Covid-19: Poverty and Mass Evictions

Baroness Warwick of Undercliffe Excerpts

Thursday 22nd April 2021 Grand Committee

[Baroness Warwick of Undercliffe (Lab)]

My Lords, I declare an interest as chair of the National Housing Federation, the trade body for housing associations in England. I congratulate the noble Lord, Lord Bird, on securing a most timely debate.

The Government took speedy and decisive action to bring in the ban on evictions, introduce the universal credit uplift and deliver the “Everyone In” initiative. That was well done. This package undoubtedly saved lives and prevented people losing their homes and being plunged into poverty at this most difficult of times. The Minister knows that the worst impact of the pandemic has not been evenly distributed across our society. People on lower incomes have had higher contraction and mortality rates. Many of them have lost jobs or are stuck in precarious employment. Things for them have got worse in the past 12 months, and the future is not looking bright.

Research from the National Housing Federation shows that since the start of the crisis the number of social rented households in England claiming the housing element of universal credit has increased by 39%. In addition, around 60% of households that claim universal credit are in rent arrears. This picture is just for the housing association sector, which has put in place robust measures to support residents. For people in the private rented sector, the situation must be a lot bleaker.

Housing associations pledged from the start that no one would be evicted because of financial hardship caused by the pandemic. They set up schemes across the country to help residents get access to the vital financial support they needed through the welfare system. For example, Sovereign Housing, which operates in the south-east, has retrained 75 members of staff to help residents who are facing a drop in income. It has partnered with local businesses to help these residents find employment. Unfortunately, such initiatives alone will not be enough. Many families now stand on a cliff edge. What will prevent them falling off?

As the country’s economic and social recovery starts, we must not leave people who are already struggling even further behind. The eviction ban is, of course, not sustainable in perpetuity but I hope the Minister will acknowledge that we face a real and present danger of unravelling the complex support system that is keeping people’s heads above water. We must learn the lessons from this crisis—that a safe, affordable and decent home, with effective government support where needed, is the bedrock of a compassionate society.

With strong government action and leadership, we can prevent hundreds of thousands of people facing long-term financial hardship. Can the Minister commit to preventing those families falling off that cliff edge by keeping the support packages currently in place, including the £20 increase in universal credit? Can he also tell us what assessments his department and the Government have made of the implications of withdrawing this package for the housing situation of individuals and families?