Housing Benefit and Supported Housing

Brandon Lewis Excerpts

Wednesday 27th January 2016 Commons Chamber

[The Minister for Housing and Planning (Brandon Lewis)]

Once again, I stand at the Dispatch Box grateful for the subject chosen by the Opposition for debate. We are always happy to discuss welfare reform, because it is at the heart of the Government’s agenda. We make no apology for this commitment to the people of Britain.

Our aim is simple. We need to balance the books and introduce a welfare system that is fair to taxpayers, where work pays and where having a job is always preferable to a life on benefits. The right hon. Member for Wentworth and Dearne (John Healey) speaks as though we are debating in a vacuum. We have to bear in mind where we have come from in order to understand where we are going, and the wider picture. Let us remember that in 2010 we inherited a welfare system that failed to reward work, hurt taxpayers, and was a millstone around the neck of the British economy. During the 13 years of the Labour Government, welfare spending had shot up by 60% in real terms and 1.4 million people had spent most of the previous decade trapped on out-of-work benefits. The result was a benefits system in disarray, which was costing taxpayers an extra £3,000 a year.

[John Glen (Salisbury) (Con)]

Was my hon. Friend as surprised as I was when he heard his opposite number talking about good policy, when in the last 10 years of the Labour Government housing benefits increased by 46% in real terms? How could that be considered good policy?

[Brandon Lewis]

My hon. Friend, as ever, makes a powerful point about the way the Labour Government worked to trap people in dependency. We want to work with people to drive aspiration, while giving a fair deal to the British taxpayer.

[Julian Knight (Solihull) (Con)]

Does my hon. Friend agree that the contribution from the Opposition Front Bench was long on flannel but short on facts? The independent Institute for Fiscal Studies predicts that despite small initial savings, there will be long-term benefits from capping housing benefit. My hon. Friend may wish to comment on that.

[Brandon Lewis]

My hon. Friend highlights the weakness of the Opposition’s position. They never look at the entire picture; they just want to make short-term political points.

[Owen Smith (Pontypridd) (Lab)]

Will the Minister confirm that the coalition Government, including the Tory party, spent £130 billion more than the previous Labour Government on welfare, breaching £1 trillion for the first time under any Government? Is that not a fact?

[Brandon Lewis]

The hon. Gentleman highlights the terrible mess that the coalition Government inherited. There was no fairness for hard-working taxpayers in such a system. There was nothing progressive in trapping people in lives without hope for a brighter future. The welfare system that his party left was broken, yet the Opposition have since then opposed every single decision we have taken to fix it. We have never heard from them proposals for alternative reforms, which can mean only that they oppose making any difficult decisions at all. It is easy to make noise, but much harder to do the right thing by the British people. We have seen one tactic time and again—scaremongering, exploiting the concerns of the very people they claim to represent, and playing politics with the lives of vulnerable people. Today’s debate is no exception.

[Chris Leslie]

If the Minister wants a specific proposal to save money on housing benefit and welfare, why does he not look at the £4.6 billion lost through fraud and error in the administration of our housing benefit system? Why does he not get a grip on that and introduce some better credit rating agency checks for applications? That is where the savings should be made, rather than on the backs of the most vulnerable people in our society.

[Brandon Lewis]

We have been clear about protecting the most vulnerable people in our society; I will come to that in a moment. The hon. Gentleman is right. We need to continue to make progress in cracking down on fraud and error, and in local government as well—something that the Labour Government did nothing about.

[Graham Evans]

My hon. Friend is making some powerful points. Will he remind the House that the Government are issuing £800 million to be allocated to local authorities for discretionary housing payments, and that a further £40 million was announced in the autumn statement for supporting the vulnerable, particularly for refuges for beaten women?

[Brandon Lewis]

My hon. Friend makes a strong point. It is rare that I disagree with him, but the figure is slightly better than he says. There is £870 million coming through. He highlights the Government’s clear focus on these issues.

[Robert Jenrick (Newark) (Con)]

Does my hon. Friend share my surprise that until we heard from the former shadow Chancellor of the Exchequer, we had not heard, in 25 minutes of listening to the shadow Minister, any suggestion or acknowledgement that housing benefit is now an issue that any responsible Chancellor needs to look at? We spend more on housing benefit than on secondary education and it represents 50% of what we spend on the defence budget. No responsible Chancellor of the Exchequer would not be losing sleep about housing benefit and looking to reform it.

[Brandon Lewis]

My hon. Friend makes another clear and important point. Not just in the past 25 minutes, but in the past six years, Labour has said nothing constructive about how to deal with these issues for the benefit of the British taxpayer.

[Several hon. Members rose—]

[Brandon Lewis]

I shall make a little progress and then take more interventions.

This Government have always been clear that the most vulnerable will be supported through our welfare reforms. We know that the welfare system is vital for supporting vulnerable people, and we know it is essential that all vulnerable people have a roof over their heads. That is why we have been determined to support their housing needs. We have set aside over £500 million to create a strong safety net against homelessness; we recently pledged £40 million for domestic abuse services, ensuring that no victim is turned away from the support they need; at the autumn statement we announced a further £400 million to deliver 8,000 specialist affordable homes for the vulnerable, elderly or those with disabilities; and the Department of Health committed to fund up to 7,500 further specialised homes for disabled and older people.

We spent an extra £2 billion on main disability benefits over the course of the last Parliament, and by 2020 we will be spending at least £10 billion a year extra over and above inflation on the NHS, including a record £11.4 billion a year on mental health, which we can do because of the stronger economy that the Chancellor has brought to our country.

[Yasmin Qureshi (Bolton South East) (Lab)]

The Minister is giving us the statistics on how much money the Government have put aside or will be spending. I ask him a straight question: will people currently in supported housing be protected, rather than being turfed out and made homeless? That is a simple question.

[Brandon Lewis]

As I will set out in more detail later, we will make sure that the most vulnerable people are protected. That is what the welfare system is all about.

[Neil Gray (Airdrie and Shotts) (SNP)]

The Minister talks about women’s refuges. The manager of Monklands Women’s Aid, Sharon Aitchison, has just emailed me. She says:

“There is no doubt that our current set-up with housing benefit is already stretched to the max, so the refuge provisions viability would most certainly be in question and the reality is we would be unable to fund refuge provision if the cap went ahead for us.”

What does the Minister say to Sharon Aitchison, the manager of my local women’s refuge, which provides a brilliant service for women and children in desperate situations?

[Brandon Lewis]

As I have just outlined, this Government announced an extra £40 million for domestic abuse services.

Funding for supported housing is part of the Government’s wider financial settlement to councils, which includes £5.3 billion in the better care fund in 2015-16 to deliver faster and deeper integration of health and social care. That will result in councils being better able to work together and invest in early action to help people live safely in their own homes for longer.

[Barbara Keeley]

I am amazed. The Minister has started trotting out figures for the better care fund. That fund is back-loaded: the money will not reach councils until 2019-20, and is cancelled out by the new homes bonus being taken back at the same time. We have already lost an awful lot of support for older and vulnerable people.

Does the Minister believe, as he seems to have just said, that the most vulnerable will be supported by the welfare reforms? That is just not true, as we see from all the court cases that are going through. How will people in 2,300 units of housing for older people in Salford be protected? I advise the Minister not to talk about discretionary housing payments, as those have been shown to be insufficient.

--- Later in debate ---

[Brandon Lewis]

I think that the hon. Lady, in talking about the settlement, is referring to the new £1.5 billion coming through. As I am sure she is aware, our affordable homes programme actually delivers 6% more supported homes a year than Labour’s equivalent did.

Of course, the supported housing sector is wide and varied, but all the different kinds of provision have one thing in common: they all provide dedicated support for some of our country’s most vulnerable people.

[Several hon. Members rose—]

[Brandon Lewis]

I am going to make some progress, because many Members wish to speak, but I will give way again shortly.

Many supported housing tenants have multiple physical and mental health problems, histories of offending and dependency issues. They might be elderly, socially isolated or face barriers to accessing employment or living independently. We know that supported housing can also reduce costs to the wider public sector—for example, in health and adult social care or in criminal justice.

I am sure that the whole House will agree that we want all our families, friends and constituents to live fulfilling and independent lives, wherever possible in a home of their own. Some people need more help to do that, and supported housing gives them that assistance. It provides a place of safety and stability. It helps people get their lives in order. It improves their health and wellbeing, and it provides the platform from which they can reach their full potential.

My ministerial colleagues and I have been out and seen for ourselves, over not only the past few months but the past few years, the difference that supported housing can make. Homeless hostels, such as Shekinah in Plymouth, which I visited last January, provide not only accommodation but invaluable opportunities for people in recovery. The same is true for specialised housing for older or disabled people, such as the Lady Susan Court development in Basingstoke, which I have visited. The residents there are delighted with their homes, which have allowed them to maintain their independence. Their only regret is not having moved in sooner.

My colleague Baroness Williams has also seen how domestic abuse refuges, such as the Saheli Asian Women’s Project in Manchester, are helping women flee terrible abuse and violent relationships and start new lives. Protecting the most vulnerable in society and supporting their housing needs is just as much a priority as driving down the deficit. There need be no contradiction between those two aims.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

Last week I visited Camberwell Foyer in my constituency, which is run by Centrepoint; I was shown around by Shante and Tia, who live there. The Foyer provides brilliant support for young people who would otherwise be homeless for a period of time. It has expressed grave concerns to me about the impact that the withdrawal of housing benefit from 16 to 21-year-olds will have on youth homelessness, in relation to the demand for their services, which it fears it would be unable to meet, and also on young people who are ready to move on and will not be able to access housing benefit for the homes they need. How does the Minister answer that point?

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[Madam Deputy Speaker (Natascha Engel)]

Order.

[Brandon Lewis]

I think there was an intervention somewhere in that speech. The hon. Lady has experience of the excellent work that those organisations do, as do I—I was a trustee of a Foyer. That is why it is important that we ensure that we protect the most vulnerable in society.

[Mr Jackson]

Is not the difference between the two sides of the House the fact that we on the Government side have got 339,000 disabled people into work and off benefits, whereas in 2010 the Labour party, to its eternal shame, presided over a situation in which 70% of people on disability living allowance had never been systematically re-assessed? That is a shocking and disgraceful record.

[Brandon Lewis]

My hon. Friend highlights the difference between the two parties. We want to ensure that we get a deal that protects the most vulnerable in society, helps them out and gives them an aspirational opportunity to move forward in their lives while getting a right and proper deal for the hard-working taxpayer.

In the autumn statement we announced that social sector rents eligible for housing benefit will be limited to the level of the relevant local housing allowance rate, including the shared accommodation rate for single claimants under 35 who do not have dependent children. It will be effective from 1 April 2018, affecting all tenancies that commenced from 1 April 2016. I know that has raised some concerns, so let me be clear that we will always ensure appropriate protections for the most vulnerable in supported housing. We will work closely with the sector, through the supported housing review, to ensure that we do that in exactly the right way.

[Several hon. Members rose—]

[Brandon Lewis]

I give way to the Chair of the Communities and Local Government Committee.

[Mr Betts]

The Minister has rightly recognised the importance of supported and specialist housing. He has now just indicated that the Government will somehow protect people in these circumstances. Can he give any indication of how that will be done and when these measures will be announced, given that housing associations are already having to plan for potential change in 2018 that could lead to the closure of existing accommodation and to new accommodation not being built?

[Brandon Lewis]

The hon. Gentleman has effectively asked me to continue my speech, because I was just about to say, as I am sure he will appreciate, that the underlying principles are the bedrock of this policy formation. He, along with the right hon. Member for Wentworth and Dearne, urges the Government to note the concerns of supported housing providers, so let me reassure all Members of the House that we have of course been listening very carefully to those concerns, and we will continue to do so.

My ministerial colleagues and I have met representatives of the National Housing Federation and chief executives of housing associations that provide supported housing. We have listened very carefully to all these representations and noted everything that we have been told. We know that the costs of supported housing provision are higher than general needs housing and that providers rely on housing benefit funding for support elements such as wardens, security and the up-keep of communal facilities.

[Jess Phillips (Birmingham, Yardley) (Lab)]

I thank the Minister for finally giving way. Could he just point out exactly how he has been helping to protect the most vulnerable in the 34 specialist women’s refuges that have shut since the Conservatives came to power? I also wonder whether he would like to join me this afternoon at the all-party group on domestic violence to meet pretty much every CEO from all the Women’s Aid organisations across the country and see what they think.

[Brandon Lewis]

I am slightly surprised by the hon. Lady’s comments. If she looks back at the Hansard report of this debate, she will see how many interventions I have already taken, so she might want to talk to her colleagues about the fact that they got in before her. I am sure that she appreciates that I will always take an intervention from the Chair of the Select Committee first.

The future of supported housing matters, which is why my Department and the Department for Work and Pensions have jointly commissioned a fact-finding review of the sector. This will report by the end of March and will deepen our knowledge and understanding. The research has included extensive consultation with local authorities, supported accommodation commissioners and all categories of supported housing providers, be they charities, housing associations or, indeed, those in the commercial sector. It will provide us with a better picture of the supported accommodation sector.

In the meantime—Lord Freud has written to all interested parties outlining this today—the 1% reduction will be deferred for 12 months for supported accommodation. We will get the findings of the review in the spring. We will work with the sector to ensure that the essential services it delivers continue to be provided while protecting the taxpayer, making sure that we make best use of the taxpayer’s money and meet the Government’s fiscal commitments. We will look at this urgently to provide certainty for the sector.

[Andrew Gwynne]

I am grateful to the Minister for giving way and for setting out the next steps. I put it to him politely that he ought to have done that kind of research before making the announcement in the first place. In order to give those housing providers certainty, can he now also tell the House precisely what kinds of measures will be implemented to offset the changes in housing benefit?

[Brandon Lewis]

I say gently to the hon. Gentleman that the financial mess in which the previous Labour Government left this country means that we have to make difficult decisions and move quickly to ensure that hard-working taxpayers are properly protected. I am proud to be working with a Chancellor who sees that as one of our first and foremost duties.

[Geoffrey Clifton-Brown (The Cotswolds) (Con)]

Can I be the first on the Government side of the House to warmly welcome the announcement that my hon. Friend has just made? It makes eminent sense to postpone this decision for one year on the basis of proper evidence and facts. His supported housing review will report at the end of March. After the review has concluded, will he come to conclusions on the matter rapidly? I was lobbied about this on Saturday by Bromford housing association in my constituency. There is a lot of uncertainty in the sector, so I urge him to come to conclusions rapidly after the review has concluded.

[Brandon Lewis]

As my hon. Friend rightly says, as the findings of the review come in we will look to work urgently with those in the sector to provide certainty for them.

[John Healey]

I welcome this partial step as an indication of progress. It has taken Labour’s forcing this debate to get Ministers to take this 12-month backward step on the reduction in rents. However, what about the cuts to housing benefit for supported and sheltered housing? A pause is not enough. It will not remove the alarm or anxiety of residents or the uncertainty for providers, and it will not affect the schemes that have already been scrapped. The Minister must provide an exemption. Will he announce that now?

[Brandon Lewis]

It is almost as though the right hon. Gentleman forgets that when he was a Minister—I think in the DCLG, although he might well still have been at the Treasury—the Government of the time moved the spare room subsidy, which was first introduced under Labour, into the private sector and created the unfairness that we now see. I am not going to stand here and take a lecture from him about this Government doing the right thing in working with the sector to deliver the right outcome and to do what we have always done, which is to protect the most vulnerable in our society. Labour—I am afraid that the right hon. Gentleman is guilty of this—simply wants to get a headline by scaremongering around the country.

[Craig Williams (Cardiff North) (Con)]

I, too, hugely welcome the exemption for a year as a really meaningful announcement. Like the £40 million for domestic violence refuges—a tripling of the budget—it is really significant and contrasts with the political point-scoring we have heard from the Opposition.

[Brandon Lewis]

My hon. Friend clearly highlights the difference between the two parties. Labour spends a lot of time on bluster while the Government are focused on getting the job done for the people of Great Britain.

[Richard Graham (Gloucester) (Con)]

Can my hon. Friend confirm that those who will benefit from this exception from the 1% rent reduction during this year of consideration include those fleeing domestic abuse, and that it affects homeless provision and housing for ex-offenders as well as supported housing for older and disabled people? Does he recognise how much this will be welcomed by many of us? Will he pay tribute to those who are working with him on it, including Homeless Link and St Mungo’s?

[Brandon Lewis]

My hon. Friend makes a very good point. A large number of people provide phenomenal services, across the sector and across the country, in working with the most vulnerable. We are keen to work with them to make sure that, as we have said all along, the right protections are in place for the most vulnerable people.

Let there be no doubt: this Government will always protect the most vulnerable and provide them with the support they need and a safe home to live in. We are a one nation Government. We want everyone to have the opportunity to live happy and fulfilling lives, whoever they are and wherever they live. We want workers to earn a living wage and benefit from our strong economic growth. We want to support aspiration, boost productivity, reward work over welfare, and allow people to keep more of the money they have earned in their own pockets. That is our new settlement for Britain—to keep moving from a low-wage, high-tax, high-welfare economy to a higher-wage, lower-tax, lower-welfare country.

On this journey, we will, I repeat, always support vulnerable people and make sure they have a safe home to live in. The whole House should support that aim. Instead, Labour Members are resorting to their favourite tactic of scaremongering for a short-term political headline. It is time to stop that kind of poor politics. It is time to stop playing politics with the lives of vulnerable people while we are working to help to provide the support they need and deserve—and we will provide it.

[Several hon. Members rose—]

--- Later in debate ---

[Brandon Lewis]

rose—

[Owen Smith]

I will give way to the Minister if he will tell us what he is going to do about local housing allowance.

[Brandon Lewis]

The hon. Gentleman has managed to brush over the fact that his colleague who spoke earlier was a Minister who was involved in bringing in the spare room subsidy originally. Perhaps he could confirm that our affordable housing programme has delivered 6% more supported homes per year than did the Labour equivalent?

[Owen Smith]

It is interesting that the Minister did not ride to the rescue of his hon. Friend the Member for Lewes: he knows that she does not know what she is talking about on this subject.

The hon. Lady could have a further look at the Budget book produced by the Government for the same spending review, which shows clearly that £515 million is the saving anticipated from the cuts. The IFS goes further and says that by the time the cuts are fully implemented, the Government might save £1.1 billion. The largest part of that is the change equalising housing benefit with local housing allowance, not the one-year stay of execution that we have heard about today. Now that I have explained the position, does the hon. Lady wish to intervene?