Social Housing and Regulation Bill [ LORDS ] (Second sitting)

Bob Blackman Excerpts

Committee stage
Tuesday 29th November 2022 Public Bill Committees

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Dehenna Davison)]

As I said on Second Reading, the Government are fully committed to driving up housing management standards by improving the professional behaviours, skills and capabilities of all staff in the sector. The Grenfell tragedy and our subsequent social housing Green Paper consultation highlighted the fact that many staff did not listen to or treat residents with respect, provide a high-quality service or deal appropriately with complaints. The circumstances surrounding the death of Awaab Ishak have once again shown the tragic consequences that can occur when staff lack empathy and when tenants are not listened to. That is why clause 21 makes provision to enable the Secretary of State to direct the regulator of social housing to set standards for the competence and conduct of social housing staff. Registered providers will be required to comply with specified rules concerning the knowledge, skills and experience of social housing staff. They will also be required to comply with specified rules concerning the conduct expected of such individuals when dealing with tenants. Those factors are crucial in determining the quality of services provided to tenants.

Our approach offers a holistic solution to the issue of professionalisation. It champions the value of skills, knowledge and experience, and maintains landlords’ flexibility in choosing the most appropriate training programmes and qualifications to equip their workforces. The standards set under this clause will ensure that social housing staff develop the core skillsets and behaviours required to treat tenants with the empathy and respect that they deserve. They will also empower staff to take appropriate action to support tenants.

New clause 4, tabled by the shadow Minister, takes a different approach to achieving professionalisation. It gives the Secretary of State the power to stipulate, through regulations, that a person

“may not engage in the management of social housing or in specified work in relation to the provision of social housing unless he or she—

(a) has appropriate professional qualifications, or

(b) satisfies specified requirements.”

As both myself and the Secretary of State set out on Second Reading, there is a real risk that mandating qualifications for all housing management staff would lead to the reclassification of housing associations to the public sector. The sector is close to the threshold for reclassification, and we saw that happen in 2015. Since then, a number of deregulatory measures have had to be taken before housing associations could be reclassified back to the private sector.

To make this point very clear, reclassification would bring around £90 billion of debt and all housing association annual spending on to the public ledger, and would likely reduce the ability of housing associations to improve the quality of their stock and build new homes. We have to be mindful of that risk and that outcome, which could be harmful to tenants.

However, we have listened carefully to the arguments made both in this House and the other place in support of mandatory qualifications. As I committed to do on Second Reading, I met with my right hon. Friend the Member for Maidenhead (Mrs May) to discuss this issue before the Bill reached Committee stage. We are continuing to look at whether there is any scope to include qualifications requirements in the competence and conduct standards without triggering reclassification. If we can identify a solution, then we will be able to bring that forward on Report.

We continue to believe that the existing provisions in the Bill, which will enable us to direct the regulator to set standards for the competence and conduct of all staff, will be an effective means of professionalising the sector. Our approach has been informed by the findings of our professionalisation review, which we will publish in full early next year. There is no doubt that housing management qualifications are an important aspect of professional development for some staff. Our review heard no clear evidence that such qualifications in and of themselves lead to better staff behaviours or improved tenant experiences. Qualifications such as those offered by the Chartered Institute of Housing will be an important part of how landlords ensure their staff have the skills, knowledge, experience and behaviours they need to deliver professional services, as required by the competence and conduct standards. Qualifications will sit alongside external and in-house training and more informal developmental tools such as staff supervision, mentoring and reflective practice.

Our review findings echoed what we heard after the Grenfell tragedy and more recently in relation to the death of Awaab Ishak—that what tenants most want and need is for all of the staff they deal with, whether housing managers, officers, or contact centre staff, to treat them with respect and empathy, to listen carefully and take appropriate and timely actions in response to their issues and concerns. We heard that these behaviours, and the interpersonal skills and attitudes that underlie them, are more likely to be achieved through a combination of organisational culture change led by senior executives and boards, adoption of codes of ethics and values, delivery of bespoke on-the-job training and effective supervision by experienced staff, than they are necessarily by formal qualifications.

The review also highlighted how important flexibility is in designing staff development programmes, given the sector’s diverse structures, operating models, role types, and breadth of service provision. Mandating qualifications for all housing management staff could hinder landlords in delivering the right mix of qualifications, training and development for their staff. Through the review we also heard that mandating qualifications for all staff would likely add to the recruitment and retention challenges faced by many landlords. Recruiting staff who have the right attitudes and aptitudes is more important to building a caring and empathetic workforce than employing people who possess formal qualifications. So we are concerned about the recruitment issues in that regard.

The standards that we are bringing forward will drive a holistic and organisation-wide approach to professional development, and deliver the empathetic, forward-looking and professional housing services the sector deserves, with staff who treat tenants with respect and act swiftly to remedy issues.

[Bob Blackman (Harrow East) (Con)]

Will my hon. Friend give way?

[Eddie Hughes (Walsall North) (Con)]

Will my hon. Friend give way?

[Dehenna Davison]

Two to choose from—I give way to my hon. Friend the Member for Harrow, East.

[Bob Blackman]

The clause refers to the standards and competence that we expect to be achieved in this sector, and the amendment goes further and expands on them. However, it is silent on sanctions when they are not achieved. It is all very well having qualified people, but, if they do not perform properly, sanctions have to be available and directions by the Secretary of State should be possible. I wonder whether my hon. Friend will look at how we might strengthen the position when we get to Report stage.

[Dehenna Davison]

I am grateful to my hon. Friend. I will respond to him and then perhaps I will have answered the question that my hon. Friend the Member for Walsall North wanted to ask. It is right that the regulator must have the right powers in place to deal with breaches of its standards. With regard to competence and conduct, the Bill enables the regulator to require providers to produce and implement a performance improvement plan to be approved by the regulator. If a provider fails to implement a plan, the regulator can issue an enforcement notice and levy an unlimited fine if that notice is not complied with. So the regulator will have teeth to ensure the kind of conduct that we expect. I hope that that answers the question from one hon. Friend.

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The Government did the right thing in inserting clause 21 into the Bill, but they must go further. The Minister says the Government are in listening mode. I suspect that Ministers are minded to push much further on this matter. We look forward to seeing what they bring back.

[Bob Blackman]

The shadow Minister is applying quite a long list of prescriptions, and I think Members on both sides of the Committee would probably agree with much of what he is saying. One of the problems with putting such provisions into the Bill is that they are very difficult to amend at a future time. I accept that what he is proposing now is that regulations “may” be made; I wonder whether a better approach might be for a Government amendment to set out that regulations may be made. The prescription he has put in his new clause could then be made under regulation and, therefore, be easier to amend in the event that matters change. Otherwise, we would have to introduce primary legislation.

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[Dehenna Davison]

Clause 29 commits the regulator to the delivery of regular inspections by providing it with a duty to publish, and take reasonable steps to implement, a plan for regular inspections. The clause will reinforce the regulator’s commitment to deliver the policy objective set by the social housing White Paper, while ensuring the regulator has the freedom to design the inspections regime following engagement with the sector.

As members of the Committee know, a key part of our efforts to drive consumer standards is the introduction of routine inspections by the regulator for the largest landlords. Inspections will help the regulator to hold landlords to account and intervene where necessary, ultimately driving up the quality of homes and services provided to tenants. That measure is integral to the success of the proactive consumer regime facilitated by the Bill.

However, I cannot accept amendment 16, which seeks to introduce a specific duty for the regulator to conduct inspections of all RPs every four years. As I have said, clause 29 puts the Government and the regulator’s shared commitment to inspections into legislation, through requiring the regulator to publish and take reasonable steps to implement an inspections plan. The clause also ensures that the regulator maintains a level of operational flexibility to allow it to respond on a risk basis to significant developments in the sector.

The regulator is committed to developing a robust approach to inspections, and continues to develop the details of how it will manage consumer inspections via a process of targeted engagement with the sector and social housing tenants. I do not feel that we should bind the regulator’s hands by putting into legislation detailed requirements about inspections that would pre-empt the work it is currently undertaking.

The system of inspections will be based on a risk profile to ensure that those landlords at greatest risk of failing, or where failure might have the greatest impact on tenants, are subject to greater oversight. As part of that provision, the regulator will aim to inspect landlords with more than 1,000 homes every four years. We will, of course, hold the regulator to account to deliver and implement its inspections plan, and the regulator continues to be accountable to Parliament for the delivery of its statutory objectives.

[Bob Blackman]

Clearly, the providers with the most complaints against them to the regulator will be placed most at risk. In my view, some could be subject to an annual inspection, while providers that are doing a really good job and do not warrant an inspection could be left, although, clearly, if there were complaints, the inspection could be brought forward. Is that my hon. Friend’s understanding of how this will work? Obviously, the regulator will have limited resources to ensure that standards are improved.

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I was pleased to work with the hon. Member for Harrow East on his Homelessness Reduction Act 2017 in a previous Parliament. As members of the Housing, Communities and Local Government Committee, we saw evidence that a change in the duties on councils could make a real difference to the prevention of homelessness. I was also pleased to have his support for Georgia’s law, as I am naming the new clause, when I introduced it under the ten-minute rule earlier this year. This is a similar situation. A small change in duties could make a big difference to a very vulnerable group of people who need more support.

[Bob Blackman]

Does my hon. Friend—I classify her as my hon. Friend because we have co-operated on so many other things—not accept that one of the problems is the shortage of suitable accommodation? I had a similar event in my constituency: a family was encouraged by the police to seek alternative accommodation, the registered social landlord said, “We don’t have any,” and naturally there was a problem as a result. Does she accept that providing suitable accommodation within a reasonable distance that allows children to go school, perhaps, and the tenant to get to work will be very challenging? I wonder whether she has considered that she is putting the onus on the registered social landlord to provide that. They may not operate within suitable areas, or may not be able to get co-operation from another registered social landlord. Would it not be better to have a range of potential organisations that might provide accommodation in what are, as she said, exceptional circumstances, rather than putting the onus on the registered social landlord?

[The Chair]

Order. This is a very long intervention.

[Bob Blackman]

I understand that, Sir Edward, but this is an important issue that merits further explanation.

[Helen Hayes]

I thank the hon. Member for that intervention. The new clause would impose a duty of co-operation on registered social landlords, which is designed to deal exactly with such a circumstance, where accommodation cannot be found that is safe for the tenant within the area in which the current landlord holds property. These are of course very challenging cases. I have certainly come across constituency cases in which the tenant simply cannot bring themselves to move from their home because the consequences are so dire for them, even when an offer has been made in an area that is considered by the police to be safe for them.

The new clause will not resolve every single circumstance, but in Georgia’s case, when I phoned a senior director in her large registered housing provider she was provided with a new tenancy in a safe borough, and signed that tenancy within a week. With greater will on the part of registered providers, and I believe that placing a duty would prompt that greater will, much more can be done to stop the cycle of violence in our communities.