(9 years, 8 months ago)
Commons ChamberI am sure that my hon. Friend was listening carefully. I said that the Secretary of State would have to give consent. The Government are not proposing that local authorities should be allowed to decide unilaterally which areas are in and which are out. We want to facilitate something that is already clearly happening on a large scale in London—as far as I am aware, it happens elsewhere in the country without significant problems—to give individuals the flexibility to allow their properties to be rented on a short-term basis if there is an event, such as Wimbledon, during which they want to absent themselves.
The Minister mentions Wimbledon and I have no doubt that he is also thinking about things such as holiday lets. How many prosecutions have there been in respect of Wimbledon and holiday lets? The proposal is just about commercial lets. Is it not impossible to regulate such things in the way the Government intend? It is over-regulation to say that councils must apply for a waiver. Why does he not let localism take charge and allow local authorities decide for themselves?
(13 years ago)
Commons ChamberThe right hon. Gentleman is absolutely right. The Liberty briefing paper states that the
“Community Links advice service records that…73% of the benefits related cases handled by their staff arose as a result of errors on the part of the Department of Work and Pensions.”
The Opposition agree with him, but we are where we are, and particularly at this time of change, we need certainty that those people will be properly represented. I think he said that he would not support new clause 17, but will he support amendment 116 and, later, the new clause in his name or the new clause relating to the Dowlers, which is in the name of my hon. Friend the Member for Rhondda (Chris Bryant)? He has given assurances outside the House and said that he supports those positions, but he now seems to be resiling from them. Will he and his hon. Friends support those measures? Will he answer that question now?
(13 years ago)
Commons ChamberI am grateful for my hon. Friend’s intervention. I am sure that some companies have been driven out of business, but the everyday experience of hon. Members, and certainly of our constituents, is that the industry is not properly regulated, which is why corrective action must be taken. However, the proposals in the Government’s new clauses are, I fear, insufficient. They are riddled with inconsistencies and loopholes, which is another symptom of the haste with which they were prepared.
I will deal with the point that the Minister dealt with. New clause 19(8) states that a payment is
“to be treated as a referral fee unless”
it can be shown
“that the payment was made…as consideration for the provision of services, or…for another reason”.
The Minister’s impact assessment explains what that means. Claims management companies may adapt their business models so that they are not reliant on referral fees paid by lawyers, or they may move into alternative types of business such as marketing or advertising. That is staggering to those of us who recognise that it is precisely that marketing and advertising, whether on daytime TV adverts or via spam messages, that lead to perceptions of a compensation culture.
What is the point of the new clauses? The truth is that they are an afterthought to a package of changes in the Bill, some of which we will debate tomorrow, that have far more bite but a different purpose. The changes to conditional fee agreements mean that losing defendants—wrongdoers—and their insurers will benefit at the expense of winning claimants—victims—and that is the real objective of the Government’s legislation. Tomorrow, we will seek to overturn those provisions.
As Bob and Sally Dowler have told us; as the lawyers that brought Trafigura to justice have told us; as victims of asbestosis, who have been fighting insurers that simply do not want to pay out to hard-working and long-suffering people; as those who have been unfairly dismissed or subject to harassment in the workplace have told us; and as Christopher Jeffries, who was persecuted by the media last Christmas, as he wrote in The Guardian this very day, has told us, the changes are unacceptable. The Government’s proposed changes, which they had thought about and on which they had taken instructions from the insurance industry, are in the Bill, but very little thought has gone into the new clauses before us today, and none would have gone into them had it not been for my right hon. Friend the Member for Blackburn.
In summary, we believe that there is merit in a ban on referral fees as part of a package to stop the abuses that I have talked about. That is why I tabled amendments not just to clamp down on those fees, but to make the payment and solicitation of referral fees in road traffic accident personal injury cases a criminal offence. My right hon. Friend has tabled amendments to new clause 18, and I hope that he will press them to a vote. If he does so, I hope that hon. Members on both sides of the House will join him in the Lobby if the Government still refuse to accept the criminalisation of referral fees.
We sought to make unsolicited text messages and phone calls regarding personal injuries a criminal offence. We would have strengthened the rules against the sale of personal data. We would have restricted whiplash claims by placing a lower limit on the speed at which a vehicle must be travelling before damages may be paid. We would have outlawed third-party capture, another dirty secret of the insurance industry. I freely acknowledge that we plagiarised some of that from my right hon. Friend’s private Member’s Bill.
If the Government had had the courage of the conviction in the Minister’s speeches earlier in the year, we would have got to the heart of the perception of a compensation culture. In doing so, we would have done what the Government are now failing to do. The new clause alone will have little effect. We believe that it deserves further scrutiny, and we hope that amendments in another place will toughen it up, if that does not happen tonight. We also hope that amendments to make these practices criminal offences will be accepted. We therefore have no intention of voting against the new clauses; we simply regard them as not going far enough.
The Minister’s incompetence in getting to grips with claims farmers who engage in unscrupulous practices and his Department’s failure even to recognise the scale of their failure to regulate effectively have got us here. These are symptoms not of a litigation culture, as he would have us believe, and of the rhetoric that goes along with the cuts in legal aid to the poorest, as well the neutering of no win, no fee agreements which will affect almost everyone except the super-rich and will prevent access to justice, but of regulatory incompetence by the Minister’s Department. Indeed, he has now surrendered responsibility for that regulation.
I commend my right hon. Friend’s amendments to the House. We accept the new clauses as far as they go, but it is about time the Government stopped using their rhetoric as a mask for preventing victims from obtaining justice and used it to ensure that the abuses that we all put up with day to day from fraudulent and criminal practices are stamped out.
I shall be brief. I welcome the Government’s action to address referral fees. There is no doubt that consumers have paid a significant price. I hope that we can clamp down heavily on other things, such as unsolicited text messages and spam, which we have all experienced, through other measures such as those on data protection.
I would like the Minister to deal with just one point. The industry has been pressing for these changes, and consumers in particular want to understand what guarantees, if any, they will have that when the changes have taken effect they will see a difference in the prices they pay for services.
That might well be among the solutions that the hon. Member for Westminster North will list later. I should point out, however, that over the course of this Parliament, we will raise at least an extra £10 billion from the banks through the taxation measures that we have already introduced, and that there might be a limit to how much one can draw on that source of funding.
I want to move on to the specific points that Centrepoint raised in its briefing. I am sure that the coalition Government will want to monitor those issues, and to assess whether our proposals have had any unintended consequences. If that is the case, there might be a need to show flexibility further down the line. On social housing tenancies, there are clearly different views in different organisations on the idea of minimum fixed terms. I know that some Conservative and Liberal Democrat local authorities are reluctant to introduce them. Centrepoint says that, while it does not oppose them, it is crucial to have a degree of flexibility in the system, in particular for young people who might need more stability as they start out, and that tenancies should reflect people’s individual circumstances rather than acting as a straitjacket that constrains everyone in the same way.
Centrepoint also raised concerns, as have Members in previous debates, about the shared room rate, particularly the risk that as this applies to people up to 35, even more pressure might be put on properties currently going to younger people. There might be a tendency to give priority to the older person seeking a shared room, perhaps because they are more settled, which might have a displacement effect on younger people seeking shared accommodation. I hope the Minister will respond to that particular point.
Moving on from the Centrepoint briefing, does the hon. Gentleman support the removal of security of tenure for social tenants or only for some types of social tenants? If so, what types—older people or families, for example? He mentions young people, who might have insecure lifestyles, but what advantages does the hon. Gentleman see in taking away the security that social tenants have been used to for the past 50 years?
I am happy to give local authorities and others the powers to change the terms of tenure and I hope the hon. Gentleman would agree with me that there is an issue with some people having security of tenure who, from a financial point of view, could afford to live in their own accommodation or in the private sector. Perhaps Bob Crow springs to mind as one such example. By continuing to occupy council or social housing, those people are not making that accommodation available to others in greater need. The hon. Gentleman might not want to draw the line in the same place as me, but I hope he will acknowledge that it could be argued with considerable justification that people at the extremes should not have security of tenure in premises that could be more appropriately given to people in far greater need.
A further point raised in the Centrepoint briefing was the issue of the uprating of the local housing allowance and the move towards basing it on the consumer prices index. It is argued that using the CPI figure could cost the Government money if there has been a drop in the rental markets locally. The Minister might want to look at that from a Government spending point of view.
The final point in the briefing is the issue of direct payments. I fully support the concept that people should take more responsibility for their expenditure, so I have some reservations about paying money directly to landlords. Centrepoint’s view is that there are circumstances—this might be particularly true for young people—where people might prefer to have the money paid directly to their landlord because they do not feel they are ready to take on that financial responsibility. Some flexibility there might help.
My final point is not one that Centrepoint raised; it is about arm’s length management organisations and I would like the Minister to update us on his view of them. Other Members in their places may well, like me, be members of the all-party ALMOs group. Members will recall that when tenants were given an option to transfer to an ALMO, a consultation process had to be gone through. The concern of the all-party group is that the travel nowadays is in the opposite direction and that some local authorities are seeking, perhaps precipitately, to bring ALMOs or social housing back under their control without going through the anticipated process of consultation. I hope that when the Minister responds—or, if necessary, in writing—he will pick up on that point and let us know whether he has heard those concerns and raised them with local authorities, as it is important to ensure that tenants are given a fair outline of their options and are fully consulted about the process. They can then make a decision with the full facts in hand on whether they want the responsibility for the management of their properties brought back in house or to retain the ALMO.
This is an important debate. I have been a Member for 14 years and I have spoken in about 25 debates on this subject during that time. It is a particularly critical issue in London. I do not believe that there is much difference between us about the need to tackle the problem, although there are big differences in approach. I hope that in the months and years to come, my Government will demonstrate by the measures we are introducing that we are tackling the problem, growing the amount of social housing available and starting to address what has proved to be a real dilemma for Londoners for the last 30 or 40 years.
(13 years, 9 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is difficult, at a time when attacks are being made on the national health service and on state education at every level—from Sure Start to tuition fees—and when we are having to deal with the big society cuts to the voluntary and advice sectors, for housing to be given sufficient attention for us to see exactly what is happening as a result of Government policy; but what is happening in housing is as disastrous in its own way as it is in those other areas. I am therefore grateful to my hon. Friend the Member for Islington North (Jeremy Corbyn) for securing this morning’s debate, as it gives us an opportunity to talk at greater length than usual in Westminster Hall about the Government’s housing policy and its effect on London.
I shall not repeat what my hon. Friend said; he has many more years’ experience as a constituency MP and in dealing with housing problems in London than I do, but I adopt entirely the arguments he put forward, in particular regarding the pernicious effects he spoke of—the bad, insecure, inadequate and overcrowded housing that all London MPs must see every week in their surgeries. Those effects go far beyond housing conditions; they cover health, education and quality of life. It is a national scandal that they have been allowed to develop over far too many years.
I shall deal briefly with four aspects of housing. The first is the private rented sector; the second is the effect of housing benefit changes; the third is the Government’s policy on social rented housing; and the last is planning policy. One of the early decisions taken by the coalition Government was to abandon the previous Government’s proposals that resulted from the Rugg review—a national register of landlords, regulation of letting and management agents, and compulsory written tenancy agreements. When the Government made that announcement, the Association of Residential Letting Agents said that it was extremely disappointed. It said:
“This move risks seriously hampering the improvement of standards in the private rented sector, the sector's reputation, and the fundamental role it plays in the wider housing market as well as failing to protect the consumer who has nowhere to go when there is service failure or fraud”.
That is the view of the industry. My view, as a constituency MP, is that we are seeing a return to Rachmanism in parts of London, with appalling conditions of social rented housing. Perhaps the difference this time is that local authorities are colluding with bad private landlords, with things such as direct letting schemes and, now, the ability to discharge their obligation to the private sector permanently rather than temporarily.
I hear what was said by the right hon. Member for Bermondsey and Old Southwark (Simon Hughes). He is no longer in his place; he tends to pop in and out of these debates. I hope that Members on both sides will try to mitigate the effects of the housing benefit changes that his Government are introducing. It would be better if the Government were to withdraw and review those changes than to give a sop to those who, in their thousands, will be forced to move out of their homes from April onwards. I do not know how we are going to find adequate replacement housing for those hundreds of families in areas with property prices at the levels of Islington and Hammersmith—unless it is in more overcrowded, less salubrious streets and flats. There are few of those, however, because gentrification in inner London has meant that there really are no places where cheap property is available to rent.
It is social engineering. It is gerrymandering. It will force out poorer families who have made their homes in wealthier areas, perhaps over generations; gentrification has crept up on them, and they are now being told that they are not welcome in those areas but must move further out. I hear what the right hon. Gentleman had to say, but they are crocodile tears and warm words from the Liberal Democrats.
On the subject of crocodile tears, does the hon. Gentleman acknowledge that it was his party’s policy to consider the level of housing benefit? I presume that that review was intended not to increase housing benefit but to decrease it.
I have heard the hon. Gentleman many times try to cling to the Labour party as a way of excluding his lamentable failure in supporting a Government who are systemically attacking poorer constituents.
The hon. Gentleman must have some poorer constituents, even in Carshalton and Wallington, but perhaps not as many as I do. It would be better if he kept quiet in these debates rather than making such inane points.
Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Thank you, Mr Howarth. I shall follow your stricture and keep my remarks to 10 minutes or thereabouts.
I congratulate the hon. Member for Islington North (Jeremy Corbyn) on securing this debate. He is right: many of the usual suspects are present for it. They include some ex-Ministers who share responsibility for the housing situation that we have in London.
It is fair to say that housing has been neglected by successive Governments and that the problem in London has not emerged in the past couple of months. There are different figures for how many households in London are looking for or waiting for social housing, but 350,000 has been quoted to me. Whichever figure one takes, a substantial number of people need social housing.
Clearly, as a result of demographic changes in London, pressure on housing will increase as the population increases. Demand might rise further if the coalition proposal to safeguard housing rights for people who are looking for work and perhaps coming to London has an impact, which it could. The proposal has some merit, but for it to work, we need some spare capacity in housing in London. I would not want such a proposal to displace people who are waiting for housing in London and who, in many cases, are being advised that they could wait for seven, eight, nine or 10 years. Such waiting times are being quoted to some people in my borough.
Clearly, too, the housing benefit changes, to which many hon. Members have already referred, will have an impact. There is some evidence, certainly in the commercial sector, that some landlords are responding to the present financial situation and, if not knocking down prices, holding prices for leases that run for four or five years.
The situation may or may not have changed but the policy certainly has, so does the hon. Gentleman support what the Housing Minister said about looking at having no secure tenancies for new lettings in the future? Does he support the £250 to £400 cap on housing benefit, which must affect his constituents as well as mine?
Some valid points have already been made in the debate and, perhaps surprisingly, one of the reasons for my being here today is to listen to the Minister, who is a sound and honourable man, explaining—hopefully, explaining away—some of the apparent contradictions in a number of the proposals. I know from his background in local authorities that he believes, contrary to what the hon. Member for Hampstead and Kilburn (Glenda Jackson) said, that council and social housing in this country has a strong and sound future. I am sure that he will defend that principle.