Housing Benefit (Under-25s)

Lord Foster of Bath Excerpts

Wednesday 21st November 2012 Westminster Hall

[The Parliamentary Under-Secretary of State for Communities and Local Government (Mr Don Foster)]

It is a great pleasure to serve under your chairmanship, Mr Crausby. I congratulate the hon. Member for North Tyneside (Mrs Glindon) not only on securing the debate, but on presenting her case so passionately. May I also say how pleased I am to see the hon. Member for Birmingham, Erdington (Jack Dromey) in his place? He has taken a keen interest in the issue, and I will refer to him again towards the end of my remarks.

The hon. Lady said that the idea is something that the Government might effect, but the fact that something was said at a Conservative party conference does not mean that it becomes coalition policy. At the moment, it certainly is not. The hon. Member for Hackney South and Shoreditch (Meg Hillier) will know that both the Prime Minister and the Deputy Prime Minister have said that, were such a move to become reality, vulnerable groups, particularly those in care, will be protected.

I say to the hon. Member for Strangford (Jim Shannon) that the Government are willing to seek what advice they can from Northern Ireland. We will certainly look forward to any comments that he can forward to us. On the important issue of affordable housing, he is absolutely right that one of the key things we have to do is increase its availability. As the hon. Member for Birmingham, Erdington knows only too well, when the Labour Government were in office, we saw a reduction of some 421,000 social homes.

The Government intend to ensure that we move forward with the provision of affordable housing by committing to provide 170,000 affordable houses by 2015.

My hon. Friend the Member for Winchester (Steve Brine) mentioned night shelters. Clearly, as that is not a Government policy, I cannot comment on who would or would not be affected by that, because I currently have no details and such details may not be forthcoming.

The hon. Member for North Tyneside raises an important issue, and I recognise that young people face difficult circumstances. The effects of what is, after all, the worst recession in a generation continue to cause hardship for households across the country. That is why homelessness and housing support remain a key priority for me, my Department and the Government as a whole, but we need to keep the issue in perspective. As a result of the work of local authorities, their partners and the Government, and of the investment we are making, homelessness is half the average rate that it reached under the previous Administration. The homelessness rate remains lower today than in 28 of the past 30 years. Of course, I recognise that that is no comfort to those currently dealing with the trauma of homelessness, and we are determined to take every opportunity to move forward. That is why the Government are providing support through investment, reform and leadership.

The homelessness prevention grant was protected in the spending review, and we are investing £400 million in homelessness prevention over the four-year period. We recognise that continuing financial pressures have made it hard for many people, which is why we provided an additional £70 million last year to address homelessness. That included a £20 million homelessness transition fund and a further £18.5 million for the first ever single homelessness prevention fund.

Additionally, the Government are providing £390 million to help families in difficult situations adjust to changes in the welfare system. I recognise what the hon. Lady said about troubled families, and she will be aware of the Government’s successful work to address that issue.

In addition to the funding, we are reforming the system. The Localism Act 2011 gives local authorities more freedom to move people quickly out of expensive temporary accommodation and into suitable settled homes, thereby reducing costs on councils and housing waiting lists. That power allows local authorities to use good quality accommodation in the private rented sector so that households are not left sitting in expensive and inappropriate temporary accommodation while they wait for social housing.

The Government take homelessness seriously, and we have established a ministerial working group on homelessness that brings together eight Departments to address the complex causes, which include not only housing, but, just as importantly, health, work and training. The group provides the leadership we need to address homelessness.

The group produced its first report, “Vision to end rough sleeping”, in July 2010. Since then, we have made significant progress and provided £20 million through the homelessness transition fund to help roll out, for example, the Mayor of London’s “no second night out” approach. We announced the most recent tranche of grants for the fund in August 2012 with a further £3.6 million to 21 homelessness charities. Five areas, including 51 local authorities, have now introduced “no second night out”: Merseyside, Greater Manchester, Cheshire, Kent and Northamptonshire.

We have committed to a new rough sleeping helpline that will ensure that anyone who is concerned for someone sleeping rough can contact the right service to get them help. StreetLink, as it is to be called, will be in place by Christmas 2012, and the website is already live.

Preventing youth homelessness was a key part of the ministerial working group on homelessness’s second report, “Making every contact count”, which we published in August. The report considered how to address the complex underlying causes of homelessness, how to prevent homelessness at an earlier stage and how to deliver integrated services. It focused on youth homelessness and set out an innovative approach to addressing that important issue.

The Government are providing investment, reform and leadership, but we are also calling on local agencies across the country to respond with innovation and passion. England has one of the strongest safety nets in the world for families with children and for vulnerable people who become homeless through no fault of their own. Sixteen and 17-year-olds, care leavers under the age of 21 and people over 21 who are vulnerable as a result of being in care are priority groups and, as such, should they find themselves without a roof over their head, they will be housed by local authorities.

Local authorities already know that it is in nobody’s interest for things to get that far. Preventing homelessness, through supporting young people to resolve issues at home—the hon. Lady raised that point—and stay with their families, must remain a priority.

My Department continues to work with the Department for Education to support local authority homelessness and children’s services to prevent homelessness and to address its effects on young people. We have funded youth homelessness charity St Basils to support local authorities and their partners in that work. Thanks to the work of young people’s homelessness charities such as St Basils, Centrepoint and Depaul—and others mentioned by the hon. Lady—and to the work of local authorities, it is now very rare for young people under 18 to end up on our streets.

Many people experiencing homelessness have had a range of negative experiences in their childhood or youth. We accept that young people are a key risk group—35% of those accepted by local authorities as homeless in 2011-12 were under 25. As the hon. Lady rightly said, family breakdown is a prime cause of youth homelessness. Young people with experience of care are particularly vulnerable, with 16% of rough sleepers surveyed by a recent study having experienced care at some point during their childhood.

Supporting vulnerable young people to make a successful transition to adulthood helps them avoid long-term benefit dependency and expensive interventions by specialist health services, social care, the criminal justice system and, of course, homelessness services. Homelessness is a stigmatising experience for a young person, and an integrated approach to preventing that is needed.

[Mrs Glindon]

I am pleased to hear about all those programmes and about the investment the Government are making. What commitment is there to keeping housing benefit for those young people under 25? Once they have benefited from all the support, not being able to work may stop those in rented accommodation being able to pay the full rent. What assurance is there that that cushion will remain for as long as people need it so they can live in a home of their own?

[Mr Foster]

The hon. Lady tempts me to predict what announcements will be made in due course, which I cannot possibly do. I cannot give her an assurance one way or the other. All I can do is tell her that that is not currently the Government’s policy. We will both have to wait to see what emerges.

The hon. Lady will be aware that, as a country, we are facing a very difficult financial crisis, and we have to address that. Unless we get the economy straight and create the growth that we desperately need to get people back into work, problems will continue to multiply. That will continue to be our first priority.

[Mrs Glindon]

Will the Minister give way?

[Mr Foster]

We have about two seconds remaining, but I will give way if the hon. Lady wants the last word.

[Mrs Glindon]

As I said at the beginning, cannot that burden be put on the very rich, rather than on these areas?

[Mr Foster]

The hon. Lady is well aware of the Deputy Prime Minister’s statements on the importance of ensuring that those with the broadest shoulders make the greatest contribution.

I end by saying to the hon. Lady that we have worked with charities to develop a pathway to try to ensure that we provide the necessary support. I hope that she will listen to her colleague, the hon. Member for Birmingham, Erdington, who on 13 December is organising a huge event in Parliament on youth homelessness. He is to be congratulated on organising that event, and I hope we will be able to continue the debate on that occasion.

I congratulate the hon. Lady on raising this important issue, which the Government take seriously and are doing an enormous amount of work to address.