(2 years, 2 months ago)
Lords ChamberWe have been very clear that each case will be dealt with on a case-by-case basis. No one will be sent anywhere where they might be persecuted or where their human rights might be undermined.
Will my noble friend commit the Government to providing substantive evidence to the inquiry launched by the International Agreements Committee, of which I am a member, and in doing so, will the Government explain on what basis they chose not to lay this agreement before Parliament? The Ponsonby rule suggests that any such agreement of significant public importance should be laid before Parliament.
(2 years, 4 months ago)
Lords ChamberMy Lords, I do not think that anyone would accuse me of trying to stifle debate or of not trying to answer noble Lords’ questions. I do try to answer them and, if I cannot, I will get back to them. As I said earlier, we are abiding by our international obligations. The EU and the UNHCR work with Rwanda to relocate refugees there.
My Lords, further to the question of the noble Earl, Lord Kinnoull, I do not think that my noble friend has responded to that point. A memorandum of understanding can be defined as a treaty under CRaG if it is a written agreement between states and it is binding in international law. Why does the Minister not say that the Government will lay this memorandum of understanding before Parliament under CRaG?
I think I said to the noble Earl that I would clarify the point.
(4 years, 3 months ago)
Lords ChamberI totally concur with the points that the noble Viscount makes. Central to the Government’s strategy all along has been reducing the R rate, saving lives, protecting the NHS and, ultimately, getting rid of this virus.
My Lords, I understand the rationale for the decision, which is that we should seek to constrain the transmission of the virus from areas with community transmission to places where it might otherwise be brought where community transmission has been controlled and constrained. The problem at the moment is that we have significant elements of community transmission, and there are a significant number of European countries where there is now no evidence of such transmission. It is the wrong way round. Will my noble friend at least tell the House that the Government will consider whether there is a case for some specific exemptions for those countries—principally, at the moment, our neighbours in Europe—where there is no continuing evidence of community transmission of the virus?
We will, of course, be taking such matters into consideration. I do not know if my noble friend heard my right honourable friend the Home Secretary say yesterday that bilateral conversations were going on with countries across the world to see what kind of innovations we could bring forward in order to make movement easier.
(4 years, 7 months ago)
Lords ChamberThere have been several looks at the shortage occupation list. In fact, there does not tend to be a terribly big regional variation between the needs of Scotland, England, Northern Ireland and Wales: the list is pretty similar across the nations. Of course, someone taking up a job in Scotland through a regional shortage occupation list could then just migrate further south if such a system were introduced.
My Lords, what conclusion do the Government draw from the fact that my home city of Cambridge is one of the places in the country with the highest level of inward migration and the city with the highest level of employment in Europe?
As my noble friend will agree, Cambridge is a city with a huge number of people doing research and innovation, and with the best university in the country, I would say—apart from Oxford; I do not want to irritate anyone from Oxford. That is why Cambridge attracts such inward migration within the UK.
(5 years, 7 months ago)
Lords ChamberMy Lords, the fact that there is no cap on student numbers is all to the good. People want to come to this country to study, they are doing so in increasing numbers and, as I pointed out just before we broke up for the Christmas Recess, the increase in post-study leave is to be welcomed and will benefit students.
My Lords, my noble friend is, I believe, saying that we want to encourage international students to come to this country. The confusion arises because they feel that our net migration objectives run counter to that. Would it not be simplest to identify the students coming to and leaving this country separately in national statistics?
My Lords, we are following the advice of the independent Migration Advisory Committee. Similarly, the ONS takes that view of migration statistics. Indeed, we are in line with many countries in the world which do the same. In fact, because there is no limit on the number of students who come here, there is no disbenefit to students being counted in those figures.
(5 years, 9 months ago)
Lords ChamberI cannot bear that assertion being put on the record without being refuted: American taxation pays for healthcare—it pays for Medicare, Medicaid and the CDC. American public expenditure on health is nearly as large, as a proportion of GDP, as British expenditure on health. It is just incredibly inefficient. As my noble friend says, those who travel to America and work do not get access to Medicare or Medicaid.
I am glad to have a former Health Secretary standing behind me to put noble Lords—and me—absolutely right.
My Lords, I contribute briefly in respect of Amendment 107ZZA simply to say that I did not agree with the noble Baroness, Lady Andrews, on her criticism of permission in principle. I think it will enable certainty to be given and the process to be speeded up. Certainty about how the system works is needed not only for the developer but for the community. I am sure many noble Lords will be familiar—as I have been—with the process, whereby communities often find it intensely difficult to understand that, at the same moment that they have to debate the principle of development, and maximise their subsequent effectiveness, they also have to think about what the subsequent conditions might be and the mitigation of effects. In their minds, they often want the two things to be separate. They feel, understandably, that—through the extent to which they offer recommendations to local planning authorities about modifications to an application, compromises that can be reached, mitigation that can be entered into and conditions to be imposed—they are opening the door to the principle.
I think that here we could have something that, to local communities, is much more rational. In the local plan process, they should devote themselves to the question of whether development in principle should happen in a particular site, knowing that subsequently, through the technical details consent, in so far as there is necessary mitigation—for example, something like the environmental assessment should establish whether development in principle is right on a site—a detailed impact assessment should be able to identify what is required by way of mitigation. For a local community, these are two completely rational, separate processes. They have to be sure—this comes to the point of the noble Baroness’s amendment—that they will get adequate notification and an opportunity to express their view about what that mitigation should look like in the technical details consent. I know my noble friend is very much aware of this and I hope she will be able to give the reassurance that the noble Baroness is looking for.
My Lords, I voice my thanks, again, for the time taken by noble Lords, including the noble Baroness, Lady Andrews, in trying to get right this aspect of the legislation and ensuring that permission in principle is as effective as possible. In Committee, I outlined the rigorous process of consideration and engagement that would be followed before granting permission in principle. In that context, I highlighted that I thought a situation where no scheme could be delivered in line with the permission in principle agreed on site, owing to unforeseen circumstances discovered at the technical details consent stage, would be highly unlikely. The noble Baroness presses me to give examples and I cannot get this example from my mind: it is another king in a car park, but where the whole car park is made unsuitable for development and not just a part of it, which can be allowed for in certain circumstances.
I informed noble Lords in Committee that the Bill already makes provision for permission in principle granted on application to be revoked or modified by a local authority if it considers it expedient to do so in extremely rare circumstances. I also recognised that, in the case of PIP granted through a locally prepared plan or register, the Bill does not currently provide for revocation or modification in such instances and that I would reflect on the need to make such a provision. I therefore wholly welcome the amendments that the noble Baroness, Lady Andrews, has tabled and strongly support their inclusion in the Bill. I also thank her for the way in which she has worked with me and officials in coming towards this stage. Amendments 107ZA, 107ZB, 107ZC and 107ZD will indeed enable local planning authorities to revoke or to modify the permission in principle granted by local plans or registers, where they consider it expedient to do so. Amendment 107ZD will also enable us to set out sensible compensation arrangements in these circumstances in secondary legislation. The amendments will extend the existing provisions that local authorities have to revoke or modify planning permissions to the permission in principle system. They will ensure overall consistency and provide an important final safeguard to address the rare and exceptional circumstances discussed in Committee, where this may be needed.
Amendment 107ZZA tabled by the noble Lord, Lord Beecham, and the noble Baroness, Lady Andrews, will oblige every applicant to engage with the community on their proposals before they submit an application for technical details consent. I certainly applaud the intention to involve the community in the development of a detailed planning application. Indeed, the NPPF and our planning guidance stress the importance of applicant-led, pre-application engagement. However, the power in Section 61W of the Town and Country Planning Act, inserted by the Localism Act 2011, is currently being used only to ensure compulsory pre-application consultation for onshore wind development above an appropriate threshold. This is a targeted requirement to help ameliorate local community concerns about and perceptions of such projects. I understand that the noble Baroness has laid this amendment because she is keen to ensure effective consultation; I do not believe, however, that applying this requirement to all technical details consent applications is the right approach.
We have just finished consulting on an approach that would give local authorities the discretion to consult further at technical details stage, where they consider it appropriate. We consider this a more locally led and efficient approach to consultation that will minimise unnecessary duplication between the permission in principle and technical details consent stages. The noble Baroness asked me about the expert responses to the consultation. I understand that we have received 150 responses. The noble Baroness asked if we would place them in the Library; I am very willing to do that.
My Lords, I had not intended to say anything on this, but following the most helpful exchange with the noble Lord, Lord Best, I just want to make two points quickly before we conclude this debate.
First, it seems to me that, within this group of amendments, there appears to be an assumption both that the taper should be low and that the threshold should be high, but that is an illogical position to take. If the threshold were very high, the taper presumably should be much higher, representing a much greater capacity to pay. To that extent, I urge noble Lords who are thinking about supporting any non-government amendments in this group to think very carefully about how one thinks about this. If one supports a taper, it seems to me that giving the Government discretion to bring in a taper is an appropriate way to do it, because the Government can then balance the threshold with the taper. Otherwise, if one introduces a low taper, it seems to me that one should therefore automatically not support amendments whose purpose is to increase the threshold and to impose a higher threshold.
Secondly, although my knowledge of this is only as good as the figures that I have looked up in the last few minutes, the English housing survey figures from 2013-14 suggest that, including housing benefit, private rented sector tenants were paying on average 43% of their income in rent, whereas local authority housing tenants were paying on average 28% of their income in rent. I do not quite understand where the 10% figure that has been included in Amendment 73 comes from. It is asserted to be fair, but on the face of it the difference in rental costs as a proportion of income between private rented sector tenants and local authority tenants is already significantly larger than that—so where the 10% figure comes from I am not quite sure I understand. In so far as local authority tenants have an income that allows them to pay more, private rented sector tenants might not understand if we were to legislate in such a way as to ensure that local authority tenants paid less of their income in rent, relative to a market rent, than would be the case if they were out in the market having to rent at that level.
My Lords, I will, if I may, take this opportunity to reiterate our overall position on this policy. I wrote to noble Lords about this earlier this afternoon and I would like to take the opportunity to set out the key points on the Floor of the House. I hope that noble Lords will indulge me, but I will not take interventions at this stage, because I hope that many of the questions will be answered as I make my way through my opening statement.
The policy is about fairness, and our view is that social housing at lower rents should be provided to those households that need it most. Households that decide to remain in social housing but can pay more should be expected to do so. At the same time, the Government are making home ownership more accessible to tenants both of local authorities and of housing associations through the right to buy and shared ownership.
In Committee, I reinforced the Government’s commitment to ensuring that the policy is designed fairly and that work always pays. On this basis, I gave three reassurances: first, that we would introduce a taper to ensure that it would always be in the tenant’s interest to increase their earnings; secondly, that we would exempt those on housing benefit entirely; and that we would allow local authorities to retain the reasonable costs of administering the scheme.
In Committee, many important points were made. The noble Baroness, Lady Hollis, asked how the policy would work alongside universal credit. The noble Baroness, Lady Lister, spoke eloquently about the importance of ensuring that the policy is applied fairly for social tenants. The noble Lords, Lord Kerslake and Lord Best, both raised concerns about the level of the thresholds and how we mitigate those through our choice of income taper.
We have listened carefully to those arguments and to the views expressed by tenants and local authorities. We agree that people in receipt of certain state benefits should not be caught and that there should be an element of protection for those households on incomes close to the thresholds. Rents should rise by a reasonable amount and protect those work incentives. Following our consideration of the views and arguments, I can outline today much more policy detail that we intend to put into regulations. I hope that that will reassure noble Lords.
First, I can say more about which households will be affected. The policy will affect households with an income of more than £31,000 outside London and £40,000 in London. This would mean that households with two adults each working 35 hours a week on the national living wage would be below the threshold. In addition, I can confirm that no household in receipt of universal credit or housing benefit—this is the point that the noble Baroness, Lady Hollis, made—will be subject to the policy. This makes absolutely clear that this policy is not aimed at households on the lowest incomes, or at those households on incomes above the thresholds in areas of very high market rent that may qualify for these benefits. I hope that this will reassure the noble Baroness in particular about the link with universal credit. It also means that there will be no extra burden on the taxpayer, who would need to fund the increase in housing benefit or in universal credit to cover the rent.
This link to benefits is further reinforced by our proposed definition of “income”. I think that the noble Lord, Lord McKenzie, alluded to this. We want to define this as “taxable income”. When determining whether a household’s income is over the threshold, this means that we will take into account employment earnings, pension income and investment income, but not child benefit, disability living allowance or tax credits. This will protect many families on incomes close to the thresholds. Taken together, these announcements on income thresholds, the exclusion of households on universal credit and the definition of “income” make it absolutely clear that there will be no impact on families on low incomes.
Secondly, I know that there have been concerns about how much additional rent a household might have to pay. In Committee I said that we would use a taper to ensure that households did not face a very large increase in rent as a result of a small increase in income. I can confirm that we are proposing a taper of 20%. This will mean that for every additional pound someone earns over the income threshold, they will pay an extra 20p towards the rent. In determining the level of the taper we have looked closely at a range of tapers in use, including universal credit, to ensure that tenants’ rents are increased in an affordable way, while maintaining the principle that those who can pay a little more do so. The taper ensures the principle of affordability and of protecting incentives to work.
A household outside London on £32,000 a year will pay less than £4 a week extra and a household in London with a taxable income of £42,500 will pay less than £10 a week. A household outside London with an income of £40,000 would pay around £35 a week. The households that I have just described would be in the top 40% of household income. At a 20% taper level, most high-earning social tenants would pay no more than 20% of their income in rent—much less than the average household in the private rented sector and lower than the 33% of income often used by housing providers as a rule of thumb for what is considered affordable.
Thirdly, I know that noble Lords have been keen to ensure that we implement this policy in a way that does not penalise the parents of adult children who live at home, perhaps while they save to buy their own home. With that in mind, I can now confirm that “household” will be defined as the tenant, any joint tenants and their spouses, partners or civil partners. Within a household, only the incomes of the two highest earners will count. This means that the incomes of non-dependent children will not count unless they are named on the tenancy agreement—and, even then, only if they are one of the two highest earners. I reaffirm at this point that no household in receipt of universal credit or housing benefit will be subject to the policy. As I said earlier, the policy is not aimed at households on the lowest incomes or households on incomes above the thresholds in areas of very high market rents which may qualify for these benefits.
Finally, I can confirm that in the first year local authorities will return the actual amount of money they raise through the policy: the Government will not set a formula. However, we will return to this issue after the first year, when more information is available, to decide on the best approach. I understand that noble Lords are keen to scrutinise the detail of this carefully. As announced in Committee, I have accepted a recommendation from the DPRRC to make the secondary legislation subject to the affirmative regulation procedure. I am sure that this will be welcome news to your Lordships. There will be some further policy questions to address before we debate regulations but I want to take the opportunity to clarify some points of detail which I know the House had concerns about in Committee.
The noble Baroness, Lady Hollis, and the noble Lord, Lord Campbell-Savours, raised some important points about private companies having access to individuals’ income data. I assure noble Lords that the data-sharing powers in the Bill will be limited to data shared between HMRC and local authorities and HMRC and housing associations. The Bill contains strict conditions over how that information can be used and there is absolutely nothing here that enables further data-sharing with third parties.
There was some debate about admin costs. It is still the Government’s position that local authorities will be able to retain a reasonable amount of admin costs. I know that there was some confusion about this language in the previous debate. It is the Government’s intention that the costs should be covered but we are working with local authorities to fully understand the costs they will face in setting up and running the policy. It is important that we do not unfairly reward local authorities which are running inefficient systems. I can also confirm that regulations will not expect local authorities to collect where the administration costs would not be covered by the returns from this policy—a number of noble Lords made this point.
Before I conclude, I want to say something about the approach for housing associations. The decision on whether to operate a policy will be voluntary for housing associations. The Bill contains a requirement that where a housing association wants to operate a voluntary policy it must publish details of that policy and have an appeals mechanism in place. This is not a control but a sensible protection for tenants, but where housing associations operate a policy they can retain any funds raised and use them for investment in new social housing. We will continue to work with housing associations to help them put policies in place where they wish to do so. I hope that the details I have set out, though rather lengthy, demonstrate that the Government have listened to concerns raised by this House. Our proposals strike a balance between the need for fairer rents in the social sector and the need to ensure that the policy is applied fairly to tenants.
I now move on to the amendments. Government Amendment 73A allows us to make exemptions for those households in receipt of housing benefit and universal credit. Our proposed definition of income will ensure that payments from tax credits, child benefit and disability living allowance will not count towards the calculation of income. I hope that this will provide an element of reassurance for those in receipt of these benefits who may be close to the threshold. Of course, noble Lords will spot that this does not mean that everyone receiving disability living allowance, for example, will be outside the scope of the policy. If their income is high, they may be asked to contribute more. I am sure that there will be strong views on this, and I should make it clear that other exemptions could, of course, be made in the regulations. I know that noble Lords have particular concerns about the impact on certain groups of people—for example, the noble Baroness, Lady Lister, spoke eloquently about those with caring responsibilities or those who have suffered at the hands of a partner through domestic violence. We take this very seriously. I welcome further views on this, so that we can take forward further consideration of the evidence in advance of the affirmative regulations.
My Lords, it is not usual for a Government to bring forward legislation that they want to end. There have been sunset clauses in certain legislation, but, in this case, we do not particularly want to end it after three years.
I do not know whether the Minister agrees, but Amendment 69A would not only allow, as it would intend, that after three years one might examine the success or otherwise of the policy but risks significantly distorting any potential implementation of that policy, since in the intervening period any local authority which was disinclined to implement the duty to sell vacant high-value housing might well for a substantial part of that three-year period delay such sales in the hope that the duty would repealed under this amendment and not reinstated? Clearly, it would be inappropriate for the Government to pre-empt Parliament’s decision on any such regulation by making it clear that they wanted to extend it indefinitely, so local authorities would be placed in a position which allowed them to frustrate the policy and the Government would not be in a position to insist.
My Lords, perhaps I may finish this statement and then the noble Lord can intervene.
The noble Baroness, Lady Bakewell, mentioned a lady who wrote to her who was a housing association tenant. Of course, this measure would not apply to her.
Of course, for those households earning far more than the proposed starting thresholds, the rent increases would be greater. However, the taper will reflect what we consider to be the best balance between ensuring fairness between the social and private rented markets, and protecting the incentive to find and keep work.
I should take the opportunity to remind the Committee about the Government’s home ownership offer to social tenants, particularly those on the kind of incomes we are talking about. If a social tenant were to make the move into home ownership, via either Right to Buy, shared ownership or Rent to Buy, the policy for higher rents simply would not apply to them. This is an important message.
The consultation also asked for views on how the administrative costs for local authorities should be dealt with. The proposal was to allow local authorities to retain a reasonable amount of admin costs, and I can confirm today that the Government will honour this proposal—the noble Lord, Lord Shipley, asked about this. Further work with local government is necessary to understand what the actual costs will be, and we will explore in detail how to implement a policy that minimises the burden on local authorities.
Moving forward over the next few months, the priority for my department is engagement with local authorities and housing associations. The work will inform much of the rest of the regulations and will be focused on three key areas: how “income” is defined for the purposes of the policy; how market rents should be established; and the process for returning money raised from local authorities to the Exchequer. I assure noble Lords that we want a policy that is workable, and this is why the engagement work is so important. I will pick up on these areas in more detail as we move through the amendments.
I hope that these opening remarks have been helpful to noble Lords and that some reassurance has been provided on key aspects of the policy on the taper and the treatment of admin costs.
Just for the avoidance of doubt, when my noble friend referred to the two illustrations on the taper, she referred to 10% and 20%. I understood that we are in fact talking about 10 pence and 20 pence in the pound.
My noble friend is absolutely right. I had not realised that I had made that error. At this point, I shall let the noble Lord, Lord Campbell-Savours, intervene.
My Lords, the example I gave was a couple on a mean wage of £26,000, not one person on £26,000. Four times one wage would be under £150,000. To clarify, I am talking about a couple on £26,000 each. It is the mean wage so I just gave it as an average example, if the noble Lord could accept that in the context in which it was given. It was an average example of an average couple.
The noble Lord, Lord Tope, asked when we will get the details of the review of shared ownership. It was a commitment made by the previous Government. This Government carried out an internal review which resulted in the announcement of 135,000 shared ownership units in the spending review of 2015. The prospectus for the shared ownership programme is due in the spring.
My noble friend Lord Lansley talked about the definition of the starter home. Clause 2 talks about the criterion for a starter home being a new dwelling available to qualifying first-time buyers aged under 40. We will specify more criteria in the regulations. It is sold at a discount of at least 20% of market value. It is sold for less than £250,000 outside London and £450,000 within Greater London. It is subject to sale and letting restrictions to be specified in the regulations and we will consult.
I am grateful to my noble friend the Minister but, as I expressly said in my contribution, I am looking forward to debating the definition of a starter home in Clause 2 on a later group.