Homelessness Reduction Bill

Debate between John Healey and Jonathan Reynolds

2nd reading: House of Commons
Friday 28th October 2016 Commons Chamber

[John Healey]

I have not seen Simon Rose’s comments, and I would be grateful if my hon. Friend could send them to me. He makes the point that the extra cost required to support this Bill will be a good investment in the long term, and I hope that Ministers will recognise that. Preventing homelessness will prevent higher, longer-term costs. It is early days, but the experience in Wales in the first year following that legislation has been encouraging. In 65% of cases, homelessness has been successfully prevented when at-risk households have been helped by councils. That means that there are nearly 5,000 people and families in Wales today who last year could have been homeless, but who have instead benefited from the help offered by the councils.

This is a good, useful Bill, but it is only a first step. The hon. Member for Harrow East was right to say that legislation is not a panacea that can reverse the rapidly rising level of homelessness. The Bill is not a silver bullet. We cannot legislate and claim to be tackling homelessness. We cannot legislate and lay the blame on councils. If the hon. Gentleman really wants to reverse 40 years of rationing the help that councils can offer, he cannot do it by simply redesigning the system, when councils are struggling every day with an ever-increasing workload, and face an ever-decreasing range of housing options. If the Government are serious about this Bill, and if Ministers mean what they say about homelessness, they must do two things: fund the cost of the extra duties in the Bill in full, and tackle the causes of the growing homelessness crisis in this country. Those are the two tests with which we Opposition Members will hold the Government to account, hard.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

I warmly welcome the practical measures in the Bill, but I also heed my right hon. Friend’s comments about the need to accompany the changes with a real effort to build more homes, as the Chair of the Select Committee, my hon. Friend the Member for Sheffield South East (Mr Betts), said. That is a test not only for Government, but for us all. So many times in Communities and Local Government questions, MPs rise to oppose new developments in their constituencies, even though that has nothing to do with the House of Commons. We must have the courage to tell our constituents that this country does not build enough houses; we cannot simply reflect their prejudices back on them. We have to tell them that this country must build more homes.

[John Healey]

My hon. Friend is right. I hope that the cross-party spirit in which we tackle this Bill may, in due course, lead to more of a cross-party spirit in tackling the bigger housing challenges that he mentioned.

I return to our two tests. First, the Government must fund the costs. The Minister told the Select Committee that he hoped to complete a costs estimate of the Bill before Second Reading. He has not, but in answer to a parliamentary question this week he confirmed to me:

“The Government will fund any additional costs in line with the longstanding ‘new burdens’ arrangements.”

The work to assess and agree the extra costs of the new duties or, if we like, burdens on councils that are in the Bill must be done urgently and openly. It cannot be done in some backroom deal between the Treasury and the Department for Communities and Local Government. Local government must have confidence in and involvement in the process. That is the first commitment that we want the Minister to give the House today. Beyond that, councils rightly want to know that any additional funding of the costs really will be additional, not taken off some other part of the funding due to go to local government. We look for that commitment from the Minister today as well. First, fund the costs in full; secondly, tackle the causes.

Homelessness is not inevitable. It is not necessary in a country as well off and as decent as ours for people to have no home. Cutting all types of homeless was one of the proudest achievements of the previous Labour Government. At the time, it led the independent homelessness monitor produced by Crisis and the Joseph Rowntree Foundation to declare

“an unprecedented decline in statutory homelessness”.

As my right hon. Friend the Member for Oxford East (Mr Smith) said, homelessness, rough sleeping and people on the streets all fell by three quarters while we were in government.

I regret the fact that, since 2010, we have seen that trend go into reverse. Rough sleeping has doubled, statutory homelessness is up by almost half, and the latest official figures show that, each night, nearly 115,000 children are sleeping in temporary accommodation. Those are young lives blighted by transience. They are often in temporary bed and breakfasts and hostels. Their belongings are in their bags. They are often sharing bedrooms with siblings and bathrooms with other families. These are the children who cannot go home. These are the children with no home in our country today. That is a scandal that shames us all.

I say as gently as I can to the Minister that many of the housing policy decisions and failures we have seen over the past six years have led directly to the current homelessness crisis. There have been 13 separate cuts to housing benefit, including the bedroom tax, and, of course, the breaking of the link between housing benefit or local housing allowance and the rise in private rents. In the previous Parliament there was a 45% cut to Labour’s Supporting People programme, which provides vital funding and support to homelessness services. We have seen soaring private rents. Rent in the private sector is now on average more than £2,000 a year more than in 2010.

Councils cannot help the homeless if the Government will not build or, indeed, let councils build the homes that are needed. The number of new social rented homes started in Labour’s last year in government was 40,000; the number started last year was just 1,000.