Supported Housing

Alison Thewliss Excerpts

Tuesday 12th July 2016 Commons Chamber

[Peter Aldous]

I am grateful to the hon. Lady for that intervention, which provides a clear illustration of the point that I am making.

Inside Housing’s snap survey found that 95% of supported housing providers will be forced to wind up some or all of their schemes. HB Villages wants to invest in new developments. It requires no public grant, but the investment can only be made if returns from future rents are protected through continued rent exemption. I fully appreciate that Lord Freud’s review must be comprehensive and based on as much evidence as possible. It will also be important not to rush it, if we are to arrive at a sustainable long-term funding solution. However, an early assurance from the Government—perhaps from the Minister tonight—that the cap will not apply to supported housing will remove the uncertainty that currently hangs over the sector.

In framing their proposals for the funding of supported housing, it is vital that the Government have in mind the needs of those charities, housing associations and social investors already active and doing great work in the sector as well as those looking to get involved. There is an enormous amount of goodwill and capital waiting in the wings. If the right framework is put in place, those organisations, charities and investors will step up to the plate and carry out projects. In doing so, they will bring significant benefits to the lives of many.

[Alison Thewliss (Glasgow Central) (SNP)]

Is the hon. Gentleman aware that women’s refuge accommodation in Scotland is often owned by local authorities or housing associations? Scottish Women’s Aid estimates that a one-bedroom flat in a city such as Glasgow would incur a £7,100 a year loss. Does he agree that if the policy on the cap is not changed, those services will become unsustainable?

[Peter Aldous]

I thank the hon. Lady for that intervention. This evening’s interventions started off with an East Anglian flavour, but they have now widened to cover the whole country. This is very much a national crisis. Going back to East Anglia, however, a housing association active in Suffolk has emphasised to me the importance of a long-term plan. It says that it cannot run a business with a 10-year outlook on the back of local authority annual discretionary housing payments.

An organisation I would like briefly to mention is Emmaus. It was set up in the UK 25 years ago just outside Cambridge by Selwyn Image. It now has 28 communities across the UK supporting more than 700 vulnerable people, with the objective of increasing that figure to 1,000 by 2020. It needs the seedcorn of a stable funding regime in order to set up new communities such as All Hallows at Ditchingham, which is near Bungay in the constituency of my hon. Friend the Member for South Norfolk (Mr Bacon) but which also serves my constituency and several others in the surrounding area. Ultimately, with the right initial support, Emmaus communities are self-funding. Research shows that the social return on investment in its communities, using the Treasury’s recommended discount rate of 3.5%, is £11 for every £1 invested. In addition, the present value of savings to the state is nearly £6 million per annum for a contribution of just over £2.7 million in housing benefit.

Providing the right long-term investment framework will also encourage the provision in new developments of adaptive technologies, which not only enhance residents’ lives but can also produce significant cost savings for local commissioning councils, releasing funds for investment elsewhere. Research by HB Villages shows that the introduction of adaptive technologies can produce savings of between £3 million and £7.8 million—7% to 20% of budget—in a typical council.

In conclusion, I look forward to hearing the Minister’s response and hope that he will answer the following questions. How is the evidence review going? When will the results be available? Are the wide range of interested parties in the sector being consulted? What is the impact of the roll out of universal credit? Will he give early confirmation tonight that the threat of the crude local housing allowance cap will be removed after next April? In putting in place the new framework for the future funding of supported housing I urge the Government to be sympathetic and visionary and to think strategically. It is important for the futures of so many vulnerable people that the Government pursue such a course.

--- Later in debate ---

[Mr Jackson]

Absolutely. One of the great pleasures of being a constituency MP is that we get to visit some of these excellent supported housing schemes—these extra care centres—with Friary Court and the Pavilions being two that Axiom Housing Association has in the urban area of Peterborough.

May I allude briefly to the specific concerns that Mr Lewin raised about the impact of these changes in the Peterborough area? He said:

“Axiom has already felt one of the consequences of the proposed LHA policy—a flagship extra care scheme for 60 vulnerable people at Whittlesey is now on hold as we cannot commit to building these new projects when there is uncertainty surrounding the future revenue funding streams.”

Whittlesey is actually in North East Cambridgeshire, but the point is very reasonable. The policy has a particular impact when low-value land is involved, as is the case in our neighbouring authority of Fenland, although that also applies to other parts of the east of England.

Mr Lewin also mentions the services that are affected, which include young persons’ foyers, homeless hostels, specialist supported housing, extra care housing and sheltered housing. He goes on to detail the

“current impact on each of these schemes/projects based on current rents and service charges”.

For instance, the Peterborough Foyer and the Wisbech Foyer, which do a really good job for young people who want to get off benefits, find work, training or internships, and make something of their lives and improve themselves, will face a cumulative loss in annual income of £620,557. He said that our homeless hostels, such as Fairview Court and New Haven, would lose £461,735. The three Peterborough extra care schemes, two of which I have mentioned, will lose £794,704.

Part of the problem is that we do not get a generic service with such specialist housing. We have night porter services for safety and security, which is an enhanced service that has to be paid for. Losses will also vary according to the amount of Supporting People money that funds support costs. When there is little such money, the costs are included in the housing benefit element of the service charge, which will now be capped. Mr Lewin goes on to say that the projected lost revenue to Axiom for supported housing is £2.2 million.

Unless the Government have quite an innovative, forward-looking and visionary approach for how else that money can be made up, many of the registered providers that provide this much-needed housing for vulnerable people will find themselves in great difficulty, and that will clearly impact on work in the community and in general needs housing. A local housing association in my constituency, Cross Keys Homes, runs an apprenticeship school, which is a fantastic scheme. There will be a knock-on effect—a cumulative knock-on effect across the country—in terms of how individuals will have to be taken care of if they cannot be housed in the most appropriate way.

[Alison Thewliss]

The hon. Gentleman is making an excellent speech and I agree with much of what he is saying. Does he agree that if people cannot access services such as Blue Triangle and the ARCH resettlement service in my constituency, they would be out on the streets and in very unsafe situations, because there are literally no other housing providers that will take them?

[Mr Jackson]

Absolutely. The hon. Lady makes a very good point. There will be consequences if we do not step back.

I did not refer to the new Prime Minister because I want a job, as that is highly unlikely to happen. After 11 years, I am resigned to being a humble spear carrier in the drama of British politics—there has been a lot of drama this week. I did so because a new Government will have new priorities, a new vision and new principles. Housing is massively important, especially general needs housing. I am talking about housing our most vulnerable people, looking after them and getting them off the streets. In many respects, I am inordinately proud of what this Government have done on housing, but I am making my remarks because I do not want them to throw that record away through a short-term action of cutting £100 million here or there and therefore making the situation worse down the line.

I thank my hon. Friend the Member for Waveney for securing this debate. I also pay tribute to the right hon. Member for Newcastle upon Tyne East (Mr Brown) for raising this issue previously. I hope that the Minister will reassure me that he will talk to his colleagues in the Treasury and other Departments and that he will come back to us, once the review has concluded in an expeditious fashion in the next few months, so that we can tell our constituents and housing associations that the Government are taking housing seriously and looking after the needs of the most vulnerable people in society. We are compassionate Conservatives, and that should be our watchword.