Rent Officers (Housing Benefit and Universal Credit Functions) (Modification) Order 2023

Debate between Lord Bishop of Manchester and Lord Best

Wednesday 22nd March 2023 Lords Chamber

[Lord Best (CB)]

My Lords, I thank the noble Lord, Lord Shipley, for bringing forward this Motion, and I send my best wishes for a very speedy recovery to the noble Baroness, Lady Thornhill.

It is certainly a matter of regret that the 2020 freeze on the local housing allowance is to be perpetuated, despite rent rising considerably in a number of places. When the local housing allowance which caps housing benefit falls behind market rents, tenants must make up the shortfall by finding the money from their other benefits intended to cover food, clothing, heating, et cetera. Research by the Joseph Rowntree Foundation in partnership with the Trussell Trust shows that universal credit for everyday living costs is already at a critically low level; there is absolutely no room here to pay for a rental shortfall.

Of course, what these households need is secure accommodation provided at social rents, far below the market rents of the private landlord. But as we all know, there is the most acute shortage of available social rented housing. With the social housing sector halving to 17% and the private rented sector doubling over recent years to around 19% of the nation’s homes, more and more households have had to turn to the private rented sector. But private landlords in most places have no need to take in anyone in receipt of housing benefit at a lower rent than they can get from the market.

The freeze puts terrible strains on local authorities that are working to reduce homelessness. How on earth can they fulfil the statutory duty to house families and vulnerable people when there is an absence of social housing and when rents present an insuperable barrier in the private sector? The only answer is to secure a place for them in temporary accommodation, which, as graphically described by Shelter in its recent report entitled Still Living in Limbo, is often of the most abysmal quality, often overcrowded and far from their previous home, friends, schools and family. Temporary accommodation now accommodates nearly 100,000 households, including over 125,000 children, at a cost of £1.6 billion per annum.

I have heard the argument, which was addressed by the noble Baroness, Lady Lister, that the problem of the rental shortfall—the gap between rent and housing benefit—can be overcome by the tenant obtaining an emergency discretionary housing payment, or DHP. Sadly, this safety net is not any kind of proper solution. DHPs represent less than 0.5% of total housing benefit expenditure and are usually for a few months only. There is no way in which DHPs can save tenants in a wide spectrum of extreme circumstances, including all those afflicted by the LHA freeze. I gather from housing expert Sam Lister at the Chartered Institute of Housing that last week, the Treasury announced that the total for DHPs for the next two years will be much lower than in any of the preceding 10 years, despite the extra pressures the continuing LHA freeze will bring.

It is understandable that the Government do not wish to pay more to private landlords. The total cost to the nation of housing benefit is around £22 billion per annum. Blame for this predicament must fall on the Chancellor’s predecessors, who made short- term savings by cutting up-front grants for social housing. Grants paid for new social housing would have secured homes at lower rents for decades. For the longer term, the answer is to rebalance the rented stock so there is more social housing to go around. To accelerate this, government funding for acquisition and modernisation of run-down privately rented stock by social landlords is a solution that saves money over the years ahead.

However, the immediate regret is that perpetuating the LHA freeze will bite harder and harder as private rents inexorably increase. Citizens Advice has calculated the proportion of all households in a critical financial state that would be rescued by the lifting of the LHA cap. The answer is that this action by the Chancellor would take about 10% of these households out of their current financial crisis—by no means a panacea for all the problems of negative budgets and debilitating poverty, but a significant and simple way in which to make a huge difference to the lives of the hardest pressed of our fellow citizens.

I support the noble Lord, Lord Shipley, in his Motion to Regret.

[The Lord Bishop of Manchester]

My Lords, I am very pleased to take part in this short debate. I would like to add my support to the Motion proposed by the noble Baroness, Lady Thornhill, and along with others wish her a speedy recovery. I am grateful for the impressive way in which the noble Lord, Lord Shipley, took this on at very short notice.

I declare my interest as set out in the register, I am the owner of one apartment, in Birmingham, currently privately let. I echo the concerns of other noble Lords. I had intended to add further statistics—I am a mathematician by background—but I think noble Lords have had enough numbers in this short debate already.

It is my privilege to chair the Manchester Homelessness Partnership, which brings together our city council along with public sector bodies, the private sector, universities, the blue light services, health services and charities. We have fought hard and long and we have actually got rough sleeping down in our city since its peak in 2018. But increasingly, my colleagues and I are finding that those who end up on the streets are not there for the usual reasons, such as the breakdown of a marital relationship or leaving the parental home after a dispute. It is also not just about mental health, although that is still a major concern. Increasingly, it is simply because they have lost a private tenancy due to being unable to pay the rent. We have heard how rents have gone up, but homelessness carries a huge cost. It is a heavy drain on public funds, as we have heard, but even more critically, as the noble Lord, Lord Shipley, has said, it wrecks the lives of ordinary, decent members of our communities. It does not take long to end up homeless, but it takes years to get out of the pit you have fallen into. It is a long, slow and painful process, as I know from having befriended people who have been rough sleepers on the streets of my city.

I am also concerned by the opaque nature of explanatory material on this SI, provided by the Department for Work and Pensions. The Secondary Legislation Scrutiny Committee’s report states that the explanatory material laid in support of the statutory instrument

“provides insufficient information to gain a clear understanding about the instrument’s policy objective and intended implementation”.

Indeed, it does not do much more than to state that,

“for 2021/22 and 2022/23, all rates were frozen at the same cash levels that were set in 2020/21”.

That is not an explanation—and there is no understanding of the policy in that. As the committee’s report states, this makes the House’s scrutiny role much more challenging. We need to know why something is being done if we are to scrutinise it properly.

To conclude, I add my support to the noble Baroness’s Motion and echo the calls of many in the housing sector, as well as noble Lords in this debate, who are urging the Government to unfreeze local housing allowance now.

Levelling-up and Regeneration Bill

Debate between Lord Bishop of Manchester and Lord Best

Committee stage
Wednesday 22nd March 2023 Lords Chamber

[Lord Best (CB)]

My Lords, I am speaking to Amendment 221; I thank the noble Lord, Lord Young of Cookham, and the right reverend Prelate the Bishop of Chelmsford for adding their names. The noble Lord, Lord Young of Cookham, gave a brilliant exposition of many of the things I was prepared to say, and this amendment is really a prelude to later Amendments 207 and 336. For those two reasons, I will be very brief and save some powder for later debates.

I speak as co-chair of the All-Party Parliamentary Group on Housing and Care for Older People, and this is about older people’s housing and the local plan. The amendment enables the Secretary of State to require local authorities to bring forward an assessment of the local need for housing for older people as part of the documentation in preparing their all-important local plan. Sadly, such an assessment is currently a rarity in local plans, despite the ever-increasing number of older people, for whom opportunities to downsize, to rightsize, can meet so many health, care and social needs.

Tailor-made housing for older people preserves independence, prevents or postpones the need for residential care, helps people to maintain fitness, combats loneliness and isolation, keeps people out of hospital, saves the NHS and care budgets, frees up family homes for the next generation and more. But we have a national shortfall in homes being built specifically for the older generation. Production is running at fewer than 8,000 homes per year, but demand is estimated at 30,000 to 35,000 homes a year.

The trouble is that the volume housebuilders are not interested. Given the choice, they will stick to building for the less discerning, more profitable market of young buyers and will avoid having to organise the ongoing management arrangements necessary for developments for later living. Since these housebuilders dominate the industry, nothing will change unless there is some pressure on these developers to do better. This amendment would start the process of getting on top of this key issue and is very much part of levelling up in extending healthy life expectancy and reducing health inequalities. It represents a key step in getting greater momentum behind a national effort to see local plans incorporate requirements for older people’s housing of different sorts.

I hope to build on this case in subsequent amendments but, in the meantime, I give notice that I will pursue the question asked by my friend, the noble Lord, Lord Young of Cookham, about the task force on housing for older people. It would be great to hear what progress has been made in that direction. The task force was announced on 25 May 2021 by Chris Pincher, the then Housing Minister, at my all-party parliamentary group meeting. It would be great to hear how that is going, having been launched some two years ago. On that note, I commend this amendment.

[The Lord Bishop of Manchester]

My Lords, I support Amendment 221 in the name of the noble Lord, Lord Best, to which, as he indicated, my right reverend friend the Bishop of Chelmsford added her name. She apologises for being unable to be in her place today; in my own brief remarks, I will make a number of points that she would have contributed had she been here. I am grateful to the noble Lord, Lord Young of Cookham, who, like the noble Lord, Lord Best, has a long and honourable history of leading the thinking on housing matters in this land.

I declare my interest in housing for older people: as set out in the register, I am a board member of the Wythenshawe Community Housing Group. In fact, it is more than an interest; it is a passion. In my time as chair of the association, we have opened a flagship development of 135 apartments for older people with mixed rental, shared ownership and outright purchase. Developments such as this enable local people to live in dignity in old age. They provide social space as well as private dwellings. In many cases, they allow residents to remain close to their family networks and former neighbours—the support networks that they need in later life. We can do well for older people but that should not have to rely on episcopal passion or potluck. It needs to be part of how we plan housing provision at a strategic level.

Research by BNP Paribas Real Estate published late last year found that there is a shortfall of more than 487,000 senior living housing units. As our population ages and the housing crisis continues, this housing shortage is set to grow. The 2021 census confirmed that there are more people than ever in older age groups. Some 18.6% of the total population, more than 11 million of us, were aged 65 years or older—an increase from 16.4% at the previous census a decade earlier. There is expected to be a 31% increase in those aged over 65 over the next 15 years. I reached that milestone myself a few months ago; I have a real interest in remaining part of these statistics for many years to come.

Furthermore, as has been indicated, housing is not just for fully able people. Some 91% of homes in England fail basic accessibility standards. Not only do we need more housing but we need to work to improve the suitability of our existing and new housing stock. In doing so, it is important to note that, as the noble Lord, Lord Young of Cookham, reminded us before the dinner break, older people are not a homogenous group so needs will vary.

The recent Mayhew review suggested that 50,000 homes are designed for older people annually. Providing suitable housing for seniors not only addresses their housing and care needs but reduces demand for NHS services, as people stay healthier for longer, and frees up housing and surplus bedrooms for younger families. Amendment 221 would facilitate an important part of the solution to these issues, enabling the Government to consider older people’s housing needs in drawing up plans. These should include more integrated retirement communities, such as the one that I referred to in Wythenshawe. They foster social connection, especially for people living alone in the latter years of their lives. This would help to counter the epidemic of homelessness, since over 6 million people will be living in single person households by 2040, half of them over the age of 80.

There is a real opportunity in this Bill for His Majesty’s Government to work more comprehensively to address the housing needs of our ageing population. I urge them to take it.