(9 years, 9 months ago)
Lords ChamberThe right reverend Prelate highlights a key area. As I alluded to in my original Answer, we have made £200 million available to support innovative schemes run by community groups, councils and housing associations, such as the one he mentioned. Even in my own patch, we have St Mungo’s Broadway, which receives £372,000 from the empty homes community fund and has now bought back 14 empty homes in the local area. The Government are keen to see how we can encourage such innovative schemes at a local level.
My Lords, I think that the entire House knows that we have a housing crisis in that young people cannot afford to buy, there is not enough social housing to rent and the private rented sector is now so expensive that it is fast driving up housing benefit bills, which are paid by the rest of us. Is the noble Lord willing to ask his department to reconsider the decision made by the DCLG to release builders from the requirement, on small sites, to provide housing for social rent as part of their Section 106 planning obligations? Unless that change is removed, I can promise the noble Lord that very little affordable housing will be built in rural areas.
The noble Baroness raises a specific issue on planning. It is important that such changes are reflected at a local level and that local development plans reflect affordable housing provision. Under the right-to-buy scheme, for example, 30,000 people have come into house ownership since 2012. Under that scheme, every council home will be replaced by a new affordable home on a one-to-one basis. Of the 167 councils with such stock, 165 have already signed up to the one-to-one replacement scheme.
As I said, local authorities—and I served on a local authority myself for 10 years—deal with their budgets in a responsible fashion. The Government are committed to ensuring that there is greater welfare provision at local level. Taking the example of the better care fund, in addition to the allocation originally made, there has been an additional 39% of voluntary top-ups, and we already have 146 plans in place. Local authorities are responsible and they are responding accordingly.
My Lords, as my noble friend Lady Lister said, none the less there is an overall cut in this funding, and it is not ring-fenced. How, then, does the Minister expect local authorities and local people to cope, given that his department and his Government are cutting discretionary housing payments next year by £40 million, thus increasing the number of people—families and disabled people—who will have rent arrears and will face eviction, and will need to turn to a fund that is smaller than it has been in the past?
I am disappointed. Certainly, on this side of the House, we believe in localism, and this is about devolving responsibility to local authorities. On the issue of discretionary housing payments, £445 million of flexible housing funding between 2011 and 2015, and £125 million in 2015-16, has been made available so that local authorities can support vulnerable households through welfare reform.
The Government have addressed all concerns. I think the noble Lord is being disingenuous about what the Government are seeking to do. We have ensured empowerment to local authorities to prioritise local spending. The impact and effectiveness of this policy, as I am sure the noble Lord is aware, will be reviewed by assessing three years of full data. It is also important to mention that the Government have sought to bring council tax spending under control. Sixty per cent of councils in England have frozen or reduced their council tax this year as well, and the Government have made these freezes possible for five successive years. I think it is about time that we acknowledged that.
My Lords, the Government have introduced universal credit, which we support, which seeks to bring together and simplify means-tested benefits for people of working age in a single benefit. Why, then, are the Government sabotaging that by extracting council tax benefit from the system and turning it into a postcode lottery, where the amount of help you get depends not on your need but on the accident of where you live?
I am sorry, but I do not recognise the noble Baroness’s description. I have already alluded to the fact that the Government will review this policy after three years. At that time, this element will be considered for possible inclusion in universal credit.
My noble friend raises an important point. The Government are forever looking at ways that we can help address the housing challenges in particular cities, and if there are good practices I will take them back and share them across the country.
My Lords, is the Minister aware that the highly respected Chartered Institute of Housing reported last week that, because there are so few vacant smaller properties in the social sector, four-fifths of underoccupying tenants who need to move will have to go into the private rented sector where, as my noble friend said, rents are higher and so the housing benefit bill will soar. Does the Minister accept that as a result, 660,000 families will have their lives turned upside down and at the end of it there will be no savings but instead an increase in public expenditure?
As I said in answer to a previous question, the Government are embarked on one of the biggest ever housebuilding programmes, both for the rental sector and for affordable housing. There are challenges ahead with the housing crisis. I am sorry that noble Lords opposite do not appreciate that. We took on one of the biggest challenges with the housing crisis and, unlike the party opposite, are addressing it head on.