The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rushanara Ali)
I welcome the hon. Member for Eastbourne (Josh Babarinde) to the House, and congratulate him on securing this important debate on funding for temporary accommodation. As we have heard from him and other hon. Members, this is such a serious issue. I know from my experience as an MP for an east London constituency that the impact that it has on children, families and the wider community is absolutely devastating; sadly, it can be a matter of life and death, because, as the hon. Member for Eastbourne says, the issue is the quality of housing as well as its supply.
This Government are absolutely committed to addressing the current high levels of homelessness and rough sleeping and, of course, the barriers faced by those who are in temporary accommodation and need a safe, secure home to live in. I recognise the financial pressures that hon. Members have highlighted; the soaring costs of temporary accommodation are placing huge strain on councils. I looked very closely at the correspondence between the previous Government and the leader of Eastbourne council that was shared with me, and I am grateful for the work that councils up and down the country have done.
Victoria Collins (Harpenden and Berkhamsted) (LD)
In one of my local authorities, St Albans, we are at crisis point, and often it is families with children who lose out. The average waiting time is 31 weeks, but the average time for families with children is 43 weeks, because of problems with supply and financial pressures. We are also in an area where the cost of housing, including private housing, is very high. Does the Minister agree that where housing costs are higher, the impact on local authorities is very difficult to deal with, as they often subsidise the higher costs of private rent to try to support those families on the waiting list? We have to take that into account.
Rushanara Ali
The hon. Member has highlighted some really important issues affecting the private housing sector—costs and supply—and the impacts that they have in different areas. I will come on to the action we have already started taking to make headway on those issues.
As we have heard, homelessness and rough sleeping have dramatically increased. In England, homelessness is now at record levels. In March this year, more than 117,000 households, including over 150,000 children, were living in temporary accommodation. In the hon. Member for Eastbourne’s constituency, on 31 March, 373 households and 419 children were living in temporary accommodation. It is shocking that children and families in this country in the 21st century are without a permanent place to call home, and have to live in horrific conditions where temporary accommodation is not of a decent standard. We all know of cases where that is deeply problematic.
Dame Meg Hillier
I am very pleased that my hon. Friend is in this post, because she understands the real issues. We have this ridiculous situation where families in my constituency in east London are being sent to other parts of the country, putting pressure on the housing markets and causing issues there. This vicious circle is costing the taxpayer—and households, our schools and our communities—dear. I am sure that she is moving on to what solutions may be available, and she has our support in finding those.
Rushanara Ali
I am incredibly grateful, and my correspondence box is piling up with the mix of issues that my hon. Friend points to. We need to work collectively to tackle these issues, because unless we deal with them in the round, one area’s issues will be transferred to another, which I know is not the answer. We need to address those issues, but it will take some time for us to gather the evidence and work with Members to tackle barriers.
Josh Babarinde
The Minister has spoken about the importance of working collectively. Council leaders such as Stephen, who is in the Gallery, are very keen to do that. The Minister said that she has seen the correspondence from him and other council leaders. Would she be willing to meet a delegation of council leaders, including Stephen, to talk about the ideas and proposals in that correspondence, if she is not going to address them? But maybe she will, later in her speech. It will be really important to hear from Stephen directly about Eastbourne’s situation, and to go from there.
Rushanara Ali
I will come on to what we hope we can do in the coming weeks and months. All temporary accommodation must be safe and suitable for the households affected. Interventions in place at the moment include our homelessness advice and support teams, who are drawn from local authorities and the homelessness sector to help local authorities address the placement of families in bed-and-breakfast accommodation for more than six weeks. However, I am clear that to turn this around, we have to tackle the root causes of homelessness and rough sleeping. We need to put in place lasting solutions, rather than quick fixes. For too long, we have seen the lack of a strategic approach.
The hon. Member has used his debate to highlight the devastating effects on his constituents. The story he shared is a powerful one that we can all relate to—one all our constituents have faced. Hon. Members have rightly raised the subject of the pressure on council finances. This Government are absolutely committed to resetting the relationship between local and central Government, and working in partnership in the interests of those living in temporary accommodation and who face homelessness. We want to work closely with the different nations, learning from each other about what works, as well as with regional and local government.
The Government will get councils back on their feet by providing multi-year funding settlements, ending the competitive bidding for pots of money and reforming the local audit system. We have heard from numerous councils that annual allocations are deeply problematic. The competitive nature of funding is really not helpful, and we need much more collaboration. We recognise that councils know their communities best, and with greater stability, they will be in a better position to enhance local services and facilities. I have seen many great examples of innovation and really effective work at local level, and we need to support those efforts and ensure that they are scalable. Local and national Government can learn from each other about the best models and best practice. How local government is funded is crucial in enabling councils to deliver the local services residents need, and it is also of course crucial in delivering on our missions. That is why we are committed to improving the local government finance landscape in this Parliament.
The hon. Member for Eastbourne and others have raised concerns regarding the different kinds of financing mechanisms and benefit subsidy payments for temporary accommodation. We appreciate that these are difficult times and understand the funding pressures local authorities are experiencing. The Department for Work and Pensions continues to keep rates for temporary accommodation subsidy under review and any future decisions on the levels of subsidy will be taken in the context of the Government’s missions, the goals on housing and the fiscal context.
Spending plans for the 2025-26 period will be set at the Budget on 30 October, as hon. Members know. Following the Budget, future funding allocations for homelessness and rough sleeping services will be confirmed later this year. We understand this is very challenging for the sector, and we are working closely with local authorities and want to continue to extend that work to ensure that we do all we can to relieve pressures and continue to support them.
Mr Dillon
With the benefits cliff edge, does the Minister agree that those in temporary accommodation should be given longer to be able to progress on to paying or having their benefits stopped, so that they can build up a bit of a nest egg? That way, when they move out of temporary accommodation, they are being set up for a chance to succeed in the tenancy by being able to furnish their homes right from the very outset, rather than having to start from scratch each time and not having any funds to call upon.
Rushanara Ali
The hon. Member raises the important barriers to employment that I know are exercising my ministerial colleagues in the Department for Work and Pensions, not least as they look at tackling the child poverty challenge—another dimension to the housing crisis. He makes an important point, and I hope we can continue to get those inputs from colleagues as we make progress on the work, which I will come on to, that we will do in relation to the inter-ministerial taskforce on homelessness.
On the housing funding point, we recognise the challenges with the cost of temporary accommodation, and earlier this year the Government confirmed allocations for round 3 of the £1.2 billion local authority housing fund, which is expected to provide around 7,000 homes by 2026. Eastbourne is due to receive around £4.4 million, and this fund aims to ease local homelessness pressures, reduce spending on unsuitable bed and breakfast accommodation and provide safe and sustainable housing for those fleeing persecution.
I recognise that, as others have pointed out, there is more to do, but this is an important part of the funding settlement that is currently available and is necessary in dealing with the supply issue, although of course we have a wider agenda on housing supply. We will deliver the biggest increase in social and affordable house building in a generation; we will build 1.5 million homes over the next five years. We are also committed to abolishing section 21 no-fault evictions, preventing private renters from being exploited and discriminated against—the hon. Member for Eastbourne raised that and gave a powerful example from his constituency in his opening remarks. The Renters’ Rights Bill will give renters much greater security and stability so they can stay in their homes for longer. The issues around safety and the decent homes standard will be addressed through extending Awaab’s law so that it covers private landlords. This will significantly reduce the number of poor-quality privately rented homes and empower tenants to raise concerns. Issues around quality of housing are not addressed, and we need to make sure that that is tackled. We very much hope that the combination of provisions we have already started will allow us to begin to make progress quickly.
It is just over three and a half months—just more than 100 days—that we have been in power, but we are determined to tackle these issues. I know that some of the other issues that have been raised, such as the out-of-area placement of our constituents, are deeply damaging. Families are moved away from their networks, from schools, from health providers and from other support systems. We are clear that if a local authority places a household into accommodation in another local area, they are required by law to notify the local authority of that placement. We have to build homes in the areas where they are needed so that we can reduce the need for out-of-area placements. That is why we will keep our focus on the house building agenda. Unless we tackle the supply of housing—affordable and social housing, along with other kinds of housing—we will be stuck in this cycle, and nobody wants that.
Josh Babarinde
It was important and powerful to hear the Minister reaffirm the legal obligation on local authorities to notify another local authority if they are placing folks in accommodation there. Brighton and Hove city council has for some years been going ahead with placements in Eastbourne, but notification has not always taken place. That has meant that Eastbourne borough council has not been in a position to understand the general support needs landscape and how best to support those people. Will the Minister share some words that might reassure Eastbourne council and remind Brighton council of its obligations?
Rushanara Ali
I hope the hon. Member is reassured by the points I have made already, but going forward we need to look at how we can enable much more collaboration between councils and among regional government. The interconnectedness of these challenges means they have to be addressed collectively. That is why from the national Government perspective, we will soon initiate the inter-ministerial group, chaired by the Deputy Prime Minister. It will be working with Ministers across Government to take action on homelessness, looking at temporary accommodation, rough sleeping and the wider agenda. We will be working with the other relevant Departments to look at such issues as health and the benefits system. Those Departments have an important role to play if we are to bring an end to homelessness once and for all.
In that context, we are committed to ensuring that local government and regional government play their part, working with us, along with the charitable sector and the community sector. I have heard powerful stories of the work that faith organisations do to support those who face challenges around housing and homelessness. Their insights and their contributions need to be included as we develop solutions to tackle this problem.
Mrs Russell
The Minister listed a wide variety of Departments, but the Department for Education was not among them. Will she assure me that that is one of the Departments that she intends to co-ordinate with? I am sure that it is.
Rushanara Ali
Absolutely. I was giving examples, not an exhaustive list. I have already met with colleagues, as has the Deputy Prime Minister; we work very closely with the Department for Education. There is a great deal of interest and enthusiasm at ministerial level, at official level and, we know, at local authority level and among colleagues across the House in working with us to develop a cross-departmental, cross-societal strategy that focuses on getting results. Of course, we need to deal with the immediate challenges, but we need a long- term strategy too.
I want to reiterate that we are absolutely committed to tackling the root causes. I hope that we can all take hope and heart from the extraordinary work that many organisations do in communities and constituencies up and down the country. We have seen the work done in local areas by local authorities and other agencies, with multi-agency approaches in healthcare and education, for example, and of course the work that many colleagues have done here in Parliament to campaign and raise awareness of the plight of those who face homelessness.
We have a real opportunity to get this agenda right, and in that spirit I welcome this debate. I really appreciate the turnout and the interest—Adjournment debates are normally attended by only a couple of people. It is crucial that we build alliances and use the insights of Members of Parliament, who—as I have found throughout my political career—are at the sharp end, trying to support their constituents. I hope that colleagues can see that there is a real openness in this Government to work together to tackle this challenge once and for all.
Question put and agreed to.