas, and to urge Ministers to approach our suggested improvements with an open mind and in the constructive spirit in which they were offered. That was how we approached Committee, and it is why we worked with the Minister to secure the Bill’s speedy passage out of Committee.
We pressed a range of amendments in Committee, including on three key objectives: the need to expedite the professionalisation of the sector; the need to ensure that the Bill provides, in practice, for the Ofsted-style inspections regime to which the Government are ostensibly committed to introducing; and the need to further empower social tenants. I shall take each in turn.
On professionalisation, we welcome the concession made by the Government in the other place regarding professional training and qualifications, and the resulting addition of clause 21 to the Bill, but we pressed in Committee for that clause to be strengthened so that it not only provides the regulator with the ability to set standards on the competence and conduct of individuals involved in the management of social housing, but includes requirements to ensure social housing managers have appropriate objective qualifications and expertise. Our reasoning was simple: as a result of the progressive residualisation of social housing over the past 40 years, it is now overwhelmingly let to those most in need and often least able to challenge poor conditions, not least because the chronic shortage of social housing in England leaves most with few, if any, options to move if they receive an unprofessional service from their landlord.
The circumstances leading up to the fire at Grenfell Tower in June 2017 and those surrounding the death of Awaab Ishak in December 2020, as well as countless other instances of negligence and neglect that will have gone unreported, make perfectly clear what can happen when staff do not listen to their tenants, do not treat them with respect, do not respond to their concerns with empathy and understanding, do not deal appropriately with their complaints, and in some instances actively discriminate against them. In our view, it is therefore essential that those managing the homes of social tenants are properly qualified to do so; that they have undergone the necessary training to ensure that they are treating tenants fairly and providing them with the necessary support; and that they undergo continuous professional development—just as we expect those in other key frontline services to do.
In Committee, the Minister stressed the Government’s concern that giving the Secretary of State the power to stipulate mandatory qualifications for social housing managers through regulation could risk the Office for National Statistics reclassifying housing associations to the public sector. We never dismissed such a risk out of hand, but neither were we convinced it was an impediment to strengthening clause 21, not least because we have never seen any evidence that suggests that mandating qualifications would automatically trigger a reclassification. To underscore how strongly we felt about using the Bill to expedite the professionalisation of the sector, we tabled new clause 5. However, true to the commitment that the Minister gave in Committee to explore in good faith whether there was scope to go further without risking reclassification, the Government tabled amendment 47 and others just before the deadline on Friday afternoon.
The Minister mentioned frontline social housing managers, unless I am mistaken. While we would welcome an assurance from the Minister that the definition of “relevant manager” in that amendment and others encompasses all those in frontline roles involving extensive resident engagement, such as neighbourhood housing, customer service and antisocial behaviour managers, and also a commitment that the Government will set out a timeline for implementation in the not too distant future and that the new burdens doctrine will apply in relation to local authorities, we are satisfied that amendment 47 and others address the concerns we raised in Committee. On that basis, we are happy to support them. I take the opportunity to once again praise Grenfell United and Shelter for helping to convince the Government to make the concession.
Turning to the issue of inspections, we welcomed the concession made by the Government in the other place to impose a duty on the regulator to publish, and take appropriate steps to implement, a plan for regular inspections. I once again commend the efforts of Lord Best and Grenfell United in achieving that outcome. However, while recognising the need for the regulator to have a significant degree of discretion in formulating that inspections plan, we pressed in Committee for clause 29—which was then clause 28—to be made more prescriptive in two important respects. First, we believe it is essential that the Bill makes it clear that all registered providers, large or small, will be subject to inspections by the regulator. Secondly, we believe it is essential that the Bill ensures that every registered provider will be subject to routine inspections.
In resisting our amendment in Committee, the Minister made two principal arguments: first, that it would be unreasonable to bind the regulator’s hands by specifying that the inspections plan must include those two minimum requirements; and, secondly, that basing the system of inspections on a provider risk profile determined principally by size will ensure those landlords at greatest risk of failing tenants are accorded greater oversight. In our view, both those arguments are flawed.
On the argument that we should not bind the regulator’s hands, the Minister must surely appreciate that the Government cannot on the one hand commit to introducing an Ofsted-style inspections regime, and then resist specifying any minimum expectations as to how that regime should operate, however reasonable they might be. If the Government’s intention were to give the regulator unlimited operational flexibility in relation to the inspections plan, they should have been clear about that fact, rather than promising tenants that they would introduce an Ofsted-style regime, with the obvious connotations that that has in terms of universal coverage and a defined regularity of inspection.
On the argument that a risk profile based on a size threshold will best ensure tenants are protected, the Government have not provided any evidence as to why they believe that landlords with a stock of 1,000 homes or more are at the greatest risk of failing in terms of standards. We appreciate entirely the case for prioritising larger landlords with a stock of over 1,000 units, given that that will cover the vast majority of social homes in England, but there is no evidence to suggest that landlords with fewer than 1,000 homes are less likely to fail their tenants; indeed there are cases listed right now on gov.uk of such smaller landlords having been served regulatory notices for breaches. Nor can we understand, given that these smaller landlords are responsible for just 4% of England’s social housing stock, what the Government believe are the benefits of allowing them to escape regular inspection, given that doing so is unlikely to significantly reduce the burden on the regulator and carries the obvious risk that one or more smaller providers will fail their tenants as a result of the lack of oversight.
Rebecca Long Bailey (Salford and Eccles) (Lab)
Greater Manchester and, indeed, the rest of the country was shocked and horrified by the tragic death of Awaab Ishak in Rochdale. His little lungs had been exposed to deadly damp and mould in the flat that he lived in with his family. They battled against it for a number of years, and even filed disrepair claims against the housing association. I think we are united in this House that, in one of the richest economies in the world, that should never have happened. I cannot imagine the pain and heartache that Awaab’s family must feel every single day. Today, we embark on the first step towards making sure that no family should ever have to experience what they have experienced.
My hon. Friend the Member for Rochdale (Tony Lloyd) cannot be with us in person owing to his ongoing treatment, but it should be noted that he has worked relentlessly with campaigners, with Government and with me and other colleagues across the House to ensure that the robust amendments needed to the legislation were made to honour Awaab’s name and ensure the health and safety of all social housing tenants.
I also thank the amazing organisations that have been the ultimate driving force of the Awaab’s law campaign: the Ishak family, their legal team, the Manchester Evening News and change.org for spearheading the campaign, and Shelter and Grenfell United for committing such energy, compassion and knowledge.
Very briefly, the campaign has four clear asks: to require social landlords to investigate the causes of damp and mould within 14 days of complaints being made, and report findings to tenants; to give social landlords seven days to begin work to repair a property where a medical professional has flagged a risk to health; to ensure bids for new social housing properties are treated as a high priority if a medical professional has recommended a move; and to mandate social landlords to provide all tenants with the information that they need, in simple English and other languages, on their rights, on how to make a complaint and on what standards they can expect.
I thank the Secretary of State, the Minister and their team for speaking directly with the Ishak family, with campaigners and with my hon. Friend the Member for Rochdale and me, and for tabling new clauses 1 and 4, which help towards those key goals. Indeed, new clause 1 provides that the Secretary of State “must make regulations” that ensure that landlords have to remedy hazards such as mould and damp in a timely fashion. Although I appreciate that the Government want to consult on the final form of those regulations, I cannot stress enough that they must include provisions, as the Awaab’s law campaign set out, to set clear minimum safety standards, clear minimum timeframes for remedying any hazards, and an urgent priority move if the property is found to be unsafe. I am confident the Secretary of State will agree those are not unreasonable requests, and I hope that he will work hard throughout the consultation process to ensure that they are reflected in the final regulations.
I also support the amendments tabled by the shadow Minister, my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook), which seek to strengthen new clause 1 by protecting tenants from repercussions when calling on the new obligations, and by expanding court powers. I welcome, too, that Government new clause 4 gives direction that registered social housing providers must provide their tenants with information about their rights in making complaints. That is good, but it does not specifically commit to ensuring wider language accessibility. I trust that the Secretary of State and the Minister will address that point in the regulations.
In complement to the Awaab’s law campaign, I also support new clause 6, which embodies Greater Manchester Law Centre’s calls to make social housing providers subject to freedom of information requests. Without that change, social housing providers can and have refused to be transparent about important elements of their business practices, even though they are receiving public money in rent and support.
I also support new clause 5 and Government amendment 47 which detail that social housing managers must gain professional qualifications to protect residents and raise standards in the sector. That is a commitment that many have wanted to see since the Grenfell tragedy. I also support new clause 8, tabled by my hon. Friend the Member for Mitcham and Morden (Siobhain McDonagh) as chair of the all-party parliamentary group for households in temporary accommodation. The new clause would enable the regulator to set standards for supported and temporary accommodation. I know that my hon. Friend will speak at length about that in due course, but it is an important change. I am a member of the all-party group, and research that the group commissioned, led by Justlife and the Shared Health Foundation, found widespread and horrific examples of the conditions in which temporary accommodation residents were forced to live. In many cases, their accommodation was not fit for human habitation but they were frightened to say anything about it because of the risk of being made homeless. That is unacceptable.
I hope that the House will support all those amendments today, continuing the productive cross-party ethos that has been embodied in the passage of the Bill. It is important to state, however, that this legislation is one small element in a national moment of reckoning on the state of rented housing in this country. Citizens Advice suggests that more than half of private renters in England are struggling with damp, mould, excessive cold or a combination of those factors. Some 1.6 million of those affected are children. Private renters do not have access to the housing ombudsman for their complaints to be investigated independently, so millions of suffering families have no voice. They are trapped in homes that will ultimately put their lives at risk. I ask the Government to urgently introduce an equivalent Awaab’s law for the private rented sector alongside an urgent, state-funded, national housing mission to build new social homes and bring existing ones up to a decent standard.
Helen Hayes (Dulwich and West Norwood) (Lab)
I rise to speak in support of new clause 7. First, I want to put on the record my role as a vice-president of the Local Government Association.
New clause 7 would protect the tenancy rights of social housing tenants who have to make an emergency move from their home because they or a member of their household are threatened with violence. It would be a small change in the law, but it would make a big difference. Losing the right to a secure, affordable home is a price that no one should have to pay for being a victim of crime. Yet that is what happens to far too many people who have to make an emergency move because the police say that it is not safe for them to stay in their home.
It is what happened to my constituent Georgia, an NHS employee, who had been very happy living in her housing association home with her children for nine years. One day, neighbours told Georgia that while she was at work, there had been loud banging on her door at home. She eventually coaxed her teenage son into telling her that he had been threatened by gang members. Georgia reported that to the police who told her that the matter was extremely serious, that they thought her son’s life was now at risk and that she needed to leave her home immediately. So Georgia approached her local council who provided temporary accommodation in another borough. At that point, Georgia effectively joined the bottom of the housing waiting list.
The current priority needs system does not automatically award high priority for being a victim of a threat of violence. In the context of an intense shortage of social housing, that meant that Georgia effectively faced a wait of many years to be offered a new home comparable to the one she had been forced to leave. In the meantime, after she had been in temporary accommodation for six months, her housing association began the process of formally ending her tenancy.
Helen Morgan (North Shropshire) (LD)
I apologise to you, Mr Deputy Speaker, and to the hon. Member for Dulwich and West Norwood (Helen Hayes) for mishearing the names earlier. I add my support for Georgia’s law, and draw the attention of the House to the fact that I have recently been appointed as a vice-president of the Local Government Association.
I rise to speak to new clause 9 and amendments 41, 42 and 43, which stand in my name. On Second Reading, I put on record that my Liberal Democrat colleagues and I welcome the Bill. We will be supporting it, despite the fact that it has taken a long time to arrive, and we also broadly welcome the amendments tabled by the Government today. The amendments that I have tabled and will speak to today are intended to improve the legislation in the spirit of co-operation, and to ensure that there is fairness and accountability for people living in social housing and that, ultimately, everyone has a decent and safe home to return to at the end of each day.
Data from Shelter estimates that there are over 270,000 homeless people in the UK, and that a significant cause of those cases is a lack of social housing provision. Tragically, many people who become homeless find that there are no available social homes, and are often placed on long waiting lists for safe, permanent accommodation. Sometimes, they have nowhere to turn to other than charities, relatives or, indeed, their local Member of Parliament. Housing issues are one of the biggest and, frankly, most upsetting topics in my casework, and I know that my experience is not unusual among colleagues.
Amendment 41 would give the regulator the additional objective
“to safeguard and promote the interests of persons who are or who may become homeless”
due to a lack of social housing provision. On its own, that measure would not eradicate homelessness, but it would create an additional focus on finding a solution to what is an unacceptable situation. This country has a chronic shortage of social housing, which is forcing families to live in dangerous and unsuitable conditions. Just this week, while I was out canvassing in my constituency, I chatted on the doorstep to a lady whose daughter uses a wheelchair, but they do not have any level access to their house. Her need has been assessed and she is in the gold band, at the top of the list for an alternative, but there is simply nothing available in North Shropshire at the moment that meets her family’s requirements. I have been dealing with a similar situation in relation to a constituent with breathing difficulties whose flat has just been treated for mould. Again, she has been given the right priority for a move with her family, but no suitable alternatives are available.
With nearly 1.2 million people on social housing waiting lists, it is not surprising that we all have examples in our casework such as those I have cited. I have spoken previously in this place about ensuring that when social housing is sold under the right to buy, the housing association or local authority receives 100% of the sale proceeds, in order to increase the likelihood of maintaining social housing stock at at least current levels. Such an amendment would be outside the scope of today’s Bill, but amendment 42 would require the regulator to provide a report to the Government about the adequacy of social housing stock, and to
“make recommendations to the Secretary of State on how to ensure that the provision of social housing is…sufficient.”
It would mean that this House has the opportunity to understand the state of our social housing stock, and to hold the Government of the day to account in ensuring that that stock is adequate.
Amendment 42 would also require the regulator to report to Government on progress with the removal of cladding and, again, make recommendations to ensure that progress is finally being made on that critical issue for people living in social housing. The tireless campaigning by so many after the Grenfell tragedy is the reason we are all here today debating this Bill. In my view, the Bill is a good opportunity to make sure that the necessary steps are being taken to ensure that social housing is safe and that progress is properly scrutinised. I do not think that these measures are onerous in nature. They would provide valuable information to the Government, and I hope that the Minister will consider accepting amendment 42, which I intend to move formally later.
Moving on to amendment 43, I note that in its current form, the Bill presents a discrepancy in notice periods before the Regulator of Social Housing conducts a survey. The registered provider of the premises is granted 48 hours, while the tenant is given a notice period of only 24 hours. Amendment 43 would ensure that registered providers and occupiers of the premises were treated equally. A similar amendment tabled by colleagues in the other place had cross-party support. The amendment would help to ensure parity in the relationship between tenant and housing provider and would not place an additional onerous requirement on any party, so I urge the Minister to consider adopting it.
The Bill has been brought forward as a result of the terrible tragedies at Grenfell and, more recently, the harrowing death of Awaab Ishak. I welcome the Secretary of State’s intention to prevent a repeat of such incidents in the future. New clause 9 would allow the Government to ensure that the Bill achieves its objectives and improves the safety and quality of social housing both in its own terms and in comparison with the safety and quality of housing in the private rented sector. I echo the comments of the hon. Member for Salford and Eccles (Rebecca Long Bailey) on that point. The new clause provides an opportunity to identify areas for improvement and unforeseen consequences of a change in the regulatory environment.
My Liberal Democrat colleagues and I welcome this legislation. We fully support the objective of empowering those living in social housing to ensure that their homes are decent and safe, and we have put on record our view that we would have liked to have seen the Bill sooner. I urge the Government to adopt new clause 9 and amendments 41, 42 and 43. It is my view that they would improve the legislation in a manageable way and ensure that we improve not only the condition, but the availability of social housing and that we hold the Government of the day to account in making these improvements happen in reality.
Siobhain McDonagh (Mitcham and Morden) (Lab)
I rise to support new clause 8, which stands in my name and that of a number of other Members. The amendment is simple. It would make the regulator responsible for ensuring that local authorities enforce the homelessness code of guidance for temporary accommodation. It proposes that local authority housing departments are inspected in the same way as schools and children’s social services departments are inspected by Ofsted to ensure that the standard required by the guidance is being met and that families who have been accepted as homeless, but cannot be placed in a permanent home due to shortage, are provided with suitable temporary homes.
Temporary accommodation is defined formally as being provided to people who are either awaiting the outcome of a homelessness application under section 188 of the Housing Act 1996 or waiting for an offer of suitable permanent accommodation. I find it hard to believe that any Member of this House who represents a constituency in London, the south-east, Manchester, Birmingham or Newcastle is not aware of the sort of accommodation in which homeless families are often placed in an emergency. With access to permanent social housing and private rented properties at an all-time low, councils are under extreme pressure to find temporary accommodation. The best national estimates we have are that around 1.6 million households are waiting for social housing. Over the past 40 years, the overall social housing stock has declined by 1.4 million homes.
In my authority of Merton—not known for being under the extreme pressure of other London boroughs—last year the council only had 72 two-beds, 34 three-beds and two four-bedroom units to offer all year. At the same time, the number of families in temporary accommodation has risen by 41% since April, from 243 to 343 households. Merton is not alone or unusual. Most London boroughs count their homeless families in temporary accommodation in the thousands. Tonight, there will be 99,270 families, including 125,760 children, sleeping in temporary accommodation at a massive cost of £1.6 billion. That is an increase of 71% between 2012 and 2018, and a further increase of 41% between 2018 and 2022. Hard-pressed local authorities are seeking out ever more temporary accommodation that is uninspected and further away. The code of guidance specifies the nature and location of temporary accommodation. We all know that those are laudable aims, but they are not being met.
Throughout my speech, I will provide examples of where the code of guidance has specific standards that are not being met in practice. I want to make it clear that I do not blame councils for the situation they find themselves in. They are in a bind: they do not have access to enough social housing units, their funding has been consistently cut, they do not have access to the number of environmental health officers they need, and they have a never-ending list of homeless families that they are desperate to house. This is a toxic mix with tragic consequences.
David Simmonds
The hon. Lady refers to securing children’s education during a move. I have constituents who have moved into the area, often after fleeing violence in other places, for whom that has been an issue. Does she agree that the proposed regulation of multi-academy trusts might be able to address that? At present, local authorities do not have any powers to direct an academy to take a child in order that they can sit examinations. If we restored that power to local authorities or introduced such a requirement on academies as an element of inspection, it would at least guarantee that parents who have to move could find a school in the new area at which their child could sit their GCSEs or A-levels.
Siobhain McDonagh
I would have no problem with changing the rules for multi-academy trusts, but I do not think that that alone would resolve the difficulty. Most schools would be loth to take a child in year 11 or year 13 because they would be in the second year of their exams and the curriculums would not match. Schools of all statuses are concerned about their performance.
The 26,000 families I described are forced to travel an estimated 400,000 miles each year to access temporary accommodation—the equivalent of going 16 times around the globe. On one day at the civic centre in my constituency, the only temporary accommodation that could be offered to families was in Telford, 170 miles away from their home borough, and that is not unique. How can someone possibly start putting their life back together when they are 170 miles away from the borough they have been living in? And that was in Merton, which does not have the same problems as other London boroughs.
Across the UK, as I said, the total temporary accommodation expenditure has reached £1.6 billion, of which three quarters was funded by housing benefit. That is not money well spent. If we moved each family out of temporary accommodation and into social rented housing, we would save £572 million a year. As the Public Accounts Committee put it, not only is temporary accommodation
“often of a poor standard”,
but it
“does not offer value for money.”
I am aware that the Government have supported the Bill promoted by the hon. Member for Harrow East (Bob Blackman), which would try to raise standards in exempt accommodation, but it is important to note that exempt accommodation is distinct from temporary accommodation. Exempt accommodation provides accommodation with extra support for more marginalised groups such as recent prison leavers, care leavers, those fleeing domestic violence and homeless people with substance dependence or mental health issues. Exempt accommodation is a problem of its own, with landlords exploiting the housing benefit system to profit from vulnerable people, but it should be noted that temporary accommodation is different. It represents people who are either awaiting the outcome of a homelessness application under the 1996 Act, or awaiting an offer of suitable accommodation.
I will finish by saying that, after nearly 30 years of Ofsted, we know that unless a school knows that Ofsted is coming, problems begin. A substantial proportion of outstanding schools that were not inspected for five years have recently been graded as needing improvement. Organisations—the best organisations—need to know that somebody is coming, and in a reasonable time. The same is true of councils that are meant to be ensuring that the standards and code of guidance are met. The Government clearly think that schools and children’s social services departments should be independently inspected. What is different about temporary accommodation for homeless families? The Government provide a national curriculum for schools. They do not just say, “That’s okay—I’m sure the curriculum is being followed.” They actually check to see that it is happening. We can talk about what we are going to introduce, such as different pieces of guidance for councils, but unless local authority housing departments are inspected in the same way that schools and children’s social services departments are, we can never expect the standards in temporary accommodation to be safe.
Mike Amesbury (Weaver Vale) (Lab)
I welcome the opportunity to speak again on this important Bill. I do so as a vice-president of the Local Government Association, and as a former shadow Housing Minister.
I would like to focus my remarks on the amendments relating to inspections. I also want to reiterate the importance of tenant empowerment, on which the shadow Minister, my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook), and the Minister spoke eloquently. I think it is clear that, across the House, this legislation is considered to be highly significant, highly needed and certainly long overdue.
I welcome, as do other Members across the House, the constructive approach to the Bill, which will address the issues that matter to local authorities, housing associations, residents and, vitally, tenants. It will improve their access to swift and fair redress through stronger and more proactive consumer and citizen regulations. I hope that the cross-party work with key stakeholders will ensure that the Bill is effective and addresses the real issues of tenants, including through the professionalisation of housing management in the social housing sector. A number of new clauses and amendments in that regard have cross-party support.
I have said throughout the progress of this Bill that it is the voices of tenants and residents that should take centre stage. It is vital that we have a system of social housing regulation that puts the rights and interests of residents at its heart, and that deals with the historical stigma that social tenants have faced for years, as was highlighted by Grenfell United, by Shelter and, in tragic circumstances recently, by Awaab’s family.
Like the shadow Minister, my hon. Friend the Member for Greenwich and Woolwich, I would like matters to go further, to empower tenants and ensure that their voices will never again go unheard. I was disappointed, as was my hon. Friend, that the Government rejected a number of amendments in Committee. I therefore strongly support amendments 36 and 37 and new clause 6, tabled by my hon. Friend, which would ensure that much-needed representation of tenants on the advisory panel.
Mr Clive Betts (Sheffield South East) (Lab)
The Levelling Up, Housing and Communities Committee held an inquiry into social housing regulation. I think we are waiting for a Government response to our report from several months ago, although we have had one from the housing ombudsman and the regulator. It was far from clear whether inspections by the regulator will go further than simply inspecting the framework of the organisations, instead going into properties and looking at what is done. The regulator had not quite taken that step in its response.
Mike Amesbury
As always, I have the utmost respect for the Chair of the Select Committee, and I look forward to the Minister’s reply on that powerful and informed point.
We are in a social housing crisis. Tenants deserve so much better—the very best public housing that this country could provide. That is where we should be going, whether the Government of today or a Labour Government in the not-too-distant future. Tenants deserve so much better. We should not hold back when it comes to the safety, health and wellbeing of tenants and residents. We must make the most of the Bill and act collectively with key stakeholders so that we do not have a repetition of the disasters of the not-too-distant past, such as the 72 people who lost their lives in the Grenfell tragedy and the most recent tragic death of Awaab, which has been referred to across this Chamber—my heart goes out to his family.
Everyone should feel safe in their home. It should be a place of sanctuary, not anxiety and worry. Let us not waste this opportunity as the Bill goes through its passage in the House. Let us be bold. Let us work together in this place.
Dehenna Davison
With the leave of the House, I will try to address the concerns raised by Members across the House. First, I thank hon. Members with all sincerity for their thoughtful and considered debate, not just today but throughout the passage of the Bill. We have dealt with things in a constructive manner, ultimately to try to strengthen the Bill to its fullest extent and provide the maximum protection for social housing residents.
I will seek to answer as many questions as I can, starting with Awaab’s law. I am grateful to the hon. Member for Salford and Eccles (Rebecca Long Bailey), my hon. Friend the Member for Heywood and Middleton (Chris Clarkson), and the hon. Member for Rochdale (Tony Lloyd), who is not here today, for their constructive engagement following the devastating case of Awaab, which touched them and many of us in this House incredibly personally.
I thank the hon. Member for Greenwich and Woolwich (Matthew Pennycook) for amendments (a) to (f) to Government new clause 1 relating to Awaab’s law. However, we are clear that our current proposals already sufficiently achieve what the hon. Member is seeking to do. Prescribed requirements are already defined in new clause 1 and therefore do not need to be defined in the alternative way proposed. Moreover, new clause 1 already gives us the power to make provision ensuring that social housing providers’ duty to meet requirements cannot be overridden or circumvented by the terms of the lease. We also think it important to be able to make provision enabling the landlord to inspect the property to ascertain whether there are any hazards present, provided reasonable notice is given if it is to be under an obligation to rectify prescribed hazards.
As I have made clear, we will consult on Awaab’s law within six months of the Bill achieving Royal Assent. The consultation will inform the detail of the regulations that the Secretary of State will set for Awaab’s law, including timescales and details on the prescribed hazards themselves. I hope that will reassure the hon. Member for Salford and Eccles, who raised concerns on that point. I reiterate the importance of setting requirements that deliver the best outcomes for residents, while being achievable, proportionate and evidence-based. I assure the House that with new clause 1, landlords will have no choice but to comply with new regulations and to take action to ensure homes are free of hazards that pose health risks to their residents. I therefore hope the hon. Member for Greenwich and Woolwich will withdraw his amendment.
On professionalisation, on which many Members expressed their concerns and passion, I am incredibly grateful for the broad support across the House for our amendment. I believe our approach is the right way to drive up professional standards in the sector, but we will of course carry out further engagement with the sector, including landlords, tenants and professional bodies, as we develop our approach to implementation. I hope that will reassure my hon. Friend the Member for Harrow East (Bob Blackman), who is no longer in his place but who raised that point earlier.
New clause 6, tabled by the hon. Member for Greenwich and Woolwich, seeks to extend the Freedom of Information Act 2000 to registered providers of social housing. I am grateful to him, and to the hon. Members for Hammersmith (Andy Slaughter) and for Salford and Eccles for raising their concerns. I think we can all agree that increasing transparency in the sector is hugely important, but I do not believe that new clause 6 is necessary or advisable at this stage. Development of the access to information scheme, one of the Government’s commitments in the social housing White Paper, is already well under way. Through the scheme, private registered providers will have similar obligations as they would under the Freedom of Information Act. The tenants of providers, and their representatives, will be able to request information from their landlords in much the same way. I am also concerned—I am sorry to raise this point on another issue—that extending FOI to registered providers would increase the level of Government control exercised over the sector and may lead to the Office for National Statistics reclassifying housing associations. That is something we are incredibly concerned about.
On new clause 7, relating to Georgia’s law, I want to put on the record my thanks to the hon. Member for Dulwich and West Norwood (Helen Hayes) for campaigning on this matter and for raising the really sad case of Georgia and her family. I am grateful to her for engaging with me in a really constructive fashion as we sought to find a middle road that the Government could accept in line with the new clause she is proposing. Unfortunately, we are unable to support it today, and I will explain why that is the case. I note the hon. Lady’s additions to bring assured tenancies within the scope of her new clause, but I reiterate my concern, raised in Committee, about the new clause itself—if not its intent, which I think we can all agree is incredibly admirable. I remain concerned that binding housing providers with policies that remove flexibility to choose who they give tenancies to is not the right course of action. Those decisions are devolved for good reason.
Helen Hayes
Does the Minister accept the facts of the situation, which are as follows: the tenants who would benefit from this provision remain social housing tenants for the first six months that they are in temporary accommodation? We really are not talking about a shifting of priority among people who are on the housing waiting list; we are talking about rehousing existing tenants. The home that they vacate would then become available much more quickly precisely for those people who are genuinely on the housing waiting list.
Dehenna Davison
The hon. Lady raises a really strong point. As I outlined, our concern is about removing flexibility from social housing providers. Every social housing provider and every area faces very different challenges. We want to ensure that they have the maximum flexibility to deal with those challenges. That is why, unfortunately, we cannot support new clause 7, but I thank her again for campaigning on this issue.
New clause 8 was tabled by the hon. Member for Mitcham and Morden (Siobhain McDonagh), and I am grateful to her for meeting me to discuss her proposal further following Committee. I know how passionate she is about this issue, and her expertise has certainly brought a great deal to my knowledge and understanding of some of the problems faced by residents of temporary accommodation. She is right to say that we must drive up standards for all tenants, but what concerns me, as it did in Committee, is that this measure would be outside the scope of the Bill. We will certainly explore it with her to make sure that we drive up standards in temporary accommodation as well, but this Bill deals specifically with social housing, and we want to keep it tight to ensure that it achieves its desired aims.
Amendments 36, 37 and 38 deal with the advisory panel that will advise the regulator on a wide range of matters relating to social housing. As I said in Committee, I do want to see tenants at the heart of the changes we are delivering through the Bill—I am firmly committed to that—but I do not necessarily think the amendments are the best way to achieve that. The purpose of the advisory panel is to provide independent and unbiased advice to the regulator. I believe the separate resident panel that we have established is better placed to share views directly with the Government and Ministers. Its members have been asked to tell us what they think about our approach to improving the quality of social housing, and whether our interventions will deliver the changes that they want to see. We think that our approach is the right one.
A number of Members spoke about inspections, including the hon. Member for Weaver Vale (Mike Amesbury) and the shadow Minister, the hon. Member for Greenwich and Woolwich. The introduction of regular consumer inspections will be a key part of the proactive consumer regulation regime. It will strengthen the regulator’s oversight of the sector, ensuring that he or she can identify issues early and take effective action when necessary. The system that we propose will be based on a robust risk profile, ensuring that when landlords are at the greatest risk of failure, or when such failure would have the greatest impact on tenants, they are subject to greater oversight. As the shadow Minister knows, we have already amended the Bill to require the regulator to publish, and take reasonable steps to implement, a plan for regular inspections. When developing the plan, the regulator will engage closely with the sector, including tenants, and it is right that we do not pre-empt that process.
Let me turn briefly to amendment 41, tabled by the hon. Member for North Shropshire (Helen Morgan). The Government are absolutely committed to preventing homelessness. Significant work has already been done to address this important issue, including the publication of the Government’s bold new strategy “Ending rough sleeping for good”. We are investing £2 billion in measures to deal with homelessness and rough sleeping over the next three years, and our work in this area is already making an impact. Since the introduction of the Homelessness Reduction Act 2017, more than half a million households have been helped to move into secure accommodation. I cannot accept the amendment, as I believe that the existing legislation can achieve the outcome that the hon. Lady is seeking.
Mr Betts
In an earlier intervention I mentioned the Select Committee’s report and the fact that we are still waiting for a Government response, several months later. One of the issues that arose was the need to address problems such as damp and mould in properties. Some housing associations and councils will need to regenerate whole estates substantially and probably rebuild them, but in doing so they will be hit by Homes England’s “no net additionality” rule. Homes England cannot fund any scheme that replaces poor homes with good ones if more homes are not provided. Will the Minister agree to look into that? It can be an obstacle to many important ways of addressing these problems.
Dehenna Davison
I am grateful to the hon. Gentleman for raising this issue, and for bringing his intense expertise to the debate. I will certainly do that, and I will chase up the response to the Select Committee’s report as well.
My hon. Friend the Member for Ruislip, Northwood and Pinner (David Simmonds) also brought considerable expertise to the debate, and I thank him for his support for the Bill. He asked about unscrupulous providers seeking loopholes. I hope I can reassure him by saying that we have deliberately designed the Bill to tighten the existing economic regulatory regime in order to prevent new types of provider from taking advantage of possible loopholes in the system and to ensure that we are future-proofing it against such issues.
I would like to thank hon. Members across the House who have spoken here today and particularly those who have been involved in the earlier stages of the Bill. Cross-party, this shows that we are all committed to driving up standards in social housing and to empowering tenants to ensure that we never again see an incident like the tragedies of Grenfell and Awaab Ishak. Together we have strengthened the Bill substantially, and with our amendments today will do so even further.
Question put and agreed to.
New clause 1 accordingly read a Second time, and added to the Bill.
New Clause 2
Power of housing ombudsman to issue guidance to scheme members
“(1) The Housing Act 1996 is amended as follows.
(2) In the italic heading before section 51, for ‘complaints’ substitute ‘ombudsman’.
(3) After section 51 insert—
‘51ZA Power of housing ombudsman to issue guidance to scheme members
(1) This section applies where a scheme is approved by the Secretary of State under Schedule 2.
(2) The housing ombudsman may issue to the members of the scheme guidance as to good practice in the carrying on of housing activities covered by the scheme.
(3) Before issuing, revising or replacing guidance under this section, the housing ombudsman must consult—
(a) the Regulator of Social Housing,
(b) members of the scheme, and
(c) individuals who may make complaints under the scheme.
(4) If the housing ombudsman issues, revises or replaces guidance under this section, the housing ombudsman must publish the guidance, the revised guidance or (as the case may be) the replacement guidance.
(5) Subsection (7) applies if—
(a) an individual makes a complaint against a member of the scheme,
(b) the complaint is made under the scheme or the conditions in subsection (6) are met in relation to the complaint, and
(c) it appears to the housing ombudsman that the complaint relates to a matter to which guidance issued by the ombudsman under this section relates.
(6) The conditions referred to in subsection (5)(b) are that—
(a) the complaint is made to the member of the scheme,
(b) the complaint is one that the individual could subsequently make under the scheme, and
(c) the individual has notified the ombudsman about the complaint.
(7) The housing ombudsman may order the member of the scheme to—
(a) assess whether the member’s policies and practices in relation to the matter mentioned in subsection (5)(c) are consistent with the guidance issued by the ombudsman under this section in relation to that matter, and
(b) within a period specified in the order, submit to the ombudsman a written statement of the results of the assessment.
(8) If a member of the scheme fails to comply with an order under subsection (7) within the period specified in the order, the housing ombudsman may order the member to publish in such manner as the ombudsman sees fit a statement that the member has failed to comply with the order.
(9) If a member of the scheme fails to comply with an order under subsection (8), the housing ombudsman may—
(a) take such steps as the ombudsman considers appropriate to publish what the member ought to have published, and
(b) recover from the member the costs of doing so.
(10) In this section, “the housing ombudsman” means the housing ombudsman appointed in accordance with the scheme.’”—(Dehenna Davison.)
This new clause confers a power on a housing ombudsman to issue to scheme members guidance as to good practice in the carrying on of housing activities. The new clause also provides that in certain circumstances where a complaint is made against a scheme member the housing ombudsman may order the scheme member to assess whether its policies and practices in relation to a matter to which the complaint relates are consistent with the guidance.
Brought up, read the First and Second time, and added to the Bill.
New Clause 3
Action after inspection
“(1) The Housing and Regeneration Act 2008 is amended as follows.
(2) In section 202 (inspections: supplemental), omit subsections (1) to (3).
(3) In section 203(12) (definition of ‘inspector’), after ‘this section’ insert ‘and section 203A’.
(4) After section 203 insert—
‘203A Action after inspection
(1) After an inspection of a registered provider is carried out by an inspector under section 201, the inspector must produce—
(a) a written summary of the inspector’s findings, and
(b) a written report about any matters specified by the regulator.
(2) The summary and any report must be in the form specified by the regulator.
(3) The regulator may specify matters, or the form of a summary or report, for the purposes of inspections generally or for the purposes of a particular inspection or description of inspection.
(4) The regulator must give the registered provider a copy of the summary of the inspector’s findings.
(5) The regulator must also give the registered provider—
(a) a copy of the inspector’s report, or
(b) a notice confirming that no matters were specified for the purposes of subsection (1)(b).
(6) The regulator may publish—
(a) all or part of the summary of the inspector’s findings,
(b) (where relevant) all or part of the inspector’s report, and
(c) related information.’”—(Dehenna Davison.)
This new clause replaces and changes provision about what the inspector and the regulator must do after an inspection. It enables the regulator to determine whether the inspector must produce a report (rather than just a summary of findings) and, if so, what matters the report must cover.
Brought up, read the First and Second time, and added to the Bill.
New Clause 4
Secretary of State’s duty to give direction about providing information to tenants
“(1) The Secretary of State must give a direction to the Regulator of Social Housing under section 197(2A) of the Housing and Regeneration Act 2008 about setting a standard under section 194B of that Act (standards relating to information and transparency) for the purpose of securing that registered providers of social housing are required to provide their tenants of low cost rental accommodation with information about—
(a) their tenants’ rights in connection with the low cost rental accommodation and with facilities or services provided in connection with that accommodation, and
(b) how their tenants can make a complaint against them.
(2) The Secretary of State must give the direction before the end of the period of six months beginning with the day on which this Act is passed.
(3) In this section—
‘low cost rental accommodation’ means accommodation which—
(a) is low cost rental accommodation (as defined in section 69 of the Housing and Regeneration Act 2008) provided by a registered provider of social housing, and
(b) is not low cost home ownership accommodation (as defined in section 70 of that Act);
‘tenant’, in relation to low cost rental accommodation, includes other occupiers.”—(Dehenna Davison.)
This new clause requires the Secretary of State, within 6 months of Royal Assent, to give a direction to the regulator for the purpose of securing that registered providers of social housing are required to provide their tenants of low cost rental accommodation with information about the tenants’ rights and about making complaints against their landlord.
Brought up, read the First and Second time, and added to the Bill.
New Clause 7
Regulator duty to ensure continuity of secure and assured tenancy in cases of threat to safety
‘(1) The Housing and Regeneration Act 2008 is amended as follows.
(2) After section 92K insert—
“92KA A Duty to ensure continuity of secure and assured tenancy in cases of threat to safety
(1) Duty to ensure continuity of secure and assured tenancy in cases of threat to safety
(a) a registered provider of social housing has granted a secure tenancy or assured tenancy of a dwelling-house in England to a person (whether as the sole tenant or a joint tenant), and
(b) the registered provider is satisfied that there is a threat to the personal safety of that person or of a member of that person’s household which means there is a risk to their personal safety unless they move.
(2) When subsection (1) applies, the regulator must ensure that the registered provider grants the tenant a new secure tenancy which is—
(a) on terms at least equivalent to the existing tenancy; and
(b) a threat of targeted youth or gang violence.
(3) In this section, a “threat to personal safety” means any threat of violence, including in circumstances of—
(a) domestic abuse where the perpetrator does not live at the same address as the victim;
(b) an escalating neighbour dispute;
(c) a threat of targeted youth or gang violence.
(4) In assessing the threat under subsection (1)(b), the registered provider must act in accordance with any relevant police advice provided to—
(a) the registered provider,
(b) the tenant, or
(c) any member of the tenant’s household.
(5) In the event that a registered provider is unable to ensure the provision of an appropriate new secure tenancy pursuant to subsection (2), the regulator must ensure that the registered provider concerned co-operates with other registered providers to ensure an appropriate new secure tenancy is provided in a timely manner.”’—(Helen Hayes.)
This new clause would require the regulator to ensure that tenants whose safety is threatened are granted alternative accommodation by their housing provider on equivalent terms to their existing tenancy. It also requires the regulator to ensure that a provider which is unable to provide appropriate alternative accommodation co-operates with other providers to do so.
Brought up, and read the First time.
Question put, That the clause be read a Second time.
Dehenna Davison
I beg to move, That the Bill be now read the Third time.
I thank the Department’s Bill team, its policy and legal officials, and my amazing private office team, who have worked hard to deliver this legislation through both Houses. I also thank the House authorities, parliamentary staff, Clerks, Doorkeepers and hon. Members on both sides of the House who have participated in the debate today and at previous stages.
In particular, I sincerely thank the hon. Member for Greenwich and Woolwich (Matthew Pennycook) for his time and his thoughtful contributions. Although we have disagreed about one or two aspects on the path to Third Reading, I hope that he will agree that the Bill delivers welcome change for millions of residents across the country by strengthening the powers of the regulator and empowering social housing tenants to hold their landlord to account.
The Bill is integral to this Government’s ongoing commitment to learning lessons from the Grenfell Tower fire and ensuring that such an appalling tragedy never happens again. I remain incredibly grateful for all the contributions from the community throughout, as well as their ongoing engagement with the Department. Specifically, I know that Grenfell United has long campaigned for mandatory qualifications to be introduced to the sector, bringing it in line with other sectors that provide frontline services. We have been listening, including to those in both Houses who spoke so passionately on the matter, and have been working hard to find a solution. I am very proud to stand before the House today having amended the Bill to deliver that critical change in the sector in order to benefit the experience of tenants.
At this point, it would be remiss of me to not acknowledge the coroner’s report that shone a light on the heartbreaking case of two-year-old Awaab Ishak in Rochdale. Words alone cannot help his family to hear from such an unimaginable and inexcusably preventable loss, but I hope they can find some degree of comfort in the amendment to the Bill made in his name, which will make clear to landlords that hazards such as damp and mould have absolutely no place in their tenants’ homes. We must do more to ensure that people are safe in their own home, and that starts with landlords providing high-quality accommodation and a high-quality service to all of their tenants. I sincerely hope that the residents and families of Grenfell, including Grenfell United, as well as the Ishak family can look on this Bill as part of their own legacy of delivering real change in the social housing sector for the people living in that sector, because they really need it.
I commend the Bill to the House.
Matthew Pennycook
I start by thanking the Clerks, the House staff, and Library specialists for facilitating our debates on this important piece of legislation, and all the external organisations—including Shelter, the Chartered Institute of Housing, and the Greater Manchester Law Centre—that have engaged extensively with us on it.
Eddie Hughes
I apologise for the very early intervention, but as the Minister who was partly responsible for overseeing the transition from White Paper to Bill, I just wanted to thank the incredible team who sit behind the Minister in the Box for their work. I see some very familiar faces, belonging to some very committed individuals, and I was certainly very grateful for their contribution. I am sure the Minister was, too.
Matthew Pennycook
I welcome the hon. Gentleman’s intervention. I certainly thank that team, and I thank him for all the work he has done in this area as well.
I also thank the Minister for the constructive tone with which she has approached the legislation, as well as all hon. Members who have contributed to our proceedings at all stages, particularly those who took the Bill so ably through Committee. Lastly, I pay tribute on behalf of the Opposition to the work of Grenfell United and the Grenfell Foundation, which have pushed at every turn for this legislation to come forward and to ensure it is strengthened, and to the family of Awaab Ishak, who with dignity and fortitude have campaigned for—and will now have secured—a change in the law that I have no doubt will save lives.
We know from the circumstances leading up to the Grenfell Tower fire, those surrounding the death of Awaab Ishak, and countless other appalling cases that never attracted media attention that poorly maintained and managed social housing can literally kill. That is why it is so important that we overhaul the regulation of social housing, and that this Bill passes. It is almost six years since 72 men, women and children lost their lives at Grenfell. More than four and a half years have passed since the Green Paper was issued, and more than two have passed since the White Paper was published. There is no question that it took the Government far too long to bring us to this moment, but we are extremely pleased that this necessary and urgently required Bill will complete its remaining Commons stages today.
The Opposition were determined to see the Bill strengthened in a number of areas, so that standards in social housing markedly and rapidly improve, tenants are able to pursue effective redress, and those tenants are empowered and their voices truly listened to. We welcome the various concessions and revisions that the Government have made, which without question have improved the Bill. However, as things stand, we do not believe that it is the most robust piece of legislation that this House could have delivered for tenants. We support the passage of the Bill tonight, because millions of those living in social homes across England need action now to address the plight of poor conditions and neglect and negligence at the hands of their landlords, but we hope that the Government will reflect further on the compelling arguments we have made for changes to further strengthen this vital piece of legislation.
Question put and agreed to.
Bill accordingly read the Third time and passed, with amendments.
Social Housing (Regulation) Bill [HL]
Tuesday 27th June 2023
(1 year, 5 months ago)
Lords ChamberRead Full debate Social Housing (Regulation) Act 2023 Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: HL Bill 109-I Marshalled list for Consideration of Commons Amendments - (26 Jun 2023)
Baroness Scott of Bybrook
That this House do agree with the Commons in their Amendments 1 to 12.
“(7) In section 202 of the Housing and Regeneration Act 2008 (inspections: supplemental) omit subsections (4) to (7).”
“(d) a notice of the appointment of an administrator of the provider under paragraph 14 or 22 of Schedule B1 to the Insolvency Act 1986 is filed with the court under paragraph 18 or 29 of that Schedule;”
“(ea) in subsection (3), for the words from “period,” to the end substitute “period if—
(a) the regulator has made reasonable enquiries with a view to locating secured creditors of the registered provider, and
(b) where the regulator located one or more such creditors, each of them has consented to the extension.”;”
“(eb) in subsection (5), omit the words from “if” to the end;”
“(4) In section 147 (further moratorium), in subsection (3), for the words from “period,” to the end substitute “period if— (a) the regulator has made reasonable enquiries with a view to locating secured creditors of the registered provider, and (b) where the regulator located one or more such creditors, each of them has consented to the further moratorium.””
“(5) In section 151 (appointment of interim manager during moratorium), in subsection (4), for paragraph (b) (but not the “or” following it) substitute— “(b) when the regulator notifies the interim manager that there are proposals under section 152 which are agreed proposals,”. (6) In section 153 (procedure for proposals made during moratorium)— (a) in subsection (1), after paragraph (b) insert— “(ba) if the regulator is able to locate any secured creditors of the registered provider after making reasonable enquiries, those creditors,”; (b) after subsection (1) insert— “(1A) If no secured creditors are located for the purposes of subsection (1), the proposals made by the regulator following the consultation required by that subsection are agreed proposals for the purposes of this group of sections.”; (c) in subsection (2)— (i) for the words before paragraph (a) substitute “Where the regulator locates one or more secured creditors of the registered provider for the purposes of subsection (1), the regulator must, before making proposals, send a copy of draft proposals to—”; (ii) for paragraph (b) (but not the “and” following it) substitute— “(b) the secured creditors located for the purposes of subsection (1),”; (d) in subsection (3), in the words before paragraph (a) for the words from “The regulator” to “bringing” substitute “If the regulator sends draft proposals under subsection (2), the regulator must also make arrangements for bringing those”; (e) for subsection (4) substitute—
“(4) If each secured creditor to whom draft proposals were required to be sent agrees to them by notice to the regulator, the draft proposals become agreed proposals for the purposes of this group of sections.”; (f) in subsection (5)—
(i) in the words before paragraph (a) for “Proposals” substitute “Draft proposals”; (ii) in paragraph (a), for “proposals were sent” substitute “draft proposals were required to be sent”; (g) in subsection (6)(b)—
(i) for “its” substitute “any”; (ii) for “the original” substitute “draft”; (h) for subsection (8) substitute— “(8) The regulator may make proposals amending agreed proposals; and this section and section 152 apply to such proposals.””
“(7) In section 158 (assistance by regulator in connection with proposals), in subsection (1), for “the agreement of proposals” substitute “the regulator deciding whether to exercise the power under section 152 to make proposals and (if proposals are made) the proposals becoming agreed proposals”.”
The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)
My Lords, with the leave of the House, as well as moving that this House do agree with the Commons in their Amendments 1 to 12, I will also speak to all the other Commons amendments.
I am pleased to bring the Bill back to the House and to see the progress that it has made since it left. This legislation seeks to drive the change that we know is so desperately needed in the social rented sector. It is vital that everyone learns from the mistakes that led to the Grenfell Tower tragedy, and the Bill will ensure that social housing tenants receive the protection and respect that they deserve. The Grenfell community’s tireless campaigning will leave a legacy of real change to social housing in this country.
The need to drive up the quality of social housing and rebalance the relationship between tenants and landlords was also thrown into sharp relief by the tragic death of Awaab Ishak. I know that Awaab’s father is watching today, and I know that I speak for all of us when I say that my thoughts remain with the Ishak family. I thank the family, along with Shelter and the Manchester Evening News, for their steadfast campaigning on Awaab’s law. This law will make a real difference to people’s lives, and I hope that it brings some degree of comfort to all those who knew and loved Awaab.
As I shall set out, the Government have listened carefully to the points raised, both in this House and in the other place, and tabled amendments in the other place to strengthen the legislation to its fullest extent. Commons Amendments 10, 11, 12, and 13 amend the clauses added by this House on competency and conduct standards and make provision for them to require that senior housing managers and senior housing executives have, or are working towards, appropriate level housing management qualifications.
We have also tabled a further amendment to the Bill to ensure that relevant managers employed by organisations which deliver housing management services on behalf of a registered provider are captured by the legislation, as was our original intention. I thank the noble Baroness, Lady Hayman of Ullock, for bringing the need for this amendment to my attention. This amendment will require registered providers to take steps to secure that relevant managers of these delegated services providers are qualified.
Our amendment also introduces implied terms into the contractual agreements between registered providers and delegated services providers and relevant sub-agreements, stipulating that their relevant managers should have, or be working towards, a specified qualification in housing management. This enables registered providers to take action against delegated services providers who are not compliant. These amendments, which have been welcomed by Grenfell United and Shelter, will drive up professional standards and the quality of housing services across the sector.
I turn to the amendments that we tabled in the other place on Awaab’s law. I am sure that I am not alone in saying that I was deeply shocked and saddened by the tragic death of Awaab Ishak. Commons Amendment 28 takes a power for the Secretary of State to set out requirements for landlords in secondary legislation to investigate and rectify hazards within a certain time. The amendment also inserts an implied covenant into tenancy agreements that landlords will comply with the requirements prescribed in regulations; this will impel landlords to deal with hazards such as damp and mould in a timely fashion, knowing that, if they fail to do so, they can face legal challenge from residents.
We have also introduced Amendments 14, 15, 17 and 29, which will ensure that the regulator sets standards for landlords to provide tenants with information about how to make complaints, and about their rights as tenants.
Commons Amendment 27 will give the ombudsman explicit statutory power to publish guidance on good practice, alongside the power to order landlords to complete a self-assessment if the ombudsman has received a relevant complaint about a landlord.
Amendments 1 and 2 repeal the provisions in the Housing and Regeneration Act 2008 which provide a specific power to enable the regulator to charge fees for inspections. Those fees will be recoverable under the regulator’s fee-charging powers under Section 117 of the Housing and Regeneration Act 2008, so the specific inspections power is now unnecessary.
Amendments 3 to 9 are technical amendments concerning moratorium procedures when the regulator is unable to locate any secured creditors.
Amendment 16 removes Clause 24 relating to energy demand, which was inserted into the Bill by this House. Although we are sympathetic to the aims of the clause, and we agree with the need to continue progress on making social homes warmer and more energy efficient, we do not believe it is appropriate to set consultation parameters without ministerial oversight. We recognise that the sector would benefit from clear standards to support energy efficiency improvements: that is why we announced that we will consult on standards for improving energy efficiency in the sector within six months of the Bill receiving Royal Assent. We remain committed to this, and officials have already begun work on this consultation. I am able to give noble Lords here today an indication of some of the areas for consultation. We will ask what the appropriate compliance date is for meeting an energy efficiency standard, what energy performance metric this should be measured against and what, if any, exemptions are appropriate.
Amendments 18 to 21 and 23 to 26 deliver technical changes that will ensure that, during a survey or emergency remedial action, any decision to leave equipment or materials on the premises takes into account the impact of that on tenants.
Amendment 22 amends requirements relating to the production and publication of an inspector’s report following the completion of an inspection. These amendments provide that the inspector must produce a summary of findings, as well as a report on any matters specified by the regulator. Amendment 31 was tabled to remove the Lords privilege amendment in Committee in the other place.
Amendments 32 to 51 deal with notices under Sections 104 to 108 of the Housing and Planning Act 2016. These amendments ensure that technical requirements relating to notices do not prevent the legislation working effectively, and help make provisions relating to insolvency easier for the regulator to operate.
Finally, Amendment 53 introduces a provision to clarify the relationship between the data protection legislation and Part 2 of the Housing and Regeneration Act 2008. I beg to move.
Lord Best (CB)
My Lords, I welcome the Commons additions to this important Bill. As a prelude, I thank the Minister for the earlier amendment she promised and delivered before the Bill left your Lordships’ House. This created the duty for the social housing regulator to carry out regular, routine inspections rather than just looking at the social landlord’s accounts and paperwork. This amendment had been earnestly requested by the Grenfell United group, which has campaigned tirelessly to improve key aspects of social housing regulation. If only the regulator’s team had made an inspection visit to the social landlord of Grenfell Tower and talked to residents, it would have been obvious that all was not well. The Minister has taken a close personal interest in the aftermath of the Grenfell tragedy, and I congratulate her on the amendment she brought forward which will now ensure routine inspections are a key part of the regulator’s future role.
I now welcome Commons Amendment 17, Awaab’s law, which will strengthen the role of the regulator in requiring social housing landlords to deal swiftly with problems of disrepair. Sadly, some housing associations and some councils have not been on top of these issues, with tragic consequences. There is a need now for some serious investment in the upgrading of outdated public housing, mostly from the 1960s and 1970s. As well as encouraging social landlords to listen more attentively to the matters raised by their residents, I hope we are moving to an extension of the ombudsman role, which will cut down the need for some of the sharp practices of the no-win, no-fee lawyers, who can exploit tenants’ predicaments. There is more to do here.
In particular, I greatly welcome the new Amendment 13B, which covers standards relating to competence and conduct. This amendment is of particular concern to the Grenfell United group and is intended to achieve greater professionalism of the social housing sector, requiring senior housing managers and executives to have or to work towards relevant qualifications. The noble Baroness, Lady Sanderson, raised these issues on behalf of Grenfell United when the Bill was in this House. We have had to wait until conclusions were reached in the other place to amend the Bill accordingly, but the wait has been worth while and I pay tribute to the noble Baroness.
These Commons amendments to Clause 21 will, over time, see the social housing sector properly “professionalised”. This approach was advocated for personnel managing privately rented and leasehold properties by the Government’s working group on the regulation of property agents, which I was pleased to chair. That badly needed change has yet to come about for the private rented sector, although the matter may be raised in the forthcoming Renters (Reform) Bill or the leasehold reform Bill. In the meantime, measures akin to those proposed for managers of privately rented homes will now be applied by this Bill to the management of the social housing sector. This enhancement of the skills of social housing personnel will greatly increase the role and responsibilities of the Chartered Institute of Housing, which is well able to play a vital role here.
Baroness Hayman (CB)
My Lords, I declare my interests as co-chair of Peers for the Planet and in that I have a family member currently working in the field of energy efficiency. I will respond to the Government’s Motion to agree with the Commons in its Amendment 16. It removes Clause 24, on energy efficiency, which was inserted with cross-party support on Report. Our amendment sought to ensure a comprehensive approach to energy efficiency for tenants in social housing, to reduce their costs and to improve living conditions. It would also have cut the costs to government—and the taxpayer—of subsidising energy bills and helped with energy security and achieving the Government’s target of reducing energy demand by 15% by 2030.
The importance of energy efficiency has been highlighted by numerous committees and reports from this and the other place, including one recently from the Public Accounts Committee which highlighted the problems so far with energy efficiency schemes, including the lack of coherence. It said they had been “fragmented” and that
“stop-go activity has hindered stable long-term progress towards government’s energy efficiency ambitions.”
It is important that real progress has been made during the passage of this Bill. We should remember that, at an earlier stage, energy efficiency was added to the objectives of the Regulator of Social Housing, with the support of the Government. I pay tribute to the work of the noble Baroness, Lady Pinnock, in achieving that end.
The Minister and her officials have been generous with their time in discussions prior to today’s proceedings —I am very grateful for that—in which she stressed the centrality of consultation with the sector before imposing standards. We have made progress, as she said, with a commitment to publish a consultation within six months of Royal Assent. As the Minister has heard me say before, in the past, the Government have been rather better on publishing consultations than responding to them, and much better than on actioning the policy that was their original subject. Can she give any further reassurances about timelines for a government response to the consultation and the provision of a final plan to improve the energy efficiency of social housing within 12 months of Royal Assent?
While we have not made as much progress as I would have wished on this issue, we all understand that the priority of the Bill has been the urgent need for effective regulation of social housing, and I completely recognise any concerns about diverting from that central objective. I also recognise that energy efficiency is an issue not just for the social housing sector but across the whole of our housing stock. It arises mainly from the quality, or lack thereof, of that housing stock. As the Minister knows, I have tabled amendments to both the levelling-up Bill and the Energy Bill to try to address what we are talking about in this Bill: the need for a long-term strategic plan of action which would include but not be exclusive to the social housing sector.
This is an issue to which we will return, but I hope the Minister can give me some reassurance on the issues I have raised when she sums up.
Baroness Pinnock (LD)
My Lords, amazingly, it has been eight months since this House last discussed the Bill. At that time, I welcomed it and many of the details it provided to improve the regulation of social housing. However, across the House, noble Lords challenged the Government to think again on some of the detail of the Bill. The noble Lord, Lord Best, and the noble Baroness, Lady Hayman, have outlined some of the ways in which the Bill was challenged and subsequently improved.
I am pleased to say that some of the government amendments in the Commons have indeed built on the amendments made on Report in this House. I particularly support Commons Amendment 13, which sets new professional standards for senior social housing managers, as I do the power for the ombudsman to provide best practice guidance. Those are two great improvements made to the Bill since it first started in this House.
The Commons also introduced into the Bill “Awaab’s law” in memory of the tragic death of two-year-old Awaab Ishak, which was caused by appallingly damp and mouldy conditions in the flat where he and his family lived. The response of the social housing landlord was shockingly neglectful—and, as it turned out, fatally neglectful for poor young Awaab. I congratulate the Government on introducing that new clause to address those responsibilities and to ensure that social landlords properly address what is described in the amendment as “prescribed hazards”. Let us hope that this is sufficient to ensure that no family lives in such dreadful conditions again—albeit it applies currently to social housing only.
Finally, although I am pleased that on Report the Government accepted my amendment to include energy efficiency as a core responsibility of the regulator, I am disappointed that they have not been able to be as positive about the amendment in the name of the noble Baroness, Lady Hayman, agreed by this House, which contained a comprehensive approach to energy efficiency that my simple amendment failed to do. We have a challenge as a country, and the Government have a responsibility to make changes so that homes are warmer and less expensive to heat. There was an opportunity to do so; unfortunately, the Government failed to accept it.
However, I am pleased that the Government and the Minister have agreed to consult—although, as always, the caveat is the question of what that will lead to, as the noble Baroness, Lady Hayman, alluded to. I am sure that the noble Baroness and many of us in this House will scrutinise closely the outcome of such a consultation. This is an important matter. We need to get it right. People should not be living in cold homes because they cannot afford to heat them. If the Government have the power to make a change, we will press them to do so.
I want to end on a positive note. We on these Benches support the Bill and trust that social housing tenants will see the benefits that it should bring.
Baroness Hayman of Ullock (Lab)
My Lords, this is a really important Bill. I am pleased to see it reach this stage; we have supported it all the way through. It has been a pleasure to work on a Bill that I think is the kind of Bill we ought to be doing. It is short, it is focused and it has a Minister who listens. That has been extremely good to work with. I am really pleased to see the government amendments that have been put forward, in particular those around professionalisation. I also pay tribute to the noble Baroness, Lady Sanderson; her work during the passage of the Bill was exceptional and is, I am sure, one of the main reasons why we have these amendments before us today. On Awaab’s law, I join the Minister and other noble Lords in paying tribute to his family.
I am pleased that the Government have listened to the concerns raised by the arm’s-length management organisations and tenant management organisations, as well as the National Housing Federation, in bringing forward the amendments that dealt with the concerns there.
The noble Lord, Lord Best, welcomed the promised amendment on inspections that was so important to Grenfell United. We are absolutely delighted that the Minister has brought forward those amendments today. I want to thank Grenfell United, Shelter and the Ishak family for their work and support during the passage of this Bill; it has helped us to keep the important issues at the centre and as the focus of what we need to achieve.
I thank the noble Baroness, Lady Hayman, for pushing the energy efficiency amendments, which are really important. It is good that we did not lose sight of them during the Bill’s passage and that we have made some progress. I also thank the noble Baroness, Lady Pinnock, for bringing forward her amendment on that.
I thank the Minister and her officials for their time and their constructive approach to working with us, the Opposition, and other noble Lords during the Bill’s progress through the House. It has enabled us to make what was a good Bill a much better Bill—one that is more fit for purpose.
Finally, I thank my noble friend Lady Wilcox for her invaluable help and support. I am sure that we are now both looking to see the Bill go on to the statute book, so that we can raise our eyes up and look forward to the Renters (Reform) Bill.
Baroness Scott of Bybrook (Con)
My Lords, I am grateful to all noble Lords who have contributed and for the wide-reaching support for this important Bill. In particular, I thank my honourable friend the Member for Bishop Auckland for steering the Bill so ably through the other place. I also thank the department’s Bill team, all the policy and legal officials, and my private office team, who have worked hard over the past year to deliver this legislation through both Houses. I especially thank the House authorities, parliamentary staff, clerks and doorkeepers, and all noble Lords who have contributed to the evolution of this Bill.
Baroness Scott of Bybrook
That this House do disagree with the Commons in their Amendment 13 but do propose Amendment 13B in lieu—
“(3) Standards under subsection (1) may require registered providers to secure that their relevant managers—
(a) have a specified qualification in housing management or type of qualification in housing management, or (b) are working towards such a qualification or type of qualification. (4) A “relevant manager” means—
(a) a senior housing executive, or (b) a senior housing manager. (5) A qualification or type of qualification specified for a senior housing executive may only be— (a) a foundation degree, or
(b) a qualification or type of qualification regulated by the Office of Qualifications and Examinations Regulation which is of a level not exceeding level 5. (6) A qualification or type of qualification specified for a senior housing manager may only be a qualification or type of qualification regulated by the Office of Qualifications and Examinations Regulation which is of a level not exceeding level 4.
(7) Except as provided by subsections (3) to (6), standards under subsection (1) may not require registered providers to comply with rules about the qualifications to be required of relevant individuals.
(8) In this section, “senior housing executive” means a relevant individual who—
(a) is an employee or officer of the registered provider, (b) has responsibility (solely or jointly) for the day to day management of the provision of services in connection with the management of social housing provided by the provider, and (c) is part of the provider’s senior management. (9) For the purposes of this section, an individual is part of a registered provider’s senior management if the individual plays a significant role in—
(a) the making of decisions about how the whole or a substantial part of the activities of the provider which relate to social housing are to be managed or organised, or (b) the management or organisation of the whole or a substantial part of such activities. (10) In this section, “senior housing manager” means a relevant individual who— (a) is an employee of the registered provider, and
(b) is a senior housing and property manager for the registered provider. (11) For the purposes of subsection (10)(b), whether an individual is a senior housing and property manager is to be determined by reference to the description of the occupation of senior housing and property management published by the Institute for Apprenticeships and Technical Education under section ZA10(5) of the Apprenticeships, Skills, Children and Learning Act 2009.
(12) The references in subsections (5) and (6) to the level of a qualification are to the level assigned to a qualification by virtue of general conditions set and published by the Office of Qualifications and Examinations Regulation under section 134 of the Apprenticeships, Skills, Children and Learning Act 2009.
(13) For the purposes of this section, “employee” includes a person employed under a contract of apprenticeship.”
“(3) Standards under subsection (1) may require registered providers to secure that their senior housing executives and senior housing managers—
(a) have a specified qualification in housing management or type of qualification in housing management, or
(b) are working towards such a qualification or type of qualification.
(4) Standards under subsection (1) may require registered providers to take steps to secure that relevant managers of their services providers—
(a) have a specified qualification in housing management or type of qualification in housing management, or
(b) are working towards such a qualification or type of qualification.
(5) Each of the following is a “relevant manager” of a services provider—
(a) if the services provider is a relevant individual, that individual;
(b) a senior housing executive of the services provider;
(c) a senior housing manager of the services provider.
(6) A qualification or type of qualification specified for a senior housing executive may only be—
(a) a foundation degree, or
(b) a qualification or type of qualification regulated by the Office of Qualifications and Examinations Regulation which is of a level not exceeding level 5.
(7) A qualification or type of qualification specified for a senior housing manager or for an individual described in subsection (5)(a) may only be a qualification or type of qualification regulated by the Office of Qualifications and Examinations Regulation which is of a level not exceeding level 4.
(8) The references in subsections (6) and (7) to the level of a qualification are to the level assigned to a qualification by virtue of general conditions set and published by the Office of Qualifications and Examinations Regulation under section 134 of the Apprenticeships, Skills, Children and Learning Act 2009.
(9) Except as provided by subsections (3) to (8), standards under subsection (1) may not require registered providers to comply with rules about the qualifications to be required of relevant individuals.
(10) See also section 217A (which makes provision implying terms relating to qualifications into management services agreements).
194AA Meaning of “services provider”, “senior housing executive” and “senior housing manager”
(1) This section makes provision about the meaning of terms for the purposes of section 194A.
(2) “Services provider”, in relation to a registered provider, means a person who, in accordance with an agreement with the registered provider or another person, provides services in connection with the management of social housing provided by the registered provider or arranges for the provision of such services.
(3) For the purposes of subsection (2), an agreement does not include a contract of employment or a contract of apprenticeship.
(4) “Senior housing executive” of a registered provider means a relevant individual who—
(a) is an employee or officer of the registered provider,
(b) has responsibility (solely or jointly) for the day to day management of the provision of services in connection with the management of social housing provided by the registered provider, and (c) is part of the registered provider’s senior management.
(5) “Senior housing executive” of a services provider in relation to a registered provider means a relevant individual who—
(a) is—
(i) an employee of the services provider,
(ii) an officer of the services provider, or
(iii) if the services provider is a partnership, a partner in the partnership,
(c) has responsibility (solely or jointly) for the day to day management of the provision of services in connection with the management of social housing provided by the registered provider, and (c) is part of the services provider’s senior management.
(6) For the purposes of subsections (4) and (5), an individual is part of a registered provider’s or services provider’s senior management if the individual plays a significant role in—
(a) the making of decisions about how the whole or a substantial part of the activities of the provider which relate to social housing are to be managed or organised, or
(b) the management or organisation of the whole or a substantial part of such activities.
(7) “Senior housing manager” of a registered provider means a relevant individual who—
(a) is an employee of the registered provider, and
(b) is a senior housing and property manager for the registered provider.
(8) “Senior housing manager” of a services provider in relation to a registered provider means a relevant individual who— (a) is an employee of the services provider,
(b) is a senior housing and property manager for the services provider, and
(c) is involved in the provision of services in connection with the management of social housing provided by the registered provider.
(9) For the purposes of subsections (7) and (8), whether an individual is a senior housing and property manager is to be determined by reference to the description of the occupation of senior housing and property management published by the Institute for Apprenticeships and Technical Education under section ZA10(5) of the Apprenticeships, Skills, Children and Learning Act 2009.
(10) In this section—
“employee” includes a person employed under a contract of apprenticeship;
“relevant individual” has the same meaning as in section 194A.
(11) The following Table gives the meaning of “officer” in relation to services providers for the purposes of this section—
Services provider | Meaning of “officer” |
Registered charity which is Trustee, secretary or treasurer not a registered company | |
Registered society | “Officer” within the meaning given by section 149 of the Co-operative and Community Benefit Societies Act 2014 (including a person co-opted to serve on the society’s committee) |
Registered company | “Officer” within the meaning given by section 1173 of the Companies Act 2006 |
Limited liability partnership | A member of a limited liability partnership.” |
“(3) Before setting a standard under section 194A which imposes a requirement described in subsection (4) of that section, the regulator must consult, or ensure that there has been consultation with, each body (if any) which is nominated by the Secretary of State for the purposes of this subsection.
(4) The Secretary of State may nominate a body for the purposes of subsection (3) only if the body appears to the Secretary of State to represent the interests of services providers in relation to registered providers (as defined in section 194AA(2)).
(5) The Secretary of State must notify the regulator of any nomination (or withdrawal of any nomination) made for the purposes of subsection (3).”
(3) In section 197 of that Act (direction by Secretary of State), after subsection (5) insert—
“(5A) Before giving a direction to set a standard under section 194A which imposes a requirement described in subsection (4) of that section, the Secretary of State must consult one or more bodies appearing to the Secretary of State to represent the interests of services providers in relation to registered providers (as defined in section 194AA(2)).”
(4) After section 217 of that Act insert—
“217A Implied terms of management services agreements relating to qualifications
(1) Each management services agreement in relation to social housing of a registered provider, whenever entered into, is to be treated as including the terms set out in subsection (4).
(2) In this section, a “management services agreement”, in relation to social housing of a registered provider, means an agreement under which one person (a “services provider”) agrees with another person (the “services recipient”) to provide services in connection with the management of social housing provided by the registered provider or to arrange for the provision of such services.
(3) For the purposes of subsection (2)—
(a) an agreement does not include a contract of employment or a contract of apprenticeship, and
(b) the services recipient may be the registered provider or another person.
(4) The terms are that—
(a) the services provider must secure that its relevant managers who are involved in the provision of services in connection with the management of social housing to which the agreement relates meet the qualification standard at all times;
(b) in the event that the services provider does not comply with the term set out in paragraph (a), the services provider will take such action to rectify the non-compliance as is reasonably required by the services recipient;
(c) the services provider must comply with any reasonable request for information demonstrating whether or not the services provider is complying with the term in paragraph (a) that is made by the registered provider who provides the social housing to which the agreement relates or (if different) the services recipient.
(5) A relevant manager of a services provider under a management services agreement “meets the qualification standard” if—
(a) a standard is in force under section 194A which requires the registered provider who provides the social housing to which the agreement relates to take steps to secure that the manager has, or is working towards, a qualification or type of qualification in housing management, and
(b) the manager has or (as the case may be) is working towards such a qualification, or if there is no standard in force under section 194A which imposes a requirement described in paragraph (a).
(6) A term of a management services agreement is not binding on the services recipient to the extent it would—
(a) exclude or restrict the liability of the services provider for breach of a term implied by this section, or
(b) prevent an obligation under a term implied by this section arising or limiting its extent.
(7) In this section “relevant manager”, in relation to a services provider, has the same meaning as it has for the purposes of section 194A (see section 194A(5)).”
(5) In consequence of the amendment made by subsection (4), in section 192 of that Act—
(a) in paragraph (d), omit the final “and”;
(b) at the end of paragraph (e) insert “, and
(f) makes provision about terms to be implied into management services agreements (section 217A).”””
Baroness Scott of Bybrook
That this House do agree with the Commons in their Amendments 14 to 55.
(i) their tenants’ rights in connection with those things, and
(ii) how to make complaints against registered providers,”
“Secretary of State’s duty to give direction about providing information to tenants
(1) The Secretary of State must give a direction to the Regulator of Social Housing under section 197(2A) of the Housing and Regeneration Act 2008 about setting a standard under section 194B of that Act (standards relating to information and transparency) for the purpose of securing that registered providers of social housing are required to provide their tenants of low cost rental accommodation with information about—
(a) their tenants’ rights in connection with the low cost rental accommodation and with facilities or services provided in connection with that accommodation, and (b) how their tenants can make a complaint against them. (2) The Secretary of State must give the direction before the end of the period of six months beginning with the day on which this Act is passed.
(3) In this section—
“low cost rental accommodation” means accommodation which—
(a) is low cost rental accommodation (as defined in section 69 of the Housing and Regeneration Act 2008) provided by a registered provider of social housing, and (b) is not low cost home ownership accommodation (as defined in section 70 of that Act); “tenant”, in relation to low cost rental accommodation, includes other occupiers.”
“(8) Equipment or materials taken onto premises by virtue of subsection (7) may be left in a place on the premises until the survey has been carried out provided that—
(a) leaving the equipment or the materials in that place does not significantly impair the ability of an occupier to use the premises, or (b) leaving the equipment or the materials on the premises is necessary for the purposes of carrying out the survey and it is not possible to leave it or them in a place that does not significantly impair the ability of an occupier to use the premises.”
“(9) Where the premises include common parts of a building, references in subsection (8) to the ability of an occupier to use the premises include the ability of an occupier of a dwelling that has use of the common parts to use those parts or the dwelling.
(10) In this section, “common parts”, in relation to a building, includes the structure and exterior of that building and any common facilities provided (whether or not in the building) for persons who occupy the building.”
“(5) Equipment or materials taken onto premises by virtue of subsection (4) may be left in a place on the premises until the survey has been carried out provided that—
(a) leaving the equipment or the materials in that place does not significantly impair the ability of an occupier to use the premises, or (b) leaving the equipment or the materials on the premises is necessary for the purposes of carrying out the survey and it is not possible to leave it or them in a place that does not significantly impair the ability of an occupier to use the premises.”
“(5A) Where the premises include common parts of a building (as defined in section 199A), references in subsection (5) to the ability of an occupier to use the premises include the ability of an occupier of a dwelling that has use of the common parts to use those parts or the dwelling.”
“Action after inspection
(1) The Housing and Regeneration Act 2008 is amended as follows.
(2) In section 202 (inspections: supplemental), omit subsections (1) to (3).
(3) In section 203(12) (definition of “inspector”), after “this section” insert “and section 203A”.
(4) After section 203 insert—
“203A Action after inspection
(1) After an inspection of a registered provider is carried out by an inspector under section 201, the inspector must produce—
(a) a written summary of the inspector’s findings, and
(b) a written report about any matters specified by the regulator.
(2) The summary and any report must be in the form specified by the regulator.
(3) The regulator may specify matters, or the form of a summary or report, for the purposes of inspections generally or for the purposes of a particular inspection or description of inspection.
(4) The regulator must give the registered provider a copy of the summary of the inspector’s findings.
(5) The regulator must also give the registered provider—
(a) a copy of the inspector’s report, or (b) a notice confirming that no matters were specified for the purposes of subsection (1)(b). (6) The regulator may publish—
(a) all or part of the summary of the inspector’s findings, (b) (where relevant) all or part of the inspector’s report, and (c) related information.””
“(5) Equipment or materials taken onto premises by virtue of subsection (4)(b) may be left in a place on the premises until the emergency remedial action has been taken provided that—
(a) leaving the equipment or the materials in that place does not significantly impair the ability of an occupier to use the premises, or (b) leaving the equipment or the materials on the premises is necessary for the purposes of taking the emergency remedial action and it is not possible to leave it or them in a place that does not significantly impair the ability of an occupier to use the premises.”
“(6) Where the premises include common parts of a building (as defined in section 225C), references in subsection (5) to the ability of an occupier to use the premises include the ability of an occupier of a dwelling that has use of the common parts to use those parts or the dwelling.”
“(5) Equipment or materials taken onto premises by virtue of subsection (4) may be left in a place on the premises until the emergency remedial action has been taken provided that—
(a) leaving the equipment or the materials in that place does not significantly impair the ability of an occupier to use the premises, or (b) leaving the equipment or the materials on the premises is necessary for the purposes of taking the emergency remedial action and it is not possible to leave it or them in a place that does not significantly impair the ability of an occupier to use the premises.”
“(5A) Where the premises include common parts of a building (as defined in section 225C), references in subsection (5) to the ability of an occupier to use the premises include the ability of an occupier of a dwelling that has use of the common parts to use those parts or the dwelling.”
“Power of housing ombudsman to issue guidance to scheme members
(1) The Housing Act 1996 is amended as follows.
(2) In the italic heading before section 51, for “complaints” substitute “ombudsman”.
(3) After section 51 insert—
“51ZA Power of housing ombudsman to issue guidance to scheme members
(1) This section applies where a scheme is approved by the Secretary of State under Schedule 2.
(2) The housing ombudsman may issue to the members of the scheme guidance as to good practice in the carrying on of housing activities covered by the scheme.
(3) Before issuing, revising or replacing guidance under this section, the housing ombudsman must consult—
(a) the Regulator of Social Housing,
(b) members of the scheme, and
(c) individuals who may make complaints under the scheme.
(4) If the housing ombudsman issues, revises or replaces guidance under this section, the housing ombudsman must publish the guidance, the revised guidance or (as the case may be) the replacement guidance.
(5) Subsection (7) applies if—
(a) an individual makes a complaint against a member of the scheme,
(b) the complaint is made under the scheme or the conditions in subsection (6) are met in relation to the complaint, and
(c) it appears to the housing ombudsman that the complaint relates to a matter to which guidance issued by the ombudsman under this section relates.
(6) The conditions referred to in subsection (5)(b) are that— (a) the complaint is made to the member of the scheme,
(b) the complaint is one that the individual could subsequently make under the scheme, and
(c) the individual has notified the ombudsman about the complaint.
(7) The housing ombudsman may order the member of the scheme to—
(a) assess whether the member’s policies and practices in relation to the matter mentioned in subsection (5)(c) are consistent with the guidance issued by the ombudsman under this section in relation to that matter, and
(b) within a period specified in the order, submit to the ombudsman a written statement of the results of the assessment.
(8) If a member of the scheme fails to comply with an order under subsection (7) within the period specified in the order, the housing ombudsman may order the member to publish in such manner as the ombudsman sees fit a statement that the member has failed to comply with the order.
(9) If a member of the scheme fails to comply with an order under subsection (8), the housing ombudsman may—
(a) take such steps as the ombudsman considers appropriate to publish what the member ought to have published, and (b) recover from the member the costs of doing so.
(10) In this section, “the housing ombudsman” means the housing ombudsman appointed in accordance with the scheme.””
“Social housing leases: remedying hazards
After section 10 of the Landlord and Tenant Act 1985 insert—
“Implied term as to remedying of hazards
10A Remedying of hazards occurring in dwellings let on relevant social housing leases
(1) This section applies to a lease of a dwelling if—
(a) the dwelling is in England,
(b) the lease is a relevant social housing lease, and
(c) section 9A—
(i) applies to the lease (see section 9B), or
(ii) would apply to the lease if the provision in section 9B(3) did not exist.
(2) There is implied in the lease a covenant by the lessor that the lessor will comply with all prescribed requirements that are applicable to that lease.
(3) The Secretary of State must make regulations which require the lessor under a lease to which this section applies to take action, in relation to prescribed hazards which affect or may affect the leased dwelling, within the period or periods specified in the regulations.
(4) Regulations under subsection (3) are enforceable against lessors only through actions for breach of the covenant that is implied by subsection (2).
(5) In any proceedings for a breach of the covenant that is implied by subsection (2), it is a defence for the lessor to prove that the lessor used all reasonable endeavours to avoid that breach.
(6) For the purposes of this section a lease is a “relevant social housing lease” at any time when—
(a) the lessor under the lease is a registered provider of social housing, and
(b) the dwelling leased under the lease—
(i) is social housing, but
(ii) is not low cost home ownership accommodation.
(7) In this section and section 10B—
“lease”, “lessor” and “lessee” have the same meanings as in section 9A (see section 9A(9));
“low cost home ownership accommodation” has the meaning given in section 70 of the Housing and Regeneration Act 2008;
“prescribed hazard” has the same meaning as in section 10 (see section 10(2) and (3));
“prescribed requirement” means a requirement prescribed in regulations under subsection (3);
“social housing” has the same meaning as in Part 2 of the Housing and Regeneration Act 2008 (see sections 68 and 72 of that Act).
10B Regulations under section 10A: supplementary provision
(1) Regulations under section 10A(3) may apply to—
(a) leases granted before the day when section (Social housing leases: remedying hazards) of the Social Housing (Regulation) Act 2023 came into force;
(b) prescribed hazards which began before that day; (c) only some descriptions of prescribed hazards.
(2) Regulations under section 10A(3) may—
(a) specify a period that is not of a specific duration (for example a reasonable or appropriate period, including a period decided by the lessor or another person);
(b) specify two (or more) periods in relation to particular action.
(3) Regulations under section 10A(3) may (in particular)—
(a) require the lessor to take particular action, or action that is intended to produce a particular outcome, in relation to a prescribed hazard;
(b) require the lessor to take action in relation to a prescribed hazard that is not of itself intended to remedy the hazard, for example by requiring the lessor—
(i) to investigate whether or how a prescribed hazard is affecting the leased dwelling, or
(ii) to secure that the lessee and any other members of the lessee’s household are provided with alternative accommodation at no cost to them;
(c) require the lessor to take action in relation to a prescribed hazard only—
(i) in particular circumstances, or
(ii) if particular conditions are met;
(d) provide that the lessor is not required to take action in relation to a prescribed hazard— (i) in particular circumstances, or
(ii) if particular conditions are met.
(4) The Secretary of State may by regulations—
(a) provide for section 10A not to apply to particular descriptions of leases;
(b) make provision, in relation to the covenant that is implied by section 10A(2), which corresponds to any provision made by section 9A(4) to (8).
(5) A power to make regulations under section 10A or this section includes power to make—
(a) incidental, transitional or saving provision; (b) different provision for different purposes.
(6) The power to make transitional or saving provision may (in particular) be used to make provision about situations where the covenant in section 10A(2)—
(a) begins to be implied in a lease after its grant because it
becomes a relevant social housing lease;
(b) ceases to be implied in a lease because it ceases to be a relevant social housing lease (including provision to save the lessor’s liability for any breach of the covenant occurring before it ceases to be implied).
(7) Regulations under section 10A or this section are to be made by statutory instrument.
(8) A statutory instrument containing regulations under section 10A or this section may not be made unless a draft of it has been laid before and approved by resolution of each House of Parliament.””
“(aa) be signed by, or on behalf of, the petitioner,”
and insert—
“(aa) be signed by, or on behalf of, the registered provider,”
“(aa) be signed by, or on behalf of, the person who made the ordinary administration application,”
“(aa) be signed by, or on behalf of, the person making the appointment,”
“(aa) be signed by, or on behalf of, the person intending to enforce the security.”
“(aa) in subsection (2)(f), for “and informing tenants” substitute “tenants and providing them with information in connection with such consultation”;”
“43A After section 276A (inserted by section 34) insert—
“276B Data protection
(1) This section applies to a duty or power to process information where the duty or power is imposed or conferred by or by virtue of any provision of this Part. (2) A duty or power to which this section applies does not operate to require or authorise the processing of information which would contravene the data protection legislation (but the duty or power is to be taken into account in determining whether the processing would contravene that legislation). (3) In this section “the data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act).””
Social Housing (Regulation) Bill [Lords]
Monday 17th July 2023
(1 year, 5 months ago)
Commons ChamberRead Full debate Social Housing (Regulation) Act 2023 Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: Commons Consideration of Lords Message as at 17 July 2023 - (17 Jul 2023)
The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Dehenna Davison)
I beg to move,
That this House does not insist on its amendment 13 to which the Lords have disagreed, and agrees with the Lords in their amendment 13B in lieu.
We are bringing the Bill back to the House for what I hope is the final time, to get this vital legislation on to the statute book. It seeks to enable the biggest change in social housing regulation in a decade and to drive the change that is so desperately needed in the social rented sector.
When the Bill was last before the House, we made important amendments to clauses on competency and conduct standards in relation to mandatory qualifications. They made provision to require senior housing managers and senior housing executives of registered providers to have, or be working towards, appropriate-level housing management qualifications. We subsequently tabled amendment 13B in the other place to ensure that relevant managers employed by organisations that deliver housing management services on behalf of a registered provider are also captured by the legislation, as was our original policy intention.
Jim Shannon (Strangford) (DUP)
I have no doubt that we all welcome and support professionalism from those who check the regulations. I am always perplexed that we do not have the same regulations in Northern Ireland. Is it the Minister’s intention to ensure with the appropriate body in Northern Ireland that professionalism can also be effective there?
Dehenna Davison
The hon. Gentleman is, as ever, a fantastic champion for Northern Ireland and its people. We will, of course, continue to have conversations with the relevant bodies in Northern Ireland, because it is important that social housing, wherever it is provided within the United Kingdom, is up to the appropriate standard. I know he will continue to champion that cause.
In closing, I would just like to put on record one final time my and my Department’s heartfelt thanks to Grenfell United and all other stakeholders for their strong constructive engagement on this critical legislation. I hope that, following today, we will see it on the statute book incredibly soon.
Matthew Pennycook (Greenwich and Woolwich) (Lab)
I intend to be brief, because the sole amendment we are considering is entirely uncontentious.
As you will no doubt recall, Madam Deputy Speaker, the Opposition welcomed the concession the Government made in the other place last year with regard to professional training and qualifications, and the resulting addition of clause 21 to the Bill. Having pressed in Committee for that clause to be strengthened, we also welcomed the Government’s amendment to it, which was tabled on Report earlier this year on the basis that it largely assuaged our concerns. We support Lords amendment 13B in lieu of Commons amendment 13, as do the relevant trade bodies and tenant groups including Grenfell United and Shelter, whom we once again commend for the role they played in convincing the Government to incorporate qualification requirements in the Bill.
Lords amendment 13B is a technical amendment that has three main effects. First, it will ensure that the qualification requirements in clause 21 capture relevant managers working for organisations which deliver housing management services on behalf of a registered provider. Secondly, it will ensure that contractual agreements between registered providers and delegated services providers and relevant sub-agreements contain terms stipulating that their relevant managers should have, or be working towards, a specified qualification in housing management, thus enabling registered providers to take action against delegated services providers that are not compliant. Thirdly, the amendment expands on definitions of services providers and specific roles, and provides for consultation before setting a standard and before giving a direction to set a standard.
We agree with their lordships that the changes are necessary if we are to ensure that the sector as a whole delivers high-quality professional services of the kind social tenants deserve and rightly expect. I want to put on record our thanks to my noble Friend, Lady Hayman of Ullock for bringing the need for this amendment to the Government’s attention and for her efforts more generally to improve the Bill in the other place.
It is our sincere hope that once the House has agreed this minor but necessary change today, this important and urgently needed piece of legislation can quickly receive Royal Assent so that we can overhaul the regulation of social housing and better protect the health, safety and wellbeing of social tenants across the country.
Question put and agreed to.
Royal Assent
Thursday 20th July 2023
(1 year, 5 months ago)
Lords ChamberRead Full debate Read Hansard Text Amendment Paper: Public Bill Committee Amendments as at 7 December 2022 - (7 Dec 2022)