315 Lord Bourne of Aberystwyth debates involving the Wales Office

Tue 11th Dec 2018
Tenant Fees Bill
Lords Chamber

Report stage (Hansard): House of Lords
Tue 27th Nov 2018
Fri 23rd Nov 2018
Homes (Fitness for Human Habitation) Bill
Lords Chamber

2nd reading (Hansard): House of Lords
Tue 13th Nov 2018
Tue 13th Nov 2018

Tenant Fees Bill

Lord Bourne of Aberystwyth Excerpts
Report stage (Hansard): House of Lords
Tuesday 11th December 2018

(5 years, 4 months ago)

Lords Chamber
Read Full debate Tenant Fees Act 2019 View all Tenant Fees Act 2019 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 129-R-I Marshalled list for Report (PDF) - (7 Dec 2018)
Moved by
1: Clause 1, page 2, line 10, leave out “the person” and insert “a relevant person”
Lord Bourne of Aberystwyth Portrait The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)
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My Lords, I will first speak briefly on Amendments 1, 2, 5 to 12, 16 to 19, 33, 35 to 41, 60 and 66, which are minor and technical and are intended to bring consistency and ensure the Bill best delivers on its policy intent.

First, while unlikely, as the Bill is drafted a letting agent could conceivably require a tenant to enter into a contract for services with themselves for additional services related to letting, such as providing an inventory. Amendment 5 clarifies that letting agents are prohibited from requiring a tenant or other relevant person to enter into a contract with themselves.

Secondly, it is possible that a relevant person other than a tenant might be a party to a tenancy agreement or an agreement with a letting agent. We have made amendments to Clauses 1 and 2 to be clear that, where a person is acting on behalf of a tenant or guaranteeing a payment of rent, that person cannot be charged a default fee unless otherwise permitted by the Bill.

In the same vein, Amendments 9 to 12 to Clause 4 provide that a term of agreement which breaches Clause 1 or Clause 2 does not bind a relevant person. Similarly, Amendments 33 and 35 to 41 replace the references to “tenant” in Clause 28 as it applies to pre-commencement tenancy agreements and agreements with letting agents with references to “relevant person”.

Finally, we want to ensure that we use consistent language and terminology throughout the Bill. Amendment 66 changes a reference to “incorrect and misleading information” to “false and misleading information” to align with other references in Schedule 2. Amendments 16 to 19 ensure that the language on day and date in Clause 11 is consistent, and Amendment 60 makes it clear that the definition of a television licence in paragraph 9 of Schedule 1 applies to the entire Act.

Lord Shipley Portrait Lord Shipley (LD)
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My Lords, since we have begun Report I should declare my vice-presidency of the Local Government Association. I simply say that these are helpful and relevant amendments that have our support.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark (Lab Co-op)
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My Lords, as this is the first time that I have spoken on Report, I draw the House’s attention to my relevant interest as a vice-president of the Local Government Association, as the noble Lord, Lord Shipley, did. I thank the noble Lord, Lord Bourne of Aberystwyth, and his officials for a number of the amendments we will discuss, in this group and others. Generally they are very helpful and improve the Bill. That is good news for tenants, and I am genuinely very grateful for that. That is not to say that I agree with everything in the Bill, but I am pleased to say we are making progress. I am very happy to support these amendments and I concur with the noble Lord’s comments.

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, I am very grateful for the noble Lords’ support. I beg to move.

Amendment 1 agreed.
Moved by
2: Clause 1, page 2, line 19, leave out “the person” and insert “a relevant person”
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Moved by
3: Clause 1, page 2, line 38, at beginning insert “subject to subsection (10),”
Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, we are all clear that the purpose of the Bill is to ban agents and landlords from charging unfair letting fees to tenants. However, in achieving this objective it is crucial that the legislation does not have an adverse impact elsewhere. Amendments 3, 4 and 29 to 31, in my name, ensure that the Bill does not prevent vital work supporting tenants more broadly.

First, Amendments 3 and 4 exclude local housing authorities or organisations acting on behalf of a local housing authority from the definition of “relevant person” under the Bill. I am most grateful to the noble Lords, Lord Shipley and Lord Beecham, for raising this issue during Second Reading. Local authorities have a duty, as housing authorities, to help the homeless to find accommodation. This is set out in the Housing Act 1996, the recent Homelessness Reduction Act and the homelessness code of guidance. We recognise that, as part of this, councils might need to provide support to applicants—financial or otherwise—to access private rented accommodation. This is vital work, and Amendments 3 and 4 ensure that it can continue. These amendments will ensure that local housing authorities can make payments in connection with a tenancy when acting on behalf of a tenant or guaranteeing their rent.

Secondly, Amendments 29 to 31 ensure that the important work of Homeshare schemes, and its parent network in the UK, Shared Lives, can continue. I have said on multiple occasions that the Government strongly support the work of organisations such as Homeshare in matching a licensee, usually a young person in housing need, with a licensor, usually an elderly householder in need of companionship, sometimes combined with some low-level care or assistance. I know that support is shared throughout the House.

The Bill would have unintentionally prevented Homeshare organisations operating by banning payments made by the licensor in respect of the advice and support received from Shared Lives. I reiterate that the intention of the Bill is not, and never was, to undermine or prevent this important and innovative work continuing. I thank in particular my noble friends Lady Jenkin and Lady Barran for taking up this issue and bringing it to the House’s attention.

The Government recognise that we must take this opportunity to amend the Bill to ensure that such work is not adversely affected. To do this, our amendments provide for changes to Clause 26 to exclude from the Bill such licences as those granted under a Homeshare scheme. We have specified that an excluded licence will be one granted to the licensee by a licensor who resides in the housing, where particular conditions surrounding the grant, renewal and continuation of that licence are met. These conditions include a requirement for a charity or a community interest company to give advice to the licensee or licensor in connection with the grant, renewal or continuation of the licence and where the licensee provides companionship or companionship and low-level care or assistance, together with one or more payments in respect of council tax or utilities, for example. Such arrangements are indicative of Homeshare organisations.

The amendments will therefore ensure that excluded licences that meet the conditions I have just set out are exempt from the tenant fee ban. I hope that my noble friend Lady Barran will agree that these amendments address the concerns she raised in Committee and that this achieves our shared ambition—one we can all surely support—which is that organisations such as Homeshare can continue doing their fantastic work well into the future.

Lord Shipley Portrait Lord Shipley
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My Lords, the Minister referred to what I said at Second Reading and he is entirely right. I welcome Amendments 3 and 4. They are hugely helpful because they give local housing authorities the flexibility they need to do their job properly, and for that reason they have our support.

Lord Beecham Portrait Lord Beecham (Lab)
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My Lords, I join the noble Lord, Lord Shipley, in supporting these government amendments. It certainly is an important function for local authorities. I have to confess—and I refer to my interest as a sitting local councillor—that I am not entirely sure where the funding for this comes from. Do the Government support this financially, or is it left entirely to local authorities? In the latter event, will he look into the extent to which authorities are financing this important element of support for tenants? We certainly support both amendments.

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, I thank the noble Lords, Lord Beecham and Lord Shipley, for their support. I will write to the noble Lord, Lord Beecham, but I suspect that this money comes from local authorities—although of course it finds its way from successive Governments. I suspect that this is part of their functions, but I will certainly cover that in a letter, if I may. The noble Lord never misses an opportunity to focus on an issue such as this, and I will be very pleased to respond to him.

Amendment 3 agreed.
Moved by
4: Clause 1, page 2, line 39, at end insert—
“(10) The reference in subsection (9)(b) to a person does not include—(a) a local housing authority within the meaning of the Housing Act 1985 (see section 1 of that Act),(b) the Greater London Authority, or(c) a person acting on behalf of an authority within paragraph (a) or the Greater London Authority.”
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Moved by
5: Clause 2, page 2, line 46, at end insert “the agent or”
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Moved by
14: Clause 8, page 6, line 13, after “of” insert “paragraph 3 of”
Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, Amendments 14, 15, 45 to 48, 61 to 65 and 67 to 70 in my name relate to the treatment of holding deposits. I have been sympathetic to some of the arguments put forward by noble Lords on holding deposits, and I agree that more action is needed to address these issues. I propose to do that in the Bill, rather than in guidance or regulations, to improve transparency and enforcement.

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Earl of Lytton Portrait The Earl of Lytton (CB)
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My Lords, I declare my interests as a vice-president of the LGA and also as a practising chartered surveyor and private rented sector landlord. Mercifully, I have managed to steer clear in a personal capacity of managing agents—at least for the last many years.

I have one query on the way in which the holding deposit arrangements are intended to function. I quite understand the geometry that sits behind this and the reason for it, so I will not go over it again. But let us suppose that a prospective tenant, having been provided with all the relevant information, pays a holding deposit and then, through some reason of default which would allow the agent to retain part or all of that deposit, there develops an argument as to what proportion—perhaps the whole—should be retained or not. That could take some while to resolve. Meanwhile, the agent is debarred from taking a holding deposit from anybody else, even though it may be clear beyond peradventure that the original deal with, and intention of, the tenant, whose holding deposit is still being hung on to, will not go ahead.

I can see that this could put an undesirable element of drag into the situation. I can also see that it might be the godmother of unforeseen consequences, in that the agent may feel that it is becoming a problem—a rather metropolitan problem, if I may say so; I think of zones 2, 3 and 4 of central London as the areas where a lot of this goes on, although I know it is not unique to there. The corollary to that is that the agent may say, “I’m not going to take a holding deposit at all. It is on a first-come, first-served basis. I have various people interested and the first who comes through my door with the relevant boxes ticked gets it”. That does not seem at all helpful either. That does not happen in my part of leafy Sussex, because we do not deal with things in that way and do not have that sort of high-pressure tenant demand. But I can certainly see it happening in zones 2 and 3 and I wonder what the Minister has to say about how he sees that working in practice, without having some perverse effects on the market.

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, I thank the noble Baroness, Lady Thornhill, and the noble Earl, Lord Lytton, for their contributions to the debate on this part of the Bill. I thank the noble Baroness very much for her comments and support.

I thank the noble Earl very much for his support and for raising the issue relating to holding deposits. First, as he will be aware, there is no obligation upon an agent or a landlord to operate a holding deposit system if they do not want to do so. It is optional. But where it applies and there is a dispute, if the two parties agree that there is no chance of pursuing the tenancy, it would obviously be open at that stage for the landlord or agent to take another holding deposit in relation to the land in question, as it were, where that matter is truly settled. If it is not settled, a lot will turn on the particular circumstances of the case. If the noble Earl feels that he would like to discuss this further, I will ensure that officials are available to discuss possible scenarios with him. It may be that he wishes to discuss a particular scenario, but in the meantime I commend these amendments to the House.

Amendment 14 agreed.
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Moved by
15: Clause 10, page 7, line 33, after “breaching” insert “paragraph 3 of”
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Moved by
16: Clause 11, page 8, line 13, leave out “date” and insert “day”
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Moved by
21: Clause 21, page 14, line 24, leave out from beginning to “subsection” in line 26 and insert—
“The Housing and Planning Act 2016 is amended as follows.( ) In section 134 (client money protection schemes: approval or designation), after subsection (2) insert—“(3) Regulations under this section may confer a discretion on the Secretary of State in connection with—(a) the approval or designation of a client money protection scheme,(b) conditions which must be complied with by the administrator of such a scheme,(c) the amendment of such a scheme, or(d) the withdrawal of approval or revocation of designation of such a scheme.”( ) In section 135 (enforcement of client money protection scheme regulations)—(a) in”
Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, I shall speak also to Amendments 22, 27, 32 and 71 in my name which relate to client money protection legislation as set out in Part 5 of the Housing and Planning Act 2016, the Client Money Protection Schemes for Property Agents (Approval and Designation of Schemes) Regulations 2018 and the Client Money Protection Schemes for Property Agents (Requirement to belong to a Scheme etc.) Regulations, which are due to come into force on 1 April 2019.

Client money protection schemes ensure that landlords and tenants are reimbursed in the event of a letting or managing agent going into administration, or where the agent misappropriates their money while in their control. This client money can include rent paid by tenants as well as money passed on by landlords for the purpose of making repairs to a property. Client money protection is designed to be the last resort once a tenant or landlord has already pursued the agent directly or exhausted recovery via the property agent’s insurance. I take this opportunity to thank the noble Baroness, Lady Hayter, for all the hard work she has done in this area alongside the noble Lord, Lord Palmer, on this important legislation that will give tenants and landlords the financial protection that they deserve.

The client money approval regulations set out the conditions that scheme providers must meet in order to be an approved provider. My officials have been working with scheme providers since the summer to support them in making an application. The requirement regulations require property agents who handle client money to belong to an approved scheme. They are due to be implemented on 1 April 2019.

During our extensive engagement with schemes it has become apparent that certain elements of the regulations do not work as originally intended. I thank noble Lords for their discussion of these points in Committee, which I have considered carefully. I am keen to ensure that the client money protection legislation delivers on our commitment to give landlords and tenants financial security but not in such a way as to impose disproportionate and unnecessary burdens on industry, which could have the adverse and perverse effect of increasing costs for tenants and landlords. The amendments in my name ensure that the rules strike a balance while giving tenants and landlords robust protection. This is so that the amount of cover that schemes are required to provide is proportionate, taking into account the availability of insurance and the level of risk posed by members. We are committed to maintaining our published timetable so that mandatory client money protection can come into force on 1 April 2019. Our intention is that, once we have approved sufficient schemes, we will make the requirement regulations and of course they will be made before the relevant provisions in this Bill amending these regulations are commenced.

Turning to Amendments 21, 22 and 17, first, we have clarified that money that has already been protected through a government-approved tenancy deposit scheme is not required to be doubly protected by a client money protection scheme. This was never our policy intent. Secondly, we will not require schemes to pay out where certain risks are excluded by insurers. These policy exclusions typically refer to events such as war, terrorism or confiscation by the state. It was never the policy intent for such unlikely events to be covered. We believe it would be unreasonable to require schemes to pay out where they may be unable to underwrite their risk with insurance because such insurance cover is commercially unavailable.

Thirdly, we are providing that the level of insurance held by schemes is proportionate to the risk of client money loss rather than requiring scheme providers to ensure they can provide cover for every penny held in an agent’s client account. We will in guidance ask schemes to determine the appropriate level of insurance cover necessary to cover a worst-case scenario—their maximum probable loss. This allows schemes to consider controls that their members have in place as well as the amount of client money that is at risk. We will challenge schemes’ calculations through our assessment of their applications for approval to ensure that they are robust.

Fourthly, we are specifying that client money protection schemes can allow limits per individual claimant and scheme aggregate limits that are at least equivalent to the scheme’s maximum probable loss. Allowing schemes to set a limit per individual claimant ensures that they are not required to pay out without limit. It will ensure that more sophisticated large corporate landlords take responsibility for the control of client money held on their behalf. The Financial Services Compensation Scheme has similar individual claim limits, and we are seeking to replicate this accepted practice. It is, of course, vital that consumers are aware of any such limits and we are requiring schemes and their members to be transparent with clients about the limits of protection. The limit would be designed to be more than sufficient to cover likely claims, but if it became apparent that that was no longer the case, the limit would need to be changed.

We expect schemes to act reasonably and to apply to amend the scheme rules if it becomes apparent that their level of cover is no longer sufficient. Any scheme that cannot demonstrate that it has obtained sufficient cover to pay out on all likely claims will not be approved. Allowing both individual and aggregate limits ensures that tenants and landlords have sufficient financial protection, which is the purpose of client money protection, but not in such a way that would have a disproportionate impact on the industry.

Further, for a transitional period of 12 months taking us to 1 April 2020, we are permitting agents to join a scheme if they are making all efforts to apply for a client account but have not yet obtained one. We fully expect all agents to hold their client money in a separate account to ensure that client money is suitably protected. As the Government work with the banking industry, we do not wish to impose unrealistic barriers around a client account that agents are unable to meet by 1 April 2019.

Finally, the duty to enforce the requirement for letting agents to belong to a client money protection scheme is set out in Regulation 5 of the client money protection schemes for property agents regulations. We have therefore clarified in Amendment 32 that the lead enforcement authority set up under the Bill can also enforce the regulations. Amendment 71 is a consequential amendment to the title of the Bill.

Without Amendments 21, 22, 27, 32 and 71, there is a risk that certain scheme providers will be unable to comply with the regulations and therefore leave the market, or that the costs of cover will increase substantially for agents, which could have knock-on consequences for landlords and tenants.

I am proposing these amendments to this Bill to ensure that implementation of mandatory client money protection is not delayed and can be delivered as promised from 1 April 2019. I thank the noble Baroness, Lady Hayter, for giving attention to these matters and raising her concerns.

I also address Amendments 23 to 26, which the noble Baroness tabled. I understand her concern that if notice is served on a scheme without any reasons requiring the scheme to amend its rules within 30 days, the scheme may be unable to comply and feel that it has no other option but to wind up its operation. Clearly such a situation would be in neither the Government’s nor the scheme’s interest.

However, I do not believe that the amendments tabled are necessary and as such do not propose to accept them. Specifically in relation to the timeframe and the giving of reasons, the Government are bound by general public law obligations which include acting transparently and fairly and supplying reasons for decisions. I am happy to reaffirm that. We could not seek arbitrarily to serve notice without having discussed our concerns and options with the scheme. The notice is likely to be the final step in the process, having explored with the scheme what amendments would be required. The 30-day notice period is subject to a different period being set out in the notice and therefore we do not believe that Amendment 26, which amends the timeframe, is necessary.

Nevertheless, as noble Lords will appreciate, the Secretary of State needs to be able to serve a notice to compel schemes to make changes where, for example, there has been a significant change in the size for a scheme. With an increase in the membership base, it might be necessary to increase the cover. It is on that basis that I hope that the noble Baroness will understand that I cannot accept her proposal but, with the reassurances that I have given, I hope that she will not press the matter.

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Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, I thank noble Lords who have participated in the debate on this part of the legislation and turn to the various contributions. I thank the noble Baroness, Lady Hayter, very much for her support, for bringing this forward and for the characteristic grace with which she has dealt with the matter today. Our calculations have been made on the best assessment of the highest probable loss; that should be the basis for deciding cover. We have also taken heed of the fact that, for example, for bank deposits there is a maximum amount currently protected; it would be somewhat perverse if this were a higher amount. Such matters have influenced what we seek to do. It is not the maximum loss; we have taken heed of the highest probable loss, as is the customary arrangement. We also have to take account of what the industry can bear and what is in the interests of all tenants and landlords; that is what has guided us.

On landlords seeking more than one form of cover, I will write to the noble Lords, Lord Flight and Lord Palmer of Childs Hill, so that they get the full picture. With that, I commend the government amendments in this group and reject the others.

Amendment 21 agreed.
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Moved by
22: After Clause 21, insert the following new Clause—
“Client money protection schemes: approval and designation
(1) The Client Money Protection Schemes for Property Agents (Approval and Designation of Schemes) Regulations 2018 (S.I. 2018/751) are amended as follows. (2) In regulation 2 (interpretation), in the definition of “client money”—(a) in paragraph (a), for “agency”, in the second place it occurs, substitute “management”, and(b) at the end of paragraph (b) insert “,but does not include money held in accordance with an authorised tenancy deposit scheme within the meaning of Chapter 4 of Part 6 of the Housing Act 2004 (see section 212 of that Act);”.(3) In regulation 4 (amendments to an approved scheme), after paragraph (3), insert—“(4) This regulation does not apply to an amendment made in accordance with a notice served under regulation 8(1D)(b).”(4) In regulation 5 (conditions which must be satisfied before approval may be given)—(a) in paragraph (1)(a)(iii), for “and without any deduction” substitute “, subject to paragraph (1A)”,(b) in paragraph (1)(c)(i), for “administration of the scheme” substitute “failure of scheme members to account for client money to persons entitled to that money”,(c) after paragraph (1) insert—“(1A) The Secretary of State may determine that the condition in paragraph (1)(a)(iii) is satisfied where the rules of the scheme have the effect that the scheme administrator is required to make good M’s liability—(a) only up to such amount as the Secretary of State considers appropriate,(b) only if or to the extent that M’s liability can be made good without exceeding such aggregate limit on the liability of the scheme as a whole as the Secretary of State considers appropriate, or(c) only if M’s liability arises in relation to a risk that the Secretary of State considers it is appropriate for the scheme to insure against.”, and(d) after paragraph (2) insert—“(2A) The rules of the scheme are to be treated as complying with paragraph (2)(f) if they provide that, until 1 April 2020, they have effect as if they required scheme members to make all reasonable efforts to hold client money in a client money account with a bank or building society authorised by the Financial Conduct Authority.”(5) In regulation 8 (conditions with which scheme administrators must comply)—(a) in paragraph (1), after “practicable” insert “—(a) after that member joins the scheme, and(b) after the scheme rules are amended under paragraph (1D)(a) or in accordance with a notice served under paragraph (1D)(b).”,(b) after paragraph (1) insert—“(1A) Paragraphs (1B) to (1E) apply if the rules of the scheme have the effect of requiring the scheme administrator to make good the liability of a scheme member—(a) only up to a certain amount, (b) only within an aggregate limit on the liability of the scheme as a whole, or(c) only in relation to certain risks.(1B) The certificate provided under paragraph (1) must include—(a) information about the amount referred to in paragraph (1A)(a), (b) information about the limit referred to in paragraph (1A)(b), or(c) details of where to find information about the risks referred to in paragraph (1A)(c),as the case may be.(1C) Paragraphs (1D) and (1E) apply if the Secretary of State considers that—(a) the amount referred to in paragraph (1A)(a) is no longer appropriate,(b) the limit referred to in paragraph (1A)(b) is no longer appropriate,(c) it is no longer appropriate for the rules of the scheme to exclude liability in relation to one or more of the risks referred to in paragraph (1A)(c), or(d) it is appropriate for the rules of the scheme to exclude liability in relation to one or more risks that are not among the risks referred to in paragraph (1A)(c).(1D) The Secretary of State may—(a) where the Secretary of State is the scheme administrator, amend the scheme rules with the effect that the amount, the limit or the risks are replaced with such different amount, limit or risks (as the case may be) as the Secretary of State considers appropriate;(b) in any other case, serve a notice on the scheme administrator requiring that person to amend the scheme rules with the effect that the amount, the limit or the risks are replaced with such different amount, limit or risks (as the case may be) as the Secretary of State considers appropriate.(1E) The scheme administrator must comply with a notice served under paragraph (1D)(b)—(a) within the period of 30 days beginning with the day on which the notice is served, or(b) within such longer period beginning with that day as the Secretary of State may specify in the notice.”,(c) after paragraph (3) insert—“(3A) The scheme administrator must maintain insurance that—(a) covers any foreseeable liability which may arise in connection with the failure of scheme members to account for client money to persons entitled to that money, and(b) is appropriate with regard to the size and number of scheme members and the amount of client money held by scheme members.(3B) Before renewing the scheme’s insurance, the scheme administrator must obtain the approval of the Secretary of State to the type and amount of insurance.(3C) The Secretary of State may approve the renewal of the scheme’s insurance only if the Secretary of State is satisfied that, if the insurance is renewed as proposed, the scheme administrator will continue to comply with paragraph (3A).”,(d) in paragraph (5), at the end of sub-paragraph (a) for “; and” substitute “,(aa) where paragraph (1B) applies— (i) information about the amount referred to in paragraph (1A)(a),(ii) information about the limit referred to in paragraph (1A)(b), or(iii) information about the risks referred to in paragraph (1A)(c),as the case may be, and”, and(e) after paragraph (6) insert— “(7) In this regulation, references to renewing a scheme’s insurance (however expressed) include obtaining new insurance.(8) Paragraphs (2), (3B), (3C) and (4) do not apply where the Secretary of State is the scheme administrator.”(6) The amendments made by this section are without prejudice to any power to make an order or regulations amending or revoking the regulations mentioned in subsection (1).”
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Moved by
27: After Clause 21, insert the following new Clause—
“Client money protection schemes: requirement to belong to a scheme etc
(1) The Client Money Protection Schemes for Property Agents (Requirement to Belong to a Scheme etc.) Regulations 2019 are amended as follows.(2) In regulation 2 (interpretation)—(a) in the definition of “client money”—(i) in paragraph (a), for “agency”, in the second place it occurs, substitute “management”, and(ii) at the end of paragraph (b), for “; and” substitute “,but does not include money held in accordance with an authorised tenancy deposit scheme within the meaning of Chapter 4 of Part 6 of the Housing Act 2004 (see section 212 of that Act);”, and(b) at the end of the definition of “regulated property agent”, insert “;“scheme administrator” has the same meaning as in the scheme approval regulations (see regulation 2 of those regulations); and“scheme approval regulations” means the Client Money Protection Schemes for Property Agents (Approval and Designation of Schemes) Regulations 2018.”(3) In regulation 3 (requirement to belong to a client money protection scheme), omit paragraph (2).(4) In regulation 4 (transparency requirements)—(a) before paragraph (1) insert—“(A1) Paragraph (1) applies if the scheme administrator of an approved or designated client money protection scheme provides a certificate under regulation 8(1) of the scheme approval regulations to a regulated property agent.”, and(b) in paragraph (1)—(i) in the words before sub-paragraph (a), for “A” substitute “The”, and(ii) omit sub-paragraph (a).(5) The amendments made by this section are without prejudice to any power to make an order or regulations amending or revoking the regulations mentioned in subsection (1).”
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Moved by
29: Clause 26, page 17, line 27, at end insert—
““excluded licence” means a licence which is granted to a licensee by a licensor who resides in the housing where—(a) a charity or community interest company gives advice or assistance to the licensee or the licensor in connection with the grant, renewal or continuation of the licence, and(b) the only consideration for the grant, renewal or continuation of the licence is—(i) the provision by the licensee of companionship to the licensor, or such provision together with the provision by the licensee of care or assistance (other than financial assistance) to the licensor, or(ii) provision of the kind referred to in sub-paragraph (i) together with one or more payments in respect of council tax, a utility, a communication service or a television licence;”
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Moved by
32: Clause 27, page 20, line 6, at end insert—
“(6) In regulation 5 of the Client Money Protection Schemes for Property Agents (Requirement to Belong to a Scheme etc.) Regulations 2019 (enforcement)—(a) in paragraph (1) omit “, subject to regulation 8(3)”,(b) after that paragraph insert—“(1A) Paragraph (1) is subject to—(a) regulation 8(3), and(b) section 24 of the Tenant Fees Act 2018.”, and(c) in paragraph (3), after “the Secretary of State” insert “or the lead enforcement authority (if not the Secretary of State)”.(7) The amendments made by subsection (6) are without prejudice to any power to make an order or regulations amending or revoking the regulations mentioned in that subsection.”
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Moved by
33: Clause 28, page 20, line 30, after “tenant” insert “or a relevant person in relation to the tenant”
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Moved by
35: Clause 28, page 20, line 35, leave out “the tenant” and insert “a relevant person”
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Moved by
42: Schedule 1, page 24, line 12, leave out “the amount of six weeks’ rent,” and insert “—
(a) the amount of five weeks’ rent, where the annual rent in respect of the tenancy immediately after its grant, renewal or continuance is less than £50,000, or(b) the amount of six weeks’ rent, where the annual rent in respect of the tenancy immediately after its grant, renewal or continuance is £50,000 or more,”
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Moved by
44: Schedule 1, page 24, line 14, at end insert—
“( ) “five weeks’ rent” means five times one week’s rent,”
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Moved by
50: Schedule 1, page 24, line 31, leave out “A” and insert “Subject to sub-paragraphs (3) to (8), a”
Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, I shall speak also to Amendments 51 and 53 to 57 in my name, and to Amendment 54, which is in my name and that of the noble Baroness, Lady Grender. These relate to payments made in the event of a default under Schedule 1 to the Bill.

As noble Lords will be aware, the Bill permits landlords and agents to charge default fees where a tenant fails to perform an obligation or discharge a liability arising under or in connection with the tenancy. This provision has been subject to much debate and discussion, and I have welcomed noble Lords’ valuable contributions on it—in particular, those from the noble Baroness, Lady Grender, and the noble Lord, Lord Kennedy.

I maintain that we should not seek to remove default fees provision from the Bill entirely and that landlords and agents should be able to recover certain costs sustained during the tenancy where the tenant is at fault. However, I have listened carefully to the representations that have been made and I appreciate the concern that landlords and agents might seek to use the default fees provision as a backdoor to charging tenant fees. This is certainly not something that we want to see happen and, although the Government have already taken considerable steps to minimise abuse, I agree that more can be done.

I believe that there are two main instances where tenants may be required to pay a default fee: if they lose their key or other security device giving access to the housing or if they fail to pay their rent on time. With that in mind, our amendments specify that these are the only circumstances under which a landlord or agent can charge a default fee. Amendment 54 will ensure that landlords and agents cannot write arbitrary default fees into tenancy agreements and makes very clear to tenants, landlords and agents where a default fee can be charged.

Landlords or agents will be able to require a default fee for the late payment of rent where the payment has been outstanding for 14 days or more. Amendment 56 sets out that landlords or agents will be able to charge interest at no more than an annual parentage rate of 3% above the Bank of England’s base rate for each day that the payment is outstanding. Any amount above this will not be permitted; it will be a prohibited payment.

With respect to the charging of a default fee to cover the costs associated with replacing a lost key or other security device, any such charge must not exceed the landlord’s or agent’s reasonable costs incurred and must be evidenced in writing to the person who is liable for the payment. The amount of any payment which exceeds the reasonable costs to the landlord or agent in respect of the default will be a prohibited payment. I believe that the risk of such a list being incomplete is mitigated by the provision in Clause 3 to bring forward amendments to the list of permitted payments through affirmative regulations, should this prove necessary.

I take this opportunity to speak to Amendment 52, tabled by the noble Lord, Lord Kennedy. This amendment seeks to provide that if one tenant loses their key or pays their rent late then other tenants in a joint tenancy cannot be held accountable. I am afraid that I cannot agree to such an amendment. Joint tenants are jointly and severally liable for the rent and for maintaining the property. That is the essence of a joint tenancy. If one joint tenant does not pay the rent, the landlord can seek repayment from all the other tenants. This is what tenants agree when they sign a joint tenancy and Amendment 52 would introduce a significant change as to how joint tenancies work in that regard. It would risk unfairly penalising landlords and unsettling the law in an established area.

With regard to a lost key, tenants will, again, be jointly responsible for the keys in the same way as they are all responsible for any damage to the property. Of course, tenants can make their own arrangements, and I am sure that the person who loses the key will generally be the one who makes any associated payment, but the tenants are all responsible to the landlord for the keys. It would be a significant change to alter this position and one that could be quite hard to enforce if there were disagreements between the tenants about who lost the key.

Finally, it has never been the intention that the Bill should affect a landlord’s or agent’s right to recover damages for breach of contract. Amendment 57 clarifies this position and ensures that such payments will not be outlawed under the ban. I am aware that there has been some concern about this provision and would like to provide reassurances now, as well as explaining why I cannot accept Amendment 58. Given that we are now listing default fees in the Bill, it is important that we include the provision permitting charging for damages. Otherwise it could be interpreted that we are prohibiting contractual damages. This would not be fair and would be a significant and substantial change to existing law.

Amendment 58 has no substantive effect. I believe that the intent of the noble Lord is to ensure that any damages payments are reasonable and evidenced in writing. It is not necessary to provide an amendment to this effect. In general, damages are meant to put the innocent party back in the position they would have been in had the contract not been breached—nothing further. No reasonableness test is therefore needed, nor appropriate. Similarly, to enforce a damages claim landlords or agents are required to go to court or to seek to recover them from the tenancy deposit. In both cases, they need to provide evidence to substantiate any claim. There is already a large amount of case law dealing with what is appropriate in a contractual damages case. I assure noble Lords that the inclusion of the damages provision is not a back door to default charges, as was suggested by the recent Citizens Advice briefing. Its analysis of this situation is inaccurate.

Regardless of whether an amount is specified, Clauses 1(6)(b) and 2(5)(b) prohibit an agent or landlord attempting to insert a clause requiring a payment—for example, saying that if you do X, you must make a payment—except in so far as this is permitted by paragraph 4 of Schedule 1, as amended. Both the examples of types of damages given in the Citizens Advice briefing do this and would therefore be banned under the Tenant Fees Bill. I appreciate the concerns raised by the noble Lord and seek to reassure him about this. I believe we had sought to agree that I could give reassurance on this at Third Reading, but I understand that we have not been able to come to any agreement about not voting. Perhaps the noble Lord will be able to give that reassurance shortly, or am I getting inaccurate information?

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark
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Absolutely inaccurate.

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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Right. Perhaps the noble Lord will be able to cover that.

As I have said, long-standing case law supports the courts not enforcing clauses that have no relation to the loss actually sustained, which in most cases would constitute an unfair contract term under applicable consumer law. The amendment proposed by Citizens Advice in its briefing would have no substantive effect. It is already the case in the Bill as drafted that the relevant person may recover the amount, or part, of damages where a claim for damages has been determined by the court or settled by agreement between the parties.

I believe the amendments in my name will help protect tenants from spurious charges by making it very clear when a default fee can be charged. I also remind noble Lords that we have made a number of significant amendments to respond to all the key concerns raised to date. I believe the amendments proposed in my name provide a fair compromise. I hope noble Lords agree with this, and I know it is in our interests to proceed with this vital legislation. I beg to move.

Baroness Gardner of Parkes Portrait Baroness Gardner of Parkes (Con)
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I apologise to the House; I would have spoken earlier, but it did not seem that Amendment 42 was actually moved. Even now, I think it is appropriate to mention my concern about that. Why cut back to five instead of six weeks? I declare my interest, which is in the register. Many landlords find that, towards the end of a tenancy, the tenant pays nothing and they are well out of pocket—even if they have six weeks’ rent—if the property is damaged, which happens more frequently than one would hope. I cannot see that it is worth making the major differentiation between five and six weeks. I was perfectly happy with six weeks, and I thought it was fair that everyone should be in the same position.

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Baroness Grender Portrait Baroness Grender (LD)
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Perhaps I may ask for clarification: are we now talking about five weeks, or about default?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, it might be helpful to the House if I deal with the rental issue first. If anyone wants to speak on that, I suggest they do so now. I apologise that we glossed over it earlier.

If there are no other points on the rental, I shall deal with the issues raised by my noble friends Lady Gardner of Parkes and Lord Flight, the noble Lord, Lord Shipley, and the noble Earl, Lord Lytton.

On the point that we have moved significantly from six weeks to five weeks, yes, it is a movement, but it is scarcely, as the noble Lord suggests, a fundamental shift. It is not as if we are moving from 10 weeks to one week. Perhaps I may provide some reassurance. All the evidence is that most people currently take deposits of between four or five weeks. It is not therefore massively inconsistent with current practice.

At the top end of the market we are retaining the six-week limit for the most expensive properties where the fittings and fixtures may be more costly. It will remain at six weeks where the annual rental is more than £50,000. I hope that provides some reassurance to those noble Lords who have raised the concern.

These are not issues of principle so much as matters of judgment. It is the judgment of Solomon and there will always be some people who disagree with where we are. However, as I say, we have looked at current practice, listened to what outside organisations have said and on that basis we have fixed it at five weeks for most people, but at the top end of the market we have retained the six weeks.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark
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My Lords, we have jumped around these groups of amendments today. There appears to be an issue with the printing of the Whip’s sheet.

I wish to address my remarks largely to Amendments 50 to 58. Generally, I am happy with what I have heard from the Government today on most amendments, particularly those in this group. The exception is Amendment 57, to which I will address most of my remarks.

Members of this House discuss amendments to Bills all the time, but most are never voted on: they are probing and have been tabled to get answers from the Government. We go backwards and forwards as we seek to improve the legislation. My Amendment 58 is very much in that vein. The Government have put down Amendment 57, which I fully accept deals with damages and makes it clear that if there are any issues, the terms can be clarified in the future. Somehow, damages are being turned into prohibited payments, and I do not want to do that either, so I am with the Government on this issue.

However, on looking at Amendment 57, we were concerned about the heading, “Payment of damages”. We went to the Public Bill Office and talked to colleagues. We are concerned that, as written, it could be deduced—obviously, it is open to argument—that the reasonableness and fairness of such a payment cannot be questioned. It is not so much about going to court, but what happens when people are drawing up agreements and so on. We should remember that we are dealing with tenants and landlords, and the relationship between the two is not always one of equals.

For that reason, I have proposed, as an amendment to Amendment 57, my Amendment 58, which would simply remove the three words of the heading: “Payment of damages”. The provision would be retained but the heading would go. Removing the heading would, in effect, add the provision to the previous group, where a protection is provided: actions have to be reasonable, and reference is made to “evidence”. That is all my amendment is intended to do. I do not know if this is the right way to do it, but it has certainly enabled us to have this discussion today.

I tried to get an assurance from the Government that they would come back at Third Reading and discuss this issue further. It may be that people cleverer than me can come back with a better amendment. All I am trying to do is ensure that tenants are treated fairly and properly. I was happy to come back to this issue at Third Reading, and gave an assurance that we would not vote on it. I have the text message to prove it on my phone; I do not know what else I can say. To then be told that I did not give such an assurance—that is just not the case. I am really upset about this.

All I want to do is get this right. I do not want the Bill to become law and in a year’s time, we find the Government saying, “Oh, we made a mistake. We will change it when parliamentary time allows. We should have this on the rogue landlords’ database. We did not listen to you last time, Lord Kennedy, but of course you are right. When parliamentary time allows, of course we will put it right”. My intention is to get this right today. I have given that commitment and I have the text message, so I cannot see what the problem is in coming back at Third Reading in a few weeks’ time and getting it right. We are not going to vote on it, but I think the position should be clarified.

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By the way, I am utterly convinced that there is no intention here to create a damages loophole that further exploits tenants. The Bill team and the Minister have been working to ensure that the wording is tightened and that there is no loophole. With that in mind, we need an assurance from the Minister by Third Reading about how we will get from here to there, in order to ensure that there is no suggestion that damages can become the new loophole now that default has been tightened up. Our request is simple and straightforward: to have this clarified by Third Reading.
Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, it may be convenient for me to say that I regret any misunderstanding. I too thought that we had an agreement on this matter. Perhaps I may say two things. First, I propose to accept the amendment in the name of the noble Lord, Lord Kennedy. Secondly, I will be very happy to engage in discussions on this issue ahead of Third Reading. As the noble Baroness, Lady Grender, suggested, I am convinced that there is no reason for the noble Lord to be concerned—but I know that he is and so I will be happy to engage in discussion ahead of Third Reading. I hope that that is helpful.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark
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I am absolutely delighted. I thank noble Lords for that. There was obviously some confusion, but I am sure that we can get this sorted out by Third Reading. I thank the Minister very much.

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Moved by
51: Schedule 1, page 24, line 31, after second “a” insert “relevant”
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Moved by
53: Schedule 1, page 24, line 33, after “paragraph” insert ““relevant”
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Moved by
57: Schedule 1, page 25, line 1, at end insert—
“Payment of damages
_ A payment of damages for breach of a tenancy agreement or an agreement between a letting agent and a relevant person is a permitted payment.”
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Moved by
60: Schedule 1, page 26, line 14, leave out “paragraph” and insert “Act”
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Moved by
61: Schedule 2, page 27, line 7, leave out “before the deadline for agreement” and insert “relating to the housing”
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Moved by
71: In the Title, line 6, leave out from “agents” to end of line 6 and insert “; to make provision”

Housing: Accessibility

Lord Bourne of Aberystwyth Excerpts
Tuesday 4th December 2018

(5 years, 5 months ago)

Lords Chamber
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Lord Beecham Portrait Lord Beecham
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To ask Her Majesty’s Government what assessment they have made of objections raised by the Home Builders Federation to proposals from some local authorities to set targets for accessible or adaptable new-build houses.

Lord Bourne of Aberystwyth Portrait The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)
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My Lords, we want to build more accessible homes that meet the needs of older and disabled people. Government policy provides a clear and robust framework to support the delivery of accessible housing. Building regulations already require minimum standards of accessibility for all new dwellings. The Government intend to publish new planning guidance on housing for older and disabled people before Christmas and are scoping a review of the accessibility provisions in the building regulations.

Lord Beecham Portrait Lord Beecham (Lab)
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My Lords, at a time of growing concern about the support required by an increasing number of elderly people as life expectancy grows, the Home Builders Federation is objecting to councils seeking to set new targets to increase the number of homes with room for wheelchair users and that can be adaptable. Given that this is a highly profitable industry where 400,000 permissions to build are as yet unimplemented, what action will the Government take to assist local authorities to ensure, through the planning system, that sufficient housing is provided for people with homes suited to their needs?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, first I pay tribute to the people who yesterday supported the International Day of Persons with Disabilities. Many buildings in both the public and the private sectors were lit up in purple for that purpose. I agree with the general thrust of the noble Lord’s question. As I say, the Government are very clear on this. For the first time in the planning guidance within the NPPF, we have made it a responsibility to take care of the interests of older and disabled people. As I say, planning guidance in support of that will be out before Christmas. We are reviewing Part M of the building regulations, which again is a crucial issue in relation to M4(2). That is also to be published in the new year, I think.

Baroness Thomas of Winchester Portrait Baroness Thomas of Winchester (LD)
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My Lords, I thank the Minister for his meeting last week about this issue, which I know he is trying to resolve. I wonder whether his department could point out to the Home Builders Federation that there is a world of difference between homes adapted for disability and the basic minimum access requirements in Part M4(2) of the building regulations. Apparently some builders say that not everyone wants to live in an adapted home. We simply want the basic minimum standards set out in Part M4(2) made mandatory.

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Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, it was a pleasure to discuss the issue of M4(2) with the noble Baroness and the noble Baroness, Lady Brinton, last week. The Government strongly support the rights of disabled people. This is important and we are behind local authorities which are keen to take this forward. I agree that it is for building companies to respond to that; they have a responsibility. We have an ageing population as well as people with disabilities. It is the mark of a civilised society as well as a point of self-interest, quite honestly, that we should do these things. On both those bases, the Government are solidly behind what the noble Baroness is saying.

Baroness Greengross Portrait Baroness Greengross (CB)
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My Lords, in this country only 0.6% of older people live in a retirement community which provides not just housing but care and support. In many other countries such as New Zealand, Australia and the US, the figure is at least 5%. These facilities provide enhanced health and well-being and better outcomes while emergency visits to A&E, hospital admissions and bed blocking are greatly reduced. Does the Minister agree with the vision of the Associated Retirement Community Operators—I am a patron of that organisation, which will be exhibiting here next week—that by 2030 a quarter of a million people should have that option? It would be of huge benefit to the NHS and would ease the housing shortage in society in general, and particularly that faced by young people.

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, I pay tribute to all the work done by the noble Baroness in this area. We worked together on the Neighbourhood Planning Bill, which was then enacted, and made some important provisions in it about disabled and elderly people which I referred to earlier. She is emphasising the point I made, which is that not only is this the right moral thing to do in a civilised society but it is also very much the right economic thing to do because it will save money for the health service and so on, as well as helping people to live longer in the sort of circumstances that they would want.

Baroness Brinton Portrait Baroness Brinton (LD)
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My Lords, I too thank the Minister for the meeting last week, which was extraordinarily helpful. In addition to stiffening the sinews of the Home Builders Federation, would the Minister write to local councils to point out the data that shows that it costs only just over £1,000 to make a new unit disabled-friendly when building it, whereas later adaptations cost a minimum of £20,000? Councils should therefore insist on access being put in right at the start. That is beneficial to them and to the wider community.

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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I thank the noble Baroness for that suggestion. I will certainly take it back to the Minister so that it can be picked up in the next letter we write to local authority leaders. She and the noble Baroness, Lady Thomas, will be aware that we are ensuring that the voice of Habinteg—an active housing association with a vision on this issue for disabled people—is heard. It is a strong voice on Document M for the advisory committee, which is looking at this issue. I think that the House will find that reassuring.

Local Government

Lord Bourne of Aberystwyth Excerpts
Tuesday 27th November 2018

(5 years, 5 months ago)

Lords Chamber
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Baroness Pinnock Portrait Baroness Pinnock
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To ask Her Majesty’s Government what steps they are taking to ensure that the planned local government fair funding allocation will provide local authorities with the resources needed to provide sufficient and effective local services.

Lord Bourne of Aberystwyth Portrait The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)
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My Lords, I am pleased to say that we are making good progress on the development of a funding formula that aims to provide a simple, transparent and accurate link between local authority relative needs and resources and available funding. The new funding formula will sit alongside the conclusions of the planned spending review, which will settle how much money is available to local authorities.

Baroness Pinnock Portrait Baroness Pinnock (LD)
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I thank the Minister for his response. I hope he is aware—I am sure he is—that the Institute for Fiscal Studies reports that, in the past eight years, real-terms spending on council services has fallen on average by 24% per person and in more deprived communities by up to 35% per person. Simply dividing this shrunken pot in a different way will fail to address the real and serious problem of the underfunding of local services. Will fair funding ensure that the total available is significantly higher than it is now?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, the noble Baroness makes a persuasive point, but as I have just indicated, these are two separate things that are sitting alongside each other. The fair funding formula will be looking at redressing some of the imbalances that exist at the moment in a relative sense, but alongside that of course is the spending review next year, which, hopefully, will be doing some of the things that the noble Baroness and I—and, indeed, many others—would want it to do.

Lord Blunkett Portrait Lord Blunkett (Lab)
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My Lords, as the Minister knows, this is an incredibly complex area in which there is great misunderstanding. I have an enormous amount of time for the Minister. Perhaps he would explain to the House how there is going to be a fair distribution formula when the whole system from 2020 depends on local council tax and revenue raising locally and the distribution of the business rate, which falls where it falls?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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I thank the noble Lord for those comments. The formula that we are looking at is in essence about redistribution. It is in three separate phases. The first is to look at the relative needs of different areas. The consultation on that has concluded and we will be publishing its results when the second phase of the consultation, looking at relative resources, starts in December. The third stage, which will be in late spring or summer next year, will look at allocations and transitional arrangements. The noble Lord is right that the situation has its complexities; there is a simplicity about the aims, but the difficulty will be in their delivery. As I say, though, that sits alongside looking at resources and the spending review that will go alongside it, so those are two separate matters. The business rate retention scheme, at 75%, will also kick in when the fair funding formula comes in, in April 2020.

Lord Porter of Spalding Portrait Lord Porter of Spalding (Con)
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Does the Minister agree that with £15 billion of reductions for local government by 2020, the local government sector has done more than its fair share of ensuring that the burden that the country has carried since the previous Government were in power has been met, that that equates to 60p in the pound in central government funding and that a fair funding review must make sure that no council is worse off than it currently is?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My noble friend always, understandably, makes a powerful case for local authorities. He will be aware that in the Budget we added money for adult and children’s social care. As I said, the fair funding formula is not about adding to the pot—that will, I hope, be done in the spending review next year.

Baroness Thornhill Portrait Baroness Thornhill (LD)
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My Lords, we are all aware that many councils, in particular county councils, are facing serious financial problems. Within the UK, we now have devolved Administrations, combined authorities, metro mayors and city deals, all with varying tax-raising powers offering different degrees of fiscal autonomy. Does the Minister agree that the two-tier system is now the Cinderella of local government, and is it not time for the Government seriously to consider offering all councils similar powers before it is too late?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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Where I agree with the noble Baroness is that the system is already quite complex. Although she referred to the devolved Administrations, these particular issues will not affect Wales or Scotland—not directly anyway—nor, indeed, Northern Ireland; they are just about England. She has a point about the need for simplicity, and that runs through the review. It is aiming to be simple and transparent. That is why we are taking our time on it and why we are doing it in this way. As I said, noble Lords and others will see the results of the first stage of that consultation when we publish it next month.

Baroness Smith of Basildon Portrait Baroness Smith of Basildon (Lab)
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My Lords, does the Minister recognise the fundamental flaw in his argument? He says that the fair funding review will not bring any new funds and he could not assure the noble Lord, Lord Porter, that no council would lose money. If some will get increased funding and there is no new money in the pot, others will lose money. Local authorities have had a £16 billion cut in their funding, while costs have risen. How much longer can the Government keep shoving costs and responsibilities on to local authorities while not paying for them?

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Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, as always, the noble Baroness makes a powerful point, but it is not a point on the Question. The Question is about the fair funding formula, which is about relativity, not increased spending. That is the point I was keen to make. There are issues about increased spending, but not from the fair funding formula; they are for the spending review. I also pointed out that in the Budget there were increases in spending for local authorities on adult and children’s social care. That is a fact and there is no denying it.

Viscount Hailsham Portrait Viscount Hailsham (Con)
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My Lords, I make the case on behalf of sparsely populated rural counties, such as Lincolnshire. The truth is that rural counties have never been fully funded because the sparsity factor has not fully been taken into account.

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, my noble friend makes a powerful point for an area that he knows well. Sparsity and population density are very much centre stage in the fair funding review and will be taken full account of.

Baroness Walmsley Portrait Baroness Walmsley (LD)
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My Lords, an important public service that has been and continues to be cut is public health. Directors of public health tell me that they can spend money extremely cost-effectively. Are the Government doing any research into the public health interventions carried out by local authorities, to let everybody know what works?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, I can give the noble Baroness the assurance that the public health grant is to be incorporated into local spending by virtue of business rate retention. We are proceeding rather slowly on this because we are keen to ensure that the assurance arrangements are fully recognised to cover the points she makes.

Kindertransport Commemoration

Lord Bourne of Aberystwyth Excerpts
Monday 26th November 2018

(5 years, 5 months ago)

Lords Chamber
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Lord Bourne of Aberystwyth Portrait The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)
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My Lords, I am pleased to respond to this debate. I thank the noble Lord, Lord Dubs, for securing it, for all the work that he has done in this important area over the years and for being such an outstanding example of the Kinder—which helps ensure that people take this issue seriously, as of course they should and must.

As noble Lords have indicated, this is part of a much broader issue. The commemoration of Kristallnacht and Kindertransport 80 years on is crucially important, but it is part of a much broader and ever more challenging problem, not just for the United Kingdom but for the world, in terms of the displacement of people. I fear we are going to see this on an increasing scale, not just because of war but also because of famine and problems associated with climate change. Despite the hallmark conference in Paris at the end of 2015, this is going to remain a massive and increasing challenge because of some countries failing to meet the expectations and the promises that were made then. That is the point I would start by making. And, since the awful events of the Holocaust and the Second World War, genocides around the world have not stopped; far from it.

Yesterday I had the privilege of opening the new Bosnian community centre in Birmingham. Bosnian British people were there from around the country. This country has a proud record of having taken 10,000 Bosnian Muslim refugees, many of whom faced issues very similar to those that were confronting people in Nazi Germany, so I was particularly keen to be there. Those people, as has been rightly said of other people who have settled in this country, were incredibly proud of Britain and their part in Britain, and regard it quite rightly as their home.

I am also, before Christmas, visiting the National Holocaust Centre and Museum in Newark, where I am particularly keen to see the Ruth David photographic collection. Ruth came across on the Kindertransport, so both of those visits tie in with what we have been looking at today.

Other noble Lords have mentioned things specifically related to the 80th anniversary of Kristallnacht and the Kindertransport; the meeting at the Friends’ meeting house for instance. I had the great privilege—my noble friend Lord Shinkwin was also there—of being at the St John’s Wood synagogue when the great musician Friederike Fechner was playing; there I had the opportunity, as I was sitting next to her, of discussing this issue with Dame Esther Rantzen, who has been mentioned already. I think we should mark the massive work that she has done and continues to do in this area: an outstanding contribution.

It is also important to mention our own UK Holocaust Memorial and Learning Centre, which I know noble Lords are committed to, which will be going up next to Parliament. Work continues on that project, led by Ed Balls and my noble friend Lord Pickles. We are now at the stage of talking about the content there, which will obviously be focusing on the Holocaust but also on subsequent genocides that have occurred in the world, so it will be a very important centre for education and for people to visit next to the seat of our democracy.

I will now say something about the important issues that were raised in relation to ongoing settlement here for refugees, and try to provide some of the information that was sought. In so far as I cannot do so now, I will ensure that that information is forthcoming—in relation particularly to the numbers of people who are here and so on—but let me see what I can do in relation to the figures. These are the latest figures I have, which are as at June this year. In relation to the Middle East and north Africa vulnerable children resettlement scheme, 883 have settled out of the 3,000 commitment. The MENA scheme is just children; the Syrian scheme is broader. Again as of June, for the Syrian scheme 12,851 have been resettled and the commitment is for 20,000 to be settled by 2020, so we believe we are on target. Those are the latest figures I have.

The noble Lord, Lord Judd, asked about families. I have been told by officials—I will confirm this in a letter—that both schemes are open to family members so that they can be with the children. Clearly, the Syrian scheme would be so because it is not limited to children but I will confirm this in relation to the other scheme to ensure that we are right.

The noble Lord, Lord Dubs, asked about the position in Northern Ireland. I am told that the scheme is being operated there in the absence of the Executive. Again, I will confirm that, but that is the advice I have been given. My noble friend Lord Polak talked about the importance of remembering the acts of kindness and bravery exhibited, as well as ensuring that they are carried forward. I quite agree.

I know that this subject is close to the heart of the noble Lord, Lord Roberts of Llandudno—perhaps more than any other. He spoke with great authority on the global challenges we face. That leads us to reflect on the importance of the global leadership of other countries, not just on this issue but on issues that have an impact on this, such as climate change. I very much agree with him.

The right reverend Prelate the Bishop of Durham spoke about the importance of individuals as well as Governments contributing to this area. He spoke about Clement Attlee, quite rightly. I thank him and, through him, many other faith institutions for their sponsorship of individuals coming to this country as refugees. Those numbers are added to the overall numbers; they are not taken out of them, as it were. They are in addition to the numbers provided.

Lord Bishop of Durham Portrait The Lord Bishop of Durham
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Forgive me, but can the Minister check his previous answer? The last conversation I had was that these numbers are included in, not additional to, the overall number.

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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I am grateful to the right reverend Prelate. That is not the information that I have, but I will certainly check that point.

We are working closely with Canada, which has provided strong leadership in these areas through not just faith organisations but higher education institutions, such as universities.

My noble friend Lord Shinkwin spoke about his personal interest in his very moving speech about the importance of continuing commitment. I quite agree with him.

The noble Baroness, Lady Henig, treated us to some personal, moving reminiscences about her position and that of her family. She said, quite rightly, that this cannot be solved through private action alone. I think she would accept that private action is important, but so is governmental action; I accept that. I will seek, perhaps in a letter, to say where we are precisely on the numbers and how we expect to meet targets on the other numbers.

The noble Lord, Lord Alton, raised several issues. I want to take up the particular point about Asia Bibi; clearly, that case is of great importance. I will tread carefully because I am not quite sure where we are on that, but I know that our chief concern is that she and those close to her are protected. If I may, I will cover where we are on that issue and what we will seek to do in a letter.

My noble friend Lord Popat has led similar debates in the past and speaks with great personal integrity and compassion. He has contributed massively to society and sets an excellent example. I thank him very much for his intervention. I also thank the noble Lord, Lord Dykes, who spoke about his partnership with my noble friend in Harrow East. They both have strong connections there. I thank the noble Lord for his kind words, especially those about Ted Heath’s Government, who did so much for the resettlement of Ugandan Asians.

Looking back, we are always proud of what we did but perhaps feel that we should have done more. We should always ask the question: could we have done more? Almost inevitably the answer will be yes. Obviously this is well beyond my pay grade and not in the department that I sit in, but I will ensure that the Home Office is made aware of the sentiments here and ask it about not just the numbers, although they are clearly important, but the position of the people living here to make sure that they are properly looked after and that we do what we should do. Those points were made by the noble Lord, Lord Alton, and in particular by the noble Lord, Lord Beecham.

Through the noble Lord, Lord Beecham, I thank local authorities for what they do. I have certainly seen Syrian families in Newcastle, and in Taunton, Hereford and Southampton. A very good job is done by local authorities. As I said, that does not mean that we cannot do more not just in numbers, although they are important, but in ensuring that the people who are here receive proper care and attention. In short, there is a very local aspect to this in local authorities that works well in general. There is a responsibility on Governments and on individuals, and there is a global position that should worry us very much, in the context not just of some of the challenges but of some of the leadership, in particular the lack of leadership.

Lord Alton of Liverpool Portrait Lord Alton of Liverpool
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The Minister makes a very important point about the lack of global leadership. Given that we all want these problems tackled at the root so that there are not refugees in the first place, will he go back to some of the other departments he mentioned to see whether there could be some sort of round-table discussion involving people such as the noble Lord, Lord Dubs, and others who have participated, so that we could do more and be rather more effective than we have been thus far? Could he also undertake to write to me on the specific point I raised about the detention centres in Libya and the allegations made by Safe Passage that children in those centres have been tortured?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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I certainly will. I thank the noble Lord for reminding me of that point. Perhaps he and I could have a word about that. If he could supply me with some information I will make sure it gets to the right Minister so that we can get an answer on it. His broader point about a round table is a good suggestion. I will see whether we can organise something on that basis to look at how we can co-ordinate things, not just in our country. I am conscious that when we had the Climate Change Conference in 2015 the world came together to agree something. If it is possible on climate change, given the very different interests around the world and the very different impact it would have on different countries, you would think that it would be possible for the world to come together on so many other areas. That is something that this round table could look at. I will certainly see what I can do, perhaps working through the noble Lords, Lord Alton and Lord Dubs.

I thank noble Lords for a very moving debate that has looked at many issues, all of them very important. I undertake to come back to them on the issues raised.

House adjourned at 7.08 pm.

Homes (Fitness for Human Habitation) Bill

Lord Bourne of Aberystwyth Excerpts
Lord Bourne of Aberystwyth Portrait The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)
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My Lords, I thank all noble Lords who have taken part in the debate. I am not at all surprised that the noble Lord opposite will not table any amendments because I know how responsible he is. I am grateful to him, as I am sure other noble Lords are. This Second Reading has been a debate of great content. Some very interesting and important points have been made, to which I will do my best to respond. In so far as I cannot do so from the Dispatch Box, I undertake to write to noble Lords and place a copy in the Library.

In particular, I thank the noble Lord, Lord Best. I agree very much with the points made by the noble Lord, Lord Carlile, about the quality of the sponsorship of the Bills we have seen in the House today. We could not have a better pilot than the noble Lord, Lord Best; I thank him for his hard work on such a great cause. As other noble Lords have done, I also thank the honourable Member for Westminster North for introducing her Bill. I acknowledge her hard work in the other place; she has shown considerable determination in taking it through successfully. I am delighted that the Bill has received such widespread support across this House and in the other place.

The noble Lord, Lord Best, has given us an effective overview of the Bill and why it is needed, and I echo that. It is an important Bill and we heard from many noble Lords in this debate about the fact that 20% of the housing in this country is in need of urgent attention. That underlines the importance of having this Bill. We heard that from the noble Lord, Lord Best, and my noble friend Lord Horam. The noble Baroness, Lady Grender, also echoed that point.

This fairly short Bill builds on work we have been doing to improve housing conditions and tackle rogue landlords. I must say that, although I am as guilty of using it as anyone else, I wish we could get away from the phrase “rogue landlords” because it tends to make them sound a little too cuddly for my liking. “Bastard landlords” or something stronger would probably be more appropriate because they are far from being cuddly. I shall try to deal with the situations raised by noble Lords, particularly by the noble Baroness, Lady Grender, and the noble Lords, Lord Tope and Lord Shipley. All three asked about electrical checks, as did the noble Lord, Lord Kennedy.

Since 2015, we have moved on the requirement to install a smoke detector on every floor in properties and carbon monoxide detectors where the heating system uses solid fuels. We have taken tough action in the private rented sector on civil penalties for recalcitrant landlords who need action to be taken against them, which can go up to £30,000. It is worth noting that those civil penalties can be retained by local authorities, which helps them with housing enforcement. We have seen Salford City Council use those powers recently against one landlord, issuing three civil penalties for the flouting of three separate legal responsibilities and fines coming up to £55,000. As I say, local authorities keep the proceeds of those civil penalties.

Local authorities have the power to issue banning orders for landlords and add to them to the database. As noble Lords will know, we propose that the database should now become public, but I am afraid to say that that will happen when parliamentary time allows. I know that is a standard phrase which is trotted out. This issue does need legislative action, but we are dependent on the business managers finding time for that. As far as the department is concerned, this is certainly a high priority.

Private tenants can now apply to get up to 12 months’ rent back if the landlord has not dealt with health and safety hazards and the local authority has taken enforcement action through rent repayment orders under the Housing and Planning Act 2016. We have extended property licensing so that more homes in multiple occupation now need a licence and we are going out to consultation, or perhaps review, on the issue of selective licensing. We will report on that in the spring. We have also announced that we will carry out a comprehensive review of the housing health and safety rating system. The noble Lord, Lord Best, rightly stated that if that is extended, it will automatically come within the compass of this legislation. We also plan to require all landlords to belong to a mandatory redress scheme, which I think is known and understood, and we are proceeding, as noble Lords have made clear, with the Tenant Fees Bill, which will reach its Report stage in your Lordships’ House the week after next. Subject to this Bill receiving Royal Assent, we will produce guidance for tenants, as has been suggested. I have covered that in a letter which has been sent round. In response to the question put to me by the noble Lord, Lord Tope, I intend that to include points on electrical safety. That was a point well made.

I will try to pick up the points made during the course of the debate, but if I do not address them all I will seek to cover them in a letter to noble Lords. On security of tenure, as is, I think, widely known, the department is considering the position on three-year tenancies and will respond to this issue in the new year, so an announcement will be forthcoming early in the new year on this point.

I was asked some specific questions relating to electrical safety standards. We put a question on the private and social rented sectors having the same requirements in the social housing Green Paper. I think the intention is that they should be dealt with in the same way. I cannot see any reason why they should not be. If I am wrong on that and there is a reason I will cover that in the letter, but it is not apparent to me. We will issue a letter announcing our intentions on this area before Christmas, so I hope noble Lords will bear with us on that.

I thank the right reverend Prelate for the points he made, together with perhaps an anticipatory mea culpa in case there was an issue for the Church, but I am sure it is following good practice in this area. He made a point about legal aid, as did other noble Lords. I am always grateful when noble Lords exaggerate my powers, but as I am sure can be anticipated, this is not an area where I can opine from the Dispatch Box. I will endeavour to cover the point and, as was rightly said, there is a review in this area. I hope noble Lords will understand when I say that I will cover that in the letter, but I cannot give a definitive statement of where we are on that issue.

I move on to points raised by the noble Lord, Lord Carlile. I agree with him on the importance of design. The design of buildings generally, not just for residences, has been a particular interest of mine. I also agree that modernist future design is important. In the National Planning Policy Framework we have, I think for the first time, a requirement to consider good design. It does not specifically mention modern design, but it certainly does not exclude it. Modern methods of construction and self-build will lend themselves particularly to more modern design. I know that the Secretary of State is committed to good design, but that does not exclude modern design. I will make sure that the points made in the debate are brought forward to my right honourable friend the Secretary of State. I agree with the point made by the noble Lords, Lord Carlile and Lord Tope, that sometimes in an area where you might expect good housing—university towns would certainly be part of that—something that looks like good housing from the outside looks very different once behind the door. That is something we need to bear in mind.

We talked generally and correctly about the impact that poor quality and non-decent housing has on individuals but, as was said in the debate, it also has economic effects in terms of pressures on the health service, and I am sure it has an effect on kids’ education if they are off school and so on. It certainly has dreadful social effects as well. The points are well made, hence the importance of doing what we are doing.

I thank my noble friend Lady Gardner of Parkes for bringing forward points about the ombudsman and a housing court, which she touched on, which are still very much on the agenda. As my noble friend mentioned, the noble Lord, Lord Best, is central to the issue of the ombudsman. We are looking at that ombudsman service and the housing court issue and will be responding on that, I think, in the new year as well. I will cover that in the letter.

On holiday lets, which my noble friend mentioned, there is a special power for London in that there is a restriction of 90 days for the Airbnb-type let in London, as in other capital cities and tourist destinations around the world, such as Venice. There is a 90 days’ accommodation limit. My noble friend will know that the UK Short Term Accommodation Association is doing effective work to try to make sure that that is enforced in London. There is a separate issue with landlords enforcing the provision in their leases. I know from speaking with my noble friend yesterday that that can be a particular problem and is a particular problem for her. I have great sympathy with that issue. I will write to her on that point to see if there is anything specific we can do, but I thank her for bringing those points up.

I thank the noble Lord, Lord Shipley, for his contribution and support. He mentioned again the electrical issues and their importance in the context of Grenfell. We do not know with certainty about the cause of the fire—at least in a legal sense—because we have not had the criminal proceedings or the result of the inquiry, but he is right about the importance of this in general terms, so I appreciate the points he is making.

I will write on the retaliatory eviction point. Certainly, there is protection where there has been an inspection of the premises by the local authority and it has confirmed that there is a legitimate complaint on the part of the tenant, but I will write more widely to cover how that is dealt with elsewhere.

I thank the noble Lord, Lord Kennedy, once again for his support. I am very happy to discuss with him the point on compensation for loss. I can see why he thinks that is inconsistent, but I do not think it is. Our point here on compensation in relation to tenant fees is that it is legitimate for there to be a fine, where appropriate, of the landlord and for a return of the money, and compensation if there has been a loss, for example, if somebody has suffered illness and they can demonstrate that, which is what we are talking about here. Compensation for a loss is a bit different—I think the noble Lord is talking about exemplary damages. The noble Lord, Lord Carlile, will know the precise legal word.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark
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We will come back to this on the Tenant Fees Bill. I thought compensation was for when you suffer some loss or injury and if you had money taken off you inappropriately for a prohibited payment. Why cannot there be compensation for that? We will come back to this on the Tenant Fees Bill, but I think it is for any sort of loss, potentially. The noble Lord, Lord Carlile, may want to intervene.

Lord Carlile of Berriew Portrait Lord Carlile of Berriew
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If it helps the Minister, I did not immediately realise he was talking about exemplary damages because they are given in very restricted circumstances. It is pretty unlikely that they ever will be given in an ordinary landlord and tenant case.

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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I totally agree. We will perhaps come back to this but we are not debating it in this Bill.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark
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I am certainly not talking about exemplary damages, but what if a landlord has been prosecuted and has to pay some compensation? Those are not exemplary damages.

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Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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Without conflating the two, it begins to sound like exemplary damages to me, but we will come back to that.

I am very grateful for the support this Bill has received and the Government are very strongly in support. I thank noble Lords who participated in the debate, particularly the noble Lord, Lord Best, for all the work he has done and no doubt will continue to do in piloting this Bill forward.

Women’s Refuges: Funding

Lord Bourne of Aberystwyth Excerpts
Wednesday 21st November 2018

(5 years, 5 months ago)

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Baroness Nye Portrait Baroness Nye (Lab)
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My Lords, on behalf of my noble friend Lady Donaghy, and with her permission, I beg leave to ask the Question standing in her name on the Order Paper.

Lord Bourne of Aberystwyth Portrait The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)
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My Lords, since 2014 the Government have invested £33.5 million in domestic abuse services. On 10 November we announced a further £22 million for 2018-20. My department is also conducting a review of how domestic abuse services are locally commissioned and funded across England. We are working closely with domestic abuse key partners to develop future sustainable delivery options for domestic abuse services, including refuges.

Baroness Nye Portrait Baroness Nye
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I thank the Minister for that Answer, but he will know that applications by cash-strapped local authorities far exceeded the money available, which is simply not enough to deliver what the Government have promised, especially in the light of the forthcoming domestic violence and abuse Bill. This also creates a cliff edge in 2020, which threatens the sustainability of services. Will he support calls by Women’s Aid, the House of Commons Select Committee, the Home Affairs Select Committee, and others, to make refuge provision a statutory obligation, backed by national ring-fenced funding, and to make long-term sustainable funding a priority in the forthcoming spending review?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, it is worth noting that the recent announcement I referred to funded 63 projects around the country, involving 254 local authorities, and has provided not just security for the 25,000 existing beds but an additional 2,200 bed spaces. The noble Baroness is right about the challenges. That is why I referred to the ongoing review of how we fund these services across England. She is also right about the importance of the domestic abuse Bill, which my right honourable friend the Prime Minister referred to in Prime Minister’s Questions today, pledging that it would be brought forward in this Session.

Baroness Burt of Solihull Portrait Baroness Burt of Solihull (LD)
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My Lords, across the United Kingdom support for refuges is funded in numerous complex and insecure ways. It is a postcode lottery, and refuges are spending an inordinate amount of time bidding for money to keep going, instead of caring for the traumatised women and children who they have been able to admit. In 2016-17, 60% had to be turned away. Will the Government commit to work with Women’s Aid and other organisations to create a new model of sustainable funding for a national network of specialist women’s refuges?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, first, we do, of course, work with Women’s Aid, which is a key partner. It welcomed—with reservations, to be fair—the recent announcement of the 63 projects that I have referred to. We also work with other organisations in the sector—Refuge, SafeLives and Imkaan, for example. I again refer to the ongoing review, which is important—but as things stand we fund quite a range of different ways of providing refuges: it is not one size fits all. This is ongoing work, and that important review is forthcoming.

Baroness Butler-Sloss Portrait Baroness Butler-Sloss (CB)
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My Lords, I declare my interest as set out in the register. May I remind the Minister of the importance of looking after a particular group, the victims of forced marriage, many of whom are under 18 and need rather more specialist care than many refuges can give them?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, the noble and learned Baroness is right about the complex needs of victims of forced marriage. They are catered for in those 63 projects, as are other groups with complex needs. The noble and learned Baroness is absolutely right.

Baroness Barran Portrait Baroness Barran (Con)
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My Lords, can my noble friend confirm that any plans to fund accommodation-based services will focus not only on emergency provision, such as in a refuge, but on move-on accommodation? There are too many women, particularly in London, who cannot move on from a refuge because of a lack of move-on accommodation, and therefore women who need refuge urgently cannot access it.

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, my noble friend, who has done much work in this area, particularly with SafeLives, is right about the importance of the range of different ways, which I just referred to, of providing refuge services. She is right about the particular needs that need to be catered for, and we have sought to do that in the current funding round. For example, we are funding a three-borough initiative—Westminster, Kensington and Chelsea, and Hammersmith and Fulham—which is providing a range of different ways of providing protection for victims of domestic abuse. My noble friend is absolutely right.

Baroness Afshar Portrait Baroness Afshar (CB)
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My Lords, what specific measures are the Government taking in regard to Muslim women? I declare my interest as the honorary president of Muslim Women’s Network UK. Not only do they have to be protected from violence; they need specific arrangements and specific spaces which they consider clean for praying, as well as protection from the men in their own families. What arrangements are made for them?

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Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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The noble Baroness is right about the particular needs of that community, which she has just outlined. It was a group specifically identified in the bids that we have just been honouring in the 63 projects. I will write to her on the specifics of that, but the BME and the Muslim communities were identified as being in particular need in those bids.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark (Lab Co-op)
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My Lords, I refer to my relevant interest as a vice-president of the LGA. Since 2010, specialist refuges have been cut by one-fifth. As the noble Baroness, Lady Burt, said, 60% of referrals to refuges by Women’s Aid are refused due to lack of bed space. That means that 90 women and their dependent children are turned away every day. Is the Minister saying that the money he referred to in his earlier answer will replace those cuts? If not, why are the Government not doing more?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, I said that there is work still to be done—I think I used those very words. Part of that is, of course, the funding review that is going on at the moment. I also said that an additional 2,200 bed spaces have been created and there have been some specific projects. The noble Lord mentioned women turned away. There is a No Woman Turned Away project which ensures that people have caseworker support. There is still more to be done—I would not argue with that point—but progress has been made on these projects, and progress will be made with the funding review.

Citizenship and Civic Engagement (Select Committee Report)

Lord Bourne of Aberystwyth Excerpts
Monday 19th November 2018

(5 years, 5 months ago)

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Lord Bourne of Aberystwyth Portrait The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)
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My Lords, I thank everybody who has participated in a debate of exceptional quality, touching on some very important issues. I echo what has been said about the excellent work of what is clearly a turbocharged committee, so well led by my noble friend Lord Hodgson. I thank others for their thanks around the House: it was clearly an exemplary committee in the work that has been done. I also offer my thanks, in opening, for the massive amount of work that has been done by the noble Lord, Lord Blunkett, on the National Citizen Service: he is coming to the end of a very distinguished tenure there. I also offer congratulations to the noble Lord, Lord McNicol, on taking up work at the National Citizen Service Trust, the successor body.

It struck me, listening to the debate, that one of the problems—for the large part understated—that we have in this area, a problem that has bedevilled successive Governments, is the silo thinking that we have in government departments. This contributes to a sense that there is no obvious responsibility for the conglomeration of policy areas that this involves. I note the recommendation made by the committee, a recommendation that has been picked up and is being acted on by the safe and integrated communities committee, which will take up responsibility in this area—indeed, it has just done so at its most recent meeting. I hope that that will help with some of the very serious issues that have been touched upon in this debate.

In preparing for this debate, because of what I just said about silo areas, I prepared a lot of varied areas and I will set out four or five of them that I think dominated the debate. They are values, citizenship education, citizenship itself and the fees that attach to it, and English language teaching. Other points were made along the way but I think that those were the dominant ones and I will try to deal with them. In so far as I miss any points relating to those four areas, or anything else that was brought up—for example, the noble Lord, Lord Hylton, raised the issue of honours, and I will try to cover that as I go along—I will pick them up later, if I may.

The issue of values is obviously fundamental to the matter of citizenship of our country. Let me say, in parenthesis, that there was perhaps a misconception on the part of some noble Lords: we have not yet issued our response to the Green Paper on integration. The integration action plan will come out before Christmas. Obviously, some matters that were raised in the course of this debate will be dealt with there, not least on the subject of values. I remember when the most reverend Primate the Archbishop of Canterbury, in a debate that he led some two years ago, used the term “British values”—I do not think he necessarily used the word “fundamental”, I cannot remember that. Those British values could be classified as core values or international values and they encompass a whole range of different aspects, I readily accept.

The noble Lord, Lord Judd, in talking about Gareth Southgate, mentioned an emotional intelligence that is relevant here. The noble and right reverend Lord, Lord Harries of Pentregarth, talked about international values. The noble Lord, Lord Russell of Liverpool, in what I thought was an extremely helpful contribution, talked about the independence of the judiciary. I could not agree with him more about how fundamental that is as part of the separation of powers in this country. A country that does not have a free judiciary—we can all think of some—ceases to operate as an effective democracy in the way that Britain does. In those haunting words:

“The whisper wakes, the shudder plays/Across the reeds at Runnymede”

whenever the independence of that judiciary is challenged.

Other people raised other aspects. My noble friend Lady Stowell talked about the importance of individuals, as did the noble Baroness, Lady Royall, who said that it was not just about setting public policy. The noble Lord, Lord Greaves, talked about civic duty and the neighbourhood planning policy as an example of that. I agree. The noble Baroness, Lady Lister, talked about the outward-looking importance of this area. My noble friend Lady Eaton talked about integration rather than assimilation. All these things are relevant and I wholly accept that the use of language is key. That will be reflected in our action plan when it comes out before Christmas.

The second aspect of the debate was the importance of citizenship education and the citizen service—the two melding together to some extent. I wholly agree. I think a country that neglects the importance of citizenship is in grave danger. I particularly appreciated the points made by two very distinguished former Education Secretaries—the noble Lord, Lord Blunkett, and the noble Baroness, Lady Morris—which went to the core of this. The noble Lord, Lord Wallace, talked about the National Citizen Service as a backdrop to how important it is that everybody has that sense of belonging. I forget who it was—I think it was the noble Lord, Lord McNicol—who mentioned that important sense of belonging as a nation. I think it goes to the heart of that.

Much is happening in the National Citizen Service to illustrate the importance of this. On Armistice Day—the commemoration of 100 years since the end of the First World War, just a week ago—it was great to see the 100 National Citizen Service graduates who were there as volunteers. There is no better example of how effective this is as part of our cohesion as a society. Last year, a significant number of volunteers went overseas to mark the centenary of the Third Battle of Ypres.

My noble friend Lord Norton asked some specific, detailed—and fair—questions about citizenship education, which I will write to him about. It was perhaps the noble Lord, Lord Alton—it might not have been—who said that no man is an island, in his very moving speech, and how important that is. My noble friend Lady Eaton talked about civics being taught at school. I do not think I was actually taught civics but it was much the same thing. I remember as a nerdy teenager memorising all the Labour Ministers—in and out of the Cabinet—and the Conservative shadows, which enabled me to be part of the winning team at the Braintree Carnival quiz. It is funny how these things stick. I seem to remember that Tom Urwin was one of those Ministers—that has been corroborated by my noble friend Lord Young. That is a small example but it illustrates how cohesive communities are around this shared interest in citizenship.

Much is happening. Just recently the King’s Leadership Academy in Warrington has done significant things on citizenship education. But I accept that it all needs to be pulled together. That is what we need to look at and perhaps what this committee should turn its attention to now that it has this responsibility.

The noble Baroness, Lady Royall, talked about the importance of moving this forward. In two days’ time, my honourable friend Victoria Atkins, the Equalities Minister, will launch a resource pack in relation to citizenship on the suffrage movement as part of national curriculum key stages 3 and 4. As I say, things are happening, but perhaps they need to be pulled together.

The issue of citizenship fees was brought up. I will have to write to people about the specifics on where there are exemptions. There certainly are some; I know that some exemptions arose recently in relation to the Windrush issues, to see where payments have to be made and where they do not. I merely say that a balance has to be struck. I think it is reasonable enough to cover costs, and it may be that these could be calculated in different ways, but I take seriously some of the points raised in the debate. If people could bear with me, I will follow those up because it seems that there is an issue to be addressed there.

Perhaps I may move to the fourth substantive area: English language tuition. I am visiting an ESOL class tomorrow in Tower Hamlets. It is a coincidence, believe me; this has been long in the diary. Those I have seen elsewhere—in Bradford, Peterborough, Whitechapel and Westminster, at least—have been uniformly excellent. There was some criticism of them, perhaps a blanket criticism from the noble Lord, Lord Greaves, who was uncharacteristically somewhat unfair. We are at pains to make sure that we are getting the best value for money. It is done without fear or favour between public and private providers. Those that we use, and we use many from both areas, are extremely good. I am sure that the noble Lord would agree that getting the best value for money is the right way. I have worked on this with, for example, the noble Lord, Lord Knight of Weymouth, who has some expertise in this area. Points were raised about the importance of this by my noble friend Lady Eaton and the noble Lords, Lord Hodgson and Lord Alton. The noble Lord, Lord Judd, again made a powerful contribution on that matter.

Baroness Lister of Burtersett Portrait Baroness Lister of Burtersett
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A number of noble Lords made the point that one of our key recommendations was that the Government should restore the level of funding for ESOL to its original level, otherwise it is just warm words. Can the Minister perhaps address that recommendation?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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That is not the only pot used in relation to English-language funding. In my own department, for example, as part of the integration policy we are putting in substantial sums in relation to the teaching of the English language and working with the Department for Education. If I may, I will write to the noble Baroness with more detail but I simply say that it is not just about the one pot. It is about working together to ensure that we get the best value for money.

I turn to the point made by the noble Lord, Lord Hylton, about honours for volunteering. I think he was tying that to some reduction in the fee for further or higher education. His essential point was that volunteers would get credits which they could then use for some abatement of fees, or something of that nature. On the surface, it seems a very constructive suggestion which I would like to look at. At the moment, as he would know, we reward—if reward is the right word—or honour people through the “Points of Light” programme for outstanding volunteering, which has an award every day. However, I appreciate his point in tying that to education and I will come back to him on that, if I may.

The noble Lord, Lord Beecham, raised a point about the voting age. He will perhaps know from the nature of the committee’s recommendation that the view he holds is not universal. But certainly some people hold it and, regardless of where the voting age should be, I think we would all agree that it is desirable to encourage democratic participation even before people are voting. A fair point was made there.

I think those were the main points. I fully accept that there are some issues to be looked at. As I say, this is work in progress so I would not want people to think that the Government regard it as a done deal. I am certainly not complacent. I fully accept that there is much work to be done—a substantial amount.

Lord Norton of Louth Portrait Lord Norton of Louth
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Before my noble friend finishes, I may have missed something but could he tell us what the Government are going to do as a result of this committee’s report that is different from what they did before?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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The first thing we are doing is pulling it together to have ultimate responsibility resting with a designated committee. As a result, my noble friend can expect more to happen. I pointed out that I regarded silo thinking as one of the very serious issues that we seek to address along with the fact that each government department may be left to get on with it on its own, rather than coming together in a concerted way. I hope that that will make a substantial difference. I am not claiming that it will happen overnight or that my noble friend will see a change by the end of the year, for example, but it is only just now that the committee has taken over responsibility for this area. Now that that is happening and it is jointly chaired by the Home Secretary and the Secretary of State for Communities and Local Government, which will give it some heft, I hope that it will make a difference. I urge noble Lords to be a little patient but to come back on the basis of the undertaking that I have given today at the Dispatch Box. I once again thank noble Lords, particularly my noble friend Lord Hodgson, for an outstanding report.

Rogue Landlords

Lord Bourne of Aberystwyth Excerpts
Tuesday 13th November 2018

(5 years, 5 months ago)

Lords Chamber
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Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark (Lab Co-op)
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My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I declare my relevant interest as a vice-president of the Local Government Association.

Lord Bourne of Aberystwyth Portrait The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)
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My Lords, the fund will target approaches that local authorities have told us would make a real difference to local enforcement, tackling rogue landlords who make tenants’ lives a misery. Projects can be of any size and could include better ways of gathering intelligence on housing stock, improved data sharing within and across local authority boundaries, and new software to make housing inspections easier. The Government are looking for approaches that could be shared across local authorities.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark
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My Lords, there have been some disturbing reports in the media of individuals convicted of various serious offences still operating in the private rented sector. While the additional money announced is very welcome, does the Minister accept that the most pressing thing to do in respect of rogue landlords is to enter some names on the database, to allow public access to it and to find parliamentary time to make that happen? “When parliamentary time allows” is not an adequate response to this question.

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, I have some sympathy with what the noble Lord suggests. He will know in particular that we are committed to opening the register to the public as soon as parliamentary time is available. On the broader issue of entries in the register, there are two things to bear in mind. First, there has been some inaccurate reporting in some newspapers of matters that are not banning offences and could not be entered in the register. Other matters that could be put on the register relate only to offences that have been committed since 6 April this year. Not only do such matters have to go through the courts but there must then be an application for the landlord to be put on the register, and time is allowed for the person who would be put on the register to appeal against that. So it is relatively early days, but I agree with the noble Lord that, in the fullness of time, we would expect—indeed, hope, in the light of circumstances—that names will go into the register.

Lord Naseby Portrait Lord Naseby (Con)
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What my noble friend is saying is all very well, but it is all pretty complicated. Is not the key issue that rogue landlords are out there and that properties are being let that are not fit for purpose? We need a regulatory body operating either through local government or with some other function. This cannot just drift on for another 12 months. We need some action from Her Majesty’s Government. I accept that some initiatives have been taken already, but the whole lot needs pulling together so that rogue landlords can be driven out from letting properties that are unfit for purpose.

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, I do not disagree with my noble friend’s desire, but he will be aware that, just next week, the Homes (Fitness for Human Habitation) Bill, which will improve enforcement in relation to rogue landlords, will start going through this House. The Bill has already gone through the Commons with cross-party support, and I am sure that the same will happen here. That is an important part of this. I repeat that it is very early days; we are six months in from the first occasion when there could be a conviction under the new offences, with entry in the register. In the fullness of time, I trust—and I am sure that people will be watching like hawks—that this will be put right.

Baroness Grender Portrait Baroness Grender (LD)
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My Lords, does the Minister agree that we need an open register urgently and cannot afford to wait for it, given that nearly a quarter of households in the UK now rent privately? Can the Minister explain the difference between an open register of that nature for landlords and, let us say, food hygiene ratings? Surely it is just as important to have a rating for where you live as it is for where you eat.

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, to reiterate the point I made to the noble Lord, Lord Kennedy, we are committed to ensuring that the register is open: it is now only a matter of finding parliamentary time in order to put that right. The noble Baroness is right about the importance of that and we are committed to doing it: just as soon as we are able to do so we will bring it forward and I am very pleased that we will be getting her support for that.

Lord Alton of Liverpool Portrait Lord Alton of Liverpool (CB)
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My Lords, will the Minister say what is being done to ensure that, where landlords own properties that are empty, they will be listed on the register? What can be done to incentivise landlords who own empty properties to put them into use for people who are in housing need? Can he tell the House how many properties owned by private landlords are standing empty in the country today?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, I am not able to give the noble Lord that information from the Dispatch Box, but I will write to him with those figures, in so far as they are available. In relation to empty properties, he will be aware that some time ago we took legislation through this House to increase the ability of local authorities—indeed, we increased it further here than did the Commons—to charge a higher council tax for empty properties. I think that that will go some way towards dealing with the important issue he refers to.

Baroness Gardner of Parkes Portrait Baroness Gardner of Parkes (Con)
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My Lords, I declare my interest in the register. Is there a suggestion that here we might at last have a licensed register of people occupying these properties on short lets? Most of them now are not declared by the landlord and many are giving absolute agony to the other residents in blocks of flats where their leases really prohibit these short holiday lets.

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, that was a not unexpected question from my noble friend. I refer her to the Short Term Accommodation Association, which is doing very valuable work in policing this area and ensuring that it is not abused by people going for short-term lets. As to any breaches of leases, she will be aware that that is a contractual issue between the landlord and the tenant.

Lord Berkeley Portrait Lord Berkeley (Lab)
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My Lords, will the Minister explain the lack of parliamentary time? We are not sitting to anything like 10pm on weekdays now. We may all be waiting for other legislation, but is it a real excuse that we do not have parliamentary time to bring in this important register?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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Yes, my Lords, it is a very real reason, because it will take parliamentary time in both Houses. I will take back the noble Lord’s concerns, but I am very confident when I look at the parliamentary timetable in the months ahead that we do really have important business to get through. This is important business and something we are pushing hard upon—and, believe me, as soon as my department can find the time we will bring it forward.

Tenant Fees Bill

Lord Bourne of Aberystwyth Excerpts
Tuesday 13th November 2018

(5 years, 5 months ago)

Lords Chamber
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Moved by
Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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That the Bill be reported from the Grand Committee in respect of proceedings up to Amendment 26; and that for the remainder of the Bill, the order of commitment of 10 October be discharged and the Bill be committed to a Committee of the Whole House.

Motion agreed.

Brexit: Welsh Economy

Lord Bourne of Aberystwyth Excerpts
Tuesday 13th November 2018

(5 years, 5 months ago)

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Lord Wigley Portrait Lord Wigley
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To ask Her Majesty's Government what representations they have received from Ministers of the Welsh Government concerning the impact of Brexit on the Welsh economy.

Lord Bourne of Aberystwyth Portrait The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)
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My Lords, Ministers from my department and across the United Kingdom Government hold regular discussions with Welsh Ministers on a range of issues, including EU exit. Most recently the Secretary of State met the Welsh Government’s Cabinet Secretary for the Economy, and at an official level there is an open and continuous dialogue.

Lord Wigley Portrait Lord Wigley (PC)
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My Lords, have not repeated representations from Wales stressed that the future success of the Welsh economy depends on manufacturing and agriculture having ongoing access to the single market and the customs union? That is vital for companies such as Siemens, Airbus, Toyota and Ford. Is the Minister aware that, over recent months in Wales, polls have indicated increasing support—if such guarantees are not forthcoming—for a people’s vote, and that that becomes overwhelming in the case of a no-deal Brexit?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, the noble Lord is right about the importance of Welsh agriculture and Welsh industry. I have no illusions about that. He will know that agricultural spending in Wales is protected until 2022. In relation to industry, obviously discussions are ongoing about the shared prosperity fund. Two weeks ago the Secretary of State and I met the CBI and, although there are challenges, Welsh industry is remarkably up for some of the opportunities that exist.

Lord Bridges of Headley Portrait Lord Bridges of Headley (Con)
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My Lords, 18,000 jobs in the Welsh economy are dependent on the automotive sector, which is highly reliant on just-in-time delivery processes. What progress has been made to ensure that our borders continue to function smoothly in the event of no deal, in the light of the NAO report last month which found that 11 of the 12 major projects to replace or change key border systems were at risk of not being delivered on time or not being of an acceptable quality?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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As he has just indicated, my noble friend is aware of the issues and the importance of open ports and borders. Specifically in Wales, we are concerned about Holyhead, Fishguard, Milford Haven and Pembroke Dock in particular; it is important that they stay open. He will be aware of the commitment to that in the White Paper, so that the new arrangements ensure free flow at the borders. Welsh officials and government officials are already talking with stakeholders to ensure that this is the case post Brexit.

Lord Morris of Aberavon Portrait Lord Morris of Aberavon (Lab)
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My Lords, the original Clause 11 of the Brexit Bill totally ignored the devolved legislatures. Eventually the Government did a U-turn, following pressure in this House. What is the Government’s reaction to the blockbuster report of this House’s Delegated Powers Committee on the Agriculture Bill, which expresses its dismay at the major transfer of powers to Ministers, bypassing Parliament and the devolved legislatures? Can we expect a U-turn here as well?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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I have the greatest respect for the noble and learned Lord, as he will know. In relation to the legislation he referred to, it was always the case that a legislative consent Motion from Wales was necessary; that Motion was forthcoming, as he will be aware. On the agricultural issues he referred to, discussions are ongoing between officials from the Wales Government and the UK Government. Progress is being made in that regard. I have already indicated that farm support will be protected; it will have the same level of funding as under Pillar 1 of CAP until 2020, and farm support is protected until 2022. A good dose of Welsh and British common sense will see us through on these matters.

Baroness Humphreys Portrait Baroness Humphreys (LD)
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My Lords, speaking of the likelihood of a no-deal Brexit and the possibility of the company abandoning plans to build aircraft wings in Britain, the chief operating officer of Airbus said:

“Far from ‘Project Fear’, this is a dawning reality for Airbus”.


It is also a dawning reality for the people of north-east Wales and the 7,000 Airbus jobs that make such a vital contribution to our economy. If Brexit happens, how do the UK Government intend to create new employment for these workers?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, I must take issue with what the noble Baroness said. I have the greatest respect for her local knowledge but I do not think that those jobs are in the serious jeopardy she suggests; they are very valuable and it is not right to create that scare. We must continue with this. She will know that the north-east Wales economy is very buoyant and that we have created jobs there, including recently in relation to the prison that is to go there.

None Portrait Noble Lords
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Ha!

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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That may be a matter for jokes to some people but it is very important to the people of north-east Wales and their livelihoods. It is worth noting that the Welsh economy is growing faster than those of the other home economies.

Baroness Bloomfield of Hinton Waldrist Portrait Baroness Bloomfield of Hinton Waldrist (Con)
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My Lords, with jobs in mind, will my noble friend join me in commending the announcement from Jim Ratcliffe and Ineos of their plan to develop the Land Rover Defender in the Ford motor factory in Bridgend, thereby preserving the 1,700 jobs that would otherwise be at risk?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My noble friend is absolutely right. I have no hesitation in saying how welcome that news is, but once again I stress the fact that we are not just protecting jobs in Wales, as many new jobs are being created there. The removal of the tolls on 17 December will be a welcome boost to the south Wales economy. Generally, the position in Wales is very healthy.

Lord Elystan-Morgan Portrait Lord Elystan-Morgan (CB)
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Would Her Majesty’s Government be prepared to publish a document setting out their best calculations on the effect of Brexit on life in the whole of Wales?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, that is a constructive and useful suggestion; I shall take it back. It would be very useful in relation to Wales. The Secretary of State will obviously want to consider it.

Lord Anderson of Swansea Portrait Lord Anderson of Swansea (Lab)
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My Lords, will the Minister give an assurance that Wales will be fully compensated for the loss of Objective 1 status and the regional benefits that go with it?

Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth
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My Lords, the noble Lord is right about the importance of cohesion funding. As things stand, there is no guarantee that Wales will qualify for Objective 1 funding in the next round —in many ways, one hopes that it does not; it is not a badge of pride. In relation to the future of cohesion funding, he will be aware that the shared prosperity fund is being discussed on a UK basis, with full consultation with Wales to ensure that Welsh interests are properly protected.