Supported Housing (Regulatory Oversight) Bill
Friday 18th November 2022
(1 year, 11 months ago)
Commons ChamberRead Full debate Supported Housing (Regulatory Oversight) Act 2023 Read Hansard Text Watch Debate
Bob Blackman (Harrow East) (Con)
I beg to move, That the Bill be now read a Second time.
The private Member’s Bill process, and the ballot at the start of every Session of Parliament, gives all of us the opportunity to apply to champion a cause that we believe will make a real difference to society. Whenever I have been asked about my proudest moment as the Member of Parliament for Harrow East, I have always answered that it was my previous private Member’s Bill, which became the Homelessness Reduction Act 2017. I hope that very soon I will be able to refresh my answer to incorporate the Supported Housing (Regulatory Oversight) Bill. When I was drawn at No. 2 in the 2016 private Member’s Bill ballot, I thought my luck had concluded. Members can imagine my surprise, therefore, when earlier this year my phone blew up again with every charity and good cause trying to get through to champion their proposals. I knew that I had to draft a Bill that would develop the attainments of the Homelessness Reduction Act and simultaneously make a positive difference to vulnerable people’s lives.
The HRA focused on preventing people from becoming homeless and introduced the most comprehensive changes to the rights of homeless people in England for over 39 years. Fundamentally, its purpose is to ensure that everyone who is at risk of homelessness or is currently homeless is legally entitled to meaningful help from their local authority, regardless of their current status. Previously, only those who were deemed in priority need and at crisis point had been entitled to assistance from local authorities; this excluded the majority of people, including almost all of those who were single.
The Act also addressed the significant lack of meaningful advice and assistance. More often than not—in the majority of cases—the advice and assistance provided was not tailored to the individual’s needs and requirements. The Act implemented a duty on public bodies to refer to the housing department any person they believe to be at risk of homelessness within 56 days. That has helped to direct appropriate and efficient support and resources to those in need, and to prevent them before it is too late from having to sleep rough. That 56-day deadline marks a significant extension: previously, only those at risk of homelessness in the following 28 days would potentially receive some guidance. The extension to 56 days has meant that people have a longer opportunity to relieve their situation.
I am pleased to say that in its first year of operation the Homelessness Reduction Act prevented 37,000 people from becoming homeless, and continues to be just as effective today, some six years later. In the first year, an additional 60,000 people who were previously ineligible for homelessness support were assisted in getting off the streets and into appropriate accommodation. That was a rise of almost 50% on the assistance prior to the Act’s implementation. As a side note, the Bill was notable for being the longest private Member’s Bill in history, at 13 clauses in length. In keeping with tradition, I can confirm that the Supported Housing (Regulatory Oversight) Bill with supersede that, at 14 clauses long.
Needless to say, I have put a lot of pressure on making my second private Member’s Bill a highly impactful and instrumental piece of legislation. I have maintained an active and invested interest in the housing and homelessness sector, chairing the all-party parliamentary group on ending homelessness, along with the hon. Member for Vauxhall (Florence Eshalomi), and having sat on the Levelling Up, Housing and Communities Committee—in its various forms—since 2010. It is therefore fitting that, having previously focused on preventing homelessness, I should focus on supporting those coming out of homelessness and going into supported accommodation. This Bill on social housing therefore became a reality as a natural extension of my previous Bill.
I have been made aware via our recent Select Committee investigation and report, which I shall come on to a bit later, that there was almost no research into the area of exempt accommodation and supported housing, and that it was absolutely rife with rogue cowboys taking advantage and exploiting vulnerable people. The Bill presents a felicitous opportunity to ensure that the Government intervene before the situation becomes critical for the majority of local authorities up and down the country.
Once I was satisfied that my private Member’s Bill would reform the provision for exempted accommodation, I began looking into the research previously obtained by both public and private bodies. It quickly became abundantly clear that, with the exception of studies commissioned by Birmingham City Council, there was next to nothing in the way of research or records, certainly not at national level, which highlights the urgent need for central Government to recognise the issues and commission more findings.
I am pleased that the recently published Select Committee report makes a very constructive and prodigious start at addressing that, and I commend the work of the Committee Clerks and advisers involved in compiling the report, together with my colleagues on the Select Committee. The report, as always, was agreed unanimously. That brings me to its findings. I begin by urging Members to consider reading this rather excellent tome, “Exempt Accommodation”, which is available in the Vote Office and all other good bookshops, so that they may learn of the absolute horrors that we unearthed that are currently being imposed on extremely vulnerable people. Having been on the Committee for some 12 years, I can confidently say that this specific piece of work truly shocked and alarmed all members of the Committee. I would like to make it clear at this point that there are a huge number of excellent organisations up and down the country that provide brilliant help for vulnerable people. Although we came across many good providers, the worst instances in the system urgently need addressing.
We came across the situation in Birmingham—I see at least one Member from Birmingham here today, the hon. Member for Birmingham, Ladywood (Shabana Mahmood)—whereby speculators buy two or three-bedroom houses for about £200,000; under permitted development rights, they expand by building to the sides, to the back and to the top of the house to the absolute maximum without requiring planning permission; they provide one small bathroom and one kitchen area, and create an eight-bedroom property from a two or three-bedroom bedroom; and they then charge an absolute fortune in rent, which is picked up by the public purse.
Worse still, the primary concern that arose was the abysmal level of care being categorised as “appropriate support”. The residents referred to such institutions are critically vulnerable, but have the potential to and are trying to rebuild their lives, including by embarking on the property market, despite at present not being entirely independent. They could be prison leavers, survivors of domestic abuse, those suffering from mental health conditions, previous rough sleepers, people recovering from drug or alcohol abuse—the list goes on. We know that these people might often share one thing in common, which is the need for support in rebuilding their lives, but it is regrettable that in many cases such people are lumped together in the same premises. I find it repugnant that a survivor of domestic abuse might be housed with a drug abuser as well as with a prison leaver who may have been convicted of sexual offences against women. In reality, there is no control over that whatsoever, and local authorities cannot control what happens.
Mark Tami (Alyn and Deeside) (Lab)
The hon. Gentleman is making a powerful case. I have come across an instance where the sorts of properties that he is talking about have the added problem that, in order to get around some of the regulations that would normally have to be complied with, people have to sign for a property as a holiday let.
Bob Blackman
One of the problems with exempt accommodation is that once it has become exempt, normal licensing rules on houses of multiple occupation, and other rules, go out the window. There is therefore no control whatsoever over what happens within that property. Frequently, the support that providers were supplying involved someone turning up once a week, completely unqualified, uninterested and frankly impetuous. Without asking, they enter the property, which has had every room converted into a small bedroom to maximise profits. They shout up the stairs, “Is everyone all right? Fine, I’ll see you next week,” and they depart 30 seconds later. That is not support in any sense of the word, and we need to call those people to account.
Other accounts we heard included those of landlords forcing tenants into prostitution and other illegal activity by threatening them with losing the roof over their heads and any future housing benefits. They also threaten tenants on the basis that, if someone leaves one of the properties, they will be classified as intentionally homeless and will not qualify for local authority support. Often, residents are encouraged not to enter the job market. We are trying to get people to rebuild their lives, but these rogue landlords try to prevent them from entering the job market. Even if tenants do so, it is for a maximum of 14 hours per week, making it almost impossible to save for the deposit needed to enter the private housing market.
Sarah Jones (Croydon Central) (Lab)
The hon. Gentleman is making a really good speech. When I visited Croydon jobcentre, I was told that support-exempt accommodation was the biggest problem faced, and that young people who could be working, doing things with their lives and be on the right path, were encouraged not to do so because the tapering off of support was so great that it made it impossible for them.
Bob Blackman
Clearly, one problem is that we do not know where all these properties are. We do not have the data right now. The hon. Lady will obviously know about Croydon, and we have concentrated on Birmingham. We know about Blackpool, Scarborough, Southwark, and certain other places in the country, but that just highlights that this issue is endemic across the country and why we need to take appropriate action.
Once a resident is working they may lose part of their housing benefit, and providers receive lower profits as a result, even though it is adequate to pay the rent. The conundrum therefore is that someone cannot afford a private rented property until they have a job, and they cannot get a job until they move into a property with affordable rent. That vicious cycle leaves nothing for those individuals to do during the day, and adds to increasing levels of antisocial behaviour resulting from inadequate exempt accommodation.
Exempt accommodation draws its name from its categorisation as exempt from locally set caps on housing benefit. That means that landlords can set sky-high rents, paid for out of taxpayers’ money, on the basis that they are offering adequate support. Where every room in a property is converted into a small bedroom, often properties would have with 60 or 70 bedrooms and a mere three bathrooms. Unscrupulous landlords have a licence to print money, making excessive profits by capitalising on loopholes in the market. In many cases, we were informed that there was more money in being a rogue provider than in illegal drug dealing. We are already seeing exempt accommodation abuse spreading across local authorities—I have mentioned Birmingham—and, without the Bill, it is only a matter of time before cases prevail in all areas of the country.
Ben Everitt (Milton Keynes North) (Con)
My hon. Friend may remember the evidence given to the Select Committee of a local authority in the south-east of England that had a case where a block allocated to exempt accommodation was sold and flipped overnight into an offshore property fund for hundreds of times the sale price. It is an absolute scam, and it is going international.
Bob Blackman
I thank my hon. Friend for that intervention. The example he cites is, of course, of millions of pounds. Not small amounts of money but millions of pounds are going offshore as a result of this issue.
Another common theme in the report was the neglect of interest in residents’ previous circumstances. We found, more often than not, that when domestic abuse survivors find their way into the hands of these rogue operators rather than specialist domestic abuse services, there is a real risk that they end up living in the same building as the perpetrator—literally the person who abused them in the first place. I am sure the whole House will agree that that is completely inappropriate and insensitive. Housing victims with potential abusers is hugely damaging and will have the reverse effect of the original intention of supported housing, which is, after all, to help people rebuild their lives.
If I may, I will share a short extract from the report on one tenant’s experience with a rogue provider. They say that their accommodation was
“managed by what could possibly be called gangsters, who would scare tenants at various times for various reasons, often for no reason. They were sometimes drunk and they were untrained for their roles. They were abusive, intimidating and preyed on the vulnerable…tenants were abused physically and mentally, but nothing was done.”
That quote is from someone who gave evidence to us and was a very brave individual to do so. The report goes on to cover the aforementioned issues in more detail and justifies the need for a Bill to regulate such scandalous plights.
I have already touched on the lack of data and documentation on providers, which is caused solely by the lack of regulation or previous acknowledgement of the issue. I therefore wish to explain how I found the relevant information needed to create a full picture in order to formulate the Bill. The journey began with multiple meetings with Crisis, which as we all know is a wonderful housing charity, to discuss its experience of working around exempt accommodation and those who have been subjected to harsh environments with inadequate support. It held a similar concern that it was a rapidly growing problem that until then was not receiving the political attention that it needed at national level.
The various Crisis skylights also enabled me to meet some brave and willing people with lived experience in such organisations. It was truly shocking to hear the impact that conditions had had on them and the further difficulties they had caused. That was disheartening, considering that those people had sought help and, in theory, the supported accommodation should have helped them back to normality rather than being a preventive barrier, as was the case. I am grateful to have met those people, who have been whistleblowers for the greater good. It takes a lot of courage to come forward, particularly when the providers know intimate details about them, which could easily be used against them by such manipulative bullies.
Understandably, many local authorities have taken a vested interest in the Bill throughout its journey. I have received many representations from local authorities up and down the country, which has enabled me to meet regularly with authorities from all over the country to discuss and address potential concerns arising from the sector and potential regulation. The consensus arising from those conversations was that the spiralling knock-on effects from merely one rogue provider in a district can be huge, whether from increased antisocial behaviour, prolonged claiming of housing benefit, or mental or physical health issues arising for residents.
I was saddened that, due to the dreaded conference cold, I was forced to miss the exempt accommodation conference held by Birmingham City Council in October. Colleagues have reliably informed me that it was an informative, eye-opening and productive series of discussions that has undoubtedly helped to align our goals and provide further weight to the case for a change in the law. Housing providers, and more widely housing representative boards, have engaged regularly on this issue through roundtables, private meetings and other such correspondence.
From the very beginning, I have been clear that one thing I did not want to bring about with the Bill was over-regulation or a negative impact on good providers. I have thus far concentrated on the dark side of exempt accommodation, but I am clear that we need to stress that that is not the only side. There are countless providers who do a really good job, offering high-calibre accommodation with attentive, benevolent care and providing vulnerable people with assistance. For some, they provide a helping hand to get residents back on their feet and live independently. For others with long-term needs, they provide a permanent supported home. They should also be able to carry on their good work with minimal implications from regulation and minimal additional costs. Having liaised with many representatives, interested parties and boards, we have collectively reached that intended objective.
There is also a third group: providers who entered the market without understanding what is expected of them, or providers whose services are not up to scratch but want to stay in the business and improve. We are committed to ensuring that they get the support they need to improve and develop their services.
Moving on to my parliamentary comrades, many Members, particularly those centred in the west midlands, have direct casework relating to the provision of exempt accommodation. Their views and perspectives have offered me an advantageous insight into the wider impact or consequences of supported housing from a greater perspective, and into what they believe are the most appropriate measures to combat such problems. I am humbled to see so many here today to support the Bill on Second Reading.
There is no doubt that we are all far too aware of the turbulent political climate in recent months leading up to this point. The Bill has outlived two Ministers and I am pleased to see two of them here today. Regrettably, my hon. Friend the Member for Walsall North is unable to be with us this morning, but I look forward to his support as we go forward. We are on the third Minister, who I welcome to her place on the Front Bench. I look forward to hearing her reply to the debate in due course. That has caused a number of setbacks as we have tried to ensure we have agreement with the Minister and officials, but, to a certain extent, it has been advantageous because have had three separate and hugely valuable contributions from Ministers.
Sarah Jones
No, I will ask a different question. I wonder if the hon. Gentleman has engaged with Minister in the Department for Work and Pensions on the cost of housing benefit for supported exempt accommodation. Do we have any sense of the scale of what is being paid out, quite often to rogue landlords?
Bob Blackman
I thank the hon. Member for that contribution. We have indeed engaged with DWP Ministers. We believe, and it is mentioned in the report, that literally millions of pounds could be saved by preventing rogue landlords from getting away with what they are getting away with. However, the data does not exist. One issue she may be aware of is that covering more than one Government Department when one is presenting a private Member’s Bill is a big risk, to put it mildly, but she is absolutely right that we need to look at that issue. We believe there is a huge amount of money to be saved for the public purse, which could then be directed to help those vulnerable people in the first place.
Let me begin with my hon. Friend the Member for Walsall North, who is extremely well versed in this topic. He has a background in local government, worked for an accommodation provider—a charity—and was chairman of the Walsall Housing Group, so it was a pleasure to meet him on multiple occasions to discuss the initial plans. Although we did not always agree, he gave constructive feedback on what needed to be done.
Moving on to my right hon. Friend the Member for Pendle, his vastly impressive portfolio in various ministerial positions provided favourable advice on ensuring that the Bill was appropriate for Government support and encompassed the necessary points to help secure success and, in turn, Royal Assent. I hope that, with such support, that will be true of my Bill.
I warmly welcome the most recent Minister, my hon. Friend the Member for Kensington. She has only recently come into post, but I thank her for her efficiency and productive inputs on a host of matters relating to the publication of the Bill and to get us to this point today—lastminute.com is certainly in order here.
I will briefly explain the Bill’s intentions and clauses. Clause 1 provides for a supported housing advisory panel. That requires the Secretary of State to set up a panel of representatives from across the entirety of the supported housing sector. That may include, but is not limited to: registered providers, local authorities, social services, charities and residents of supported housing organisations. The panel will have an independently appointed chair, who will be expected to provide advice, counsel and guidance on matters directed by the Secretary of State. Panel members are appointed for a five-year term and may be elected for a maximum of two terms.
The Bill then moves on to local housing strategies to combat unscrupulous providers. Local housing authorities, including lower-tier councils, unitaries, metropolitans and London boroughs, will be required to review all examples of supported housing in their district and to publish a strategy every five years. That review should include a needs assessment and the consideration of future availability. The Bill entitles social services to co-operate with such reviews and have involvement in the future strategy. I hope that requirement will address the significant lack of data on the whole sector and help to shape future developments in the area. We should remember that there are often two contracts in place: one for the rent and one for support for residents who need help.
The Secretary of State may seek to publish a set of nationally supported housing standards that lay down minimum standards on accommodation and care support supervision. Those must be kept under constant review as circumstances regularly change, as happened during the recent pandemic, for example. Following meetings with the Minister and officials from her Department, I positively anticipate that the Government will choose to exercise this power because it builds on the previous commitment in the March 2022 statement to introduce nationally supported housing standards. Those standards will help us to get to grips with the third group of providers I mentioned: those that are not up to scratch at the moment but are ready to improve. As I said, for most reputable providers those standards should reflect what they already do and should not pose them a concern.
That brings me to the clauses on licensing regulations. The Secretary of State may make regulations on which accommodation, as defined in clause 12(2), has to be licensed. There is no binding time constraint on the Government to make the regulations in the Bill, and it is fair to say that there has been detailed discussion of that.
Matthew Pennycook (Greenwich and Woolwich) (Lab)
One is struck, on reading the Bill, by how many times the word “may” is used rather than “must”. I wonder whether the hon. Member could perhaps give us a sense of why that particular wording was chosen for clauses 4 and 3, to which he has previously referred.
Bob Blackman
We are seeking to have a number of permissive clauses in the Bill, so that if the things that have to be done are done and they work, and we drive the rogue providers out of the market, we will not need to initiate the other measures. However, I was keen to make sure we got the hooks in the primary legislation whereby the Secretary of State could then enhance with what is needed, so that we get to the point of controlling the supported housing providers in the way that we would envisage. It has been a matter of discussion between myself and Ministers and officials to get to this point; in the original draft we were seeking to do that immediately, but we took the spirit of compromise. I am looking forward to our reaching that position, and one provision in the Bill is that if after a year no regulations are published, the Secretary of State must release a progress report and report to the House.
I also welcome the Minister’s commitment in the House this morning to deliver a licensing scheme within 18 months of commencement, and I trust that she will confirm that commitment when she responds to the debate. Regulations must include provisions giving councils the power to set up licensing accordingly. That may include a further provision that requires local authorities to set up a scheme if provisions in the regulations are met.
The regulations mentioned up to this point must have the approval, by a resolution, of both Houses. I am clear that we do not wish to impose a requirement on every local authority to set up a licensing scheme, as that may not be required immediately everywhere. The Bill therefore allows for a further provision about refusal of licences should the applicant not pass a fit and proper person test. The licensees will not be subject to other forms of licensing under the 2004 Act, and the housing benefit regulations—this picks up on the intervention from the hon. Member for Croydon Central (Sarah Jones)—can be amended to remove or restrict entitlement. It further allows for licensing regulations to amend, repeal or revoke any enactment, should it be necessary. I make it clear that the expectation is that if providers fail to reach the standards required, their ability to change enhanced housing benefit will be withdrawn.
Let me move on to the consultation clause of the Bill, which stipulates that the Secretary of State must consult a list of statutory consultees about matters raised in regard to licensing. He or she may wish to ask for views on:
“whether the proposed regulations are likely to be an effective means of securing that National Supported Housing Standards are met, and
(b) any additional mechanisms for securing compliance”.
The current statutory consultees include the Local Government Association, the National Housing Federation and the Regulator for Social Housing. Local authorities have an obligation to have regard to the national standards and the advice or guidance issued by the Secretary of State whenever they carry out their duties regarding supported housing matters.
Let me turn to planning matters, where the Secretary of State must review the licensing regulations and, in the light of the review, consider the case for specifying exempt accommodation as a separate use class, referencing the Town And Country Planning Act 1990. In my view, there should be a requirement that providers need planning permission for a change of use, as per the Select Committee report recommendations. However, I have accepted the position that we will allow the Secretary of State to determine whether that is necessary going forward.
During the drafting phase of the Bill, the intentionality clause—this is about those who would be classified as “intentionally homeless”—caused much discussion. I was keen, having seen things at first hand with the Select Committee on the visits we made to Birmingham, that if someone is in inadequate accommodation and they take the brave leap to leave the often dangerous and compromised situation they find themselves in, they should not be found intentionally homeless. Therefore, section 191 of the Housing Act 1996 is amended so that should the departed accommodation or support be below the national standards, no intentional homelessness will be caused. Many authorities are already looking at trying to make that change, because of the scandal of these rogue landlords.
Finally the Bill addresses the sharing of information and consequent use of specified information. It enables the Secretary of State to make regulations regarding data sharing between local authorities, registered providers, regulators of social housing and the Secretary of State. Further, it allows for local authorities to use information obtained under the housing benefit or council tax functions for the exercise of its functions under the Act. This is a particularly difficult area. For example, victims of domestic abuse need their whereabouts to be kept confidential, especially from historically abusive partners. This is a particularly difficult area, but victims of domestic abuse need their whereabouts to be kept confidential, especially from historically abusive partners. Others in vulnerable positions also need confidentiality to be maintained.
Although I have briefly touched on some of these issues, I intend to cover a few possible objections to the Bill and refute them—it is always good to anticipate what people may think of raising. Understandably, the concern that good providers, particularly those of a much smaller size, will face a considerable burden and be forced out of the field was prevalent in discussions on the Bill. The worry was that, through the implementation of further regulation, the financial cost would be so great that it would not be viable for them to continue practising. Another worry was that they may have to restructure their entire business model to suffice the new regulations again, creating costs and a considerable amount of restructuring work.
A further such concern, which was highlighted throughout the research meeting for the Bill, was raised by local authorities. They were concerned that, while the scheme would be beneficial and necessary for districts where there are many providers in operation, it would be cost-ineffective for local authorities where the district contains, for example, only a single provider, which may be operating with very good intentions and providing an appropriate and respectful service. Building on that, there were discussions that the scheme would be costly for local authorities regardless of the number of providers. These costs would cover implementation, the establishment of regulation, administration recourses, and procedural measures for providers that do not comply with licensing standards as set out by the Secretary of State.
Additionally, a threat to the Bill was that, if appropriate personnel from relevant bodies could not be persuaded to join the newly established supported housing advisory panel, it would lack invested advice and appropriate scrutiny. The Secretary of State is, undoubtedly, incredibly experienced and well versed in matters within his Department. However, as much as we would like it, we do not have all the answers to everything. If a full board could not be established, it would risk losing the breadth of expertise on every potential implication of the topic.
Finally, another objection was the timeframe in which the Bill is to be enacted by the Government. There is no stipulation of a threshold in which the Government must enact the panel and release their regulations for supported housing licences. This could allow the Government to prolong the process—I am sure they would not do such a thing—allowing many rogue providers to continue abusing the system, taking high levels of housing benefit in return for providing poor quality care and accommodation to residents. The premises used for such rogue institutions are so poorly constructed that they would take minimal time to set up, allowing new entrants to the market to rinse the system before regulation is introduced in a somewhat distance future, effectively making the Bill redundant for some while.
After much consultation on the objections raised in my previous comments, along with two incredibly useful pre-legislative scrutiny sessions, which the Levelling Up, Housing and Communities Committee held recently, we have addressed those issues and I am satisfied that, as a consequence, they will cease to exist. First, it is essential that the Bill does not harm or penalise good providers for their good work. Although I have extensively focused on the providers that are not up to par with their care provision, many, as I have said, are doing a really good job, earning the entire housing benefit they receive, going above and beyond in supporting individuals rebuilding their lives and gaining independence. In this regard, as I mentioned when outlining the Bill, some good providers will be allowed to exempt themselves from licensing schemes so as not to compromise their provision, particularly those from smaller, more intimate, not-for-profit providers. What these exemptions look like will be decided following consultation with these good providers, so that their voice and good work is front and centre of the provisions.
The objection that the licensing scheme set up by local authorities would be pointless when they have only a single organisation in their district that this would affect has also been addressed by measures in the Bill. These are that the national supported housing standards created by the Secretary of State can be adopted by local authorities directly. There are then opportunities for councils to team up with neighbouring local authorities to ensure that their resources are not being wasted. That also prevents rogue providers from jumping from one local authority to another.
To refute the third objection, that sufficient board members for the supported housing advisory panel would not be in place, having had copious discussions with boards and representatives of organisations such as Women’s Aid, the National Housing Federation, the Domestic Abuse Commissioner and many others, it was abundantly clear that there is no shortage of volunteers to serve on the board. It is in the best interests of members to have their views represented, and thus I do not deem that a problem likely to arise for the sector.
Finally, there is the objection of the lack of time constraints on the Government throughout the Bill. Admittedly, this was an area where we went back and forth with the Department several times, to ensure that the Government were efficient in providing the licensing minimum standards and to prevent the barbaric activities of poor providers from continuing any longer. I understand that today the Minister will make a number of commitments at the Dispatch Box, for which I am grateful, that these measures will be enacted within the previously agreed 18 months from the commencement of the Act. That will reassure the thousands of residents currently suffering in below-par housing.
I am pleased that that builds on the further Government commitment to give 22 councils a further £13.5 million to help them to clamp down on rogue landlords who exploit the supported housing system and fail vulnerable residents. The measure comes on top of the £6 million distributed in August to five separate council areas to build on previous pilot schemes. The new funding will help councils to step up inspections, carry out better scrutiny of housing benefit claims to ensure they are reasonable and ensure the quality of accommodation and support to residents. Along with my Bill, that will ensure that together we crack down on all malpractice in the sector.
In the last few years, with the war in Ukraine and the covid-19 pandemic, we have become more aware than ever before that circumstances and environments can change with the flip of a coin. I was therefore keen to incorporate measures that would enable the Secretary of State to appropriately update aspects of the Bill should that be needed in future. Those powers include the ability for the Secretary of State to publish amendments or replacements to the national supported housing standards, as well as to withdraw such standards should he deem it necessary.
Additionally, the Secretary of State may by regulation make provision under which a person having control of or managing supported accommodation that is located in a district designated for the purposes of the regulations and that is not categorised in the Bill’s defining features of supported housing accommodation must also obtain and comply with a licence. To ensure the appropriate use of the provision, the Secretary of State must consult the statutory consultees before enacting the aforementioned powers.
As I reach the conclusion of my speech on Second Reading, it is only right that I mention the people who have made it possible to get to this stage. It has been a long and sometimes uphill challenge, but one that has enabled me to work with some incredible people, coming together with one main goal. Firstly, the entire team at Crisis have provided invaluable support and guidance throughout the entire process. Most notably, Jasmine Basran and Sarah Rowe have both worked tirelessly on policy and logistical aspects of the Bill, providing briefings, advice and counsel, and been part of the multitudinous meetings that have taken place over the last six months. Emily Batchelor, Beth Exworth and Martine Martin have also been enormous support in arranging press releases and MP briefings on the Bill.
Justin Bates from Landmark Chambers has been instrumental in drafting the Bill with his expertise on housing, property and local government law. Having edited the erudite “Encyclopaedia of Housing Law and Practice”, there is not much about this topic that Justin is not learned on, and he has been a tremendous addition to the team working on this Bill. I also had the support of Joe Thomas from Landmark Chambers at the beginning of the process to advise on planning laws.
Throughout this process, we have had the pleasure of working with three separate Ministers with the portfolio for housing and homelessness. My hon. Friend the Member for Walsall North (Eddie Hughes), my right hon. Friend the Member for Pendle (Andrew Stephenson) and the current Minister, my hon. Friend the Member for Kensington (Felicity Buchan), have all been influential in getting the Bill to this point. Their advice and flexibility throughout the last six months are greatly appreciated by me and by the whole team. I have no doubt that those who have been afflicted with homelessness can trust that their views will continue to be represented passionately and devotedly by the Minister in her new role. The Officials from the Department for Levelling Up, Housing and Communities have also been a great help in drafting the Bill and agreeing the various clauses. They have engaged in countless meetings and conversations with my team, supporting and advising the Ministers effectively and efficiently on all the aspects on which we have needed to agree.
I have had the pleasure of meeting several direct witnesses of supported housing. Many of my colleagues in the Chamber today will have listened to Wayne and Ian, both from Crisis Skylight Birmingham, at the Regulate the Rogues briefing. Both of them displayed bravery and raw honesty when describing their experiences of living in supported housing. I am sure we can all agree that sharing experiences of such tough times—stories of sheer exploitation—is never easy, and I send them copious thanks for their invaluable contributions in spreading awareness of rogue landlords.
I am pleased to see that some Members from Birmingham constituencies are present, and I appreciate their giving up their time on a Friday to support the Bill. Birmingham City Council has provided much useful evidence, as well as the invitation to the Select Committee that I mentioned earlier; I also mentioned the conference that it held, sparking much constructive discussion of this issue. I particularly thank Councillor Sharon Thompson, who has done brilliant work in this area.
The Committee has been very supportive of the Bill. The publication of its report has highlighted the corruption in the sector, and has opened many eyes to the need for regulation. I thank all its members not only for their work on the report, but for the two sessions of pre-legislative scrutiny. The contributions of colleagues helped to shape the Bill and ensure that it targeted the areas I had originally hoped it would.
Let me also express my gratitude to the housing providers and interested bodies that have met me over the last few months to discuss the Bill and offer their thoughts. This has helped me to ensure that there is support from across the sector, and that their worries are addressed to prevent any unwarranted consequences that might have potentially arisen. Specifically, I thank Sapphire Independent Housing and Livingstone House for allowing me to walk around their properties, see the services they are providing, and meet many of their clients.
Finally, I thank my team in the office for their continued support—particularly Hattie Shoosmith, who joined me only in February, and who has attended virtually every meeting and been involved in virtually every aspect of this process. No doubt she did not expect that when she came to work for me.
I am sure that, after the best part of an hour—[Hon. Members: “More!”]—I have exhausted all things related to the Supported Housing (Regulatory Oversight) Bill, and I now look forward to hearing the comments of other Members. Let me end by saying, once again, how grateful I am to those who have offered support, and to all right hon. and hon. Members who are present today. I very much hope that the Bill will have continued support from the Government and from all parties. The message we have to send today is “Rogue landlords, your time is up”, and I commend the Bill to the House.
Shabana Mahmood (Birmingham, Ladywood) (Lab)
I am delighted to speak in today’s debate, and I thank the hon. Member for Harrow East (Bob Blackman) for his decision to use his Private Member’s Bill slot to address some of the issues in the supported exempt accommodation sector. They are issues that are close to my heart, for they have affected my constituents very deeply. The proliferation of rogue providers and poorly managed supported exempt accommodation across Birmingham has scarred the communities that I represent.
Although the Bill does not do everything in quite the way I would wish, it is a huge leap forward. The hon. Member for Harrow East and I may agree on almost nothing else, but I am an enthusiastic supporter of his efforts in this regard, and I appreciate the generosity that he showed in his speech towards colleagues in Birmingham City Council, particularly Councillor Sharon Thompson, who has also been working incredibly hard in trying to get to the bottom of not just the issues in the sector, but the best ways of tackling them.
So I thank the hon. Gentleman, and I deeply appreciate his efforts and the Bill. I also recognise the work of the Levelling Up, Housing and Communities Committee, on which he sits. Without its in-depth reporting on exempt accommodation, we perhaps would not have made the progress we see today.
I resisted the temptation to intervene on the hon. Gentleman when he listed the previous Ministers with whom he worked. I welcome the new Minister to her place, and I recognise the efforts of her predecessors, particularly the hon. Member for Walsall North (Eddie Hughes) and the right hon. Member for Pendle (Andrew Stephenson). I worked very closely with the former, who worked in this sector before coming into politics. He was careful and assiduous in trying to increase the salience of this matter across Government, but I am afraid I cannot give them a free pass on the amount of time it has taken us to get to this point. We are here today only because we have used a private Member’s Bill slot to make this progress.
I feel so strongly about the Government’s delay on this matter, and I call them out for it, because every week and month that passes without action, without the regulatory oversight we need in this sector, rogue providers ruin communities all over our country. Whole streets have been utterly ghettoised by the proliferation of poorly run supported exempt accommodation. Vulnerable people are housed in these properties and, where they are unlucky and have a rogue provider, we effectively get state-sponsored grooming, state-sponsored abuse and all sorts of other horrors, some of which the hon. Member for Harrow East outlined and many of which I have seen in my constituency and across my city. It is high time that the Government called time on this behaviour, because taxpayers’ money is funding rogue individuals who are lining their own pockets—they are laughing at us while they do it, and it is completely unacceptable. They have ruined lives and communities, and they must face the consequences.
I welcome the progress we are making, but we could and should have got here faster. Even once the Bill passes, with Government support, there is still so much more work to do.
As the hon. Gentleman outlined, we all know that exempt accommodation is a type of supported housing that is exempt from the housing benefit regulations that limit rents to local levels, and we all know exempt accommodation is often used to house vulnerable people, including prison leavers, domestic abuse survivors, recovering addicts and those at risk of homelessness. We all recognise that the cost of helping such individuals is higher, so the exemptions that apply to this type of housing, and therefore the ability to access higher payments to house such people, were designed to allow providers to access adequate sums of money to help individuals as they seek to turn their lives around. Nobody envisaged that we would enter the world of abuse we have seen in the sector once the exemptions took effect. Obviously, this was not planned. Unfortunately, although the purpose of the exemptions is good, we have seen abuse proliferate.
The higher rate of housing benefit goes directly to the provider in return for their housing and supporting these vulnerable people, but we all know that, too often, it does not happen in practice. Like the hon. Gentleman, I recognise and appreciate the work of legitimate providers who act in good faith. They are in this work to do the right thing by deeply vulnerable people, and it is in all our interests that these vulnerable people—whether they have left the prison or care systems, whether they have fled domestic abuse and violence or whether they are trying to recover from addiction—have the help they need to turn their lives around, so that they can be productive and healthy citizens once again. Good providers, those that are not just looking for a job but have a social mission to help the most vulnerable in our society to turn their lives around, are doing important work, but there are now simply too many providers that, because they have seen the gaps, are willing to game the system and give the entire sector a bad name.
Vague housing benefit regulations—this relates to the point that my hon. Friend the Member for Croydon Central (Sarah Jones) made—and the sector’s exemption from council powers such as planning and the licensing of houses in multiple occupation mean that pretty much any provider can pop up anywhere and begin accessing housing benefit, with no test to ensure that they are decent or doing right by the vulnerable groups of people they are looking to house. Dodgy providers are cramming vulnerable tenants into badly run hostels and HMOs, and the system is a complete money-spinner for cowboy landlords who are lining their pockets with housing benefit payments while providing little to no support at all.
The system too often fails everyone. In the light of that, the Bill is not only necessary but long overdue. I have lost count of the number of times I have spoken to a constituent about a problem exempt property on their road or the disgusting treatment that an exempt tenant has received at the hands of their unscrupulous provider.
We are in this mess because of the gaps in regulations. The Housing Benefit Regulations 2006 state that a property cannot be exempt unless the claimant is being provided with “care, support or supervision”. However, those regulations do not define what “care, support or supervision” means, so local authorities are left relying on case law, which only says that the care, support or supervision has to be “more than minimal”. In practice, that means hardly anything at all. As the hon. Member for Harrow East said, it is not unusual for providers to suggest that care, support or supervision can be accounted for by somebody popping along to a property once a week, if tenants are very lucky, and shouting up the stairs, “Are you all okay?” and then walking straight back out again. If tenants are lucky, they might get a provider that thinks care, support or supervision responsibilities are discharged by putting CCTV cameras in communal areas. That is often the low threshold that rogue providers feel they have to overcome. It is obviously not what was envisaged when the regulations were drafted, and it is the reason I have engaged regularly with Ministers and officials in the Department for Work and Pensions.
While changes in regulation by the Housing Minister and her officials are necessary and important, we also need to destroy the business model and the gaps in housing benefit regulations that are the reason why this has proved to be such a lucrative money-spinner for the cowboys who have flooded into the sector. It is crucial that the Government tighten up welfare regulations and set out in law a proper test for what counts as care, support or supervision, because we must cut off the ease with which this extra cash can be accessed.
In Birmingham, we have had a worrying and significant growth in the exempt accommodation sector. As a result, we have a serious dependence on exempt providers to house many of the vulnerable people across our city. That is perfectly exemplified by the astronomical rise of a provider called Reliance, which is now the largest exempt accommodation provider operating in Birmingham. Just four years ago, Reliance was a dormant housing association based in Kent, and today it houses nearly 8,000 exempt tenants—approximately 38% of all exempt accommodation tenants in Birmingham.
I have come across a number of examples of bad practice by Reliance as a provider of this type of social housing that is failing my constituents and exacerbating the issues in the exempt accommodation sector. Right now, I am dealing with a case that involves two constituents who told me they were threatened with eviction, intimidated and left with less than an hour of one-to-one support during their tenancy at the hands of their provider, Reliance—all of this while being housed in a property that required a number of repairs. My constituents told me that for the six weeks that they were in one of these properties, they only had gas for two weeks.
After I referred the matter to Birmingham City Council, it made the decision in September to claw back some of the housing benefit that had been paid to Reliance in respect of these constituents in that property because it concluded that they were not being adequately supported. This action appears to have resulted in Reliance issuing all the tenants in the property with an eviction notice on the trumped-up charge that the residents were not engaging with the support it was providing, despite the council deeming that support to be inappropriate and of an unacceptable standard. To make matters worse, Reliance also asked the tenants to set up a direct debit to repay the “debt”, as it called it, for the housing benefit payments that it lost as a result of its poor support provision. Sadly, the saga does not end there.
Reliance has since tried to push for an informal agreement with Birmingham City Council, whereby Reliance would agree not to pursue the so-called debt against my constituents if my constituents and I withdrew our complaint. It is basically punishing my constituents for telling the truth, for calling out the absolute abject lack of support they have been receiving and for seeking help from their elected representative. This is a provider housing thousands of vulnerable people across my city. It seems to me that it basically thinks it is too big to fail, that it has Birmingham City Council over a barrel, and that it can essentially hold us all to ransom and therefore get away with this utterly outrageous behaviour. I appreciate that may seem an extreme example, but it demonstrates perfectly the need to take power away from providers such as Reliance and put it back in the hands of local authorities, which at least have responsibilities to citizens first and foremost.
The licensing scheme in the Bill provides a framework for councils to determine who can provide exempt accommodation within their areas, and that is an important step forward. A licensing scheme would drive up standards and ensure that both the accommodation and support are good enough to enable people with incredibly complex and changing levels of need to move on with their lives. To achieve that, the scheme must provide new powers to councils to ban or fine dodgy providers so that they can finally clamp down on those who flout the system. It must also include what effectively amounts to a fit and proper persons test. It should not be possible to provide housing to some of the most vulnerable people in our country and not even have to establish that someone is of good character before they do so.
I also stress that a licensing scheme must include an inspections regime, which will ensure that even after a licence has been secured we can keep providers on their toes to prevent a situation whereby rogue providers think that they just have to cross the threshold of getting a licence and they can then go back to their previous practices. They must be made to continue to demonstrate good practice to keep their licence. For that, regular inspections to keep providers on their toes and to ensure a decent level of service is maintained must be brought forward.
Dr Luke Evans (Bosworth) (Con)
The hon. Lady is right to want to ensure that standards and an inspection regime are in place. Does she feel that there should be a complaints procedure as well, which could be raised with the bodies, so that if someone is running into trouble, they have that back-up?
Shabana Mahmood
The hon. Gentleman is right, and I was just about to make that point. A complaints procedure is necessary to protect, for example, the two constituents whose case I have already highlighted. They are effectively being punished for escalating a complaint to their elected Member of Parliament. We need a complaints system in-built into whatever regulation emerges after the licensing provided for by the Bill, so that there is recourse to help and so that providers getting into the sector understand that if they fail their tenants they can be complained about and they cannot hold them to ransom if a complaint comes in. A complaints mechanism would be an important element of keeping everybody in this sector honest, if I may put it that way.
The good providers will have no problem in proving that they are doing good work and will pass any test required of them with relative ease. I can pinpoint exactly who is doing a good job in Birmingham and who is not. Anyone who has done any work in this sector knows who the good guys are and knows where the problems are. I do not believe that any regulatory threshold applying to every provider would in the end amount to a barrier for the good providers. None of us would want to see them driven out of this sector, but I do not believe asking them to pass the same test as everyone else would achieve that.
Ben Everitt
Perhaps I am about to repeat the mistake made by my hon. Friend the Member for Bosworth (Dr Evans) and this may be a point that the hon. Lady is about to come to. Further to licensing, the inspections regime and the complaints regime, does she not agree that we need valid and robust enforcement practices, so that once these rogue landlords are identified through regulation, licensing and complaints, we can throw the book at them and then word will get round so that we drive them out of the sector?
Shabana Mahmood
The hon. Member makes an important point: we absolutely need enforcement. I might also observe that we need some money in order to pay for that enforcement—it does not happen automatically. There is no magic wand that can be waved to make sure that enforcement takes place: it requires staff, officers to go around and do the enforcement, and a proper system that is well regulated and sufficiently resourced—to put it bluntly, a system that has the money that it needs.
The hon. Gentleman is right that enforcement of these rules will be incredibly important. That is one of the reasons why, although I welcome a local licensing regime, I still want to see action from the Government. In the end, it is only a national regulator—or by passing a duty to one of the existing national regulators—that will be able to police the system consistently across the whole of the country. By regulating practice nationally, rather than leaving it to local licensing regimes, we will achieve the economies of scale that are required to make the system of enforcement affordable. Local authorities do have a crucial role to play, though, and I have seen the changes in Birmingham: the pilots that the Government commissioned have been undertaken and have reported, and have done good work. However, if we leave it to local licensing regimes, we will still allow rogue providers to play a whack-a-mole system. These are highly enterprising individuals who will, at lightning speed, work out where the gaps in the system lie. If they think Birmingham has got tougher, what is to stop them going straight across to Sandwell or Walsall, where the licensing might not be as strong because those areas have not previously had such a big problem? Suddenly, they have a big problem and have to bring in licensing, and those rogue providers just go to another part of the country. Local licensing is a good step forward, but the Government’s feet should be held to the fire. We need a national regulatory system that applies everywhere, so that this whack-a-mole system can be defeated once and for all.
Chris Clarkson (Heywood and Middleton) (Con)
The hon. Lady is making an important point about consistency between different local authorities. Arguably, some of that could happen through sharing best practice, as we saw for example when Blackburn piloted the scheme: it worked with other local authorities. However, does she agree that the good providers will welcome local licensing, because it will give them an opportunity to demonstrate that what they are providing is a quality service?
Shabana Mahmood
The hon. Member is absolutely right: people who are in this sector for the right reasons, trying to do the right thing by vulnerable people, will welcome licensing and the new threshold. So many good providers in Birmingham have told me that they are tearing their hair out because the rogue providers are giving them a bad name too, and are driving them out of the sector because the rents go sky-high. If a provider is trying to do the right thing, the business model does not work for them; if they are in it just to cream off taxpayers’ money and line their own pockets, it is a great system, and they can do whatever they like. Strong regulation—national regulation—will be welcomed by all the sorts of people we want it to be welcomed by, which can only be a good thing for vulnerable tenants and citizens across the country.
Ben Everitt
The hon. Lady is being very generous in giving way. To her point about playing whack-a-mole, does she agree that the best way to end whack-a-mole is to grab one of the moles and give it a really good whack? If we catch one of these rogue providers and throw the book at them, word will get around, and we can chase those providers out of the sector.
Shabana Mahmood
Would that it were that easy. My experience of rogue landlords is that the worst really do act like a bunch of gangsters. Going after one will send a message to some of the others, but we need to close down all of the routes into the system. As I say, unfortunately, these are enterprising individuals; if they put their enterprising skills to good uses, we would probably welcome their contribution to our national life, but they are currently abusing the system, and abusing people while doing so. Until we close down all the avenues for abuse, we will still get rogue individuals thinking, “That’s a bit of easy money.”
In some parts of the country—I strongly suspect it has happened in a few cases in Birmingham—such lax regulation is providing ample opportunity for those involved in other criminal acts effectively to launder their money and pose as respectable citizens running housing associations. We know that that is part of what is happening in this sector across the country, so we need to push the Government—collectively, I hope; cross-party in this House—to bring forward national measures. That is why I will fight the cause for a national regulator come what may, because that is ultimately the proper answer to this problem.
As well as securing the quality of exempt accommodation nationally, the Government also have a responsibility to ensure that the taxpayer is getting value for money and that the money being spent in this sector is doing what we all believe it should be doing. In Birmingham, there are more than 21,000 providers of exempt accommodation accessing the higher rates of housing benefit that are available. This equates to millions of pounds of taxpayers’ money, but currently there is no way of knowing how much is being claimed by each provider, or whether providers are upholding their commitments and providing support to the tenants. The hon. Member for Harrow East made similar points.
The Government have been aware for at least a decade that robust information about exempt accommodation is not held centrally, but they still do not collect even basic data to understand the levels of housing benefit being spent within the exempt accommodation sector. When I asked the Department in December 2021 how much money is being spent on this sector, it simply responded that it was too costly to collect that information. I would say that it is too costly not to collect it given the abuse we have seen occur. As the Select Committee noted, the Government have been caught sleeping:
“The Government has no idea how much taxpayer money is spent on exempt accommodation, nor what this money is spent on.”
Again in my constituency, we have seen the emergence of what are called ghost tenancies, whereby a managing agent or a registered provider is claiming enhanced rates of housing benefit for an occupant who has already vacated a property, or who in some cases never lived in the property in the first place. We just have to clamp down on all this abuse, and good data collection by the Government can help us to do that.
One of the things missing from the Bill is a firm commitment on planning. I think there is a possibility for the Government to bring forward such measures, but I would have liked them to commit to planning measures in this Bill.
Shabana Mahmood
The hon. Member is nodding, and I suspect he would have liked that to make its way into the Bill in a stronger form than it currently has. I welcome the direction of travel of the commitment that has been given, but it would have been a much stronger Bill had those measures been a requirement on the Government. Oversaturation in certain areas is a huge problem, particularly in Birmingham, and it can only be dealt with if there is a planning requirement to get planning permission. That would enable local authorities to prevent oversaturation in their areas. There are streets in my constituency where a quarter of all the houses are now exempt accommodation. If we had proper planning powers and the ability to deny planning permission to people who want to turn these properties into exempt accommodation, a council would be able to prevent that from happening, and therefore prevent the saturation and the ghettoisation I have spoken of.
I really welcome this Bill. I do not believe that the Government have discharged their responsibilities to my constituents or people across the country sufficiently at the speed that is required—because, as I say, every moment of delay scars another community across our country for a long time—but I do welcome that they have at least supported this Bill. This Bill will pass, and I hope we can very quickly fill the gaps in regulation that exist so that all the vulnerable tenants across our country can get the support they need to turn their lives around, and no longer are communities scarred and damaged for a long time to come.
Several hon. Members rose—
Madam Deputy Speaker (Dame Rosie Winterton)
Order. I call Gagan Mohindra, but I warn him that I will have to interrupt him at 11 o’clock. [Laughter.] I was rather hoping that the hon. Member for Birmingham, Ladywood (Shabana Mahmood) would have continued until just before then.
Mr Gagan Mohindra (South West Hertfordshire) (Con)
Thank you, Madam Deputy Speaker, and I will on purpose be a bit slow with my introductory remarks because I may have to repeat them after the urgent question.
First, I commend my hon. Friend the Member for Harrow East (Bob Blackman), who is a passionate advocate for this particular area of our society. I also welcome the Minister, who I know is a doughty champion for our communities, especially in the housing arena. I think this is a really important Bill. My hon. Friend the Member for Harrow East spoke about its length, at 14 clauses, but I would argue that the quality definitely outweighs the length. It is one of those things that I think is really required. From the Government’s perspective, it is right that the legislation is there to encourage people to do the right thing. I am now purposefully elongating my words because I have about 10 seconds left. So it is something I will think about for another two seconds.
Proceedings interrupted (Standing Order No. 11(4)).
Supported Housing (Regulatory Oversight) Bill
Wednesday 11th January 2023
(1 year, 9 months ago)
Public Bill CommitteesRead Full debate Supported Housing (Regulatory Oversight) Act 2023 Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 11 January 2023 - (11 Jan 2023)
The Chair
Before we begin, I have a few preliminary reminders for the Committee. Please switch off electronic devices or put them on silent. No food or drink other than water is to be consumed during the Committee’s sittings. Hansard colleagues will be grateful if Members email their speaking notes to hansardnotes@parliament.uk. The selection of amendments is online and on paper in the room, on the table in front of me.
Clause 1
Supported Housing Advisory Panel
Question proposed, That the clause stand part of the Bill.
Bob Blackman (Harrow East) (Con)
It is a pleasure to serve under your chairmanship for the first time, Mr Efford. I thank colleagues from across the House for agreeing to sit on this Bill Committee and enabling us to scrutinise the Bill in some detail.
The Bill is centred around the report on exempt accommodation produced by the Select Committee on Levelling Up, Housing and Communities. The Chair of that Committee, the hon. Member for Sheffield South East, has agreed to serve on this Committee, and several other colleagues who sit on that Select Committee are here.
From the outset, I want to make clear that what we are seeking to do is to drive out rogue landlords, not hinder the really brilliant work being done by thousands of organisations across the country who provide supported housing for vulnerable people. To achieve that, clause 1 sets out the advice that needs to be provided to the Secretary of State. It is clear that this is a complex policy area and we want to make sure that we do not have unforeseen, inadvertent consequences that inconvenience the good people who provide an excellent service. I believe the clause is non-controversial. It requires the Supported Housing Advisory Panel to be set up; the rest of the provisions are permissive.
In formulating the Bill, we have sought to detail the sorts of expertise we believe are required. The panel the Secretary of State is required to set up will provide information to housing authorities, social services authorities and so on, so it needs expertise from people involved in social housing, local housing authorities and social services, as well as someone who has the interests of charities at heart and someone who has the interests of residents at heart, which often gets overlooked. If more expertise is required, the clause permits the Secretary of State to appoint to the panel people other than those specific representatives, but it could well be that someone who is nominated to the panel is expert in more than one field, so one representative from each of those areas is not a requirement.
The clause then sets out in some detail what the panel should do and what advice should be given to the Secretary of State. Obviously, the main purpose of the panel is to ensure that the Secretary of State is informed when action is required to be taken under later clauses. I commend the clause to the Committee and I look forward to contributions from colleagues.
Mr Clive Betts (Sheffield South East) (Lab)
It is a pleasure to serve under your chairmanship, Mr Efford. I will not refer to your abject failure at the weekend to defeat Sheffield United in the cup. That would be very unfair of me.
Mr Betts
I echo the comments of the hon. Member for Harrow East, my honourable Select Committee friend. We worked together closely on the Bill, as did the whole Select Committee; our report on the issue was unanimous. We described what we saw, which—notwithstanding the excellent provision that does exist in the sector—is a system and a delivery of service that is in many respects a complete mess. We saw appalling examples of accommodation that was not fit for purpose, and that the supposed support in this supported accommodation did not exist, consisting as it did of a “support worker” opening a door and shouting up the stairs, “Are you alright, then?” It was absolutely dreadful.
What was in some ways even worse is that the taxpayer was paying millions of pounds for this service, although the Department for Work and Pensions could not actually tell us how much. In the end, though, the Committee is not asking for more money. We are saying that the money that is there could be spent an awful lot better. Delivering to very vulnerable people a better service than they are currently getting and improving the lives of people in communities that have been blighted by this are the objectives we have in mind for the legislation. We do not want to drive out good providers or close down good accommodation. We want to get at the rogue providers who operate scams to make millions of pounds out of housing benefit at the expense of vulnerable people who are not getting the service they deserve.
The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Felicity Buchan)
It is a great pleasure to serve under your chairmanship, Mr Efford. I thank all Members who have joined us this morning, including my hon. Friend the Member for Harrow East, whom I congratulate on reaching Committee with the Bill. I agree with both what he said in his introduction and the comments from the hon. Member for Sheffield South East.
Supported housing is a vital safety net for many people, enabling them to live independently with some support. There are many excellent examples of supported housing providing support for people experiencing homelessness, older people, people with a disability and those suffering from mental ill health, to name but a few, but as we are all aware, there are rogue landlords operating supported housing schemes. Those landlords are exploiting the vulnerable people they are supposed to be helping. This is completely unacceptable. We must continue to deliver a clear message to those providers: their time is up.
This Bill, which the Government support, includes a range of measures to drive out rogue providers and drive up the quality of supported housing. It is a very important measure that comes after many Government interventions. In October 2020, we published the national statement of expectations setting out the Government’s vision for quality supported housing. In the same month, we launched the pilots, and in March 2022, following the evaluation of the pilots, we announced our intention to bring forward regulations. I am delighted that my hon. Friend the Member for Harrow East has come forward with his Bill. We have also announced that over the next three years we are expanding the pilots to 22 new local authorities, with a further £20 million programme of support. The Government are sending a clear message: we will not tolerate abuse of the supported housing system. Time is up for rogue landlords.
Clause 1 places a duty on the Secretary of State to set up a new advisory panel and to appoint a chair to the panel through consulting the members. The new panel will advise on the design and implementation of the measures in the Bill. It will be able to take a strategic view of our plans, as well as undertake its own work related to supported housing. This is an excellent opportunity to bring together key stakeholders to share their expertise and to advise the Government. The advisory panel will give Government direct access to stakeholders and their knowledge of the sector at a crucial time when we will be consulting on how best to deliver and implement the measures in the Bill. The panel will consist of those with an interest from across the supported housing sector, including but not limited to those who represent the interests of registered providers, local housing authorities, charities providing supported housing and residents of supported housing. I look forward to convening the panel at the earliest opportunity.
Bob Blackman
I thank the Minister for her remarks and her support for the Bill generally. I also thank the hon. Member for Sheffield South East, the Chair of the Select Committee, for the inquiry we jointly conducted. This is a very important element of getting the advice that the Secretary of State will need on policy. The one area where there was discussion was the appointment of the chair of this panel, which I think it is important. It is now down to the Secretary of State to make the appointment, but the chair could be a member of the panel who already has expertise and is quite capable. I think enough has been said about this clause, but I will have more to say as we proceed.
Question put and agreed to.
Clause 1 accordingly ordered to stand part of the Bill.
Clause 2
Local supported housing strategies
Question proposed, That the clause stand part of the Bill.
Bob Blackman
Clause 2 builds on the advice to be provided to the Secretary of State and covers local housing strategies. One of the things we established during the Select Committee inquiry was, as has been said by the Chair of the Committee, that it is a bit of a wild west show out there in terms of how supported accommodation is provided. There is a lack of regulation and scrutiny, and even in local authorities such as Birmingham, which has introduced its own scheme, the rogue landlords refuse to comply.
The clause requires local authorities to review the exempt accommodation in their area, so that we can establish exactly how much there is out there. One of the problems that has been encountered as we have had discussions on the progress of the Bill is the lack of data. This issue is not limited to Birmingham. It is spreading out all over the country, in some quite strange places. I know it is the case in, for example, Scarborough, Blackpool and Southwark.
Nickie Aiken (Cities of London and Westminster) (Con)
I thank my hon. Friend for giving way, and I welcome his Bill. In a former life I was cabinet member for public protection, and under that came the environmental health service. I was always shocked when I got my monthly reports about the shocking housing conditions in the private rented sector. Does my hon. Friend agree that this Bill will hopefully do something to give tenants the confidence to go to local authorities and show that they are living in dreadful conditions, so that councils can then go after these landlords? Too often tenants do not feel that they should go and speak to a councillor or their council, because they fear being evicted by their landlords.
Bob Blackman
I thank my hon. Friend for that intervention. One of the challenges here is that we are talking about some of the most vulnerable people in society. They may be mentally ill, physically ill or recovering from drug addiction or a gambling addiction. They may have left the armed forces or prison. There are all sorts of reasons why someone would be in supported accommodation. I will reflect on that as we go through this part of the Bill.
One of the things we established during the Select Committee inquiry was that often tenants are scared stiff to speak up for themselves for fear of being evicted. Rogue landlords will typically say to people, “If you don’t conform and do what you’re told, you will be out on the streets. And by the way, the local housing authority won’t house you, so you could end up rough sleeping and being very vulnerable.” That is the sort of intimidation they face.
The clause goes into some detail about making sure that local authorities review the need in their area, including the type and extent of accommodation. Without that data, it is very difficult to exercise any form of control. That is why the clause gives the local authority a duty to carry out a review and produce a strategy. It may be that certain areas of the country do not have a need—I doubt that, but some may claim they have no need for any supported housing.” None the less, almost all local authorities will be required to produce a plan and make sure that they interact with social services and set out what is going to be provided and to what standards, because no one should be forced to live in substandard accommodation, particularly people in these circumstances.
I have had the opportunity of speaking to many providers of accommodation of this type. They recognise the vulnerability of people, but often they have no interaction with the local authority because they provide the services directly. We are seeking here to make sure that the local authority establishes how much need there is in its area, and then makes sure that that need is met. Without a strategy, an overall view cannot be provided.
Steve McCabe (Birmingham, Selly Oak) (Lab)
I am very supportive of the hon. Gentleman’s aims overall with the Bill, and with this clause in particular. It is important that local authorities have an absolutely clear picture of the need or demand in their area. Does he accept that—this point is not in the clause, but will have to be entertained if the clause is to achieve its aims—having identified the need, there has to be a clear and concerted effort to assist local authorities to provide suitable accommodation? That suggests that we need some sort of targets, both on housebuilding and on identifying appropriate amounts of accommodation in the private sector.
Bob Blackman
I share the hon. Gentleman’s view that we need to meet the need, but we first have to establish what the need is. Many local authorities are working together with not-for-profit providers on both the social services and other elements to provide the accommodation required, and making sure that they are working jointly. Where that process happens, it works very well. What we are seeking to do is to prevent the position whereby rogue landlords set up operations and bring people in who are literally just provided with accommodation and no support whatever—the Chair of the Select Committee talked about that situation earlier. Those people are unknown to the local authority as tenants and are therefore not supported.
That is one of the reasons why this Bill is so important: to regulate the entirety of the sector. Many organisations have continued on, happily providing the sort of service that we would hope to see everyone receive, but unfortunately there is now a large minority of people who are not providing any form of service whatever. That is why we need local authorities to establish the level of need and then, as the hon. Member for Birmingham, Selly Oak says, to establish how much housing needs to be provided and what type of housing and facilities are required, so that that need is met.
Eddie Hughes (Walsall North) (Con)
It is a pleasure to serve under your chairmanship, Mr Efford. I rise to agree with much of what has been said. We should not focus the entire debate on what is happening in Birmingham, but I have experience of what was happening in Birmingham 10 years ago because I worked for YMCA Birmingham.
We provided exempt supported accommodation. I had a number of unscrupulous people approach me and have a discussion about how we could manage accommodation on their behalf. When we told them how much it would cost to provide the service and what we thought was a proportionate and appropriate level of support, they were not interested. They wanted to go somewhere else—to find the people who were doing the “shout up the stairs” approach, which the Chair of the Select Committee commented on earlier. That was 10 years ago.
Although I raised some concerns at the time, for various reasons, partly because of the size of Birmingham’s local authority, it feels to me that the situation got to a point where the local authority was overwhelmed by the amount of accommodation required. Once that door is opened, and people realise there is a very lucrative business model here, more and more people rush in, and it is then very difficult for Birmingham to stem the flow. I commend the work that Birmingham has done, partly with money from the Government’s pilot scheme, and the report of its scrutiny committee, which shows how well the authority has collectively worked to get a grip on the issue.
Felicity Buchan
Under the Bill, local housing authorities will have a duty to carry out a review of supported housing provision in their districts and publish a strategy, which will be updated every five years. The strategies sit outside the enforcement mechanisms in the Bill, but they will be an equally important part of our approach. The supported housing oversight pilots demonstrated the real value of local needs assessments and strategic plans, which enabled local authorities to better understand what type of supported provision was being offered in their area, who provided it and the quality of it. The pilots also showed that strategic planning helped local authorities to better understand the mix of residents that providers are accommodating.
The strategies that the Bill will introduce will include an assessment of the current availability of supported housing in a local housing authority’s district and an assessment of the likely future need for supported housing. The strategies will sit alongside and complement existing strategies, such as those on domestic abuse. Guidance will be published to ensure that those are produced in a consistent way that enables a national picture to be built up. We will incorporate best practice insights from the pilot local authorities to ensure the strategies are designed in the most useful and beneficial way. They will help local authorities to make evidence-based decisions about their support housing provision. When combined with other elements in the Bill, they will empower local authorities to take the right decisions for their areas.
In addition to those local strategies, which will provide useful information at a local level, the Government also have research under way. The hon. Member for Sheffield South East will be glad to hear that we commissioned the research from Sheffield Hallam University. It will provide an up-to-date estimate of the size and cost of the supported housing sector across Great Britain, as well as estimates of future demand. I agree that data on supported housing needs must be improved, and I heard that message from a number of Members on Second Reading. Better data will give the Government and local authorities greater awareness of the supported housing already being provided, where providers are operating and the residents that they are housing.
Eddie Hughes
This is perhaps not something that we need to consider in this Committee, but it was raised at the Select Committee. It is a bit of an omission on the Government’s part, collectively, that we do not know, at the press of a button, the number of people and the cost associated with supported housing. It would be lovely if, at some point in the not-too-distant future, there were a marker on Government databases that said, “This is a supported housing claim.” Then a single authority could at any point ask how many supported housing claims it has. We would not need extensive research from Sheffield Hallam and others; we would just press a button, get a report and know where we were.
Felicity Buchan
I absolutely agree with my predecessor, and I thank him for all his work on the Bill. I agree that we need better data. I reassure him that we are working alongside the DWP so that we are much more in touch with where supported housing is and where housing benefit is being paid to it.
The DWP has already made changes to the way local authorities provide housing benefit data on supported housing claims by including flags in the collection system. That is for new housing benefit claims, so it will take time for this to work its way through the system and have data over time.
We are collectively in agreement that data needs to be improved. The supported housing strategies will be vital in maintaining a clear picture of supported housing provision and future need across England. When combined, these improvements in data and the introduction of strategic plans will help to create a clearer national picture of the supported housing provision across the country.
Bob Blackman
I thank the Minister for setting out the position that the Government will take. Clearly, as Members have said, the most important thing here is to gather the data and information and ensure that we have a strategy for dealing with the type of appropriate accommodation.
One thing that escaped me during my introduction is that there are certain aspects—for example, those vulnerable people fleeing domestic abuse—where we must be cautious about what data is released and made available. That is one reason why it must be clear that guidance from the Secretary of State can be issued to local authorities appropriately. That, of course, would then be a requirement on a local authority to take certain actions.
Question put and agreed to.
Clause 2 accordingly ordered to stand part of the Bill.
The Chair
Order. Before we move on to clause 3, I should say that we are nearly 30 minutes into the sitting. We have a hard stop at 11.25 am, and a few amendments need to be debated. We can organise another sitting to complete the Bill; if that is the will of the Committee, that will obviously take place. Proper scrutiny must take place, but I remind the Committee that 11.25 am is a hard stop.
Clause 3
National Supported Housing Standards
Mr Betts
I beg to move amendment 1, in clause 3, page 4, line 8, at end insert—
“(5) The Secretary of State may by regulations confer powers on local housing authorities to enforce the National Supported Housing Standards.
(6) Regulations made under subsection (5) shall be in a form analogous to Part 1 of the Housing Act 2004, with such modifications, amendments, disapplication or transitional provisions as the Secretary of State shall consider appropriate for the purpose of enabling local housing authorities to secure compliance with the National Supported Housing Standards.
(7) A statutory instrument containing regulations under subsection (5) may not be made unless a draft of the instrument has been laid before and approved by resolution of each House of Parliament.”
This amendment seeks to give the Secretary of State the option of giving local housing authorities the power to introduce a scheme to enforce the National Supported Housing Standards.
The Chair
With this it will be convenient to discuss the following: Amendment 2, in clause 3, page 4, line 8, at end insert—
“(5) If, at the end of the period of one year beginning with the day on which this Act is passed, the power in subsection (1) is yet to be exercised, the Secretary of State must publish, in such manner as the Secretary of State thinks fit, a report setting out the progress that has been made towards doing so.”
This amendment would require the Secretary of State to explain why they have not introduced National Supported Housing Standards, if they have not done so within a year of Royal Assent of the Act.
Clause stand part.
Mr Betts
Thank you, Mr Efford; I take your strictures to heart. I have two amendments. The first one recognises the need for standards to be set down and for a discussion about how that might best be done. I am happy to hear what the Minister has to say. We all want to see standards effectively laid down and followed through; the current lack of standards is a real problem in the sector.
I move on to my second amendment. I am not doubting the good intentions of the Minister in any way, but we have, of course, had one or two changes of Minister; by the time we come to implement this, someone else might be there. I am trying to get on the record what happens if the powers that may be exercised by Ministers are not exercised in practice. Is there a mechanism for whoever the Minister is at the time to report back to Members about what progress has or has not been made? I would be happy to hear the Minister’s response.
Bob Blackman
I should say from the outset that I agree with the thrust of the amendment, but we need to look at the issue in some detail to ensure that it reflects exactly what we are seeking to do in the Bill. I hope that the hon. Member for Sheffield South East will not press this to a vote. We will seek assurances from the Minister about what can be done to ensure that we enforce these regulations on local authorities and that we have proper standards.
Mrs Natalie Elphicke (Dover) (Con)
The Chair of the Select Committee is right to raise the issue of how housing standards can be enforced in this important area, particularly as they affect vulnerable people. I ask the Minister to consider whether the connection of the financial payment—that relationship with DWP extra support payments, which my hon. Friend the Member for Walsall North rightly raised—could be part of the mechanism. We know that local authorities, even with resources, have struggled with rogue landlords and to really enforce housing standards in other ways. I encourage the thinking about financial as well as enforcement powers.
Bob Blackman
I thank my hon. Friend for that intervention. There are a number of different existing models. Many local authorities pay the rent through housing benefit for a tenant to live in supported accommodation. There can then be a discretionary social services element, provided under a contract by the local authority to the housing provider, in order to provide support. It is a very complex area, as my hon. Friend knows. We must get this right; there could be unforeseen circumstances if we are too prescriptive at this stage. It may well be that the detail has to be set out in regulations as the consultation process and the regulations that follow from the Bill go through. I do not think it would be sensible at this stage to agree to the amendment. I trust we will get some assurances from my hon. Friend the Minister in that respect.
The clause requires appropriate supported housing standards to be followed, introduced and enforced by the local authority. As my hon. Friend the Member for Walsall North said—his points were well made—people should be living in reasonable accommodation suitable to their needs. That is part and parcel of setting out what the standards should be. That does not mean the sort of things we saw in Birmingham, with its scandalous elements: where a three-bedroom house is suddenly turned into an eight-bedroom house, with a small kitchen and small living area, and people are crammed in without any support whatever; where there is no control over the type of people put into these houses or their needs; and where someone fleeing domestic violence, a recovering drug addict, someone who has left prison for sexual offences and others can all be accommodated within the same unit, without any consideration of their separate needs and responsibilities. We need to set the standards out.
Amendment 2 relates to the Secretary of State reporting back. We look forward to the Minister still being in place by the time we get the Bill on the statute book, although I notice that here we have an ex-Minister, who began the process, and another ex-Minister, who is now my Whip—we have had three Ministers already, during the course of the Bill’s proceedings. We need to make sure that we are making progress and that we are implementing the provisions. I look forward to some warm words, a firm contribution and a commitment from my hon. Friend the Minister, to make sure that we get action in this area quickly, expeditiously and appropriately as well as a commitment that, if we do not get that action, Ministers will come back and tell us why.
The Chair
Order. I apologise, Minister; permit me to interrupt. Paulette Hamilton wanted to speak.
Mrs Paulette Hamilton (Birmingham, Erdington) (Lab)
Thank you, Mr Efford. It is a pleasure to serve under your chairmanship—I feel as if I have said that a few times recently.
It is no secret that Birmingham has a serious problem with exempt supported accommodation. I absolutely agree with the amendment. One of my constituents is currently living in a five-bedroom house where partitions have been put in and the toilet is broken. For the last four months, rats have been running around the house. This is happening in Erdington, Kingstanding and Castle Vale. I have heard from other constituents. One woman who came to my surgery is living in exempt accommodation. She is heavily pregnant. At the moment, the property has bed bugs and she is sleeping on the floor. The landlord is doing nothing about it.
Felicity Buchan
I agree with the comment from my hon. Friend the Member for Harrow East that it is critical that we get this right. The consultation process is critical to the Bill. We need to avoid unintended consequences.
I will start with amendment 1, which would enable the Secretary of State to enforce the supported housing standards in the same way as housing health and safety is enforced in private housing currently, if he chose to do so. Under the Bill as drafted, local housing authorities will have powers to enforce the new national supported housing standards through a licensing scheme, should they choose to run one. We will issue guidance to sit alongside the licensing regime—following the regulations being made—to ensure that local authorities that choose to run a licensing scheme do so in a consistent way.
Critically, we will consult, under the duty set out in clause 6, on the effectiveness of the licensing regime as a method to enforce the national supported housing standards, as well as on additional ways through which to enforce the standards. The amendment would overlap with the consultation duty in clause 6 and pre-empt the results of that consultation, by putting forward a ready-made solution.
I have been clear that the Government’s priority, in deciding on the detail of implementing the measures set out in the Bill, is to listen carefully to the concerns of the supported housing sector and its residents. We all want to avoid any unintended consequences.
Eddie Hughes
Yesterday I met Kate Henderson and Sue Ramsden from the National Housing Federation, and it seems to me that there is tremendous support for the Bill across the housing sector. There is a great will to work collectively to ensure that there are no unintended consequences and to drive out the rogue landlords. Has the Minister had that experience herself with the sector?
Felicity Buchan
Absolutely. I think that the sector is very supportive of what we are doing with this private Member’s Bill. There is some concern about unintended consequences, and that is why consultation will be key.
I would be happy to discuss the amendment further with the hon. Member for Sheffield South East as an option in the consultation document, rather than setting it out in the Bill. I urge him to withdraw his amendment.
Felicity Buchan
I have finished on amendment 1, but I have not got to amendment 2.
The Chair
I beg your pardon. I was trying to move you on—we are nearly 40 minutes in and only on clause 3!
Felicity Buchan
On amendment 2, it is unusual for the Government to be required, in a Bill, to make progress reports on individual Bill measures in the way proposed in this amendment. Clearly, there are already well established methods for holding Government to account—including by inviting or calling Ministers to one’s Select Committee. However, there is a requirement in relation to the licensing regulations—this is in clause 4(2)—for the Secretary of State to give a progress report if he has not put in place the licensing regulations after 12 months.
Today, I can give an oral commitment here in Committee that if that clause is triggered, we will also give an update on the national supported housing standards at the same time. On that basis, I ask the hon. Gentleman to withdraw his amendment.
I turn to clause 3 stand part. Clause 3 enables the Secretary of State to prepare and publish new national supported housing standards. The standards will cover both the adequacy of the accommodation and the quality of the care, support or supervision provided. They will be enforced through the licensing schemes to ensure that only those who meet the standards will be granted a licence.
To take up the point made by my hon. Friend the Member for Dover, our intention is firmly to work with DWP to look to align the national housing standards with housing benefit. I absolutely agree with her that we need to cut out the financial incentive for rogue operators. I reassure her that I had a conversation yesterday with my opposite number in DWP and we are fully aligned with those objectives.
Mr Betts
I accept the Minister’s assurances that when producing the report relating to licensing, as detailed in clause 4(2), she will also publish an update on progress with national housing standards. On that basis, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 3 ordered to stand part of the Bill.
Clause 4
Licensing Regulations
Question proposed, That the clause stand part of the Bill.
The Chair
With this it will be convenient to discuss the following:
Amendment 3, in clause 5, page 5, line 45, at end insert—
“(e) conditions relating to the assessment of the needs of persons who are residents or potential residents of supported exempt accommodation.”
This amendment sets out that assessing the needs of people who are residents or potential residents of supported exempt accommodation is a condition that may be attached to a licence.
Clause 5 stand part.
Amendment 5, in clause 6, page 6, line 29, leave out “statutory”.
Amendment 6, in clause 6, page 6, line 38, leave out “statutory”.
Amendment 7, in clause 6, page 6, line 40, leave out “statutory”.
Amendment 8, in clause 6, page 7, line 3, leave out “statutory”.
Amendment 9, in clause 6, page 7, line 4, leave out “the Local Government Association” and insert “local authorities in England”.
Clauses 6 and 7 stand part.
Bob Blackman
Clauses 4 to 7 are the heart of the Bill, because clause 4 sets out the licensing regime that we wish to introduce. The measure is permissive and will allow local authorities to introduce the licensing scheme if they so choose. There is a great deal of detail in the clause, which leads on to the further provision in clause 5 and the provision in clause 6 about the need to consult, as the Minister has set out. Consultation is mightily important, because this is where all the good providers need to give the Government feedback on how they are operating and what needs to happen.
I should explain the amendments that I have tabled in respect of consultation. In the draft Bill, we put the Local Government Association down as a statutory consultee. Following that, the LGA came back to us and said, “We don’t want to be a statutory consultee, but we generally want local authorities to be.” The LGA does not want to act on behalf of all local authorities because this is a permissive measure and not all local authorities will want to introduce a licensing scheme. Therefore, the amendments are sensible tidying-up amendments. I think our explanation yesterday may have caused Ministers and officials some confusion, but I hope that the amendments can be made to ensure that the legislation is appropriate.
The key is making the licensing scheme, if it is introduced, common across local authorities. One of the things that has been brought home to me loud and clear by a number of organisations that operate across a number of local authorities is that they do not want a licensing scheme to be different from one authority to another, so as far as possible it needs to be a common practice across local authorities. It also needs to be compulsory. Birmingham Members know that Birmingham tried to introduce a voluntary scheme; all the good providers signed up, but funnily enough the rogue landlords said, “Well, we don’t have to, so we won’t.”
In debates on previous clauses, we talked about the standards to be provided and the requirements on local authorities and the Secretary of State, but the heart of the Bill is a licensing scheme that is fit for purpose and ensures that fit and proper persons operate in these areas and provide accommodation. We must ensure that not-for-profit originations are not completely inconvenienced and that the fees are not so high that organisations are impoverished and driven out of providing accommodation in the first place.
Exempt accommodation can be provided only through a not-for-profit organisation. The scandal at the moment is that unscrupulous landlords buy a property, expand it to the maximum possible under permitted development, provide a small living area and a small bathroom, stack the house with as many people as they physically can, and then claim housing benefit on an enhanced basis for vulnerable people. Members might say, “Well, hang on. That’s a private landlord operating that way,” but what the private landlord does is set up a not-for-profit organisation alongside that, to which they lease the property. The not-for-profit organisation runs the service and provides the rent to the landlord, but the landlord is also running the not-for-profit organisation.
That scam has to be dealt with, which is one of the reasons why a licensing regime needs to be introduced so that we have a fit-and-proper person test and ensure all the aspects of what needs to be provided. We must ensure that accommodation is decent and that the services for vulnerable people are provided in the way they should be. We cannot have a situation in which vulnerable people are exploited and almost retained as prisoners within their own accommodation. That is extremely important.
Ian Byrne (Liverpool, West Derby) (Lab)
It is a pleasure to serve under your chairmanship, Mr Efford. I wholeheartedly agree with this Bill. We have seen on the Levelling Up, Housing and Communities Committee some of what the hon. Gentleman has outlined and some of the scandalous places people are forced to live. The leverage that rogue landlords have over them is absolutely appalling and at times life-threatening. Is he talking about landlord licensing only for exempt accommodation, or right across the board? Should private landlords be part of the landlord licensing scheme? A pilot was successful in Liverpool, but it has ended.
Bob Blackman
Generally speaking, licensing schemes for private sector housing are outside the scope of this Bill. We are looking particularly at supported housing and exempt accommodation. We have had some discussions about extending the scope of the Bill to all supported housing. I think the hon. Gentleman is referring to a very different licensing regime, which of course can be introduced, but we are concentrating on vulnerable individuals who are provided with accommodation.
The problem is that exempt accommodation is just that: it is exempt from all the regulations relating to houses in multiple occupation and all other aspects, and enhanced housing benefit can be claimed as a result. There have been some financial scandals. As the hon. Member for Liverpool, West Derby knows, during the Select Committee inquiry we uncovered a number of scams; whether we can fix them all in this Bill is another matter. What we can do—what we are doing—is lay out a whole series of things. When the Bill was first drafted this section was a great deal longer. We were convinced—I cannot remember by which Minister, but one of the three—that we should remove a large section and put it in regulation, because it is then easier to change and amend as the market changes.
Mr Betts
I will speak to amendment 3 and raise a couple of other issues relating to the provisions under consideration.
On amendment 3, during our Select Committee inquiry one of the issues we heard from those concerned was how individuals got into exempt accommodation and how often people with very different needs—and sometimes very different but challenging behaviour—get put together in a completely inappropriate way. The worst examples were of women fleeing domestic violence being housed in the same building as people who have been perpetrators of that violence in the past. We heard about people trying to give up an addiction who were housed in the same building as people with a track record of dealing drugs. It was simply not appropriate; there is no control over who goes where. Gumtree and Facebook were regular means by which individuals accessed exempt accommodation. That was not satisfactory.
The standards to be enforced are set out in clause 5(3). Everyone agrees that licences should cover the standards of accommodation, as well as the use of the accommodation, the provision of care—or lack of it in some cases—and compliance with the national supported housing standards. The one thing the Bill is missing is the issue of access to that accommodation. That is why I put into amendment 3 words about,
“conditions relating to the assessment of the needs of persons who are residents or potential residents of supported exempt accommodation.”
We should take account of people’s needs and ensure that in future housing people with completely different and often conflicting needs and lifestyles—such as the perpetrators of domestic abuse being housed with victims of domestic abuse—simply cannot happen.
I accept that the wording may not be completely correct. I am hopeful that the Minister will accept the spirit of what I am trying to put forward, if not the precise wording. I look forward to what she has to say.
I have two other points. As the hon. Member for Harrow East said, of key importance are clauses 4 and 5, on licensing. Clause 2, on local supported housing strategies, places additional requirements on local councils. Will the Minister confirm that those requirements will be considered as new burdens, and that appropriate discussions will happen with the LGA and councils about that?
Finally, one of the most appalling things we heard about in our inquiry was the scams that take place. In the end, we could improve the accommodation for the same money that has been spent, had it been spent better. One of the examples we heard was about the council leader in West Devon. Quite rightly, we have heard a lot about Birmingham—my hon. Friend the Member for Birmingham, Selly Oak was the first Member who came to me to say that this was a major problem that the Select Committee needed to look at—but we heard from the leader of West Devon about a portfolio of 12 properties that were sold to a special purpose vehicle for £6 million. On the same day, they were sold to an offshore investment company for £18 million. That is a £12 million profit for a portfolio of properties.
What is happening in many cases is that it is not property organisations that provide exempt accommodation. Organisations buy up these properties and rent them to an organisation—sometimes one they have created themselves as a subsidiary—that is not for profit. But that not-for-profit organisation is charged an enormous rent by the profit-making organisation, and that feeds through into the level of housing benefit that is eventually paid out on behalf of the occupiers of exempt accommodation. It is that sort of scam that needs to be stopped.
I would like to ask the Minister for some assurances, having looked at the wording in clause 5(5)(b) on
“removing or restricting an entitlement to housing benefit”
and limiting the rent. Will the Minister be looking to stop these sorts of scams by using the powers set out in the Bill so far?
Felicity Buchan
I will start with amendment 3, then move on to amendments 5 to 9, and then I will follow up on the points raised by hon. Members.
On amendment 3, the Government agree that it is vital that the needs of supported housing residents are properly assessed so that they get the help they need, and for supported housing to deliver the right outcomes. My original intention was to include the requirement for individual needs assessments in the national supported housing standards, as that will be a needs assessment and will cover the accommodation provided and the care and support package.
The hon. Member for Sheffield South East has raised an interesting point, and I agree that putting the measure on the face of the Bill may have some merit. However, more detail is needed to flesh out the amendment. It particularly needs to spell out what the needs assessment covers in more precise language and how it interacts with care, support and provision. I would be happy to talk more about the matter with the hon. Gentleman, and I am happy to consider making changes to be introduced by the Government on Report. On that basis, I ask him to withdraw amendment 3.
I understand that amendments 5 to 9, tabled by my hon. Friend the Member for Harrow East, are technical and are there to remove the Local Government Association from being named as a statutory consultee. The Government believe that “statutory” can remain on the face of the Bill in respect of amendments 5 to 8. I could go into more detail, but in the interests of time, and as this is a more technical matter, I ask my hon. Friend to withdraw the amendments to delete “statutory”, because we believe that removing it does not materially affect the duty being placed on the Secretary of State to consult the named organisations.
On amendment 9, I understand that the Local Government Association has requested this change. I am happy to support the removal of its name from the clause, but elsewhere in the Bill we have referred to “local housing authorities” and “social services authorities” and I am disinclined to introduce a third term. I propose to my hon. Friend that we work on an alternative, including local housing authorities or social services authorities, and that the Government will table that amendment on Report.
The Chair
Mr Betts, did you want to speak? I got the impression you did not want to get up.
Felicity Buchan
I completely forgot; I was trying to rush through the amendments. My apologies.
First, on new burdens assessments, I confirm that an assessment will be made and that local authorities will get money for any new burdens. I anticipate that the new burdens will come about through setting up the strategies for the five-year period, and the initial set-up of the licensing scheme.
Secondly, I agree with the hon. Member for Sheffield South East that we cannot allow the scams to continue. It is an absolute outrage that public money is going towards rogue landlords when it should be used more effectively to help vulnerable people in society. That dovetails with the point, made by my hon. Friend the Member for Dover, that we need a linkage between housing benefit and the national supported housing standards. The hon. Member for Sheffield South East has my word that the Department for Levelling Up, Housing and Communities, working closely with the Department for Work and Pensions, will look to get rid of the scams. Clearly, it will take work and require a lot of deep analysis, but we are determined to look to make that linkage with the DWP.
The Chair
Fortunately, I can allow people to speak more than once, but whether the Minister will answer questions is not a matter for the Chair. The hon. Member for Sheffield South East has got his points across. Bob Blackman, your body language said to me that you did not want to get up again.
Bob Blackman
In relation to the amendments, the most important thing to remember is that with the vulnerable people we are talking about, every case is unique; individuals have unique needs. Good supported housing organisations will provide an initial assessment of what those needs are so they can build a support network. The amendment tabled by the hon. Member for Sheffield South East, the Chair of the Levelling Up, Housing and Communities Committee, requires that to happen.
At the moment, rogue landlords do not provide any assessment of needs whatsoever. The only need they are interested in is how much money they can get from the housing benefit regime. I agree that we need to look at this in more detail to make sure it is correct, but it is in the spirit of the Bill and there is a need to specify that this will be a requirement for providers. They must assess the needs of the individuals they are responsible for housing.
Let me turn to my amendments. I accept the Minister’s strictures to look at tidying up this area. As I have said, the Local Government Association does not want to be a statutory consultee. Therefore, we could tidy the wording up a bit in relation to housing and social services authorities to ensure the language is consistent. I agree we could do that on Report.
Question put and agreed to.
Clause 4 accordingly ordered to stand part of the Bill.
Clauses 5 to 7 ordered to stand part of the Bill.
Clause 8
Planning
Question proposed, That the clause stand part of the Bill.
Bob Blackman
Clauses 8 and 9 deal with two aspects of the Bill. One prevalent problem in the planning system is that in local authority areas there is no control whatever over someone setting up a supported housing unit. We have had a lot of discussion about whether we could have some sort of saturation test, so that we do not get whole ghettos of supported housing units being set up, driving out other people. We are now looking at whether we will need to go further, which clause 8 specifically addresses.
If licensing does what we require it to—that is, control the way in which supported housing is provided across the piece—that will be fine. However, during the Select Committee inquiry we established that when a property is purchased for use as supported housing, that should go through the planning process and the local authority should consider a planning application for a change of use of that property; I believe that will be required. That is the only means by which a local authority can exercise control before the unit is brought into operation. It would then allow local people and councillors to have their say, and ensure that we control the number of units being set up before they are set up, rather than try to deal with the situation afterwards.
Clause 8 is permissive, so that if we have clear evidence that the change of use is required to take place through the planning process, the Secretary of State can introduce that process. It is not a requirement from day one; my personal feeling is that that is the best way of controlling the setting up of supported housing units, but I completely understand the position we have reached with the Department. There is concern that that requirement may not be necessary.
Mrs Hamilton
I absolutely agree with the hon. Gentleman: that was the issue in the area in which I was a councillor prior to becoming an MP. When HMOs were being set up in the area, we had to go through planning, but when rogue landlords realised that HMOs needed planning permission, they switched tack and went for these exempt supported living accommodations. The problem is that we would struggle to get the numbers once they had been set up, and the ghettos are already there in places like Birmingham. I absolutely agree that the issue needs to be considered, because rogue landlords have a way of knowing how to get around the rules, and we need to tighten them up.
Bob Blackman
I thank the hon. Member for that intervention. It is clearly outrageous that if someone set up an HMO, they would be regulated, but if they said, “No, this is supported housing and exempt accommodation”, they would not be. That just cannot be right, and it is one reason that we have looked at the licensing regime as a process of enforcing the law. It may work, but my personal view is that I would much rather see a position where planning takes place. Clause 8 allows the Secretary of State to say, following a review of the operation of the licensing regime, “We haven’t gone far enough. We must now introduce a position whereby the change of use requires planning permission.” It is a warning shot, as it were, and then further powers can be introduced if necessary.
Clause 9 is an important clause for vulnerable people. At the moment, landlords routinely say to their vulnerable tenants, “Do what you’re told or else you’ll be on the streets, and if you go on the streets, the local authority will deem you to have left a secure property. Therefore you have made yourself homeless and they have no duty to house you whatsoever.” It is a threat for keeping individuals in that situation.
Eddie Hughes
I agree about just how pernicious the impact of this issue is. We are talking about vulnerable people, and therefore those who are likely to take that threat of being made homeless very seriously and so keep quiet and continue to endure dreadful accommodation. I appreciate that this is not really the purpose of this debate, but we also see that in social housing generally, where we have seen some dreadful cases of damp and mould and the landlord continues to expect that rent be paid, even though the accommodation they are providing is dreadful. We must absolutely ensure that this issue does not hang as a threat over vulnerable people.
Bob Blackman
I thank my hon. Friend for that intervention. Clearly, this is one of areas that was a concern when we produced the Bill—that, in the end, someone could be classified as being intentionally homeless if they object to the conditions that they are in, or anything else.
The other aspect that we have not brought out during this process but needs to be spelled out is that rogue landlords have a direct incentive for the individuals in their services not to improve their lot. If they were to have the temerity to actually go and get a job and get some income, they would be forced out, because they would no longer be entitled to enhanced housing benefit. We must address that scandal as well.
The key point is that tenants can be assured that if they have a complaint to make, they should go ahead and make it and draw to the attention of the local authorities, or the individuals operating the licensing regime, that their position is that their accommodation is not acceptable and needs to be improved. The landlords should not be holding them literally to ransom.
Clause 9 gives the reassurance that someone can go to their local authority and leave the premises they are in on the basis of it not being suitable to their needs—it is damp, mouldy, or in whatever condition—and that the local authority will then need to look at their circumstances appropriately. They would then be dealt with under normal homelessness legislation, so would not be “intentionally homeless” and would be able to gain support from the local authority.
I commend these two very important clauses to the Committee.
Mrs Elphicke
I am grateful for the opportunity to serve under your chairmanship, Mr Efford. I want briefly to explore the new provision on homelessness, the intent of which I wholeheartedly support.
The Bill has been introduced with a focus on the outrageous examples of rogue landlords, who must be dealt with. However, as we have explored in the Select Committee review, and in my own experience, some of the more mainstream providers, who we would otherwise think would be good providers in this space, have had situations in which they did not provide the right level of supported care for very vulnerable people. I want to explore with my hon. Friend the Member for Harrow East whether, in respect of the provision about whether the standard of care support and supervision is provided, the issue would be in the opinion of the person to whom the support or care is provided, rather than in the organisation’s opinion.
Let me give two brief illustrative examples. First, in my prior life I volunteered with a homeless night shelter. I worked in homeless support for a number of years. In the Dover Outreach Centre, which is a fantastic example of this kind of support, in a number of cases people found themselves back in homelessness because a respected local organisation that supports drug, alcohol and other situations found that those people were not suitable for their programmes and removed them from that accommodation after incidents of repeated alcohol or drug abuse. In such a situation, people need additional support or other organisations to help them; they are still in need, still vulnerable and still homeless. I am keen to ensure that the obligation to support would extend to situations where the programme that has been provided has not achieved the outcome of keeping that person from homelessness and has not got them on the road to being in a home.
My second point is that the son of a constituent of mine recently committed suicide, having been thrown out of supported exempt housing—again, in a situation where they had both physical and mental health needs. It was a complex situation, as is not unusual, and the case is subject to a coroner’s investigation, so I will not comment on the detail further, except to say again that if we are looking to ensure that there is a safety net of support for people in vulnerable housing and care situations, can we make sure that the legislation deals with those sorts of real-life situations, which can occur even in the best organised supported housing provider?
Felicity Buchan
Let me start with clause 8, which commits the Government to reviewing the effectiveness of the licensing regulations on the condition and type of accommodation, and the provision of support, within three years of our making the regulations. Following the review, the Secretary of State must consider whether to introduce a new planning use class for supported housing.
An evaluation of the effectiveness of the licensing scheme will be extremely important. We need to keep the measures in the Bill under review and see whether further measures are necessary to drive out rogue landlords and drive up the quality of supported housing.
Steve McCabe
The hon. Member for Harrow East spoke about the concerns around saturation when he was outlining the clause. Is not the other concern that by converting these properties we are destroying family homes, at the very time when one of the Government’s priorities is to generate more?
Felicity Buchan
Yes, and that is precisely why we have decided to opt for a local licensing regime; we strongly feel that local authorities know their areas best and know where there is need.
Let me turn to the issue of homelessness. I thank my hon. Friend the Member for Dover for her comments. I send my sympathies to the family involved. I think that everyone, from all parties in the House, will agree that if vulnerable people find themselves in poor-quality supported housing, they should not be afraid to look for help. Residents should not fear being penalised for leaving poor-quality supported housing, whether it is poor because of the accommodation itself or because of the level of the support provided. The Bill clarifies the position for both residents and local authorities. The examples that my hon. Friend gave show the importance of consultation, which is fundamental to the Bill, because through consultation we will be able to set the national supported housing standards in such a way that they are applied fairly to all cases.
Bob Blackman
I thank my hon. Friend the Member for Dover in particular for her intervention. I give her the assurance that the intention is that the individuals involved will determine whether they are leaving a property under those circumstances. The key is to prevent the local authority from automatically refusing someone accommodation or assistance. The Bill dovetails with the Homelessness Reduction Act 2017, which I piloted through some seven years ago now, to ensure that local authorities act appropriately when dealing with people who are homeless through no fault of their own. The whole point is to make it clear that they are not at fault by exercising this position. I thank the Minister for making clear her position on the planning issue. As I have said, my personal view is that we will require provision going forward, but let us establish the position.
On local licensing, we need to see a great deal of consistency across the country in the type of licensing policies that are implemented, so that national organisations are not having to cope with different licensing arrangements in different local authorities.
Question put and agreed to.
Clause 8 accordingly ordered to stand part of the Bill.
Clause 9 ordered to stand part of the Bill.
Clause 10
Sharing of information relating to supported exempt accommodation
Mr Betts
I beg to move amendment 4 in clause 10, page 8, line 26, at end insert—
“(8) If, at the end of the period of one year beginning with the day on which this Act is passed, the power in subsection (1) is yet to be exercised, the Secretary of State must publish, in such manner as the Secretary of State thinks fit, a report setting out the progress that has been made towards doing so.”
This amendment would require the Secretary of State to explain why they have not made provision about the sharing of information relating to supported exempt accommodation, if they have not done so within a year of Royal Assent of the Act.
Mr Betts
As I said when discussing a previous amendment, I am not doubting the Minister’s good intentions, but trying to make sure that we have her on the record. Clearly, the sharing of information, as in many of these areas, is really important. We know that rogue landlords and others get around rules because organisations and authorities have different information. They often cannot share with each other, let alone do not share with each other.
We have already had reference to the need for DWP and DLUHC to work closely together and make sure that information about the payment of benefits is there and available to be shared across the piece. All I am really asking here is that, if progress is not made in the way that the Minister clearly intends, could we have it on the record that a report will be made? Now, the Minister may well say that it is not usual to put such commitments on the record. I anticipate the speech that she is about to give, but can we at least have an assurance that the intention is that the report will be made? That would satisfy me and prevent me from having to push the amendment to a vote.
Bob Blackman
Effectively, the purpose behind clause 10 is as I outlined at the beginning. We are talking about some of the most vulnerable people in society. The people we are talking about are normally women, such as those fleeing domestic violence. We are talking about people that are mentally or physically ill; they may be recovering from all sorts of addictions. There can be a whole plethora of reasons why people are in supported housing. Data on that is sensitive and personal, so we must be very careful about how that data is shared and with whom it is shared. Often, we are talking about people who may have moved around from one authority to another. Essentially, clause 10 sets out the regime that will operate and the requirement that the Department will introduce regulations on how this should be handled.
This is going to be one of the most difficult areas of the regulation that will follow the Bill because it will have to cover a range of different types of information and of circumstances under which information can be transferred. It is absolutely vital to protect vulnerable individuals in society in this way.
Felicity Buchan
As with amendment 2, which was about a reporting requirement for housing standards, I am prepared to give a commitment in this Committee: if we are required to report on licensing regulations after 12 months, we will include an update on the progress on information sharing powers. I agree with the hon. Member for Harrow East that we need to be sensitive about the sharing of information, given the involvement of people such as domestic abuse survivors. Information about their current residence is very sensitive, so, again, consultation is key. We may have to exempt certain groups, but it is an important clause.
The Chair
This will be an intervention, I assume. It is not for hon. Members to chair me. [Laughter.]
Felicity Buchan
I did make a similar commitment to the one that we gave on the housing standards. To the extent that we are reporting on the licensing regulations after 12 months, we will include an update on the progress of information-sharing powers and on national housing standards.
The Chair
I feel like I am intruding on your private conversation. Sorry about having a formal procedure.
Mr Betts
I confirm that I will not press my amendment to a vote, given the Minister’s assurances. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clauses 10 and 11 ordered to stand part of the Bill.
Clause 12
Meaning of “supported exempt accommodation”
Question proposed, That the clause stand part of the Bill.
Bob Blackman
Clauses 12 to 14 simply adapt the definitions for the Bill. I think they are uncontroversial and appropriate. Clause 13 is about other interpretations and clause 14 about the Bill’s commencement, extent and short title. They are essential clauses, but not controversial.
Felicity Buchan
I agree with my hon. Friend that clauses 12 to 14 are relatively straightforward, but I want to make one point about clause 12, on the meaning of “supported exempt accommodation”. Several overlapping definitions of supported housing include two in housing benefit regulations: those for “exempt accommodation” and for “specified accommodation”. The Bill refers to the broader supported housing definition—of specified accommodation—as “supported exempt accommodation”.
Existing evidence points to the issues in supported housing typically occurring in housing provision that meets the “exempt accommodation” definition, so that is the current focus of the licensing scheme regulations. As I stated, there is a risk of loopholes, so we will consult on whether to expand the licensing scheme to cover all supported housing. The broader definition of “supported exempt accommodation” applies to the other elements of the Bill, including local authority strategic planning, information sharing and the national supported housing standards.
Bob Blackman
I thank the Minister for the information on consultation. This is a key area. The sort of people we are trying to drive out of business will use every and any loophole there is, so getting the exact wording right is vital. I accept completely what my hon. Friend has said about the consultation.
Question put and agreed to.
Clause 12 accordingly ordered to stand part of the Bill.
Clauses 13 and 14 ordered to stand part of the Bill.
New Clause 2
Charter of Rights for residents of supported exempt accommodation
‘(1) A local housing authority in England must publish a Charter of Rights for residents of supported exempt accommodation (“Charter of Rights”).
(2) A Charter of Rights under subsection (1) must be published—
(a) within three months of the date on which this Act comes into force, and
(b) annually thereafter.
(3) A Charter of Rights under subsection (1) must contain—
(a) a statement of the rights of residents of supported exempt accommodation,
(b) a statement of the responsibilities of providers of supported exempt accommodation,
(c) information about support services for residents of supported exempted accommodation.
(4) In preparing a Charter, the local housing authority must consult—
(a) residents of supported exempt accommodation,
(b) providers of supported exempt accommodation, and
(c) civil society organisations.
(5) The Secretary of State must by regulations require a provider of supported exempt accommodation to—
(a) ensure that its staff are aware of the Charter of Rights published by the local housing authority,
(b) provide a copy of the Charter of Rights to every resident in the supported exempt accommodation it provides,
(c) have regard to the relevant Charter of Rights in exercising its functions.
(6) A statutory instrument containing regulations under subsection (5) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.’—(Kate Hollern.)
Brought up, and read the First time.
Mr Betts
I beg to move, That the clause be read a Second time.
I am moving the new clause on behalf of my hon. Friend the Member for Blackburn (Kate Hollern), who tabled it. I will not spend long on this, but I promised that I would move it so that the Minister could respond.
The intention of the new clause is simply to put the needs and rights of those resident in supported exempt accommodation at the heart of our debate in Committee. In the end, that is what we are trying to do: provide better accommodation for people who are often in desperate and real need. I will not press this to a vote, but I want the debate to be about how the Minister might think the issues raised in new clause 2—on having the rights of residents recognised formally—will be best addressed in the Bill.
Felicity Buchan
The new clause would require all local authorities in England to produce a charter of rights for supported housing residents. That seems to have significant risk of overlap with the national supported housing standards. For some of the reasons already outlined by my hon. Friend the Member for Harrow East, for local authorities each to produce their own charters would be unhelpful. We need consistency.
I make the point that while individual local authorities will decide whether they put in place a licensing regime, guidance will be issued to ensure consistency across the local authorities. We believe that the national housing standards will have a more consistent national approach, and an enforcement mechanism through licensing. We will therefore not support the new clause.
In answer to the hon. Member for Sheffield South East, vulnerable people should clearly be at the heart of our concerns. At the moment, unfortunately, in certain situations rogue landlords are paid too much Government money, and the Government need value for money for the taxpayer. Simultaneously, vulnerable residents are not getting the support that they need. I give the hon. Gentleman my assurance that vulnerable residents will be a major focus of our consultation, which will be there to ensure that their needs are met through the national supported housing standards.
Supported Housing (Regulatory Oversight) Bill
Friday 3rd March 2023
(1 year, 8 months ago)
Commons ChamberRead Full debate Supported Housing (Regulatory Oversight) Act 2023 Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: Consideration of Bill Amendments as at 3 March 2023 - (3 Mar 2023)
The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Felicity Buchan)
I beg to move amendment 1, page 4, line 37, at end insert—
“(4A) The provision that may be made by virtue of subsection (4)(c) includes provision for the Secretary of State to designate the district of every local housing authority in England.”
This amendment confirms that licensing regulations under clause 4(1) or (3) may provide for the Secretary of State to designate the district of every local housing authority in England for the purposes of the regulations.
Mr Deputy Speaker (Sir Roger Gale)
With this it will be convenient to discuss the following:
Government amendment 2, in clause 5, page 5, line 41, at end insert—
“(ba) conditions requiring the carrying out of assessments of the needs of residents (or potential residents) and relating to the conduct of such assessments;”.
This amendment enables licensing regulations under clause 4(1) or (3) to provide that conditions attached to a licence may include conditions relating to needs assessments.
Government amendment 3, in clause 6, page 7, line 4, leave out paragraph (a) and insert—
“(a) each local housing authority in England,
(aa) each social services authority in England,”.
This amendment substitutes local housing authorities in England and social services authorities in England for the Local Government Association in the list of persons the Secretary of State must consult before making licensing regulations under clause 4(1) or (3).
Felicity Buchan
We have already heard earlier in the Bill’s passage that there is a real risk of rogue providers changing location in order to avoid regulation. I am determined to put a stop to the exploitation of vulnerable people through the provision of poor-quality supported housing. For the rogues this is a lucrative activity, which is incentive enough for them to move location in order to avoid impending regulation.
The Bill currently provides that licensing regulations may include provision under which the Secretary of State may designate the district of “a” local housing authority as subject to licensing. The amendment clarifies that such provision includes provision for the Secretary of State to designate every district in England as subject to licensing, which means that the Secretary of State could introduce universal local licensing by exercising a power to be conferred by the licensing regulations of clause 4 to designate every local housing authority district in England. It is important that this is set out clearly as an option. The licensing regulations must still make provision for a local housing authority to self-designate, and may require a local housing authority to do so if conditions are met.
I tabled amendment 1 because the Government need to be able to reset the system. We must be able to put a stop to providers simply moving to areas without a licensing scheme and setting up there. With universal local licensing, we could prevent a landlord who had failed a “fit and proper person” test in an area with a licensing scheme from simply relocating to an area without licensing, and thus potentially protect vulnerable residents. If universal local licensing is pursued—and I consider it to be an option—that will mean that all residents of supported housing, wherever they are in England, can take comfort from the fact that the national supported housings standards will be enforced, and action will be taken should a provider not meet them. That option must be available to the Secretary of State.
I want to reassure Members that the Government will consult on the detail of the licensing regime, as is required in the Bill. That, of course, includes consulting on the duty set out in clause 6 relating to the method of enforcing the national supported housing standards, and the effectiveness of the licensing regime. We remain determined that the regime should be light-touch in order to avoid overburdening good providers and local authorities, but also robust enough to force out those running supported housing for the wrong reasons. We will keep the licensing scheme under review to ensure that it is working as was intended. I hope that Members will agree to our making this change.
Let me now deal with Government amendment 2. I know that the hon. Member for Sheffield South East (Mr Betts) cannot be present today because of future commitments, and he sent me his apologies. I am grateful to him for tabling a similar amendment in Committee, and I am pleased to be able to bring it back to the House today. In Committee he spoke of his concerns about how residents could access supported housing, and expressed particular concern about the problems experienced by residents who were mixed together inappropriately, as well as the increased advertising of supported housing provision on websites such as Gumtree and Zoopla. On the latter point, I can offer some reassurance. I recently met representatives of Gumtree, at their request, to discuss the practice by some supported housing providers of placing advertisements on its website. Gumtree, I am glad to say, has already started to crack down on these inappropriate advertisements and has expressed its willingness to continue to work with the Government on this matter. Members will know that Gumtree is not the only service that can enable rogue landlords to advertise poor-quality supported housing. The Government will work with these services to find solutions, and my amendment will also help.
In the report on exempt accommodation, the Levelling Up, Housing and Communities Committee also raised the issue of access routes into supported housing. I am well aware that residents are finding their way into supported housing through a variety of routes, including websites, as I mentioned earlier, where landlords purport to be providing supported housing but are, in fact, perpetuating the abuse that we are here to tackle. At best, placing someone in supported housing without testing its suitability will mean that the right outcomes will not be achieved and the person will not be able to move on into independent living, if that is appropriate. At worst, failing to assess the residents’ needs is a clear indicator that genuine support is simply not being delivered at all, and that is not acceptable.
The hon. Member for Sheffield South East and I are in agreement that it is vital that the resident’s support needs are assessed, so that they can be given the right support in the right accommodation. Once these arrangements are in place, we would expect assessments to be carried out in advance of a resident moving into the accommodation, but, in some circumstances, we recognise that that may not be possible. None the less, all supported housing residents must have the confidence that they are living in the right place with the support that they need. Amendment 2 proposed by the Government delivers on that by adding to the list of conditions that may be attached to a supported housing licence at clause 5(3) conditions requiring the carrying out of assessments of the needs of residents, or potential residents, including in relation to the conduct of those needs assessments. The fine details will, of course, be subject to consultation, but this amendment demonstrates the importance that the House places on proper support being given to supported housing residents, tailored to their individual need. I hope Members agree with me on that.
Amendment 3 is more of a technical amendment. I am grateful to my hon. Friend the Member for Harrow East (Bob Blackman) for proposing this amendment in Committee and I am pleased to be able to return with it today. The amendment seeks to amend clause 6, following a request from the Local Government Association to be removed as a statutory consultee. The Bill includes a statutory duty on the Secretary of State to consult on a number of issues related to the measures in the Bill. As I have said in earlier debates, it is very important to me that we carefully test these measures for unintended consequences before implementation. As determined as I am to drive out poor provision and drive up standards in supported housing, I am equally determined to ensure that good providers can continue to support the vulnerable people who need these vital services.
The Local Government Association asked to be replaced as a statutory consultee by local authorities. Local authorities—or to use the language of the Bill, local housing authorities and social service authorities—will deliver many of the measures in the Bill. It is right that we seek their views before making regulations. In line with that request, the amendment removes the Local Government Association from the list of statutory consultees in clause 6 and replaces them with local housing authorities and social services authorities in England. The effect of the amendment is that the Secretary of State will have an obligation to consult local housing authorities and social service authorities on the design of the licensing regime before making regulations. I hope that hon. Members will agree with this amendment also.
Bob Blackman (Harrow East) (Con)
At this stage, I will confine my remarks to the three amendments tabled; I will have more to say on Third Reading. The amendments stem from the very healthy cross-party debate we had in Committee on four amendments that were tabled at that stage.
The first amendment, as the Minister has outlined, relates to clarification in the Bill, and it has my full support. The clear point is that it allows the Secretary of State
“to designate the district of every local housing authority in England”
for the purposes of the regulations. That confirms that licensing regulations may be provided by every local authority in England, as opposed to only a few; while possibly only a few will require such measures now, this is a rapidly growing market and we must ensure that the legislation is future-proofed and that rogue landlords are held to account throughout the country rather than, as the Minister rightly says, moving from one area to another.
I ask the Minister, when we look at the regulations that will underpin this legislation, to look at grouping local authorities together to form a licensing regime, rather than relying on relatively small district housing authorities, which may only have one or two units within their area and will therefore find it overbearing to have that regulation and a whole bureaucratic structure just within that area.
Nickie Aiken (Cities of London and Westminster) (Con)
I welcome this Bill and, having served on the Bill Committee, I am aware of its importance. I welcome my hon. Friend’s point about grouping councils together and I highly recommend the Minister looking at that. I was responsible for bringing children’s services together with Hammersmith and Fulham and Kensington and Chelsea when I was children’s services lead at Westminster Council, so I know how important it is that we ensure that local authorities, where possible, can work together, not only to be more cost-effective, but to provide a better service.
Bob Blackman
There are also several advantages beyond those my hon. Friend mentions. Providers that provide across more than one district housing authority will then have one set of regulations to abide by rather than, potentially, a number of different ones. That was the original intent of the Bill: to ensure that we deal with the rogue landlords and encourage the good providers to carry on with the excellent work they do. We also need to ensure that no one can slip through the net as a rogue provider, so I am glad the Minister has put forward that proposal.
As my hon. Friend the Minister has said, various different providers are exploiting the system via internet and other social media activities. I recommend her taking a look at a new set-up called RoomMatch, which I believe is just about to be released, and which enables users to look at what providers are providing—both the quality of accommodation and the support provided—to assist those placing vulnerable people in those types of accommodation. At the same time, the people going into that type of accommodation can view it virtually before they get anywhere near it.
The amendment will prevent unlawful providers that have had regulations imposed as a result of the Bill by the local authority in which they operate from simply upping sticks and moving to a nearby authority that does not have regulations, and then continuing to exploit vulnerable tenants for vast quantities of money while still providing a shamefully inadequate level of care. That is the big challenge. Unfortunately, I have had experience of seeing some of that; it is truly dreadful what we put certain vulnerable people through. Allowing providers to set up somewhere else and continue to exploit people would leave the purpose of the Bill unachieved. I am delighted that the amendment has been tabled; I think it will prevent the worst-case scenario.
It may seem unlikely to some people that the aforementioned case could take place, but I have visited numerous examples of such supported housing. The set-up is extremely quick, and there are low start-up costs, so rogues can set up very quickly and far too easily. They do not need to obtain planning permission, because of the permitted development rights they acquire when providing supported accommodation. Consequently, they can immediately start up and falsely advertise the property on social media networks as good quality with a high level of care. Residents promptly apply, particularly because there is currently a limited amount of affordable housing in the private market.
Almost immediately, tenants are found, and the high rent payments start coming in. To be clear, this is an industry that, when abused, pulls in huge profit margins, so it is completely within the rogue landlord’s interest to set up in another district, even if it is only for a year, before the housing authority introduces regulations. I welcome this amendment, which will send the strongest possible signal to those who wish to abuse vulnerable tenants.
Amendment 2 will enable the licensing regulations under clause 4 to include in the list of conditions attached to a licence requirements related to the needs assessment of those looking to enter exempt accommodation and supported housing accommodation, and it has my complete support. I commend the excellent report that the Levelling Up, Housing and Communities Committee did on this. Its Chairman, the hon. Member for Sheffield South East (Mr Betts), tabled the amendment in Committee, and I am glad that the Minister agreed to look at it further and refine it to make sure it was fit for purpose. I am glad that she has agreed to adopt the amendment, and I thank her and the hon. Member for Sheffield South East for their contributions and advice relating to it.
I emphasise that good providers have nothing to fear. I have been to many supported housing units where the first thing they do is conduct a needs assessment of the individuals. If a provider is possibly taking someone for two years, they need to assess their needs, so that they can provide the right level of support. It is a scandal that many rogue providers provide no support whatsoever. This amendment is extremely welcome. It has support from Members on both sides of the House and has been broadly welcomed and accepted by local authorities, housing providers and charitable bodies across the sector, which is incredibly reassuring.
At present, the Bill stipulates that the conditions that may be attached to a licence include conditions relating to the standard of accommodation; conditions relating to the use of accommodation; conditions relating to the provision of care, support or supervision; and conditions requiring compliance with national supported housing standards, when we eventually publish them. Amendment 2 will add to that:
“conditions requiring the carrying out of assessments of the needs of residents… and relating to the conduct of such assessments”.
Fundamentally, this means that residents of supported accommodation must have an initial assessment of the level of their needs, to ensure that they have access to the correct amount of care and appropriate care relating to their specific complex needs. As we are all aware, every case is unique, and no two individuals will have exactly the same requirements. I am confident that this amendment will help residents to receive the best care—helping them eventually to stand on their own two feet, rebuild their lives and probably enter the private housing market in future. Local authorities can be held responsible for initiating these assessments and ensuring enforcement by all supported housing providers in their districts. The amendment will ensure that every local authority carries that forward and achieves the best outcome for residents.
Amendment 3 stems from discussions with the Local Government Association; I declare an interest, as a vice-president of the LGA. The LGA is the body that was previously named, which meant that it was consulted on all aspects of licensing regulations. However, as a localist, I believe it is right that local housing authorities and social services authorities are the ones consulted, so that each authority can have its views taken into account by Ministers when decisions are made. Stipulating the LGA as a consultee risked local authorities, as delivery partners, not having the primary opportunity to consult on elements that they will consequently be responsible for enforcing, so amending the Bill in this way is clearly the right way forward. I am pleased that the Local Government Association is highly supportive of the amendment. It has assured me and other local authorities that it will continue to work with colleagues and officials across central Government, other local authorities and accommodation providers to support the future consultation on the Bill. As this will be the case, it has been explicitly named, as per the amendment. The amendment is extremely welcome; it clarifies a point, and I endorse it completely.
I am thankful to the Minister for honouring her pledges in Committee by tabling the amendments, which I wholeheartedly support.
Amendment 1 agreed to.
Clause 5
Further provision about licensing regulations
Amendment made: 2, page 5, line 41, at end insert—
“(ba) conditions requiring the carrying out of assessments of the needs of residents (or potential residents) and relating to the conduct of such assessments;”.—(Felicity Buchan.)
This amendment enables licensing regulations under clause 4(1) or (3) to provide that conditions attached to a licence may include conditions relating to needs assessments.
Clause 6
Consultation
Amendment made: 3, page 7, line 4, leave out paragraph (a) and insert—
“(a) each local housing authority in England,
(aa) each social services authority in England,”.—(Felicity Buchan.)
This amendment substitutes local housing authorities in England and social services authorities in England for the Local Government Association in the list of persons the Secretary of State must consult before making licensing regulations under clause 4(1) or (3).
Third Reading
Bob Blackman
I beg to move, That the Bill be now read the Third time.
When we are considering opportunities for private Members’ Bills and when we are drawn in the lottery for them, it is important that we consider what we are going to take forward. I am very conscious that I have met many Members who have been in this House for more than 20 years and have never been drawn in the ballot, and this is my second opportunity to propose a private Member’s Bill. [Interruption.] Members have to enter the ballot if they want to succeed.
My experience in 2016 with the Homelessness Reduction Act 2017 was a key pointer, because Members have the choice of taking a Bill that the Government would like them to take, developing a Bill that the Government completely oppose and going down in flames, or developing their own. In both cases when I have been drawn, I have chosen the latter. That is not the easy route by any means, but when I had the opportunity to propose a private Member’s Bill, I wanted to make sure that I helped vulnerable people who cannot speak for themselves. That is why the Homelessness Reduction Act, the single biggest reform in housing for more than 40 years, came about.
This new Bill, the Supported Housing (Regulatory Oversight) Bill, deals with the vulnerable people who should be assisted as a result of the Homelessness Reduction Act. Both that Act and this Bill stem from reports published by Select Committees on which I have had the honour of serving: we have provided the evidence base and have almost carried out pre-legislative scrutiny on the Bills before we propose them.
I am pleased to speak to this Bill once more as it reaches Third Reading, and I am encouraged by the journey thus far. We have engaged in meaningful and constructive debate, leading to the fine-tuned edits that we have just made on Report. The main message of the Bill, however, remains the same: we want to prevent vulnerable tenants from being exploited by rogue landlords. My central message to the good providers out there—there are some brilliant organisations that help vulnerable people—is that they have nothing to fear from the new legislation. It is the rogues we are after—those who exploit vulnerable people.
As the cost of living crisis continues to affect residents across the country, the need for supported accommodation is growing rapidly. It is therefore vital that we regulate the market now, before many more vulnerable people are subjected to the horrors that are far too often demonstrated. Once again, I take the opportunity to recommend that individuals read the report of the Levelling Up, Housing and Communities Committee, which is available from the Vote Office and other good bookshops: it is a right riveting read. That report highlighted the extent to which tenants were abused, forced and manipulated into damaging practices, whether it be prostitution, substance abuse or discouragement from work—I could go on. People are exploited in an unacceptable way.
The main reason that people are referred to supported housing is to receive the constructive support they need to transition back to normality, yet far too often, those people go backwards as a consequence of damaging malpractice. It is an issue that is popping up in more and more constituencies all over England, highlighting the need for prompt regulation. The sheer volume of money that landlords can make in this corrupt practice is so huge that once others learn of it, they jump on the bandwagon. It is a licence to print masses of money very quickly.
Mr Deputy Speaker (Sir Roger Gale)
Order. I apologise to the hon. Gentleman; he may resume his speech in a few moments.
Debate interrupted.
Supported Housing (Regulatory Oversight) Bill
Monday 6th March 2023
(1 year, 7 months ago)
Lords ChamberRead Full debate Supported Housing (Regulatory Oversight) Act 2023 Read Hansard Text Amendment Paper: Consideration of Bill Amendments as at 3 March 2023 - (3 Mar 2023)
Supported Housing (Regulatory Oversight) Bill
Friday 21st April 2023
(1 year, 6 months ago)
Lords ChamberRead Full debate Supported Housing (Regulatory Oversight) Act 2023 Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: Consideration of Bill Amendments as at 3 March 2023 - (3 Mar 2023)
Lord Best (CB)
My Lords, I am honoured to be piloting this Bill through your Lordships’ House and am grateful to noble Lords for attending this Second Reading debate today—especially, if I may say so, the Minister, for whom this Friday afternoon engagement follows an extremely heavy week of seemingly endless debates on the Levelling-up and Regeneration Bill, apart from many other important engagements.
I declare my interest as a vice-president of the Local Government Association, which has backed the Bill and is keen to engage with the Government, alongside other local government representatives, on the details of its implementation.
The Supported Housing (Regulatory Oversight) Bill comes to us as a Private Member’s Bill initiated by Bob Blackman MP in the Commons. We all already owe a deep debt of gratitude to Bob Blackman for his previous Private Member’s Bill—I had the honour to take it through its House of Lords stages—which became the Homelessness Reduction Act 2017. This has proved a seminal piece of legislation, significantly improving measures to address homelessness. Now we must thank Bob Blackman for his sterling work bringing forward this Bill. Support for both his Private Member’s Bills has been provided by the charity Crisis, which does so much good work in this field. Crucially, as with the earlier Bill, government backing for this legislation has been forthcoming. This essential help is much appreciated. As a Cross-Bencher, I am delighted by the cross-party support for the Bill, and I hope noble Lords will today also express their approval.
What does this Bill seek to do and why is it necessary? As its title indicates, it makes provision for regulation of supported housing and for related enforcement of proper standards for accommodation of this kind. In fact, it is concerned with only a subset of what is known as supported housing. “Supported housing” covers all accommodation where there is additional provision of assistance for the residents—including, most significantly, specialist housing for older people. The Bill concerns itself only with that part of the supported housing spectrum that comes with the extra label of “exempt”, meaning it is exempt from the usual restrictions on rent payable for those in receipt of benefits. Indeed, the Bill could have been called “the Supported Exempt Housing (Regulatory Oversight) Bill” if that was not too much of a mouthful.
It is this exempt accommodation that over recent years has become problematic. The rents are exempt from housing benefit limits—in particular from the rental caps imposed by the local housing allowance ceilings, which were frozen in 2020 for privately rented properties. Landlords have been able to charge much higher rents for exempt accommodation and get them covered by the taxpayer on the understanding that these properties would be let to vulnerable people with special needs who would receive proper care and support.
Most supported exempt housing is performing an extraordinarily difficult role for people in extreme circumstances. Often, a registered housing association is the landlord and a specialist organisation provides the care, funded by local authorities and the occupiers. Schemes serve people with learning difficulties, survivors of domestic abuse, victims of modern slavery, people released from prison with nowhere to go—which links this debate with our previous debate today on the problems for offenders released with no accommodation —and many others. Higher rents are justified by the need to pay for extra housing costs: from greater turnover and higher maintenance and repair costs to longer vacancies between lettings.
The majority of these schemes deserve high praise, with staff who are often positively saintly in their caring roles. Decent supported housing certainly merits a lot more funding to maintain and extend this essential work, but on the other side of the same coin is a system subject to appalling abuse. Because of the higher rents from the exempt status, the arrangements have attracted the very worst kinds of landlords. These businesses can be so lucrative that one MP in the Commons debate on the Bill commented that the profits were higher than for dealing drugs.
The House of Commons Levelling Up, Housing and Communities Committee, under the exemplary chairmanship of Clive Betts MP, produced a full report last October on exempt accommodation. This has acted as a very helpful substitute for pre-legislative scrutiny. The committee found that unscrupulous companies were making excessive profits by capitalising on the loopholes: in essence, charging exorbitant rents for low-quality housing with little or no support for the residents, using untrained staff and lacking management. Cases have been uncovered of rooms in close proximity being allocated to those recovering from addiction and those still dependent on drugs, women fleeing domestic abuse next to men with violent histories, and other management horrors. The Committee noted that
“the current system offers a licence to print money to those who wish to exploit the system”
and said:
“This gold-rush is all paid for by taxpayers through housing benefit”.
Properties with unsupervised, unsupported, vulnerable occupiers can also cause problems for the neighbourhood: anti-social behaviour, drug abuse, rubbish and vermin, and crime, including involvement of organised criminal gangs. The health and wellbeing of those living in these overcrowded and poor conditions can deteriorate drastically. Despite much-inflated rents, residents are often required to pay for “services” from their non-housing benefits, yet taking a job is not an option because that would jeopardise access to higher housing benefit levels and therefore lead to the loss of a place to live.
The problem has been compounded by landlords obtaining planning consent under permitted development rights for the lowest-quality conversions of family houses and ex-commercial buildings. Bob Blackman has highlighted a two-bedroom property converted into a house with eight bedrooms, no living rooms and only one shared bathroom. Then there are the property deals that have cashed in on the exempt status of supported housing. The Commons Select Committee cites the case of 12 properties in west Devon that were sold to an intermediary body for £6 million and re-sold the same day to an offshore investment company for £18 million, because of the high yields expected to be gained from leasing the properties for exempt accommodation.
It is hard to be precise about the scale of this problem because of the lack of data collected locally and the complexity of the different overlapping housing types and providers. As the House of Commons committee noted:
“The Government does not know how much exempt accommodation there is or how many people live in exempt accommodation”.
The overarching problem of a desperate shortage of affordable rented homes lies behind the opportunities for some operators to abuse the system. Because councils must meet their obligations towards those who would otherwise be homeless, they are sometimes forced to refer people to supported exempt housing which they have not commissioned, and which lies beyond the scope of very light-touch regulation. There are two ways of escaping this dilemma for local authorities. The first is for the real supported housing sector to be enlarged. Better government resourcing from the Department of Health and Social Care, as well as the Department for Levelling Up, Housing and Communities, is needed, not least to replace the loss of the previous Supporting People revenue grants. Secondly, the sector must be rid of the cowboy operators that take away resources and undermine the rest.
In its report, the House of Commons Select Committee made a series of recommendations covering the collection and publication of data, accreditation of providers, and enforcement of national standards by local authorities, alongside more intervention by the Regulator of Social Housing. The Bill before us takes forward this reform agenda from the Commons Select Committee and learns lessons from five pilot schemes successfully trying better regulatory arrangements, as well as from the amendments proposed during the Bill’s Commons stages. It now paves the way for a full and robust response to the issues.
The Bill sets out duties for the Secretary of State to appoint within a year a supported housing advisory panel, which would represent the interests of local housing authorities, social service authorities, registered providers of social housing, relevant charities and residents themselves. The panel’s job would be to provide the necessary information and advice to the Secretary of State and local authorities, to improve provision and regulation of supported exempt accommodation.
The Bill requires local authorities to review provision in their area, to publish and regularly update a supported housing strategy that assesses what is available and what is needed, and take this on board in local policy-making. The Secretary of State is empowered to set out national supported housing standards covering the necessary requirements for the housing and support that must be delivered.
The Secretary of State is given powers to require operators of supported exempt accommodation to be licenced by the local housing authority. Licensing would enable councils to see that the national supported housing standards are met and that only a fit and proper person can be in charge of the accommodation. Licensing would incorporate a range of conditions relating to the quality of both the accommodation and the care, with penalties for failure to comply.
The Commons Minister has made an ambitious commitment to lay the regulations for the licensing regime and publish the national standards within 18 months of the Bill passing. The Bill requires the Secretary of state to review the position three years on and consider whether a further measure would be helpful, specifying supported accommodation as a planning use category—that is, requiring planning consent.
These measures add up to a firm response to the need for a regulatory framework to cover this neglected part of the housing sector.
Before concluding, perhaps I may address two anxieties that have been raised as the Bill has progressed. I will ignore the concerns of the speculative investors and property traders, who will, no doubt, protest the death of this golden goose. First, there is concern from local authorities that they will be taking on additional burdens in producing their local supported housing strategy, collecting and sharing data, and introducing and enforcing a licensing scheme. I believe this fear has been allayed by the Government’s clear commitment to compensate local authorities accordingly and I know that the Local Government Association, in supporting the Bill, will work to make sure that extra costs are met. It remains a matter for further consultation whether all councils—including those with little or no supported exempt housing—will be required to participate in the new scheme. The advantage of the Secretary of State requiring every local authority to have a licensing scheme is that rogue landlords cannot simply move their business from a licensed area to one without such regulation.
Then there are the worries of the hard-pressed housing and care providers themselves, who fear that regulation will increase their costs and risks with no comparable gains. Their supported housing schemes are often on a hand-to-mouth basis at present, with insecure, short-term contracts for the care providers and, consequently, poor pay and conditions for care workers. One large housing association explained to me the financial hazards of working with a number of care providers who are desperately trying to do a good job. There is always a danger that a heavy-handed approach to regulation, with too high a regulatory fee, could be the straw that breaks the camel’s back and means that fewer bona fide players continue to operate.
These fears from the decent providers should not materialise if the licensing scheme is handled with care. I am delighted that the major providers and the National Housing Federation—a statutory consultee for the process—have supported the Bill. Sensitivity is needed to avoid any unnecessary burdens at this time when other operating expenses have risen dramatically, but the Government’s recognition of this danger will be a core component in making the legislation succeed.
To conclude, my hope is that ensuring supported exempt housing is brought under local authority control and abuses are ended will lead to the release of funds, restore faith in supported housing and enable growth in a properly regulated sector. Then the Bill will lead to greater protection and real support for people living the most difficult lives imaginable. I commend the Bill to your Lordships and I beg to move.
Lord Young of Cookham (Con)
My Lords, the Bill is another production from that well-known partnership of Blackman and Best, purveyors of high-quality legislation to the Houses of Parliament following their last production, the Homelessness Reduction Act 2017. We look forward to the further fruits of this partnership.
I commend the speech that the noble Lord, Lord Best, has made, and his continuing commitment to drive up the standards of housing in this country. There is no one better qualified than he to promote this legislation in your Lordships’ House. He touched on the need for this legislation in a debate that we had on supported housing in Grand Committee on 30 March, and he has further explained today why it is needed.
In October last year, the Select Committee in another place that the noble Lord referred to published its report on exempted accommodation, describing the system as “a complete mess”. While there were many good providers, as the noble Lord said, in the worst cases the system involved
“the exploitation of vulnerable people who should be receiving support, while unscrupulous providers make excessive profits by capitalising on loopholes”.
At the time of the Library briefing there had been no government response to that report. Perhaps the Minister can shed some light on the timing of that response.
I shall follow up briefly on two points made by the noble Lord. I hope the Bill will drive out of business the unscrupulous landlords he has so rightly condemned, but of course the demand will remain and the shortage of supply will need to be made good by organisations that can meet the requirements of the Bill. That will require some proactive initiatives by the Government and by local authorities because I do not believe that the market will respond automatically. Is the Minister able to spell out the steps that her department and the DHSC will now take to make sure that adequate provision is made by responsible organisations, particularly in those parts of the country where abuse is currently rife, to complement the provisions in the Bill?
Secondly, the Bill gives various obligations and powers to the Secretary of State. I wonder if I can press the Minister on the progress that she anticipates making in discharging these. In Clause 1, are steps under way to identify people who will serve on the advisory panel once Royal Assent is achieved so that we can get off to a flying start?
In Clause 3, the Secretary of State has powers to make regulations setting minimum standards for exempt accommodation. That is crucial to the whole Bill, which comes into effect two months after Royal Assent. Have discussions started with the LGA, social landlords and other providers about what those standards might be? Can the Minister say when they might be introduced? Until they are, the abuses that the noble Lord, Lord Best, has referred to will continue.
Lastly, under Clause 4, the Secretary of State can introduce a licensing scheme that providers of exempt accommodation must secure before they can operate. Will the Minister confirm what the noble Lord has just said: that the Secretary of State is indeed minded to use those powers within the period of 18 months?
Having made those two points and asked some relevant questions, I congratulate the noble Lord, Lord Best, again on his piloting the Bill through Second Reading. I hope it reaches the statute book soon.
Baroness Warwick of Undercliffe (Lab)
My Lords, it is clear that there is an urgent need to reform non-commissioned exempt accommodation. I congratulate the noble Lord, Lord Best, on bringing the Bill forward. I wholeheartedly support its aim to drive rogue landlords out of this part of the supported housing market.
It is important to stress, as the noble Lord did, that many exempt-accommodation providers deliver high-quality services and homes that are desperately needed, but rogue providers have been able to enter this part of the market, trading on gaps in funding as well as gaps in oversight. As a result, some residents now live in disgraceful and completely unacceptable conditions. Vulnerable residents have reported truly shocking examples of unsafe housing, non-existent care or support services, feeling financially trapped and having a lack of control over where they were housed. They have experienced exploitation and neglect.
These issues were well documented in the Levelling Up, Housing and Communities Select Committee report into exempt accommodation published last October. It provided a thorough account of why these problems have arisen and what should be done about it. It presented compelling evidence for immediate reform. The noble Lord, Lord Best, a member of that Select Committee, has presented us with an important step in the right direction. His Bill seeks to put in place greater regulation of supported exempt accommodation and to give local authorities the tools to tackle problematic provision. From my previous involvement in the housing sector, I know that exempt accommodation providers are not inherently poor quality or poor value for money. Many housing associations use this model to provide well-run, non-commissioned services appropriate for people with support needs, including sheltered housing for older people, refuges and hostels for people who are homeless.
So, how have some unscrupulous landlords and organisations been able to exploit the system to extract high levels of return while delivering poor-quality or unsuitable accommodation and services? While oversight and regulation of rogue providers has been inadequate in some parts of the country, underfunding of commissioned services has led to a significant and rising unmet housing need among vulnerable groups. Growing numbers of people are desperate for a home. This can make it feel impossible for people to say no to the offer of a home, even if it does not feel safe. The growth of poor-quality providers has to be understood in that context. We are facing an acute shortage of social housing, so it is essential that reforms are accompanied by increasing the supply of new supported housing to meet this growing need.
The Government’s recent announcement on adult social care calls that into question and is deeply worrying. The £300 million housing transformation fund—first announced by the Government in December 2021—would have been a vital step towards ensuring that some of the most vulnerable people have the support or care they need in a home that is accessible to them. The Government seem to have reneged on this commitment during Easter Recess when they published their plan for adult social care reform for 2023-24 and 2024-25, which omitted it completely. Can the Minister explain this decision and confirm whether this pre-committed investment will be made available to supported housing providers via alternative funding streams?
An investment of £300 million to integrate housing with local health and social care strategies would have significantly bolstered supported housing’s contribution to the strategic aims and statutory duties of the NHS, social care and criminal justice services, boosting outcomes for resident health and well-being. In a time of huge cost pressures, supported housing urgently needs greater security of funding and a strategic footing to meet growing need across the population. I urge the Government to address this as part of their efforts to root out poor-quality provision.
The National Housing Federation, which is a statutory consultee in this legislation, has welcomed this Bill and is committed to working closely with the Government to ensure that the reforms are targeted and effective. It has pointed out that many supported housing providers operate in dozens of local authority areas, so the new licensing framework in this legislation could present a significant new financial and administrative burden for tenants and not for profit landlords. This is particularly true of older people’s housing let on a social housing rent, which is subject to consumer regulation by the Regulator of Social Housing and is not the primary target of these regulations.
The NHF has called for a clear exemption or a passporting system for older persons’ housing and other types of supported housing where there is already an adequate regulatory framework to accompany the new licensing system, so that good-quality providers are not subject to duplicated regulations and significant new administrative costs. This will also reduce the demand on local authority resources and allow councils to concentrate on problematic schemes and providers. I hope the Government will take this on board.
Clarification is also needed around the costs of obtaining a licence and whether this will be subject to regulation. If uncapped, costly licensing schemes could act as a financial barrier to much-needed supported housing. This detrimental effect would surely be contrary to the laudable aims of this Bill. I would be grateful if the Minister could confirm whether a cap will be in place.
The Long Title of the Bill, as the noble Lord, Lord Best, pointed out, refers to the regulation of supported exempt accommodation. This definition has no clear legal status, so the scope of these regulations is not yet clear. Establishing a rigorous definition and the scope of regulation in secondary legislation will be essential to reduce the risk of unintended consequences and ensure that local authorities have the right powers and resources to tackle the rogue providers.
Having said that, I end with the point I made earlier: it is vital that there is proper funding for housing-related support so that new supported housing can be provided to meet the unmet need that exists right across the country. As we drive rogue providers out of the market, it is incumbent on the Government to support the delivery of the high-quality supported housing that residents deserve.
Lord Campbell-Savours (Lab) [V]
My Lords, we have just heard a very well-informed contribution from my noble friend. I greatly welcome this Bill. It provides me with the opportunity to comment on the accompanying Commons report, which I have been sitting on for something like five months, awaiting this debate.
After 43 years in Westminster, I can recall only a small number of occasions where the publication of a Select Committee report has caused so much anguish and concern to committee members about the state of a publicly funded provision and the use of public expenditure. I sat on the Commons Public Accounts Committee for 10 years, and I cannot recall even a National Audit Office report on such a breakdown in the use of public funds. I was shocked to read this devastating report last year, and I congratulate the Commons Levelling Up, Housing and Communities Committee, under the chairmanship of Clive Betts, for its brilliant exposure of a problem which I suspect most Members of both Houses were completely unaware of. I certainly was unaware of it.
For the anoraks outside the House who are following this debate—there are many—the report is numbered HC 21. It was published on 27 October last year and is entitled Exempt Accommodation. In its summary, it refers to a system which
“involves the exploitation of vulnerable people … while unscrupulous providers make excessive profits by capitalising on loopholes”.
That has already been referred to by the noble Lord, Lord Best, but I repeat it for emphasis, because it is a very important statement to include in the report. It also says that
“some residents’ experiences of exempt accommodation are beyond disgraceful … Where the very worst experiences are occurring, this points to a complete breakdown of the system”.
This is hardly the language of reports we have heard from other Select Committees over the years. It continues:
“Areas with high concentrations of exempt accommodation can also attract anti-social behaviour, crime—including the involvement of organised criminal gangs—rubbish, and vermin”.
We have to remember that people have been living in these appalling circumstances. The report then reveals that
“organisations with no expertise are able to target survivors of domestic abuse and their children and provide neither specialist support”
nor a safe environment.
The report is scathing on the availability of data. It accuses successive Governments of having been “caught sleeping”, with a scarcity of data. It cites, for example, the inability to establish how widespread the very worst experiences are and how many exempt accommodation claimants and providers there are. I am sure we can all agree that these shocking revelations demanded action. Clive Betts’s committee’s report, followed by the Blackman initiative, have delivered what I would argue successive Governments of all persuasions have failed to deal with.
I want to flag up a number of issues arising from both the Betts report and the subsequent debate in the House. I make it clear that it is not my intention to seek to amend the Bill before us in any way; we need its swift passage into legislation. However, there remain some issues on which we need further assurances. For example, there was talk in the Commons of the requirement for new planning powers for local authorities to be able to proactively manage the market. The Government have responded with a review, which needs to be followed up.
There was a call more generally for greater national monitoring and oversight powers and of a reformed regime of enforcement. There were calls for the establishment of a system of evaluation and improvement notice orders. This needs to be followed up with a comprehensive consultation process. Of particular concern to my Labour colleagues when it was considered in the other place was the issue of limited resources and the effect on cash-starved, overburdened local authorities, some of which may choose not to license. They may be the very authorities with the greatest problems. The Government’s consultation has highlighted the problem but not dealt with it. But the issue of resources goes wider. For example, what of the funding of the cost to local authorities of adopting licensing schemes? The schemes will cost money, and the money will have to come from somewhere.
Finally, on a wider issue that falls slightly outside the remit of the Bill, there is a need to close the regulatory loophole whereby unscrupulous, exempt non-profit-making providers who let both at below market rents and at market rents are able to operate outside consumer legislation. That was partly dealt with during Commons proceedings, but it remains outstanding. My people have proposed a solution. Will Ministers follow this up at some stage after the Bill’s passage? Could the Minister assure me that the matters that I have raised will be followed up, perhaps in a letter to me?
According to MP research, we are now told that there are 153,000 households in exempt accommodation, with escalating numbers in recent years. Some people argue that that is an underestimate. The problem is that the stats reveal little, as local authority returns are limited in scope. That certainly needs rectifying.
Finally, I want to say a few words of appreciation to Mr Bob Blackman, Member of Parliament. He is not of my political persuasion—we differ politically on many issues, I am sure—but on this issue he has undertaken a fine piece of work on which he should be congratulated, and we are all indebted to him. I hope that this Bill proceeds unamended, without further debate, to the statute book. Equally, I hope that the Government will give clear instructions to their officials to get on with it. We need to deal expeditiously with this appalling state of affairs.
Baroness Walmsley (LD)
My Lords, on these Benches we support this Bill, and I congratulate the noble Lord, Lord Best, and his colleague Mr Blackman in the House of Commons on its introduction. It is an important attempt to address the shortcomings in the quantity of good-quality supported housing, which is, because of its greater cost, exempt from the usual housing allowance cap.
As the noble Lord, Lord Best, and others have pointed out, there are many good providers who run high-quality units with appropriate support for vulnerable people to live in the community. They are to be congratulated on that. However, they and many local authorities are very concerned about the entry into the market of unscrupulous people who buy up properties, divide them into tiny units and let them out to vulnerable people with minimal if any support, because of the profits to be made. This Bill is an attempt to address that by setting minimum standards and providing a licensing and monitoring framework and tools to assess and plan for adequate provision, as well as new planning provisions—all on the advice of an expert national team and after consultation with the sector. It is very comprehensive and seems to cover all the bases.
However, we have been warned that there are issues to be wary of. There is a national shortage of supported housing of all sorts. Margins are tight and the sector is fragile. It would be tragic if these measures were implemented either too quickly or in the wrong way, resulting in the loss to the market of good providers. As the noble Lord, Lord Young of Cookham, pointed out, it has to be done in a way that does not impact those good providers. I know that the Government support the Bill, so I ask the Minister: how does she plan to protect good providers? Do the Government plan to take initiatives to stimulate the supply of good provision?
Local authorities will be given new duties in order to implement this Bill, and we all know that they are already hard pressed and short of cash. First, they do not always know what they have already got. There is a lack of consistent data on how many providers there are and how many are of poor quality. That is why the Bill makes lots of good common sense, by asking local authorities to assess the need for exempt supported housing in their area over a five-year rolling programme, so that they can then plan and publish a strategy to enable them to fulfil that need. I think we can all agree that planning on the basis of accurate data is always the basis for the success of any plan in the public service.
Secondly, local authorities will also become the licensees for providers. It is obvious that this will require ongoing monitoring and assessment. The detailed guidance should take existing regulations into account to avoid duplication, as the noble Baroness, Lady Warwick of Undercliffe, pointed out. There is no doubt that all this will require additional funding, but it will be money well spent. Indeed, all this boils down to questions about funding and timing. Can the Minister say how long will be given for the consultation, whether there will be pilot schemes in a few areas to identify any glitches and develop good practice that can be disseminated across the country, and how much new money will be provided for local authorities to carry out these duties?
These measures are designed to improve the housing conditions of some of the most vulnerable people in society—conditions which have an enormous impact on the quality of their lives. Many of these people do not have a voice or the wherewithal to complain if they are being badly treated. These measures could change all that, if they are implemented well and funded adequately. Headlines will not do. Timely action and adequate cash are needed. Can the noble Baroness assure the House that we will get both of those?
Lord Khan of Burnley (Lab)
My Lords, I am aware that I am the penultimate speaker in the last debate on a Friday, so I will be as concise as possible. I thank the noble Lord, Lord Best, for sponsoring the Bill in this House and all noble Lords for their very informative and eloquent contributions. I particularly thank my noble friend Lady Warwick of Undercliffe for all her work in this area when she was the chair of the National Housing Federation, and for recently securing a debate in Grand Committee on supported housing and homelessness.
The Opposition welcome this Bill and I thank everyone involved at all stages of the Bill for progressing it. We on these Benches regret how long we have had to wait for legislation to address exploitation and profiteering at the hands of rogue exempt accommodation operators, and the fact that progress in this area has been dependent on the ongoing success of Bob Blackman MP in the Private Member’s Bill ballot initiated in the other place. Unfortunately, there are loopholes in the current system that have been open to exploitation. There is evidence that unscrupulous landlords have been capitalising on those loopholes and claiming uncapped housing benefits to make a profit. In fact, my noble friend Lady Taylor of Stevenage was just telling me that an accommodation provider was charging up to £10,000 a week, which is scandalous.
The Bill will create a minimum standard for type and condition of premises, as well as for the care and support provided. There has been a clear correlation between high concentrations of exempt accommodation and antisocial behaviour and crime. We support the measures in the Bill. It is a means to enhance local authorities’ oversight of supported housing and to enable them to drive up standards in their area. As we have long argued, a robust framework of national standards for the sector is essential.
Some 153,700 households in Great Britain were housed in exempt accommodation in May 2021, but the lack of data means it could be much more widespread than even that figure suggests. This point was made in the other place, as well as by my noble friend Lord Campbell-Savours. We need a better understanding of the issue; that will be driven by increased data. I look forward to hearing how the Government plan to achieve this.
Furthermore, we would like to see new planning powers to allow local authorities to proactively manage their local supported housing markets; enhanced provisions for national monitoring and oversight; an expanded list of new banning order offences and establishing the evaluation and improvement notice procedures, so that local authorities can drive up standards without implementing a full licensing regime. We remain of the view that those suggestions have merit and believe that they will need to be revisited if the Bill fails to deliver in the way that we hope it will.
We encourage the Minister to give serious consideration to giving local authorities powers equivalent to those in Part 1 of the Housing Act 2004, which provides for the housing health and safety rating system, hazard awareness notices and improvement notice procedures. As the Minister will know, outside large urban areas, most local authorities have only a handful of officers, if that, in their private rented sector teams. We need to ensure that there is a suite of options short of licensing that will allow small authorities to bear down on the problem.
My final point is related to local authority resources, a point the noble Lord, Lord Best, made in his introduction, along with other noble Lords. The Bill will place additional requirements on local authorities to carry out reviews of supported exempt accommodation in their districts and to publish supported housing strategies. In addition, authorities which believe it necessary to adopt licensing schemes and are in a position to do so will face additional cost as a result. My noble friend Lady Taylor of Stevenage raised the issue of adult and social care funding going to upper-tier authorities in two-tier system and there is no requirement for funding to be passed down to housing authorities or district councils, where most housing issues are dealt with.
In the other place, the Minister confirmed a new burdens assessment would be made. Can I probe the scope of that confirmation further? We are concerned that local authorities ultimately may not receive any support for ongoing costs, particularly in relation to licensing schemes. We would welcome some assurances from the Minister that the net additional costs of any new burdens arising from this Bill will be fully and properly funded. If not, how do the Government believe the ongoing costs can be made self-financing?
Those specific concerns aside, we very much welcome the fact that the Bill is being debated in the Chamber today and wish it a smooth passage through its remaining stages and on to the statute book. It will undoubtedly help to put rogue exempt accommodation operators out of business and better enable local authorities to drive up supported housing standards in their areas. As the honourable Member for Harrow East, Bob Blackman, said,
“it will improve the lives of some of the most vulnerable people in our society”—[Official Report, Commons, 18/11/22; col. 970.]
and bring relief to communities struggling to cope with the impact of concentrated numbers of badly run exempt accommodation properties. We recognise that today is a significant, important step forward and we are pleased to give the Bill our support. Well done team Blackman and Best. The message today from this House is loud and clear: the time in which the rogue landlords have been able to exploit those vulnerable people is rapidly coming to an end.
The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)
My Lords, I thank my noble friend—he is not really my noble friend, but he is my noble friend—Lord Best for those kind words. There was no way that I was not going to be here as the Minister to support this Bill because, for me, it is one of the most important Bills we have seen coming through for quite a long time. I thank him for introducing the debate and congratulate him on the sponsorship of what, as I said, is an extremely important Bill. I thank other noble Lords for their support of the Bill today which, I am pleased to say, the Government are also supporting.
I also thank and pay tribute to my honourable friend the Member for Harrow East for his tireless work in making sure that the very important matter of poor-quality supported housing is now placed before this House.
I will begin by setting out the context for the measures contained in the Bill. Supported housing is home to some of the most vulnerable members of our society. People with disabilities and mental ill-health, survivors of domestic abuse, older people and people experiencing homelessness all rely on this important type of housing. Supported housing is more than just a home: it also plays a vital role in delivering better life outcomes and greater independence to those in need by providing care, support and supervision alongside accommodation.
Many excellent providers of supported housing operate in this sector, but I am very sorry to say that there are also rogues. These unscrupulous people are exploiting the system to the detriment of the very vulnerable people it is supposed to support, and at considerable cost to the taxpayer. Let us not forget that the financial benefit gained by these rogues rests on abusing the rules in housing benefit. Ministers at the Department for Work and Pensions agree that it is totally unacceptable that large amounts of public money are being paid out in housing benefit to fund this poor provision.
Before I go on to the Bill itself, I will briefly set out the action that the Government are taking to tackle the issues of poor quality in the supported housing sector. In October 2020 we published the national statement of expectations setting out the Government’s vision for the planning, commissioning and delivery of good-quality accommodation in supported housing. We also launched the supported housing pilots—which I think the noble Baroness, Lady Walmsley, brought up. Between October 2020 and September 2021, we funded five local authorities with a total of £5.4 million to explore ways of improving quality and value for money in the sector, particularly in exempt accommodation.
We published the independent evaluation of the pilots in April 2022 and have continued to build on the success of this initiative. Our ongoing supported housing improvement programme is backed by £20 million of funding and is helping 26 local authorities tackle quality issues in some of the most affected areas of the country, but we realise that we must go further. The evaluation of the pilots was clear that without providing additional powers to local authorities, our ability to fix these issues is limited. That is why the Government announced their intention to regulate the supported housing sector in a Written Ministerial Statement in March last year.
This Government’s priority is to protect the welfare of their most vulnerable citizens, and the Bill includes powers to bring in the crucial regulation that is required. We are determined to drive up quality in supported housing and drive out unscrupulous providers. Driving up standards is critical given the harmful consequences that the worst of this appalling accommodation can have for the vulnerable people living there and the damaging impacts we have seen on communities blighted by anti-social behaviour.
I will now move on to the measures set out in the Bill. The supported housing sector is increasingly complex, cutting across tenures, including both social housing and private housing supplied by charities and voluntary bodies. Given this complexity, it is right that the Government should seek information and advice about supported housing from experts. The Bill therefore creates an advisory panel, which will be established within a year of the Bill becoming law.
During the passage of the Bill in the other place there was much discussion of the paucity of data available to government on supported housing, and we have heard that again today, particularly from the noble Lord, Lord Khan of Burnley, and the noble Baroness, Lady Walmsley. We recognise the lack of data on supported housing; it is crucial that we make improvements in this area. I am pleased to say that we already have research under way to provide an estimate of the size, and importantly the cost, of the supported housing sector across Great Britain, as well as estimates of future demand. The Department for Work and Pensions has also made changes to its systems to improve the data it holds on housing benefit claims.
In addition to those measures, the Bill places a new duty on local housing authorities in England to produce supported housing strategies. These strategies will assess the current provision of supported housing and will require authorities to forecast future need in local communities. The more information and data we have, the better-informed decisions we can make about supported housing now and into the future.
For the first time, there will be a set of national standards for support: the national supported housing standards. Currently, the only requirement set out in housing benefit case law is that the support being provided is “more than minimal”—this is simply not good enough. These national standards will cover the type and quality of accommodation being used to deliver supported housing, as well as the quality of support that residents receive. The standards will apply to all supported housing providers in England and will be enforced through local authority-led licensing schemes. Licensing will apply to districts designated by either the Secretary of State or the local authority.
The Bill also sets out what conditions will need to be met in order to obtain a licence. These may refer to the standard and the use of the accommodation, the requirement for a support needs assessment, the provision of care, support and supervision, as well as meeting the national standards. Penalties will rightly apply where licensing conditions are not met, or where supported housing is operating without a licence in a designated licensing area. Powers in the Bill allow us to make provision for offences and penalties in the licensing regulations.
The Government are aware of the potential for unintended consequences for people in need of supported housing services. Crucially, the Bill places a duty on the Secretary of State to consult on the key measures that I have set out before making any regulations. This includes a requirement to seek the views of statutory consultees. Stakeholders can be reassured that the Government are determined to work with them to understand the impact of these measures and to ensure that any risks are understood before proceeding. But we are clear that the purpose of these changes is to drive out rogue providers, which is paramount.
Further measures in the Bill include a requirement to review the effect of the licensing regime after three years, to consider whether a change in planning law is warranted. This was brought up by a number of noble Lords, and I assure them that we will review that. A change to homelessness legislation will ensure that anyone who finds themselves forced to leave supported housing because it does not comply with the national standards will not be intentionally homeless. My noble friend Lord Young of Cookham brought up the important issue of social housing data on the demand for supported housing that is not held centrally. We are commissioning that research because we need to know what the effect will be once we put these measures in place. We need to know the current and future demands, because we cannot have people being made homeless unintentionally through the Bill.
As I said, the Bill also requires local authorities to produce strategic plans, as we heard, and they will therefore forecast the need in their areas. In order to produce those plans, they will have to know the baseline for accommodation at that time. Local authority providers and the Government are there to ensure that supported housing needs can and will be met.
My noble friend also raised the issue of discharging obligations and powers in the Bill. First of all, as I said, the advisory panel will be set up as soon as possible after the Bill becomes law and will be an important part of ensuring that these actions are delivered. My noble friend brought up national standards, and, as I said, the Government have already started work with stakeholders across the housing sector to develop the standards. As far as the licensing is concerned, the Government will consult on measures to enforce the standards, and, as I said, we intend to introduce a licensing regime, as is set out in the Bill.
A number of noble Lords brought up the issue of the Select Committee report. The Government are considering the areas that the Select Committee highlighted, and we will publish a response in due course. We know that the Bill alone is not enough, so we are committed to taking forward further action, if needed—first of all, to get rid of rogue landlords, and, most importantly, to keep driving up the quality of supported housing.
The noble Baroness, Lady Walmsley, brought up the really important issue of the impact on good providers. There are some fantastic providers out there; I know that personally, because my daughter is in supported housing, as I have mentioned before. The Government are determined to avoid any unintended consequences for good providers of supported housing. We are already working with stakeholders on the detail, and, as I said, we will consult before committing to the detail of the licensing scheme and the standards.
The cost to local authorities will be assessed. I know that this is important, quite rightly, if we are putting new burdens on local authorities—and this is a big burden, as well as an important one. Costs will be assessed through the new burdens process, as usual. I hope that response puts noble Lords’ minds at rest on that subject.
The noble Lord, Lord Campbell-Savours, brought up a number of issues, most of which will be covered by the 12-week consultation, but I am more than happy to look at Hansard and go through his questions to make sure he gets a written answer, as that is what he asked for. We will make sure that copies of that will be in the Library.
The noble Baroness, Lady Warwick of Undercliffe, discussed the costs of the licences and the exemptions from licences. As I said, the Government will consult on the whole scheme. Is important that local authorities and other stakeholders all get involved in that consultation, because it will be a better scheme if the people actually working in the sector get involved before we completely set it up.
Those are my responses to all the questions. There were a lot of questions on funding. The Government are absolutely aware of this and are considering and doing research on the costs of these services for the future and for this type of accommodation. I feel quite strongly—as I know the noble Lord, Lord Best, does, too—that this is part of the continuum of keeping people in their own homes with dignity for as long as possible in their lives, so this will be an increasingly important housing sector in this country for people we look after in some parts of their lives.
In closing, I will repeat that there are many excellent providers of supported housing, who are determined to provide an excellent service for their residents. Those good providers have nothing to fear. As I said, my officials are already working with stakeholders to design a scheme that will drive out the rogues but enable good-quality supported housing to continue to be delivered as it is now.
We know that time is of the essence, and the Government have committed to laying regulations within 18 months of the Bill becoming law. As I said, I am enormously grateful to my noble friend Lord Best—I still call him my noble friend—for sponsoring the Bill, and to my honourable friend the Member for Harrow East for his work in the other place. The Government are committed to stamping out the practice of rogue providers exploiting vulnerable people, at considerable cost to the taxpayer. The Bill is a crucial step forward in ensuring that people receive good-quality support in a market free from unscrupulous actors.
Lord Khan of Burnley (Lab)
Before the noble Baroness sits down, I want to ask about the issue that my noble friend Lady Taylor of Stevenage has raised previously and I raised today about passporting funds, where in two-tier authorities higher authorities passport funds to housing authorities and districts. Can the noble Baroness get back to us on that?
Baroness Scott of Bybrook (Con)
I think that that will be part of the overall research into how the system works and where the money is. It was interesting that, even at the Select Committee, a provider said that there is money in the system but it is not being used correctly. We need to have the data on this to look at all those issues.
Baroness Warwick of Undercliffe (Lab)
The noble Baroness gave us a very comprehensive response, but will she comment on my point about the £300 million in the adult social care strategy?
Baroness Scott of Bybrook (Con)
I understand that that has gone. I do not know the details, but I am very happy to write to the noble Baroness.
Lord Best (CB)
My Lords, I am deeply grateful, as I know Bob Blackman MP will be, for all the support that noble Lords have shown for this measure. I shall pick out one or two points that might still be hanging in the air. I am deeply grateful to the noble Lord, Lord Young, for his support on this as on so many other housing matters. He makes the point that, if we close down some of the bad guys, where will people go, unless we also build up the good guys at the same time. I think that is an important lesson. As for the Government’s reaction to it, it is well worth bearing in mind that the cost in housing benefit terms will reduce when the rogues are no longer being paid excessive amounts for their accommodation. It is a reproportioning or reallocating of resource, rather than simply an extra burden for government.
The noble Baroness, Lady Warwick of Undercliffe, spoke with great authority from having chaired the National Housing Federation for many years. The loss of the housing transformation fund of £300 million is painful. I hope that the consultations that relate to this Bill will reveal the need for that sort of sum to be put back into play. We have three departments involved here—the Department for Levelling Up, Housing and Communities; the Department of Health and Social Care; and the Department for Work and Pensions—and the trouble is always that the gains are found on one side and the losses in another department’s budget. We need those three to be thinking of these things together; I hope they will and that we will not see this as a net loss at the end of the day.
I am grateful to the noble Lord, Lord Campbell-Savours, for his very powerful analysis of what has been going on. I thank him for quoting “beyond disgraceful” as the real adjective that should be used for some of this ghastly accommodation. It is worth bearing in mind, in terms of following through on this, that there are quite significant commitments on timescale; we do not always get Ministers explaining that they will not only endeavour but will succeed in achieving the national standards and having the details of the licensing scheme fully consulted on and brought together within 18 months, and that the licensing scheme itself will start up in a year. So, we have some timescales there and after three years we will see whether a planning power is needed, after evaluation of how things have gone. There is back-up in terms of a timescale that Ministers have put on the record and I think that is helpful.
I am grateful to the noble Baroness, Lady Walmsley, who welcomed this measure from the Lib Dem Benches. Like so many others, she mentioned the local authority workload, which will be a sore point if there is no compensation. I took it from the Minister that there will be a new burdens assessment and that this is likely to cover—I hope very fully—the extra costs of getting involved with a licensing scheme, collecting and sharing data and the rest. That will be important; as we know, with the underfunding of local authorities more generally, it is a difficult time to add burdens unless they are fully paid for.
I must not dwell on all the contributions of other noble Lords, but I am grateful to the noble Lord, Lord Khan of Burnley, for his support. He too made those points about new burdens, which are absolutely valid.
I conclude by thanking the Minister very much for her comprehensive and entirely sympathetic response to the issues raised. We really are on the right road; we have a framework that we can now polish and improve upon in the consultative processes that will follow. I thank the Minister for her personal support, which will be invaluable in taking things forward.
I conclude by once again thanking my colleague Bob Blackman. None of this would have happened had he not been absolutely tenacious in seeing this through all its Commons stages.
Supported Housing (Regulatory Oversight) Bill
Tuesday 6th June 2023
(1 year, 4 months ago)
Lords ChamberRead Full debate Supported Housing (Regulatory Oversight) Act 2023 Read Hansard Text Watch Debate Amendment Paper: Consideration of Bill Amendments as at 3 March 2023 - (3 Mar 2023)
Lord Best (CB)
My Lords, I understand that no amendments have been set down to this Bill and that no noble Lord has indicated a wish to move a manuscript amendment or to speak in Committee. Unless, therefore, any noble Lord objects, I beg to move that the order of commitment be discharged.
Supported Housing (Regulatory Oversight) Bill
Friday 16th June 2023
(1 year, 4 months ago)
Lords ChamberRead Full debate Supported Housing (Regulatory Oversight) Act 2023 Read Hansard Text Watch Debate Amendment Paper: Consideration of Bill Amendments as at 3 March 2023 - (3 Mar 2023)
Lord Best (CB)
My Lords, let me briefly recap on this Private Member’s Bill, introduced in the other place by Bob Blackman MP, who has once again secured government backing for much needed housing legislation. This follows the success of his historic Homelessness Reduction Act 2017, which has prevented many thousands of households becoming homeless. I am honoured to be piloting his Bill through your Lordships’ House and declare my interest as a vice-president of the Local Government Association.
The Bill addresses the malpractices and abuses that are causing much distress to vulnerable people in need of somewhere to live, while costing the taxpayer many millions each year. Recently, there has been an alarming increase in the numbers of people needing supported accommodation, including people with disabilities, people with mental health problems, those leaving prison with nowhere to go and those escaping domestic abuse, among many others. Unscrupulous landlords have been accommodating these vulnerable people using a special exemption from the usual restrictions on housing benefit and universal credit to charge very high rents, covered in full by the taxpayer, for low-quality accommodation with little or no extra support. So lucrative has it become to take advantage of the lack of regulation in this space that one MP described it as more profitable than dealing drugs.
The Bill will see local authorities imposing a licensing regime for supported exempt accommodation and requires adherence to national standards for both the accommodation and the additional support for tenants. It gives the Secretary of State powers to establish a framework for regulatory oversight and enforcement. This is an extremely complex issue because the current opportunities for receiving higher rents and support for care services apply not only to exploitative landlords taking advantage of a benefits loophole but to highly respectable charities and altruistic housing and care bodies operating in the same field. New regulation must not stifle, inhibit or add unnecessary costs or duties for these thoroughly commendable supported housing providers. Much sensitivity is required, therefore, in formulating the details of the new regime. Extensive engagement with local authorities, housing and care providers, the National Housing Federation and others will now follow. The Bill opens the door to a thorough-going new regime which should release public funds for the decent operators to extend their vital work.
Baroness Hayman of Ullock (Lab)
My Lords, we welcome the Third Reading of this important Bill, as well as the contributions from across the House throughout its passage. Progress on addressing exploitation by rogue exempt accommodation operators has been far too slow, as the noble Lord, Lord Best, just spelled out. I commend the Government for extending these provisions to enhance local authority oversight of supported housing. I thank Bob Blackman MP, the Bill’s sponsor in the other place, and the noble Lord for piloting it through this House. I am sure the whole House will hope that the Bill can now enable local authorities to drive up standards in their areas.
Baroness Thornhill (LD)
I rise to support the noble Lord, Lord Best, and Bob Blackman, and particularly to mention Crisis, which has been heavily involved in this. Those of us in local government will have seen this with our own eyes, having turned up at places and been disgusted by what we saw. We acted and we tried to do things about it, but we lacked the necessary clout and oomph that the Bill will deliver.
Be under no illusions: the hard work starts now. The people on the advisory panel will have their work cut out, but I think the way is very clear. Vulnerable people were being massively exploited and this is a Bill whose time has come. It has great cross-party support, and it will make a difference. Good luck to the panel, which I assume the noble Lord, Lord Best, will be on. It has its work cut out, but please can it work quickly?
Lord Evans of Rainow (Con)
My Lords, I thank the noble Lord, Lord Best, for taking the Bill through the House. I thank noble Lords from across the House for their valuable contributions through its passage. I thank and pay tribute to my honourable friend Bob Blackman MP for his tireless efforts in guiding this important Bill through the other place. The Government are pleased to support this crucial Bill, and I am personally very pleased to continue to support it today.
The measures in the Bill will drive out the rogue operators in the supported housing sector and ensure that the vulnerable people who rely on supported housing services to help them live as independently as possible can be confident that they are living in good-quality supported housing.
I want to be clear that, in taking the measures in the Bill forward, the Government will work with the sector, local authorities and others to make sure that good providers can continue to deliver excellent supported housing. The Bill contains a number of measures that will deliver the objective of driving out rogues. These include two very important measures that I will mention today.
The first is a power enabling the Secretary of State to set out national standards for supported housing. The standards will mean that both providers of supported housing and residents will know precisely what good-quality housing with care and support looks like. These standards will need to work across the complex and varied types of supported housing, and will need to be flexible enough to promote innovation and avoid stifling supply.
The second measure is the supported housing licensing regime. The Bill requires the Secretary of State to consult on the detail of the licensing schemes and enables him to make regulations to put them into action. Providers of supported housing schemes will need to meet conditions in order to be licensed; not least, they must comply with the national standards. The Government have already started on a comprehensive programme of stakeholder engagement so that the views of providers, residents and statutory consultees are taken into account. This work will include looking at the costs to local authorities, so that new burdens assessments can be completed.
In conclusion, I want to be very clear that the Government value supported housing; we know that it plays a vital role enabling vulnerable people to live independently. I once again thank the noble Lord, Lord Best, for his sponsorship of the Bill, and my honourable friend Bob Blackman in the other place for his hard work and dedication in putting the Bill forward.
Lord Best (CB)
My Lords, I thank the noble Baronesses, Lady Hayman of Ullock and Lady Thornhill, for their support. I thank the Minister for his support, and for underlining the Government’s support for the Bill and their willingness to fund the extra burden it involves for local authorities. The true supported housing sector needs significantly more help to reach vulnerable people in real need, and the hard work now begins to put in place the regulatory framework that banishes the bad landlords and strongly encourages the good.
I underline our thanks to Bob Blackman MP, who has now consolidated his position as a leading advocate for better housing for homeless and vulnerable people. I hope he soon comes high in the ballot for Private Members’ Bills for a third time.
My sincere thanks also go to Crisis. As mentioned by the noble Baroness, Lady Thornhill, it has, as always, provided invaluable backup. I record my appreciation to the Bill team at the Department for Levelling Up, Housing and Communities for their patience and painstaking work on the preparation and passage of the Bill. It is always a joy to work with talented civil servants on a Private Member’s Bill. This is my sixth and, once again, as a Minister for the day, it is revealing and gratifying to see the quality of the work that goes on behind the scenes.
In conclusion, I am sure the Bill will make a real difference to people living in the most unenviable conditions we can imagine. I wish the Government, in partnership with the supported housing sector, every success in making a reality of the promise contained within the Bill.
Royal Assent
Thursday 29th June 2023
(1 year, 4 months ago)
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