Supported Housing

Lord Best Excerpts

Thursday 30th March 2023 Grand Committee

[Lord Best (CB)]

My Lords, I thank the noble Baroness, Lady Warwick, for initiating this debate and I am delighted to follow the noble Lord, Lord Young of Cookham. I declare a strong interest in the debate as the sponsor in the Lords of the Supported Housing (Regulatory Oversight) Bill, the Private Member’s Bill from Bob Blackman MP, which has cleared its House of Commons stages and comes to your Lordships’ House with the backing of government next month.

The supported housing story is one of two halves: first, the story of supported housing brilliantly provided for very vulnerable and homeless people by highly effective and sensitive teams from housing associations and charities; and, secondly, the story of the ghastly, so-called “supported” housing, exploited by some unscrupulous private operators. These two extremes require contrasting responses: first, a significant boost to the wonderful work being done by some exemplary non-profit and charitable bodies; and, secondly, some fierce regulation, diligently enforced, to rid the country of appalling private providers abusing the system to make substantial, undeserved profits at the expense of both the taxpayer and people in desperate need of somewhere to live.

The National Housing Federation and the reputable providers have given strong support for weeding out the private operators who have discovered a loophole enabling rents to be paid by housing benefit, often for overcrowded and substandard properties, without regard to the local housing allowance ceilings, by claiming untruthfully to supply proper care and support. One MP in the debate on Bob Blackman’s Bill suggested that returns on this investment are more profitable than dealing drugs. Mostly the activity is not commissioned by the local authority, but councils have been forced to make use of these lettings by a shortage of genuine supported housing. It is clear that a robust regulatory regime is overdue and the forthcoming Bill is intended to put this right.

Nevertheless, I see the danger that much-needed regulatory measures, if handled without sufficient care, could make life more difficult for commendable providers. This comes at a time when we need the proper provision of supported housing to be boosted following loss of funding from the old supporting people grants, to which the noble Lord, Lord Young, referred, and while the freeze on local housing allowances means that the option of normal private renting is increasingly unattainable. The worst possible outcome from new regulation would be to deter action by the bona fide organisations by adding excess cost or bureaucracy. Already there are anxieties that this vital sector has been diminished by cost pressures over recent years and its insecure and inadequate funding means that any deterrent to continuing to provide good supported housing could be disastrous. We absolutely must not throw out the baby with the bathwater.

The forthcoming Bill does not rigidly prescribe the new regulatory system but rather enables this to emerge from consultation with an expert new advisory panel. I hope that this approach will ensure that a licensing regime emerges with national standards that can end the abuses while enabling growth in this Cinderella sector to produce more of the superb supported housing projects that are clearly so badly needed.