Supported Housing: Benefit

Debate between John Healey and Kevin Hollinrake

Wednesday 20th July 2016 Commons Chamber

[Kevin Hollinrake (Thirsk and Malton) (Con)]

It is a pleasure to follow the right hon. Member for Wentworth and Dearne (John Healey), who has much experience in these matters. It is clear from all the remarks made this afternoon that everyone in this House supports supported housing. One of the most inspirational parts of our job is visiting organisations such as Ryedale YMCA in Malton, Yorkshire Housing, North Yorkshire County Council and its facilities, and Arc Light in York, which are all helping vulnerable people to get back on their feet.

Interestingly, at Ryedale YMCA about £83 a week is allocated for accommodation for the young people it supports but we are talking about £111 for the support costs. If this local housing allowance cap did apply to this sector, that facility, like many others, would have to close. I know the Government accept this position; I have written many letters to them and they absolutely understand the need. I do, however, support their policy review in this area. Housing benefit in the social sector has reached £13.2 billion, which represents a 25% rise over the past 10 years. It is right to review spending, not only to make sure that taxpayers’ money is spent wisely, but to look for sustainable solutions in a way that protects the most vulnerable.

I accept parts of the motion; yes, supported housing should be exempt from the cap on LHA. I do not, however, accept the motion where it says that

“the Government intends to cut housing benefit for vulnerable people”.

That is clearly not the case—or Opposition Members do not know that is the case, as this is subject to a review. They are causing distress to their own constituents.

[John Healey]

But we do know this. If the hon. Gentleman looks in the Red Book, he will see, scored by the then Chancellor, savings for three years from 2018-19 for this measure on housing benefit of £990 million. We know this. That is the problem, that is the decision and that is what needs to be reversed.

[Kevin Hollinrake]

But does the right hon. Gentleman accept the number of times it has been said by Ministers that this is subject to a policy review, which is due out in the autumn? Therefore, to say that this is going to happen is absolutely wrong.

I do accept that uncertainty is being caused by this policy decision, and we should think through a policy before we announce it. This does disincentivise investment. The National Housing Federation has said that 1,200 new units are on hold because of this policy—this potential policy. It is vital that we deliver these units to meet the overall need to build more homes. We are building many more homes—the figures are almost double those from 2009. We built 166,000 in the most recent year, whereas 90,000 were built in 2009. We need to get to 250,000 homes a year, but we will do that only by allowing either national Government or local government to build more affordable rented homes. The last time we built 250,000 homes in a year was in 1977, when local authorities built 108,000 homes. We absolutely feel that affordable homes to rent must be part of the solution.

Housing Benefit and Supported Housing

Debate between John Healey and Kevin Hollinrake

Wednesday 27th January 2016 Commons Chamber

[John Healey]

We have not seen the information and we have not seen the evidence—we have not even seen the fag packet. Without the information and the evidence, why on earth did the Chancellor take this decision in the spending review before Christmas, thus pre-empting exactly what good policy and decision making should be based on?

[Kevin Hollinrake (Thirsk and Malton) (Con)]

Given that the right hon. Gentleman has not seen the evidence, why is he holding the debate now?

[John Healey]

My hon. Friend the Member for Pontypridd and I called the debate to give voice to widespread concerns, to try to make the Government think again and to say that they must make exemptions from the cut. I shall set out in a moment why Ministers need to take a decision immediately.

Let me explain how the process will work. The Chancellor’s decision caps housing benefit for social tenants at a new rate, which is the same amount that private rental tenants receive through the local housing allowance. For most general council and housing association homes, this will not cause tenants any immediate concerns as their rents are lower than that level. However, specialist housing services and schemes that provide extra care and support involve much higher housing costs, with their higher rents and service charges often covered by housing benefit. The Government know that from their 2011 report on supported housing, which listed the main reasons:

“providing 24 hour housing management cover…providing more housing related support than in mainstream housing…organising more frequent repairs or refurbishment…providing more frequent mediating between tenants; and providing extra CCTV and security services”.

That is why rents in that type of accommodation do not mirror the rates in general private rented accommodation in the local area, but that is the level of the Chancellor’s cut and cap.