Local Housing Allowance and Homelessness

Alex Cunningham Excerpts

Wednesday 24th July 2019 Westminster Hall

[Alex Cunningham (Stockton North) (Lab)]

It is a pleasure to serve under your chairmanship this morning, Mr Bailey. I congratulate my hon. Friend the Member for Ealing, Southall (Mr Sharma) on securing this important and timely debate and on spelling out the reality for so many of our people. I also congratulate him on the 12th anniversary of his election to Parliament yesterday, which we were pleased to celebrate last evening.

As my hon. Friend said, we know that rough sleeping in London has hit a record high with an 18% rise on last year, but it is not limited to London. Since 2010, when the Conservative-Lib Dem coalition Government came to power, rough sleeping has more than doubled across England, and there is no one reason for that. There are ways that it could have been prevented, but successive Governments since 2010 seem to have been content to allow the numbers to escalate. Even when they have admitted that there is an issue, the Government have failed to act. Two Prime Ministers have seen the numbers grow on their watch. I wonder what the new one, due to be installed later today, will make of such a terrible legacy and what he will do to sort it out.

Our Governments and Prime Ministers have been too preoccupied with Brexit and internal warring, meaning that people across this country have been let down and forced on to the streets because they simply have no other option. It is not that the Government do not know what is happening to people who are being made homeless. Ministers are quite happy to turn up and spout at events like the recent one hosted by Crisis, but we know that for all their rhetoric and plans, rough sleeping has dropped by less than 2% in the past year. If it is to be eradicated, at that rate it will take 50 years to sort it out, so I am left with no other conclusion than to ask whether they simply do not care enough to act.

Let us look at what the Conservatives have done—the decimation of social housing up and down the country over recent years, a failure to build the social housing needed, and the erosion of the welfare state. Such failures have been major factors in generating a worrying rise in homelessness, and it is across the piece. The hon. Member for Strangford (Jim Shannon) is always in his place speaking up for the people of Northern Ireland. He made it very clear that the crisis here in the UK is reflected in Northern Ireland, too, and it is families that suffer as a result.

There is ultimately one root cause that must be tackled if we are serious about ending homelessness. We need to increase the availability and affordability of housing. Stable and secure homes will give people the best chance of moving on from homelessness, or preventing it altogether. Unfortunately, we are in a position where having housing for every person is seen as an ambitious goal when it should be the standard and the bare minimum. The Government have moved the goalposts of what is seen as reasonable and turned adequate housing for all into the unachievable.

We know that many people live on low incomes. A person could work 40 hours a week on the minimum wage and not be able to afford the cost of renting privately in some places in this country, especially if they have children. We should not have a race to the bottom where only those with higher incomes can afford adequate housing. Those on lower incomes deserve secure, decent living conditions with affordable rents, but that is not the situation in Westminster North, as my hon. Friend the Member for Westminster North (Ms Buck) said. Not a single home is available for low-income families and we have the lamentable situation where former council homes are now out of reach of the poorest people because of rents of as much as £500 a week.

On the need for social housing, the hon. Member for South West Bedfordshire (Andrew Selous) spoke of the need to build more homes more quickly. He talked about energy-efficient and bill-free homes, and he is entirely correct about that—no doubt about that—but the Government have built fewer than 7,000 new homes provided at social rent in England in 2017-2018, when what we need is 90,000 each year for the next 15 years just to tackle the backlog of housing need. People are being forced to turn to private rented housing. Although some positive moves have been made regarding tenant fees, affordability is still a major problem, even if people can find a property in the first place.

My hon. Friend the Member for Stroud (Dr Drew) spoke of private landlords refusing to take people on benefits. What does the Minister have to say about that? Is he surprised that private landlords are not always accommodating and understanding when their tenants are late with their rent payments? The reality is that families are being evicted because they cannot keep up with rent payments, and they enter undesirable living arrangements—sleeping on the floors of other family members, at best, and sleeping in cars and on the streets. We have heard other examples as well. Often it means that families are split up, leading to more pain and suffering.

Research from Crisis—we have heard much about its research—and the Chartered Institute of Housing has shown that cuts to local housing allowance rates mean that in 92% of areas in Great Britain, single people and couples or small families who need local housing allowance to pay their rent will struggle to find somewhere to live that they can actually afford. Until social housing can meet demand, people on low incomes must be able to find secure and stable housing in the private rented sector. Shelter has said that targeted affordability funding is not alleviating the problem. The top-up grant for areas most affected by the freeze in local housing allowance—just a 3% increase—has not worked.

[Ms Buck]

Will my hon. Friend join me in congratulating London Councils, which has been doing some excellent research? It found that, even over the period of targeted affordability funding, single rooms had declined in affordability by more than 10% since 2015.

[Alex Cunningham]

Yes, and what is happening in response? Very little. So much more needs to be done. The housing allowance is not allocated or based on how many areas are in need, just distributed to areas in a ranked order until there is no more money. In Shelter’s words, the affordability funding is

“not even close to plugging the gap.”

My hon. Friend the Member for Ealing, Southall proved that the housing crisis is very real with a series of case studies of real people and families in crisis. They are not just numbers in a table of statistics. My right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne) told us that we need to remember the names of some of the people who never found a home, and spoke of the memorial to Miguel in his constituency. He also spoke of children in his area who are taking their GCSEs while accommodated in the local Travelodge. I understand why he is asking the new Prime Minister to take action on that systematic failure.

I hope that the Minister remains in post, and can do something. As I mentioned, we will get a new Prime Minister today, and there will be a lot of shuffling around, but whether the Minister remains or provides a handover to his successor, I urge him to work to restore local housing allowance rates back to the 30th percentile of the market, as others have called for. We need to address homelessness with immediate effect, and provide a lifeline to people on a low income. We simply cannot afford not to.

I know that it can be easy to sit in opposition and criticise those making the decisions, but Labour has made some bold pledges that we will deliver when we win a general election. We will define affordable housing as linked to local income, and scrap the Conservatives’ so-called affordable rent home price, at up to 80% of market rates. We will stop the sell-off of 50,000 social rented homes a year by suspending the right to buy—I am pleased that the Scottish Government have done that already—ending all conversions to affordable rent, and scrapping the Government’s plans to force councils to sell their best homes.

We will back councils and housing associations with new funding, powers and flexibilities to build at scale. While we work to provide 8,000 homes for rough sleepers, we will provide local authorities with £100 million to deal with winter pressures and ensure that no one sleeps rough. We will also tackle the scandal of empty homes, many of which need upgrading to be habitable, and many more of which investors simply buy and leave empty, believing that the value will go up and they will make a financial killing.

The crisis is leaving families homeless because of the Government’s failure to act. Successive Conservative, and Lib Dem coalition, Governments have failed on housing and failed to end homelessness—no wonder people have no confidence in their housing policies. There is no doubt in my mind that it is time to act on house building and, in the meantime, on the local housing allowance, before even more families are shown the door and thrown out on to the streets.

--- Later in debate ---

[Will Quince]

I thank my hon. Friend for that intervention; I was not aware of that scheme and will certainly look at it—it sounds very interesting. Subject to being in post in 24 or 48 hours, I will certainly commit to looking at that and to coming back to him with my thoughts.

Numerous Members, including the hon. Members for Ealing, Southall, and for Westminster North, my hon. Friend the Member for South West Bedfordshire (Andrew Selous) and the hon. Member for Argyll and Bute (Brendan O'Hara), all raised the issue of housing for social rent. This is also an area that I am hugely passionate about. Local housing allowance rates and debates such as this are only half of the story. We must look at how we can increase the supply of housing that is affordable to people on low incomes to create a more sustainable system over the longer term.

I am keen to continue my work with colleagues in MHCLG to support them in looking at how we can increase the supply of housing for social and affordable rent and what more my Department might be able to do to achieve that. I urge my hon. Friends and hon. Members—not that I am supposed to—to address the issue of housing supply with my counterparts in MHCLG and to lobby accordingly. It is a hugely important issue. I share the thoughts of my hon. Friend the Member for South West Bedfordshire when he says that at the heart of the route for tackling poverty, improving health outcomes and improving educational attainment and employability is a secure and stable home, and that is something that we should prioritise.

[Alex Cunningham]

It is going to take some time to build the houses required. In the meantime, we need the local housing allowance to be properly addressed. The evidence has shown that it is inadequate, yet in some areas there is an underspend. What is the Minister going to do to review that and to transfer the money to where there is a greater need?

[Will Quince]

I made it clear at the beginning that this is an area that I am looking at very closely. We are committed to providing a strong safety net for those who need it and that is why we continue to spend more than £95 billion a year on welfare benefits for people of working age. There are no current plans to extend or maintain the benefits freeze after March 2020. As I said at the beginning, specific decisions on how to uprate the local housing allowance rates from April 2020 will form part of the discussions in support of fiscal events later this year.