Housing Benefits (18 to 21-year-olds)

Kevin Hollinrake Excerpts

Tuesday 7th March 2017 Commons Chamber

[Caroline Nokes]

This is not about the demonisation of young people; it is about encouraging young people to make sensible and rational choices about where they are going to live, whether or not they are in work.

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

As a parent of two children between 18 and 21, I would be appalled if I felt that they had left home to live a life on housing benefits while they still have a bed in my house. Will the Minister confirm that support will be made available for those who are vulnerable or have complex needs?

[Caroline Nokes]

I thank my hon. Friend for that, and absolutely yes. Those who cannot live with their parents and those in receipt of the main disability benefits will be exempt from this policy.

Oral Answers to Questions

Kevin Hollinrake Excerpts

Monday 21st November 2016 Commons Chamber

[Penny Mordaunt]

The hon. Gentleman makes a very good point. It is one that I, as a former Armed Forces Minister, have discussed with the Department. That is why we have specific questions related to our armed forces in the Green Paper. It is a good idea.

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

The most challenging gap that we need to bridge in the disability employment statistics is the one relating to people with learning difficulties. In answer to a written question, the civil service was unable to break down the stats to show how many people with learning disabilities were employed. Does the Minister agree that those stats are vital to help us to provide policies and support for people in these circumstances?

[Penny Mordaunt]

I agree absolutely, which is why we are doing that at as local a level as possible. On 5 December we are holding a drop-in session to which every Member of this House will be invited. As well as giving them information about how they can run local events to encourage participation in the Green Paper consultation, we will be giving them some local data so that they can get that local focus on the people we are currently trying to help and the unmet need.

Oral Answers to Questions

Kevin Hollinrake Excerpts

Monday 17th October 2016 Commons Chamber

The Secretary of State was asked—

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

1. What steps his Department is taking to help disabled people to access Government support.

[The Secretary of State for Work and Pensions (Damian Green)]

On the day that the country is celebrating our Paralympic athletes, I am sure the whole House will want to join me in thanking them for a summer of thrilling and inspirational sport.

It is right that we continually review the way support is offered to and accessed by disabled people. That is why I was pleased to announce an end to stressful and bureaucratic employment and support allowance reassessments for people with the most severe lifetime conditions. We are also transforming the way disabled people access support through our new digital Access to Work platform and providing help to budding disabled entrepreneurs to set up their own business.

[Kevin Hollinrake]

I am holding a round-table event on 31 October for those with disabilities, parents and employers, to try to remove the barriers to employment. Does the Secretary of State agree that for some the barriers are simply too high? Will he welcome the positive response from Disability Rights UK to his recent announcement that those with long-term and severe disabilities will not have to undergo regular repeat assessments of their condition?

[Damian Green]

I congratulate my hon. Friend on the round table. He is right that there are too many barriers to work for disabled people, and this Government are determined to do everything possible to break down those barriers. Like him, I was pleased that a number of disability groups welcomed the announcement that I made on 1 October. I was particularly pleased to see the chief executive of the MS Society, Michelle Mitchell, say that it was a victory for common sense. She went on to say:

“We are therefore delighted that the Government has listened to our concerns and have agreed to stop reassessments”.

I am pleased that the sector was so pleased with the announcement.

Supported Housing: Benefit

Kevin Hollinrake Excerpts

Wednesday 20th July 2016 Commons Chamber

[Grahame M. Morris]

With respect, I must point out that Government decisions should be based on evidence. Before embarking on a plan and a policy, it would be sensible to look at the evidence objectively and scientifically. If the hon. Lady wants expert opinion, I am happy to give her that and to quote the chief executive of the National Housing Federation, David Orr, who met the then Housing Minister on 18 December last year. He said—this is an expert in the field—that the impact of the local housing allowance cap will be

“stark and make it extremely difficult for any housing associations to develop new supported housing.”

He also said:

“providers across the country will be forced to close schemes.”

There is plenty of evidence of that, and I am sure that Members on both sides of the House have had representations from housing associations and housing providers.

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

Does the hon. Gentleman understand that a research project is now looking at this evidence? That conflicts with his motion on the Order Paper, which says:

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

That is pure scaremongering.

[Grahame M. Morris]

It is a matter of fact. It is a kind of chicken-and-egg situation: surely you review the evidence before you announce a decision and then put it on hold. I believe the review was started in 2015—perhaps the Minister can correct me if I am wrong—so why are we still waiting for the results? Why did the Chancellor of the Exchequer make an autumn statement that had huge implications for some of the most vulnerable people living in supported housing, without looking at the evidence first?

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[Damian Green]

There is no disagreement between us. In cash terms, nobody will see their payments change until April 2018. That is what I was referring to. As I said, I expect to make an announcement in the early autumn. I hope that will provide the certainty that the sector is quite reasonably demanding.

Of course we understand that there are higher costs associated with providing supported housing than with providing general needs housing. I recognise the potential impact that this policy could have on the sector and its ability to support vulnerable people. I am also aware that this policy needs to be considered not on its own, but alongside other policies that affect the sector, including the 1% annual rent reduction for social sector tenants in England.

To return to the point about timing, in March, the Minister for Welfare Reform announced an exemption for this sector for one year. I hope that has provided some assurance for providers that nothing will happen precipitately while we complete the evidence review. That exemption, and a similar deferral of the 1% rent reduction, has been welcomed by the sector generally and, in particular, by the much-quoted National Housing Federation. When the deferral was announced, its chief executive said:

“We are pleased that the Government is listening to our concerns and has delayed the application of the LHA cap to people in…supported and sheltered housing.”

He also welcomed the fact

“that there will be a full strategic review into how these services are funded and we will contribute fully to that review.”

I am very grateful to the NHF for making that commitment. It is doing so and will continue to do so until we find a solution.

We require a solution that is flexible enough to meet the needs of service users and providers while remaining affordable for the taxpayer and delivering value for money. We have been working with and listening not just to providers of supported housing and umbrella bodies—the NHF and the Local Government Association—but to individual local authorities and other local commissioners, as well as to those who represent the vulnerable groups who live in supported housing. We have of course also consulted the Welsh and Scottish Governments about the implications for them. That extensive dialogue has been crucial in shaping our thinking on this important issue. I want to continue that exchange of information and ideas.

[Kevin Hollinrake]

I welcome my right hon. Friend to his post. As part of the solution he mentions, will he look at the perceived barrier preventing people who benefit from this kind of accommodation from getting back into work? People I have met in these kinds of facilities locally feel that they cannot earn enough to be able to pay back the effective £250 a week cost of the accommodation.

[Damian Green]

My hon. Friend makes a profound point, not just about this specific issue but about, in essence, a huge amount of the work of my Department. Enabling people who are not in work to get back to work in some form is not only the best thing for the public purse but—absolutely and most importantly—almost always the best thing for them as well. For many of the people in the vulnerable groups we are talking about it will be especially valuable. Making sure that we come to a solution that contributes to that is absolutely vital.

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[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.

[Julian Knight]

Does my hon. Friend recognise that the Labour party has nothing to lecture us about on building social housing, as it built next to no social housing in its 13 years in government?

[Kevin Hollinrake]

My hon. Friend is absolutely right.

As others want to speak, I will move on to one other point, which is the disincentive for the young people in these facilities, which do a fantastic job. Recently, on a visit to Arc Light in York, I met two young men in their 20s: one was a brickie and the other a joiner. They were perfectly capable of working, but were totally deterred from working, because they felt that if they were in work, they would have to pay the full costs of that accommodation—£250 a week—which is a huge disincentive. That may not be quite true. Lord Freud wrote to the Communities and Local Government Committee for clarification, but the Chair of the Select Committee was not quite clear on the point.

[Jess Phillips]

From my experience, that is a problem with the current system of housing benefit. It is much harder for people who are in employment to stay in supported accommodation, because they do not qualify for housing benefit at a higher rate. That is something that absolutely must be sorted out in any system. We are not saying that it is perfect, but that is definitely one of the problems.

[Kevin Hollinrake]

I am very glad that we agree on that point. The other impression that I got from these young people was that they did not seem to feel any particular urgency to get back into work. We should consider whether we are providing the right incentives and encouragement for these young people, who are perfectly capable of working, to get into work.

In conclusion, I do accept some of the points in the motion, but certainly not all of them, and for that reason, I will be voting against it in the Lobby this evening.

Housing Benefit and Supported Housing

Kevin Hollinrake Excerpts

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.

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

It is a pleasure to follow the hon. Member for Birmingham, Selly Oak (Steve McCabe).

These measures are about striking a fair deal: a fair deal for those in accommodation, a fair deal for those who provide accommodation and a fair deal for the taxpayer. There needs to be a balance between the rent increases in the social housing sector and those in the private rented sector. Over the past 10 years, there has been a 60% increase in the social housing sector and a 23% increase in the private rented sector. I therefore consider that the 1% reduction in housing benefit is a fair measure. It is fair to the taxpayer and to tenants, but it is also a fair deal for the housing associations, and one that I believe they can manage.

This is, of course, all about balancing the books, which UK Governments have done in only 28 of the last 34 years. That has led to a cumulative debt of £1.6 trillion. The present Government have reduced the deficit from £150 billion to £75 billion, but there is much more to do. In the last eight months, since I have been in the House, the Opposition have opposed every single cut. So how would they balance the books? Would they cut funds for healthcare, the armed forces, welfare or pensions? I invite them to make constructive suggestions.

Housing associations have a responsibility to use taxpayers’ money wisely. The top 100 housing associations employ, collectively, 91,000 people, and the number has been growing. Is a 1% reduction per annum feasible in an organisation with 1,000 employees? Yes, I believe it is. It is managed on a regular basis in the private sector.

Not only are these changes fair, but they will result in huge savings. They will save £255 million by the end of this Parliament, and £1.1 billion a year will be saved by future Parliaments. Of course, consolidation and greater efficiency may be needed.

[Anna Turley]

Does the hon. Gentleman not recognise that the impact on supported housing will fly in the face of any notion of economic credibility? When accommodation of that kind is closed, there will be knock-on effects: people will resort to NHS care or more costly residential care, and the impact on the taxpayer will be higher. This is not good economic policy.

[Kevin Hollinrake]

There is no doubt that we need to house vulnerable people in supported and specialist accommodation, and that our homes, hostels, refuges and sheltered housing need such support. They constitute a much more labour-intensive part of the market, involving personal care, supervision and maintenance.

[Dr Philippa Whitford]

May I take up the point made by the hon. Member for Redcar (Anna Turley)? It costs an extra £18,500 to house those with the most complex needs, and most users of supported living are over 70. In our health debates, we talk about trying to get people into the community. As a result of this measure, people will end up in expensive alternatives.

[Kevin Hollinrake]

I accept the hon. Lady’s point. We need to ensure that we protect our most vulnerable people, and that is what I believe we will do.

Many of the providers of supported housing and specialist accommodation are part of much larger organisations which are able to blend reductions across their estates, but we want to ensure that specialist providers continue to supply accommodation. This policy is in its early stages, and is currently the subject of consultation. I welcome the Minister’s announcement of a one-year delay, or interruption, so that we can get it right. However, it has been referred to before. In September last year, my hon. Friend the Minister for homelessness—the Under-Secretary of State for Communities and Local Government, the hon. Member for Nuneaton (Mr Jones)—said that specialised supported accommodation was likely to be exempted. I do not think that there is any need for Opposition Members to frighten residents and make them fear that they will lose their homes. That is irresponsible.

It should also be borne in mind that, during the current Parliament, there will be £800 million in discretionary housing payments for the most vulnerable tenants, and £40 million for those who suffer domestic violence.

I suggest that Opposition Members should wait to see the results of a policy which I believe will provide a fair deal for the most vulnerable people.

Oral Answers to Questions

Kevin Hollinrake Excerpts

Monday 2nd November 2015 Commons Chamber

[Mr Duncan Smith]

What the hon. Gentleman failed to remind us all is that under the last Government the number of people claiming housing benefit, both out of work and in work, rose dramatically, whereas under this Government the number of those claiming housing benefit out of work has fallen dramatically.

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

T7. I welcome the reforms to welfare, which have helped 609 people in my constituency back into work since 2010. Moving from benefits into work can cause cashflow difficulties, so I additionally welcome the initiative to put Jobcentre Plus advisers into food banks to make sure those delays do not occur. What progress are we making on speeding up benefit claims to make sure those situations do not occur?

[Mr Duncan Smith]

We want to ensure that anybody who goes to a location such as a food bank has the ability to check whether there is a problem—if there is, let us deal with it there. We have also advertised hugely across all the jobcentres, telling everybody they can get benefit advances, hardship loans and so on. We are now beginning to find that when they go to the food banks, they are also being helped to get back into work, which is an added bonus.

Budget Resolutions and Economic Situation

Kevin Hollinrake Excerpts

Thursday 9th July 2015 Commons Chamber

[Alan Mak]

rose—

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

rose—

[Chris Leslie]

I will give way one final time. It is a very difficult choice, but the hon. Member for Havant (Alan Mak) seems particularly keen.

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[The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)]

I welcome—[Interruption.] I must be more statesman-like.

I welcome yesterday’s Budget statement from my right hon. Friend the Chancellor. He is in serious danger of coming to be seen as one of the great Chancellors of this country.

Yesterday my right hon. Friend set out a Budget of great significance. At its heart it is a Budget for working people. First, he set out the steps that we have taken to bring the economy back from its knees, where it was left by the Labour Government. It is only through a strong economy that we can deliver the growth and jobs that working people need. In the previous Parliament we created 2 million jobs, and the budget deficit is now less than half the 10% rate that we inherited. As we look forward, the Office for Budget Responsibility has forecast growth of 2.4% for 2015. That means that for the second year in a row, Britain is expected to have the strongest economic growth of any major advanced economy in the world. The economy will be in surplus by 2019-20, and it will be the largest surplus in structural terms in at least 40 years. Because of the steps taken by the Government, Britain is again standing tall in the world.

Secondly, the Budget sets out the actions we are taking on tax evasion, avoidance and planning, and the imbalances that were left to us in the tax system. This makes a vital contribution to bringing our public finances back into line, meaning that we can continue to provide the essential public services that working people in this country rely on.

Thirdly, the Budget sets out the steps we are taking to boost productivity and skills and to back business. We will have an innovative new apprenticeship scheme, which I hugely welcome, and we will introduce a levy on large employers to fund a big increase in apprenticeship starts and quality. The hon. Member for Nottingham East (Chris Leslie) spoke about productivity. This is one of the ways we will get productivity improvements. In England, firms will be able to get back more than they put in if they train a sufficient number of apprentices—a real incentive to get on and reskill. It is about ensuring that people in this country have the skills they need to get jobs, increase their hours and secure higher pay.

Fourthly, the Budget sets out the work that this Government are doing to support business. It is only when businesses are thriving that the people of our country can thrive too. One of the great things about the last election, apart from the fact that we won, is that it brought into the House so many of my new colleagues who have run businesses, started businesses and know what it is like to cut that pay cheque week in, week out. That is hugely different from the Opposition. We have been relentless in our commitment to cut corporation tax. In the previous Parliament it fell to 20%, the joint lowest rate in the G20. In this Parliament it will fall to 18%, sending out what my right hon. Friend the Chancellor said was a clear message that Britain is open for business.

Fifthly, the Budget sets out the measures that we are taking to reduce tax, to help people save, to help them own their own homes, and to support them in one of the most basic human aspirations—to pass something on to their children—through the changes we are making to inheritance tax.

[Kevin Hollinrake]

Does the Secretary of State agree that there are two sides to the welfare coin—the people who receive the benefit and the people who pay for the benefit? The burden of £30 billion a year in tax credits was too big a burden to carry.

[Mr Duncan Smith]

Indeed. I shall shortly come to how these imbalances created disparities for people in work and trapped on low income.

We are sticking to two of our most important manifesto promises on personal tax. We are starting the journey to raise the tax-free personal allowance to £12,500 from next year. Once £12,500 is reached, as my right hon. Friend the Chancellor said, we will legislate so that the personal allowance always rises in line with the minimum wage—a great move to protect working people. We are keeping our commitment to raise the threshold at which people pay the higher 40p rate of tax to £50,000, starting with an increase to £43,000 from next year.

I consider one measure from yesterday’s Budget to be more significant than all the others—indeed, it is perhaps the most significant measure in all the Budgets that I have listened to during my many years in this House. The Government believe that if people work hard, they should be rewarded. In our growing economy, people should be able to expect a decent wage if they move into work and increase their hours. That is why, starting from April 2016, the Government have announced that we will move to a national living wage—set initially at £7.20, but rising to £9 by 2020. We will ask the Low Pay Commission to recommend future increases to the national living wage that achieve the Government’s objective of reaching 60% of median earnings by 2020. I believe that that is groundbreaking, and I hope that all Members of the House, instead of cavilling about it, will come to support it.