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

Debate between Viscount Younger of Leckie and Lord Kennedy of Southwark

Wednesday 22nd March 2023 Lords Chamber

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, like others, I thank the noble Baroness, Lady Thornhill, for tabling her Motion and wish her a speedy recovery. I also thank the noble Lord, Lord Shipley, for moving the Motion on her behalf. I say at the outset that I think I agree with every word that every noble Lord has said so far in this short debate on the regulations before us.

When local housing allowances were introduced in 2008, the aim was to reach up to the 50th percentile of all rents in a broad rental area. In other words, people on benefits could afford to live in the cheapest half of rented properties in the area that they live in. However, from 2011, that all changed. First, LHA rates were downgraded to the cheapest 30% of local properties. Then, rather than moving with rent levels, LHA rates were uprated by inflation, then by just 1% and, finally, they were frozen in 2016. The result was that, by 2020, LHA rates bore no connection to the actual rents in local areas. In 2020, the Government restored them to the 30th percentile, only to then freeze them in cash terms. This year, although Ministers finally agreed to raise most benefits by inflation, they excluded LHA rates. The effect of this freeze is seen in a growing gap between the actual rents that people pay and the amount of housing support that they can receive—an approach that the Institute for Fiscal Studies said was

“arbitrary and unfair, and its consequences will only become more bizarre over time.”

There is deep and widespread concern in the housing world about the effects of this policy. The Northern Housing Consortium told Ministers that

“a continued freeze on LHA would make it even harder for existing private renters to make ends meet, risking homelessness and making it increasingly difficult for local authorities to discharge their homelessness duties effectively.”

It reported in the Northern Housing Monitor 2022 that only 7% of rental adverts were affordable to those reliant on LHA in the north. The National Residential Landlords Association says that the LHA rate freeze has

“led to the proportion of landlords letting to tenants in receipt of benefits falling over the past decade.”

If supply falls, demand does not, if only because there is no alternative. The Levelling Up, Housing and Communities Committee, in its report on the private rented sector in February—my noble friend Lady Lister made reference to this report—concluded that the failure to ensure LHA rates keep pace with market rents

“is quite obviously making the private rented sector even less affordable for many people who are only there because the social housing sector has been cut back and can no longer accommodate them.”

That is the problem.

Unsurprisingly, given high inflation and the pressure on supply, while LHA rates are frozen in cash terms, private sector rents have continued to rise, so the gap is getting bigger year on year. The Institute for Fiscal Studies says that, compared with uprating LHAs to match local rents, the freeze will reduce support for nearly 1.1 million households by an average of £50 per month, saving the Government more than £650 million in 2023-24. That is on top of the amount that people were already having to find as a top-up. Over 800,000 households in the private rented sector face a shortfall between their rent and their local housing allowance, including over half of all universal credit households who rent privately. The Institute for Fiscal Studies further says that

“two-thirds of lower income privately renting households must cover at least a quarter of their rent from sources other than housing support.”

The House of Commons Library briefing, which has been referred to in this debate, says that, from April 2023, on average, households will need to top up their rent by

“just under £750 a year.”

People in households with a disabled person are more likely to be hit by LHA shortfalls. Paul Sylvester, head of housing operations at Bristol City Council, told the Work and Pensions Select Committee in 2021 that half the households they saw with a shortfall included a disabled person. They were increasingly seeing disabled people forced to use their disability benefits to cover the rent top-up, rather than what the benefits were meant for. Can the Minister say whether the Government have looked at the impact of this policy on disabled people specifically? And the problems are not equally distributed. The IFS cites the example that, while the 30th percentile of rents in Bristol is £100 more than in Newbury, the amount of housing support that those who live in Bristol can receive is £12.50 less than those who live in Newbury can receive. How can this be right? Can the Minister please explain?

I have no doubt that the Minister will try to suggest that there is not a problem, because anyone who is struggling can always request a discretionary housing payment: other noble Lords referred to this in their contributions. But let us be clear: a discretionary fund for one-off payments is not the answer. In any case, a report by Shelter published in February—again, this has been referred to—found that the Government’s own data showed that councils were already struggling to keep up with demand. It says:

“Some were on the brink of running out of funding—31 English councils had spent three quarters or more of their allocation before the winter started”.


It points out that the problem is especially bad in certain regions. Take the north-east: Sunderland, Gateshead and Northumberland spent more than 90% of their allocation by the end of September 2022, and none of this is surprising given that DHP funding was cut by £40 million in this financial year. At a time when inflation is dangerously high and food bank use is at record levels, how do Ministers expect those on low incomes to find ever larger sums to top up their rent?

We see from the figures that homelessness is soaring. Rough sleeping is up by 74% since 2010 and by 26% in the last year; there has been an 83% rise in the number of children now living in temporary accommodation as a result of homelessness. One in 23 children in London is now homeless. The squeeze on local housing allowance is undoubtedly a major driving factor in this situation. It is also hitting local authorities and the taxpayer, as evidence suggests that more people have been forced into expensive temporary accommodation. Can the noble Viscount tell the House what assessment the Government have made of this wider cost to the public purse of the LHA freeze?

Investment in social housing is by far the best solution to this crisis. That is the way to ensure that low-income families can have a secure and affordable home to live in, and a better-managed private rented sector would also be good for tenants. Ministers have promised action for years, but what have we seen? Not a lot. All these things would be better for the public purse too. In the meantime, freezing the local housing allowance makes no sense whatever and serves only to make a bad situation worse.

I ask the noble Viscount whether he might like to join me one day and go out to some of the London boroughs to look at the quality of the accommodation we are asking people to live in. As the noble Lord said, people are being asked to live in the most appalling accommodation, so I hope he will join me. The noble Lord, Lord Young of Cookham, came out with me a couple of years ago. It is quite shocking where we expect families to live, so I hope the noble Viscount will accept the invitation to come out with me some day in the next few months. Anyway, I look forward to what he will say in response to this debate.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Viscount Younger of Leckie) (Con)]

My Lords, I start by taking up the offer of the noble Lord, Lord Kennedy. This is a fairly straightforward answer: it is a yes. I would very much appreciate the opportunity to join him and whoever else he might care to bring along to see for myself what is happening. It is very much what I would like to do—genuinely.

I thank the noble Lord, Lord Shipley, for initiating this debate on the Rent Officers (Housing Benefit & Universal Credit Functions) (Modification) Order 2023. This annual legislation informs rent officers in the Valuation Office Agency, the VOA, and rent services in Scotland and Wales of the level at which to set local housing allowance, LHA, rates from April 2023. I also add my voice to those of other noble Lords in wishing the noble Baroness, Lady Thornhill, a speedy recovery from her illness—as the House is aware, the debate was down in her name.

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[Lord Kennedy of Southwark (Lab Co-op)]

I am glad the noble Viscount mentioned fairness to the taxpayer, as it is not only about the sums of money—our whole point is that the Government are not spending it very wisely. If they looked and listened a bit more, they could spend it more effectively and get better value for money for the taxpayer. It is no good saying that they want to spend money wisely. They are not spending money wisely and that is causing huge grief for people. I do not understand why they will not address that. They need to work across departments, address the issues and spend the money better.

[Viscount Younger of Leckie (Con)]

I absolutely have listened to the noble Lord, but how Governments spend money and whether they spend it wisely is a subjective issue wherever it is spent. We want and need to spend it wisely and on the most vulnerable.

Islamophobia

Debate between Viscount Younger of Leckie and Lord Kennedy of Southwark

Thursday 13th February 2020 Lords Chamber

[Viscount Younger of Leckie]

There are a couple of points there. The IHRA definition is widely accepted internationally and, by adopting this non-binding definition, we underline the UK Government’s determination to tackle anti-Semitism wherever it occurs. On my noble friend’s other point, as she will know, Islamophobia is a complex matter and there are different views in this House on the issue. There has been strong opposition to the adoption of the all-party definition from a wide range of organisations, including Civitas, Policy Exchange, the Barnabas Fund and the Henry Jackson Society. It is an ongoing issue and discussions are continuing.

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, there are some appalling examples of the Muslim community being harassed and suffering racial abuse. Why will the Government not adopt this definition when it has been adopted by hundreds of organisations, including many local authorities and police forces and, I think I am right in saying—perhaps the Minister can confirm it—by the Conservative Party in Scotland? We need to hear much more from the noble Lord and his party about how they will deal with this appalling abuse.

[Viscount Younger of Leckie]

The noble Lord has picked up on what I just said: it is a challenging issue. I can reassure him that we intend to move as quickly as possible to come to a definition. As I said, it is important to discuss this fully and make sure that we get it right.

Northamptonshire (Structural Changes) Order 2019

Debate between Viscount Younger of Leckie and Lord Kennedy of Southwark

Tuesday 11th February 2020 Grand Committee

[Viscount Younger of Leckie]

I hear what my noble friend says, but I do not agree with him on this. There are several reasons for that. Of course he will expect me to say that; I will say it. We see a fresh start for the people of Northamptonshire. It will provide new councils in which local people can have confidence, providing effective, modern and sustainable services. Like the noble Lord, Lord Kennedy, I thank the leaders of the eight—not seven—Northamptonshire councils and the commissioners for the leadership that they have shown to take us to this point.

On the lack of unanimity and there being one council —Corby—that was not entirely on board, it has consistently shown great strength of purpose in nearly supporting things, so when we say that it is not entirely unanimous, Corby was behind many of the issues. Perhaps a letter is required to give a little more information on that.

One of the most important things in this process is consultation. The local consultation described the majorities in favour as overwhelming, with 74% support overall and 77% and 70% in West Northamptonshire and North Northamptonshire respectively. I do not want to be drawn in on the names—I do not think that I can comment on that—but I take the noble Lord’s point on the names that were given.

[Lord Kennedy of Southwark]

Where are West Northamptonshire and North Northamptonshire? They are dreadful, dreadful names. The Government could certainly have done something about that. Northampton got its charter in 1189. They are dreadful, dreadful names. Something much better should have been done.

[Viscount Younger of Leckie]

I think that I heard “dreadful” at least four times. I say, perhaps as a reassurance—although I do not think that it will wash with the noble Lord—that the names have been chosen locally. Admittedly there was no competition, but they were chosen locally rather than being imposed on them.

I shall go further on the consultation. The Northamptonshire Healthcare NHS Foundation Trust and Healthwatch Northamptonshire support a reduction in the number of councils. They both welcome the closer integration possible as a result of having to engage with fewer authorities, and agree that this is a positive opportunity for change to secure a sustainable future. The Northamptonshire police and crime commissioner is supportive and stated that the

“creation of unitary authorities would bring about clarity for the public and present opportunities for greater co-ordination, realisation of efficiencies and simpler partnership working.”

Finally, the Northamptonshire County Association of Local Councils reported that an overwhelming majority of town and parish councillors supported the principle of unitary authorities being established. We should not dismiss the opinions of local people in this respect. This allows me to pick up a point made by the noble Baroness, Lady Pinnock, about taking “local” out of “local government”. I point out to her that the new parish and town councils are in the process of being established, including in Kettering, Northampton and Wellingborough—note those names. I welcome and encourage this as an important way to strengthen local democracy and enable decisions to be taken to reflect the needs of local communities. I do not agree entirely with the noble Baroness that the local is being taken out the process. In my view, we still have some very robust local democracy.

I will pick up another point made by the noble Baroness about the role of councillors in the cabinet system. I think her point was that only 10 were making decisions, as opposed to the other 93—sorry, 89; my maths is bad. It will be for the new councils to determine the role of councillors and to ensure that all councillors can take a full role in representing their residents and ensuring an effective local democracy.

Furthermore, as to the size of wards, for the election in May 2020, each ward, which are county electoral divisions, will have three members. For the next election in May 2025, we expect the independent boundary commission to undertake a full electoral review. It is for the commission to decide the number of councillors and the size of wards. Experience shows that the new unitary councils establish strong and effective arrangements at parish and community levels, to add a little more to what I said. We would expect the new Northamptonshire councils to follow best practice—as, for example, in the unitary Wiltshire Council, led by my noble friend Lady Scott, if I may spare her blushes.

The noble Lord, Lord Deben, spoke and expressed concerns about process. My guess is that a letter will better satisfy him, but the start of the process was the independent inspector. The proposal made follows exactly the inspector’s recommendation. The consideration behind the inspector’s recommendation was that a new start was needed, with two new councils. In the inspector’s view, two unitaries best met this aim and the criteria for unitary local government: improving local government; a credible geography with a population substantially in excess of 300,000; and a good deal of support. That penultimate figure perhaps answers the question asked by the noble Lord, Lord Liddle. To clarify, the figure is substantially in excess of 300,000. A unitary county would risk being seen as replicating and rewarding a failing county.

The noble Lord, Lord Liddle, spoke about Cumbria with great passion, for obvious reasons. The position in Cumbria is all about a devolution deal. It is for Cumbria to decide whether it wishes to have a devolution deal; initial discussions are continuing. Major deals have involved a mayoral combined authority. If Cumbria wished to have a mayor deal with a mayoral combined authority, it would point to a simplification of current local government structures: establishing unitary councils. We know that there are different local views about unitary structures for Cumbria. As I am sure the noble Lord will tell me, discussions are continuing. We will want to hear more from the local area in this respect.

The noble Lord made points about the elected mayors. The idea of elected mayors arises in major devolution deals where substantial powers and budgets are devolved over a functional economic area. An elected mayor is seen as providing a strong single point of accountability for the exercise of those powers and for managing those budgets. That elected mayor can be a combined authority mayor if there is more than one authority in the functional economic area, or if that area comprises a single unitary council or an elected mayor of that council.

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[Lord Kennedy of Southwark]

I used to keep saying these things when the noble Lord, Lord Bourne, was the Minister: the idea is that these things just evolve, but it always looks like a confused mess to me. Local government looks like a real mess in England outside of London. It is all over the place and I really do not think this is good. I know it is not the Minister’s fault, but the department is not clear on what it is trying to achieve. I remember discussions with the noble Lord, Lord Lansley, who lives in Cambridge. He described all the tiers of government in his county—and next door, there was just one tier. It is just shambolic.

[Viscount Younger of Leckie]

I cannot agree with the noble Lord. Surely, he would agree that there is good sense in talking to the locals to work through the issues and to get their buy-in to what they want, within the parameters I have set out. I cannot see the problem with that. Already, a format is evolving: that this is the wish of local people all around the country, particularly up north, where 37% of people are under the aegis of mayoral authorities; that this is actually what local people want.

This is not so much a philosophical thing, but as the noble Lord will know, we have announced the devolution White Paper. This is an opportunity to reflect and review. I do not know what is going to be in it or what will come out of it, but we are going to look at all aspects of local government in the White Paper, which will be produced in due course. I hope it will help to allay the noble Lord’s fears. It might answer the question of my noble friend Lord Deben as to why Northamptonshire is treated differently from Cornwall. There is no one-size-fits-all solution. For example, discussions are going on in North Yorkshire about York being a unitary. Cornwall, as we know, is treated differently. It is important to come back to the point that this has got to be driven by local people deciding what they wish.

[Lord Kennedy of Southwark]

Again, I would agree with that statement, but the problem is that it is not the case. The Minister says that local people can decide, but they are given only one or two options. The Government are not letting them decide; they are narrowing down the options to a specific number and ruling things out before people get the chance to decide. They are setting a rigid framework and saying, “You can have that or nothing at all”. That is not letting local people decide, and that is the basic problem.

[Viscount Younger of Leckie]

I take note of what the noble Lord has said. Actually, it falls in line with what I said at the beginning, which is that a letter is due. I will do my best to set out our approach in more detail, because there is sense in what we are doing. This is not a scattergun approach and nor is it chaotic.

I want to answer a question raised by the noble Lord, Lord Kennedy, concerning Northamptonshire and the new arrangements. He asked: why not one or three unitaries, rather than two? The inspector recommended that a two-unitary solution was best because a one-unitary council was perceived as replicating and rewarding the failing county council, and three was seen as not meeting the criteria on credible geography with councils of adequate size.

[Baroness Scott of Bybrook]

I urge the Government to look again at the issue of consulting. I fully agree that it is about consulting local communities, local people. I have a problem when we take too much notice of those district and county authorities that are still there. With the greatest respect, they are trying to protect themselves, their officers—which is understandable —their members and their authority. Their views are sometimes challenged by that. It should be local communities that make the decision, not the local authorities within them.

[Lord Kennedy of Southwark]

I promise that this will be my last comment. The argument that we could not have a unitary authority for the whole county because it would be seen as rewarding the county council that has failed is rather weak. There was a failure of political leadership. The way to deal with that is to remove the people and not let them stand again. Not going forward with the one-council option because it could be seen as a replica of the failed county council is a weak reason.

[Viscount Younger of Leckie]

I pledge to write on that point and to tie it in with the point made by the noble Lord, Lord Kennedy. I have not addressed the review of savings made. In my letter, I will attempt to give the noble Baroness, Lady Pinnock, a response on that matter and address the point raised by the noble Lord, Lord Liddle, on the position of ministerial powers. That comes down to giving a coherent view of how ministerial powers juxtapose with local ones.

I hope that that is helpful and that I have addressed the many points raised. As I said, a letter will be coming that fully addresses the points that were made. Once again, I thank noble Lords for their contributions.

Homelessness

Debate between Viscount Younger of Leckie and Lord Kennedy of Southwark

Thursday 23rd January 2020 Lords Chamber

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I declare my interests as a vice-president of the Local Government Association.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Viscount Younger of Leckie) (Con)]

My Lords, the Government are committed to reducing homelessness and rough sleeping. No one should ever have to sleep rough. That is why this Government aim to end the blight of rough sleeping by the end of this Parliament and will continue to fully implement the Homelessness Reduction Act. The Government recently announced a further £422 million in funding to tackle homelessness and rough sleeping in 2020-21, an increase of £54 million on 2019-20.

[Lord Kennedy of Southwark]

My Lords, I thank the noble Viscount for that Answer. Could he set out for the House why homelessness has increased so dramatically in the last 10 years, particularly—shockingly—with 726 people losing their lives in 2018?

[Viscount Younger of Leckie]

I am very aware of the deaths related to rough sleeping in particular, rather than homelessness. It is a highly complex area, but the Government’s ambitions are set out in our manifesto. Ministers and officials from across the Government are working closely together to scale up our successful programmes, such as the rough sleepers initiative, and devise new interventions to meet the manifesto commitments. The 83 areas supported by our rough sleepers initiative showed an overall decrease of 19%. There is light at the end of the tunnel.

UK Holocaust Memorial

Debate between Viscount Younger of Leckie and Lord Kennedy of Southwark

Monday 20th January 2020 Lords Chamber

[Viscount Younger of Leckie]

The noble Lord is absolutely right. That is why the memorial exhibition and learning centre will explore the role of Britain’s Parliament and democratic institutions in the Holocaust— what we did and what more we could have done to tackle the persecution of the Jewish people and other groups.

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, I endorse the comments of the noble Viscount in answering this Question. I am delighted that my noble friend Lady Smith of Basildon, along with the noble Lord, Lord Pickles, and others, is a trustee of the Holocaust Memorial Day Trust. Does the noble Viscount agree that it is welcome that the learning centre will focus not just on the Holocaust but on all other genocides and that it is important that we do not forget the horrors of the past?

[Viscount Younger of Leckie]

Yes, indeed. I repeat what I said earlier: the learning centre, which still requires a lot of input, will focus on the Holocaust but will also cover other genocides.