Baroness Evans of Bowes Park
Main Page: Baroness Evans of Bowes Park (Conservative - Life peer)My Lords, this group of amendments primarily concerns the treatment of administrative costs for local authorities. We have already given a firm commitment to allowing local authorities to recover a reasonable amount of the costs of operating the policy, and hope that commitment is welcome.
I begin with Amendment 75A, on the assessment of household income and the costs involved, which seeks an exemption for local authorities when the cost of doing the assessment is more than the rental income likely to be received. Under the policy, tenants are likely to be asked to declare their household incomes. We do not want this to be a time-consuming process. The department is working with local authorities on the options for how income is defined, building on the experience of other departments in bringing forward income-based assessments, such as tax credits, universal credit and housing benefit. Our consultation response confirms that tenants on housing benefit would be excluded from the policy, which will significantly reduce the caseload of local authorities. We are working through the options in relation to universal credit, and engagement with local authorities is important here. We will think through carefully the issues that noble Lords raised about areas in which the additional income would be less than operating the cost of the policy, because we agree that that is an important consideration, although details could be set out in regulations if necessary.
Amendment 81A asks for administrative costs to be met. We have given a reassurance on this, subject to an assessment of the actual costs of operating the policy, and will provide an update following the conclusion of engagement work with local authorities. Officials have a regular working group with local authority offices to test the implementation plans and costings; as noble Lords have said, there will be different issues in different parts of the country. That will directly inform the secondary legislation. We are absolutely committed to having front-line experience inform policy, for the very reasons that noble Lords have raised.
To conclude this group, Amendment 82 deals with the approach to returning money to government. The options, as we have outlined, are to do so based either on actuals or on a formula. We need the flexibility to put in place the most appropriate approach, and are dealing with local authorities in this matter; that will be part of the discussions with the implementation group. I hope that the commitment to provide local authorities with a reasonable amount of admin costs and the engagement that we are having with local authorities to make sure that they are involved in forming policy will encourage the noble Lord to withdraw his amendment. But of course we welcome further discussion on any of these points and are happy to meet noble Lords who would like further information or discussion on these matters.
As my noble friend Lady Hollis has said, can the Minister when she responds say why it is reasonable costs and not all the costs that have been incurred? It is totally unfair if local authorities have to bear some of the costs and all the profit—as my noble friend said—goes to the Government.
Can the Minister also comment on Clause 84(5)? It is an absolutely ridiculous clause the way it is written. It needs to be improved, rewritten or taken out.
I thank noble Lords for their questions. As I have said, the Government are committed to helping cover reasonable costs. We will work with local authorities to make sure that their thoughts are fed into this process; that is the position we are taking.
Yes, I know that is the position, but can the Minister tell us why it is not full costs? That is the question we are asking.
There are many things to be taken into consideration and, as I have said, we will discuss with local authorities how best to implement this.
Okay. We are clearly not going to get an answer from the Government Front Bench on that. I think it is totally unreasonable not to reimburse councils for their costs.
What is the Government’s response on Clause 84(5)? It is a ridiculous clause the way it is written. What is going to happen there?
I will have to take that away and write to the noble Lord.
I thank the noble Baroness for what she said about taking serious note of the possibility that in some areas there is not a viable level of market rent to support action, and I urge her to take that back to the department and think it through carefully. Clearly quite an important consideration is the calculation of the market rent in a particular area. As I mentioned in my attempted intervention a few minutes ago, at the moment there is a Department for Work and Pensions assessment of market rent for the purposes of the payment of housing benefit, which I believe is something like the lowest quartile of the property available in the local reference area. Certainly, that causes real difficulties in some areas such as my own in Greater Manchester that have higher local market rents. That illustrates a problem I think the department will have in assessing this. If the ceiling were taken at the DWP level it would mean that plenty of areas would not be as viable as they might be if a higher level were taken. Correspondingly, if a higher level is taken you will have the paradox of those on housing benefit being limited to one market value in the area and those who are paying higher rents as a result of this being judged by a different market level in the same area. I just want to alert the Minister to some of the problems that could lie ahead, certainly in my own borough of Stockport and, no doubt, in many other places as well.
I want to follow up my noble friend’s well-spotted point that I had not picked up on. Clause 84(5) says:
“The regulations may provide for assumptions to be made in making a calculation, whether or not those assumptions are, or are likely to be, borne out by events”.
Likely to be borne out by events? Can I just ask the Minister a very simple question which I think might allay our fears? If the Government have got it wrong, do they reimburse local authorities?
I have already given the answer to the noble Lord. I will write to him.
I am sorry but this is a subsection of Clause 84 and we do not know what it means and what the implications are. This Bill has gone through the House of Commons at great length and Ministers cannot tell us what it means?
We fully intend to reimburse local authorities for reasonable costs and need to establish which costs are relevant. We would not expect the Government to write a blank cheque. We expect that some local authorities may be more efficient than others. To reiterate, we will reimburse all reasonable costs.
My Lords, I thank all noble Lords who have joined in the debate. I thank the noble Lord, Lord Kerslake, who reminded us of his earlier amendment asking for a pilot scheme. If ever I saw a case for a pilot, this is it. Surely we need to test this out on the ground in a few places to see what the costs and the realities are.
I am grateful to the noble Baroness, Lady Bakewell, and to the noble Lord, Lord Campbell-Savours, who listed all the things that have to go into the administration of the scheme—processes for verification, data matching, combating fraud, market-rent setting and the rest. I am grateful for the support of the noble Lord, Lord Kennedy of Southwark, and I am also grateful to the noble Lord, Lord Stunell, who made the point that an artist rather than a scientist may be behind the definition of “market” in the context of market rent. However, the Minister has given us some reassurances and I want to pin a good deal of hope on them.
The recovery of reasonable costs leaves the matter open. I was a bit alarmed by the impact statement coming up with a figure which I calculated to be about £15 per case, which is about half what is currently spent on housing benefit cases. I think that we will see a higher figure for these cases than for housing benefit cases. The figure of £15 given in the impact statement looked rather low, but no doubt that is all to play for and it is the Government’s intention that costs will be fully reimbursed. Possibly more important is the recognition by government that there will probably be some cases where it is not worth going out and collecting the money because the administration costs will exceed, match or be very close to the amount that will be raised. I am sure that the Local Government Association will have a good deal to say about this and that there will be some tough negotiations there, but I think that we are left with some hope that, where the administration costs are disproportionately high, the Government will not proceed with the scheme. I beg leave to withdraw the amendment.
I thank all noble Lords for their amendments. Before I turn to them, it may be helpful if I say a few words about the provisions in the Bill.
Clause 113 introduces Schedule 7. Together, these provide that, in future, with limited exceptions, local authorities will be able to grant only tenancies with a fixed term of between two and five years and will be required to use tenancy review points to support tenants’ move towards home ownership where this is an appropriate option. This delivers on a commitment in last July’s Budget to review lifetime tenancies. We expect that most tenancies will be granted for five years, as now, with two-year tenancies being used in only exceptional circumstances and we intend to provide guidance to this effect.
We are not abolishing lifetime tenancies altogether. We will continue to protect the security of tenure of existing lifetime tenants who remain in their home, as well as that of lifetime tenants who are moved by their landlord—for example, as part of estate regeneration. Where lifetime tenants choose to move to another social home, local authorities will have limited discretion to offer another lifetime tenancy. We will regulate to set out the circumstances in which they may exercise their discretion and we will make sure we work with local authorities in developing these regulations. We expect the circumstances to include where tenants downsize to a smaller property or where they move for work. Outside some limited exceptions, if local authorities try to offer a lifetime tenancy or one that is shorter than two years or longer than five, whether deliberately or by mistake, the tenancy will default to a five-year fixed term.
Local authorities will be required to carry out a review of the tenant’s circumstances between six and nine months before the end of the fixed term to decide whether to grant a new tenancy in the same or another more suitable social home, or to recover possession of the property. Where landlords decide to terminate the tenancy, they will have to provide advice on home ownership or other housing options as appropriate. Regular reviews will ensure that tenants with longer-term needs are moved into more appropriate housing as their needs change over time and that those who can move into home ownership are given appropriate advice to help them do so. Moving into home ownership could mean exercising the right to buy so that tenants can stay in their existing home. Where a tenant’s circumstances are broadly unchanged, the landlord will be able to grant a further tenancy in the same home. We think this is likely to be the outcome in the majority of cases. Local authorities have strong incentives not to allow the review to create future homelessness acceptances.
There are a number of checks and balances in place to ensure that local authorities use fixed tenancies and reviews appropriately. Tenants will be able to challenge the decision on the length of the tenancy and the outcome of the end-of-term review. Where the landlord is still minded not to grant a further tenancy, they will need to notify the tenant in writing of the outcome, setting out the reasons for the decision.
I am preoccupied by the review; let me explain why. You could have in an authority a councillor who makes representations to the chairman of the housing committee—to the housing manager or whatever—and influences a review. That is what worries me: personal interference in those decisions and reviews. That is why we must have something set down quite clearly in criteria so that local authorities know what they have to take into account to avoid unfair influence in that review decision.
The noble Lord is right, which is why we will be producing detailed guidance. Also, other people will be involved in reviews when a tenant appeals, so the situation that he describes should not happen. The tenant will also have the right to challenge the landlord’s right of possession as part of the possession proceedings in the county court. The court will expect the local authority to have behaved reasonably and proportionately.
New fixed-term tenants will have the same rights as most secure and flexible tenants do now. They will usually be able to terminate their tenancy at any stage by giving four weeks’ notice, while also enjoying protection from eviction during the fixed period. The local authority landlord will need to demonstrate to the court that one or more of the grounds for possession are proven and that they are acting reasonably in seeking possession.
Just as now, tenants will be eligible for the right to buy once they have accrued three years as a tenant of public housing, but this does not have to be three years continuously. As with flexible tenants now, they will not have the right to improve or to be compensated for improvements, but landlords will still be able to grant such rights with the tenancy agreement if they choose. The provisions allow for landlords to continue to operate an introductory tenancy regime, to demote fixed-term tenancies, and to provide for fixed-term tenants to be offered a family intervention tenancy.
I now turn to the amendments. The intention of Amendment 82BA is to allow local authorities to continue to grant lifetime tenancies to new, as well as existing, tenants. We are concerned that this would not ensure that we get the best use out of our social housing stock.
I apologise for intervening at this very late hour, but nowhere have we had an explanation of why the Government feel it necessary to move from a discretionary model that has been in place for a very short period of time to a mandatory model on local authorities.
I am just about to come on to some reasons.
Councils are already able to use flexible tenancies, as noble Lords have said, which are tenancies with a fixed term of two years or more. They have been able to do so since April 2012, when the changes introduced by the coalition Government’s Localism Act 2011 came into force, but they are not taking advantage of this flexibility. Instead, the vast majority of local authority tenancies—more than 90%—continue to be granted with lifetime security to people who may have only a short-term need. We do not believe that this is a good use of scarce social housing. As my noble friend Lord Young highlighted, there are 247,000 tenants who are forced to live in overcrowded conditions due to the lack of suitably sized properties, while thousands more occupy homes with more bedrooms then they need. Of course, there are also the 1.2 million households on council waiting lists that are waiting for a social home. We believe that the provisions in the Bill will ensure that social housing is properly focused on those who really need it for as long as they need it.
Amendment 82BB would ensure that new fixed-term tenancies have a longer term of 12 years in all cases. While I recognise that this would introduce consistency, I do not believe that this would be appropriate in all cases, as a household’s circumstances can change considerably in 12 years. The requirement for review points at two to five years will ensure that social housing is provided to those who need it most for the period of their need; that those with longer-term needs can be moved into more appropriate housing as their needs change over time; and that tenants can be supported into home ownership where this is a viable option for them, or offered support towards that in the longer term.
Amendment 82C would extend the minimum tenancy period from two to five years. In fact, most local authority flexible tenancies are currently granted for a five-year period, and we expect that this will continue to be the case, with two years used only in exceptional circumstances as now, and we propose to provide guidance to this effect. However, we recognise that there may be circumstances where shorter tenancies are more appropriate in order to meet short-term needs. Some councils are already using shorter tenancies to support young adults into employment and they could also be used to provide moves into accommodation for those recovering from drug and alcohol abuse. They may be useful for families who need a larger home for a short period only, or to make the best use of properties that are earmarked for demolition which would otherwise lie empty. We think that local authorities will welcome the continuing flexibility to grant shorter tenancies in these types of circumstances.
Amendment 82D would extend the maximum tenancy period to 10 years. As I have already said in relation to the previous amendment, a household’s circumstances can change considerably in five years, whereas the provisions in the Bill that will make five-year tenancies the norm will ensure that local authorities carry out regular reviews of their tenants’ circumstances. Of course, where a tenant’s circumstances are broadly unchanged, then the landlord will of course be able to grant a further tenancy in the same house.
Amendment 82E would guarantee that lifetime tenants of private registered providers—housing associations—as well as local authorities would have their security of tenure protected if they move to a local authority home. This would be the case whether they are moved by their landlord or apply to transfer. It would specifically protect those who have moved as a result of the removal of the spare room subsidy. As I have said, the Bill already gives local authorities discretion to offer tenants a further lifetime tenancy in limited circumstances and we have made it clear that we expect to regulate to ensure that those circumstances will include where tenants move to a smaller property. This would include where they move as a result of the removal of the spare room subsidy. In developing the regulations we will consider the extent to which they should apply to lifetime tenants who move from properties owned by a private registered provider.
Amendment 82F would guarantee all lifetime tenants a further lifetime tenancy if they move to another council home. We recognise that existing lifetime tenants may want to move home for a variety of reasons, and we do not want to stop them doing so. However, with more than 1.2 million households on council waiting lists, it does not make sense to guarantee that everyone who has a lifetime tenancy will always have their security protected if they choose to move.
Amendment 82FA would ensure that where existing lifetime tenants move and they are above pension age, or they are moving to a home which has been or is designed to be adapted for someone who is disabled, they will always get a further lifetime tenancy. Of course, I agree it is important that suitable accommodation is available for older people and those who need adapted accommodation, and that the system should be flexible enough to allow people to move as their needs change over time. Ensuring that tenancies are reviewed every five years will help make this happen. However, we do not wish to restrict mobility in the social rented sector, which is why, as I said, the Bill includes provisions to ensure that local authorities have the discretion to grant existing lifetime tenants a further lifetime tenancy when they move home. We will work with local authorities in considering the circumstances in which lifetime tenancies should continue to be granted and will certainly give serious consideration to the needs of the elderly and those who require adapted accommodation as part of the process.
Amendment 82G would ensure that where existing lifetime tenants move as a result of domestic violence they will be guaranteed a further lifetime tenancy in their new home. I fully appreciate the intention behind this amendment. In developing the regulations that determine when a local authority may grant existing lifetime tenants a further lifetime tenancy when they move home, we will give very careful consideration to whether this should include those who are moving home to escape violence or intimidation of any kind.
The intention of Amendment 82GA is to guarantee that existing lifetime tenants who are severely disabled or have mobility or care needs—as well as those who are full-time carers—will always get a further lifetime tenancy if they choose to move. Again, I certainly appreciate the motivation behind this amendment. It is clearly important that disabled people and those who have other mobility or care needs can move to more suitable accommodation as their needs change over time. As I said, this is one of the drivers of the tenancies. Once again, I can confirm that in considering the circumstances in which lifetime tenants may retain their security when moving to a new council house, we will give consideration to whether the circumstances should include tenants with severe disabilities, mobility issues or significant care needs, as well as those who need to give or receive care.
The provisions in the Bill will ensure that social housing is focused on those who really need it for as long as they need it. It will ensure that local authorities get the best use out of their homes so that more households are able to access social housing and so that social tenants who aspire to own their own home are supported into home ownership where this is a viable option. I hope my responses provide reassurance that the Government are committed to supporting mobility within the social rented sector and, importantly, to protecting the safety and well-being of citizens. I am very happy to have further discussion on these points and to meet any noble Lords who would like further information on these matters. I hope that, with these assurances, noble Lords will not press their amendments and that Clause 113 stands part of the Bill.
Could the Minister write to me on the point about Schedule 7—I know she referred to it—particularly in relation to people who have adapted their homes because of disability?
I am sorry. The noble Baroness asked about the intention behind the provisions that govern a tenant’s rights to make improvements. Landlords will be able to grant such rights and officials would be happy to meet with carers’ groups to explore this matter, as the noble Baroness suggested.
Can the noble Baroness comment further on the points made by the noble Lord, Lord Stunell, when he talked about the Localism Act, which he obviously helped get through the other place in the last Parliament? How would the proposals here regarding secure tenancy square with that?
As I said, our aim is to make sure that people have access to social housing. We do not want to see thousands of tenants forced to live in overcrowded conditions, or occupying homes with more bedrooms than they need, or 1.2 million households on council waiting lists waiting for a social home. As noble Lords have said, local authorities have not used the provisions much and we also need to think about all the people who need access to homes.
My Lords, this amendment relates to Schedule 7 to the Bill, which refers to what is to happen in respect of a landlord’s obligation to deal with the ending of a fixed term of a tenancy. The amendment seeks a review of what will happen in accordance with a “clear and accessible policy” which outlines a series of factors: first, the circumstances in which the landlord may or may not grant another tenancy; secondly, the advice and assistance that can be given to the tenant in the event that it is decided not to grant another tenancy; thirdly, the way the landlord would address the needs of households that would be at risk of homelessness as a result of the failure to renew the secure tenancy; and, finally, the way advice would be tailored and assistance given to meet the needs of vulnerable groups. To back this up, there is a requirement that the Secretary of State should prepare, publish and update as necessary the policy to enshrine these principles.
The object is to offer at least a measure of comfort to those who find their secure tenancy ending, to assist them in relocating in a suitable way, and to ensure that they receive all necessary support from their landlord. It is a perfectly sensible approach and I hope that the Minister will concur. The amendment is meant to be constructive and helpful to both landlord and tenant. It is important that we allay some of the fears and misgivings which may arise in the minds of tenants if it is decided that their security is to end. One would hope that this would not be a frequent occurrence, but when it does occur there is a clear obligation on the landlord to make the best provision possible for alternative accommodation and to support the tenant through that process. I beg to move.
My Lords, I thank noble Lords for this group of amendments, which deal with the review that local authority landlords will be required to carry out towards the end of the fixed term. It is an important new protection that will ensure that those who need long-term support are provided with more appropriate tenancies as their needs change over time, and that households are supported to make the transition into home ownership where they can.
Amendment 82GAA would require the Government to publish a policy that local authorities would need to follow when carrying out the review, including about the advice and assistance that landlords should offer where tenancies are not renewed, and how landlords should address the needs of those at risk of homelessness. I do not believe that this amendment is necessary, for several reasons. Firstly, it is our intention to provide guidance to local authorities on the sort of factors we expect them to consider when carrying out the review and it is therefore not necessary to provide for this on the face of the Bill.
Secondly, while I agree that landlords should provide advice on housing options if they decide not to renew a tenancy, this is already provided for in the Bill. Thirdly, as I have said, local authorities have strong incentives not to allow the end-of-tenancy review to create future homelessness acceptances.
Amendment 82GAC would require local authorities to consider whether a decision not to grant another tenancy could result in homelessness and, if they think it could, would require them to provide the tenant with advice and assistance on finding another home. Where a landlord decides not to renew a tenancy, the provisions in the Bill already ensure that the tenant has the opportunity to challenge the decision, as I explained previously, as well as sufficient time to find alternative accommodation following advice from their landlord on buying a home or other housing options. There are also existing duties under the homelessness legislation that require local authorities to give advice and assistance to those who are homeless and threatened with homelessness. For these reasons, we do not believe that the amendment is necessary.
Amendment 82GAD would mean that whenever the local authority decided on review that it was unrealistic for the tenant to buy a home, it would have to grant a further social tenancy. We want local authorities to use the tenancy review points to support tenants to move towards home ownership where it is appropriate, but of course we recognise that this will not be a viable option in every case. Where families continue to need social housing, of course the local authority will be able to offer a further tenancy at the end of the fixed period. Where tenants’ financial circumstances improve significantly, councils may decide that they are able to move out of the social rented sector into private rented accommodation, or they may decide to offer a further tenancy but on a higher rent.
What is to stop a local authority terminating the tenancy and then moving the tenant—because it has a responsibility, as the Minister has said—on to a sink estate in the same area; in other words, congregating in part of the district problem tenants who have been forced out of their property when their tenancy has been reviewed? These things happen.
It would not say much for the behaviour of the local authority, which has a responsibility. I would hope that that would not happen. Obviously, as I have said, there is an opportunity for the decision to be reviewed and then to go further, to the county court—so there are options available for a prospective tenant.
I hope my responses provide reassurance that within the Bill there are adequate safeguards for tenants. The new review procedure will ensure that landlords make appropriate decisions, based on households’ housing needs, and that where they decide to terminate a tenancy, landlords will need to give ample notice and provide advice to support tenants’ access to alternative accommodation. These changes are about supporting local authorities to make the best use of their social housing stock and supporting tenants into home ownership, not making the vulnerable homeless. With these assurances, I ask the noble Lord to withdraw his amendment.
At this time, I am not disposed to prolong the agony. I beg leave to withdraw the amendment.
I will speak to Amendments 82GB and 82GC. They would provide a right to succession and secure tenancy for a carer where there is no spouse or common-law partner. Without this, carers who have given up so much to care for a parent or sibling could be rendered homeless when the person they have cared for dies or moves into residential care, even if they have lived in the property for many years. This is because, as it stands, Schedule 8 to the Bill will standardise all secure council tenancies by removing the automatic right to succession for anyone but a spouse or common-law partner, as with all secure tenancies granted after 2012.
Carers UK demonstrates the potential impact of such a measure through the story of John, who gave up his music career to care for his father who had Alzheimer’s disease and his mother who had severe psychiatric problems, moving back into his parents’ council property to become a full-time carer in 2010. Last year, John’s father had a severe fall and was hospitalised, and later moved permanently to a nursing home due to his care needs. John’s mother has now become impossible to care for and the family are exploring the option of residential care due to her increasing needs. Under the Bill, if John’s mother moves into care, he will have no right to succeed to the tenancy and will be evicted from the family home by the council.
The least we can do for carers such as John, who gave up his career to care for his parents and depleted his savings in doing so, is ensure that they have the ability to stay in their home once their caring role ends. While local authorities will continue to have discretion to grant succession rights in certain cases, the guidance on this is very poor and must be updated to include carers—something I hope the Minister will look at. Better still, their right to succession where there is no spouse or common-law partner, should be enshrined in legislation.
Lastly, it is important to note that these amendments are in line with recommendations put forward by the Law Commission’s review of housing. The Law Commission recommended that in the absence of a spouse or partner a “reserve successor”, such as a carer, should be able to inherit the home if it is their only or principal residence. In fact, until 2012 the government guidance also recognised that those providing care should have the opportunity to inherit the tenancy. However, I understand that this section of the guidance to local authorities was removed in 2012. The Minister very kindly agreed to meet Carers UK to discuss the previous amendment. I suggest that we add this issue to the agenda for such a meeting, especially in the context of the Government’s carer strategy, currently in development, which looks at how we can better support carers across all aspects of their lives.
I thank the noble Baroness for her amendment. While I remember, I will happily extend the discussion with carers’ groups to cover this as well as the previous issue. I know it is late, but before I turn to the amendments perhaps it would be helpful to say a few words about the provisions in the Bill.
Clause 114 introduces Schedule 8, which changes the rules on succession to secure tenancies and makes equivalent changes in relation to introductory and demoted tenancies. Currently, there are significant differences between the succession rights of secure tenancies granted before April 2012 and those granted after that date when changes introduced by the Localism Act 2011 came into force. These provisions will deliver a consistent approach across all local authority tenancies by bringing the succession rights to tenancies granted before April 2012 in line with those granted after that date. They will put common law partners on an equal footing with married couples and civil partners. Other family members of those with secure tenancies granted before April 2012, who may have had an expectation that they would succeed because they had lived with the tenant for at least 12 months, will lose their statutory right to succeed. Instead, local authorities will have discretion to grant whatever additional succession rights they consider appropriate. Where local authorities grant additional succession rights, we expect them to apply the same rules to tenancies granted before and after April 2012. However, we will provide guidelines to assist local authorities to exercise their discretion.