(4 years, 5 months ago)
Public Bill CommitteesI will reply to two points. The first was made by the hon. Member for Ruislip, Northwood and Pinner, who has huge experience in this sphere, not least from his role in local government over the years. I disagree with his point because the example that he gave of modifications to the exterior of a building should be included in the Bill under that part of clause 1 that talks about external walls. I think that that is specifically envisaged to include not just external cladding but the whole external structure; it would therefore include voids and attempts that have been made through banding to restrict those voids.
Equally, I do not agree with what the Minister said. We all understand the point about private homes. It cannot be dismissed. We mentioned this morning the issue of leaseholders who provide their own front doors and how far that is considered, but there are other issues. There are issues to do with sprinkler systems and their installation in the homes of either leaseholders or tenants—assured or secure. This is not a black-and-white issue in terms of what goes into individual homes.
The amendment is a necessary or at least helpful addition to the Bill. Over a period of 30 or 40 years, a huge number of modifications will be made to buildings, even if, when a building was originally constructed, it was done in a secure way that would prevent the spread of fire and smoke. We know that this issue has been neglected, but it is so important that it should be reflected. However, given that the Minister has put it on the record that he believes that these matters will be dealt with, through the Bill and other measures that the Government are taking, I do not propose to press the amendment to a vote.
I thank the Minister for his response. He was basically saying that amendment 2 is unnecessary, which I would challenge, because the fire service has asked for the definition and thinks that it would be an important part of the Bill. I agree with the fire service, but I take the same approach as my hon. Friend the Member for Hammersmith and hope that these matters will be looked at as we go forward.
Fundamentally, as my hon. Friend the Member for Ruislip, Northwood and Pinner says, we are concerned that the definitions in the amendments might have a narrowing effect. Detailed guidance offering definitions will come out as a consequence of the Bill, and obviously we will work with partners to ensure that we get that guidance right.
It is worth pointing out that this approach is consistent with that in the Housing Act 2004, which uses similarly broad definitions to ensure that the many and various varieties of housing in this country, some built over many hundreds of years, all fall within a generalised definition in guidance that is put in place later on.
I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Question proposed, That the clause stand part of the Bill.
As the Minister said, we recently passed the three-year anniversary of the Grenfell Tower fire. I just want to mention the letter that we will all have received from Grenfell United last night. It was not able to give evidence before us today, but it welcomes the Bill and is pushing for it to have the funding that it needs and for it to apply to all buildings. It reminded us of the fire in Canning Tower, in east London, only last week, when 100 people were evacuated. It used to be covered with Grenfell-style cladding, but that was removed last year, just in the nick of time. As the letter says, there were not any serious consequences.
The importance of the Bill is not to be underestimated. Small though it is, it is incredibly important. We support the Bill and we support clause 1. It provides clarification, although it is a shame that we could not take it a bit further with our amendments. There are many issues that we would want to bring into the Bill, but because it is too small in scale, we cannot. They include electrical safety—people are keen for us to talk about that, and my hon. Friend the Member for Hammersmith mentioned it. We tried to have some of those issues included in the Bill, but they are not within its scope. There is a huge raft of issues beyond that of cladding—important as it is—that we must address, through the building safety Bill and subsequent measures.
I agree; it is shocking.
We have all seen examples, and one was given to us this morning. In 2017 an independent fire risk assessor was given a four-month jail sentence when a court described his assessment of a Cheshire care home as “woefully inadequate”. In the same year, a private hire safety consultant was found to have given valueless risk assessments to several businesses in south Wales, putting people at serious risk of death because of poor escape routes, a lack of fire alarms and insufficient precautions to reduce fire and the spread of fire. In 2012 a fire risk assessor in Nottingham was fined £15,000 after it was found that fire precautions in two hotels he assessed were inadequate, potentially putting hundreds of lives at risk. I suspect there is much inadequacy that we do not know about because it has not come to light.
Therefore, what do we do about this? We propose a fire risk assessor accreditation system. There are ways of easily mapping skill levels and the competence of individuals that are used across many sectors. We could look at those and work with the experts to find the right balance. For many years, the further education sector has used regulated qualifications to train the workforce. Vocational qualifications, which have been around for many years, have been the main way of demonstrating that an individual has met a certain standard. I spoke at length to the chief executive of the British Woodworking Federation, who sits on the Build UK WG2 competence of installers working group in Government, which is looking at some of these issues and mapping the competence of an installer following the Hackitt review. It is looking at third-party certification routes, continuous professional development and different things that would be possible. There are relatively straightforward options through the Health and Safety Executive, Ofqual—there are all sorts of ways to do this.
In anticipation that the Minister might not accept the new clause, I ask him to take this matter seriously and accept that there is a problem that we must do something about. I also ask him to see it in the round with what on earth happens if it takes a long period of time to try to build up workforce expertise, with people potentially living in buildings without the piece of paper that tells them they can get insurance and mortgages, as the hon. Member for St Albans said. This job must be done—whether it is done now is for the Minister to decide—and it must be done sooner rather than later, to avoid deaths in the future.
I agree with these sensible new clauses, because they would remedy the defects identified by the FBU and others in how the system currently works, by professionalising it and taking it seriously. Having said that, they would create another requirement to be actioned by the Government. Whether the Government accept the new clauses or not, I am sure that they wish to see fire risk assessments and mediation carried out properly and efficiently.
We heard evidence this morning from the Fire Safety Federation and the head of fire safety at the L&Q Group about how the system is working—or not working—in practice. Whether the Minister accepts the requirements, we seriously need to address the current investigation process. I say this with no disrespect to the witnesses, but I was not filled with confidence by them saying that the processes of assessment must be looked at, with is done either through the enforcers, the owners and the Government coming together, or through everyone doing their own bit, because it is simply not working at the moment.
I gave the example, which I will briefly amplify, of a block of some 400-plus flats owned by Notting Hill Genesis, a big housing association in London, with which some issues to be resolved have been found. Those issues are not the most serious issues; there is some timber construction and some cladding on the building. Most of the building is constructed of brick. The effect was that the building perhaps did not have as high a priority as more dangerous structures. The effect of that has been to set out for all residents, including those leaseholders who have sold or are trying to sell their properties, a process that goes through six separate stages: initial survey, survey review, developer engagement, project planning, specification and tender, and remedial works. That process could take as little as 16 months or up to 42 months, and only at the end of it would an EWS1 form be issued. I thought that was bad enough, but we heard from the head of fire safety at L&Q that they expect it to be 10 years before all the buildings in London are dealt with.
That situation cannot be allowed to continue, so I ask the Minister to ensure, when he looks at the issues raised by the new clauses, that we have competent and professional assessment of risk, and proper processes to carry out those assessments. We must also look at the speed at which that work is done, because the Government have found it necessary during the covid crisis, and previously during the housing crisis, which we see particularly in London but which exists generally across the country, to intervene with measures that help people either to get on the housing ladder, to upscale or to move; there need to be different types of packages in that regard.
That is needed here and now. This matter cannot be left to the relationship between leaseholders or tenants and their landlords or owners at the end of the building process; it must be for the Government to address. Otherwise, in what is already an extremely depressed and fractured housing market, this situation will cause further delay and misery. It is not just a case of people being forced to stay in properties that they do not want to stay in—they want to move, perhaps because their family is growing, or because they want to take up a job in another part of the country. This situation is causing real financial and social distress. That may be an unintended consequence of what is designed to be an efficient process, but the process is simply not working at the moment.
I want to put on record our support for the notion that leaseholders have been incredibly hard done by in recent years. They are championing their cause through incredibly powerful campaign groups, and we have heard over the past three years of the costs that have been put on them to remove cladding. It is extraordinary. In new clause 4, I try to ensure that they are not part of the definition of the responsible person in the legislation.
I agree with the premise of the new clause proposed by the hon. Member for St Albans, but having been the shadow housing Minister for three years, looking at the issues of leasehold and freehold and working with the Law Commission and with lawyers to try to unpick some of the legal issues, I think that it would be a challenging new clause to accept as it is, without significant compensation having to go to freeholders. I think the hon. Lady is probably right to describe it as being a blunt instrument, but I agree about the impossible position of leaseholders being faced with more costs when they are struggling so much.
I applaud the hon. Member for St Albans for bringing the matter to the Committee’s attention, although the new clause may not quite be the way to deal with the issue in law. I say that because although Government have made funds available in a drip by drip way—it is quite a substantial amount of money, so perhaps drip by drip is the wrong phrase—it is an inadequate sum to deal with the necessary remediation.
The way in which the funding relating to ACM and other types of cladding has been announced to social landlords and then private landlords has not only created some degree of confusion, but meant that there are huge gaps in terms of accessibility to funds to leaseholders and freeholders for carrying out remediation work. Therefore, landlords—not the worst landlords, necessarily; in some ways, it could be the better ones—are seeking to deal with remediation works in relation to blocks that do not fall within the fairly restrictive criteria that the Government have set. They are saying, “Yes, we will remove cladding, or do other works, but it isn’t covered by the Government’s building funds at the moment. We will therefore look, with section 20 notices or in other ways, for leaseholders to carry the costs.”
We are right to draw attention to this point, and I hope that the Minister will respond to it. He has been reading out his ministerial brief, which is all to the good because we need to put it on the record, but it would be quite good for him to respond to some of the points spontaneously made by Opposition Members.
(4 years, 5 months ago)
Public Bill CommitteesQ
Adrian Dobson: I think I would answer broadly yes, in those aspects that have now effectively been covered by prescriptive regulations. In relation to combustible external wall materials on high-rise residential buildings, we have at the moment a fairly prescriptive piece of legislation that makes best practice pretty clear. As you say, however, there is a certain element of lobbying to say that we need a more flexible approach, so you can already see attempts to row back on that. In terms of what has actually been regulated, fairly good practice is in place. We know there is quite a lot of good retrofitting work happening on buildings above 18 metres, even if it is very slow, but we do not really have much idea in terms of combustible materials below 18 metres.
Matt Wrack: I would like to comment on the lobbying that was mentioned by a building developer recently and in some earlier comments in your session. One of the voices we are keen to hear are those of tenants. The lesson of Grenfell is that the voices of tenants were ignored. The voices of tenants are often ignored in relation to building and modifications to the places where they live. The vast majority of tenants are respectable, sensible people and their views should be heard. They were not heard at Grenfell. I think they, us and firefighters would have greater respect for a risk-based approach if we could have the confidence in such a risk-based approach. Unfortunately, experience shows that risk-based approaches are often driven by commercial and financial interests, and that is why people have scepticism about them.
Q
Matt Wrack: We oppose a deregulated system of fire risk assessors. Sadly, much of the work we end up doing arises out of tragedies. One of our experiences in that regard relates to the death of one of our own members. It emerged that the fire risk assessor in the case concerned had few or no qualifications in that field and had simply set up in business as a fire risk assessor. That highlighted to us a disgraceful state of affairs, so we would support the better regulation of fire risk assessors. However, the best protection we have, in terms of the delivery of advice to occupiers and building owners, and the best mechanism for inspection and enforcement, is a well-resourced and highly skilled workforce in a publicly accountable fire and rescue service.
Adrian Dobson: Clearly, on the specific issue of cladding and insulation, retrofitting is possible. The very reason those materials were used for cladding is because they are lightweight and external—they do not form part of the structure of the building—so the practicality of making buildings safer is definitely there. We have seen some, albeit slow, progress.
As I think one of the witnesses in your earlier session said, the cost can be very significant indeed. While steady progress is being made in the social sector, I think your Committee has today discussed some of the issues when it comes to private leaseholders in privately owned blocks and the ultimate issue of where the funding will come from. That, of course, is what set off secondary problems within the insurance and mortgage markets. One of the problems we face is professional indemnity insurance. Although the cladding can be identified through testing and so on, it tends to require intrusive testing. It requires specialists to look at it and that requires insurance for them, so there is a potential blockage.
The bigger concern is that following the fires we had in Barking and Bolton, attention has naturally turned to whether these sorts of materials pose a very significant risk on lower-rise buildings. There has been discussion about what height threshold might apply. Some people have suggested 11 metres—indeed, 11 metres is the height chosen by the Government for sprinklers—but one of the problems there is that you have got a whole different order of magnitude, potentially, of properties that could be affected. That may also be a factor that is driving some of the movement in the insurance sector, because there is probably a realisation that this is potentially a much larger problem than was first thought.
(5 years, 11 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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It is a pleasure to serve under your chairmanship, Mr Evans. I thank my hon. Friend the Member for Wolverhampton North East (Emma Reynolds) for introducing the debate so eloquently that it is almost impossible to imagine the Government not wanting to act. I think there is cross-party agreement that action needs to be taken, which has to be incredibly powerful. I know that the Minister is listening, as she has listened to me previously, and that she will have listened to everything that my hon. Friend said.
As we know, bailiffs are the only part of the financial sector that is not regulated with an independent regulator. A powerful case has been made already in the debate, and by Citizens Advice and many other voluntary organisations, that the problem is worsening, that it is not being fixed by the changes made in 2014, and that something should be done. My involvement arose from a meeting with a constituent, the mother of Jerome Rogers from New Addington, who in 2016 ended his life at the age of just 20. Jerome had two £85 traffic fines from Camden Council that he had received in the course of doing his job as a motorbike courier. Due to the escalation of that fine and enforcement by Newlyn plc, the fines spiralled to more than £1,000. The Minister is aware of the case and last year she very kindly met with Jerome’s family and with me.
Jerome’s case is particularly tragic, but we must not think that it was a one-off. The coroner found that the bailiffs involved with Jerome had complied with the industry’s guidelines—guidelines that are self-written and self-enforced, as we have discussed. That is not something to be proud of; it simply highlights how flawed the guidelines are and how flawed the system of self-regulation is across the whole bailiff industry—especially in view of what Jerome was subjected to in the months leading up to his death. Each of these things underlines a systemic problem rather than a problem specific to Jerome.
Jerome was refused an affordable repayment plan. He called the bailiff after being told that he would be receiving a visit to his home and was told that he needed to call Newlyn. Newlyn then told him that he must pay the debt in full. After the bailiff visited his home, adding more money to his debt in the process, he was finally offered a repayment plan, but at £128 per week it was clearly not affordable. His average earnings were about £97 a week, and less than £20 after his work expenses. If Camden Council had offered him a repayment plan of £10 per week there and then, he could have paid off both £65 fines in three months.
Secondly, Jerome’s motorbike—his only means of earning money—was clamped. There was dispute over the valuation of the bike and whether it was even legal to clamp it, but looking beyond the valuation, it is surely wrong that a person’s sole means of income can be taken away by bailiffs. Thirdly, the enforcement fees were duplicated because the two cases were treated as separate, which is in the interests of no one but the bailiffs, who can charge £75 per case for simply writing a letter. It makes no sense that £150 can be added to a debt for a few pieces of A4 paper, or that two cases cannot be dealt with in the same letter. Bailiffs charge hundreds of pounds per case for every visit to a property, which might explain why they refused a repayment plan before the bailiff made his visit. The coroner viewed the bailiff’s behaviour as intimidating and raised the possibility that his actions could have been viewed as a form of harassment. They involved sitting outside the house for a prolonged period without telling Jerome why he was outside.
The fourth issue is one that has already been spoken about: the bailiff was paid by results. He had the potential to earn more if he seized assets, but if the debt was not cleared he would not get paid. Debt collection agencies are prohibited by their regulator, the Financial Conduct Authority, from paying enforcement agents through such commission models. Those models are common in the bailiff industry, but we cannot stop them leading to bad practice when bailiffs have the power to seize assets and enter homes. It is systemic.
There is FCA regulation in the private sector to some extent, but not in the public sector, as in my hon. Friend’s example. Extraordinarily, the National Audit Office’s recent report found that in many cases Government bodies are worse at fulfilling their duties. Does she agree that the Minister should look particularly at what local authorities and central Government Departments are doing in the area?
My hon. Friend makes a good point. We must tackle all the aspects; we cannot just say that it is a problem for local authorities without also looking at independent regulation.
I realise that I have already spoken for longer than I should have, Mr Evans. I wanted to give other examples of cases and stories that people have written to me about, but I will write to the Minister about them instead.
The trade body is not fit for purpose as a regulator. Indeed, it has written to me, as have other bailiffs, threatening legal action:
“Please desist from using this tragedy to lobby for changes that are unrelated to the actions of the enforcement agents.”
The chief executive officer of the trade body called our work on behalf of Jerome’s family
“a means to attract publicity for a populist campaign on behalf of the debt advice sector.”
For shame! That is not what we are doing; we are trying to honour the memory of Jerome and fix a system that is clearly broken. I really hope that the Minister will listen. I will work with her, as we all will, to make sure that we bring in the right kind of regulation.