Decent Homes

Chris Williamson Excerpts

Thursday 27th January 2011 Westminster Hall

[Chris Williamson (Derby North) (Lab)]

It is a great pleasure to serve under your chairmanship for the first time, Mr Bone. I congratulate my hon. Friend the Member for Sheffield South East (Mr Betts) on his excellent opening speech, which set the scene for today’s excellent debate.

The hon. Member for Carshalton and Wallington (Tom Brake) referred to ALMOs, almost as a default position, as being better than local authorities. That is slightly unfair—probably very unfair—on the many local authorities that do an excellent job.

[Tom Brake]

For the record, I made a comparison between ALMOs and housing associations, and not between ALMOs and local authorities.

[Chris Williamson]

I thank the hon. Gentleman for that clarification, which I welcome, and I apologise for misunderstanding him. I was making the point that many local authorities do an excellent job and do not necessarily need an ALMO to improve the housing stock for which they are responsible.

The hon. Gentleman also pointed out that successive Governments have neglected council housing. That was probably true of the previous Administration during their first four years, but the biggest problems built up over the 18 years of the previous Conservative Administration, and the decent homes programme went a long way towards addressing the backlog of dilapidation that was created by the under-investment from 1979 to 1997. He was hopeful that all the homes that are not currently decent will be brought up to standard by the end of this Parliament. I share his hope, but it is unlikely to be fulfilled.

My hon. Friend the Member for Stockport (Ann Coffey) stressed the importance of good housing management. From my own experience of representing Derby North and as a councillor on Derby city council, I know that that is key to ensuring that people enjoy a good quality of life on their housing estate. Poor housing management can lead to a whole range of problems, and I am sure that there is cross-party agreement on that issue. My hon. Friend’s concern that the shortage of housing should be a key priority, if not the top priority, is again one that I share. However, the decision made by the Government to remove housing targets by getting rid of the regional spatial strategies will make it a more significant problem in years to come. Forcing people into the private sector is not a good way of proceeding, as my hon. Friend pointed out.

The hon. Member for Wolverhampton South West (Paul Uppal) referred to apprenticeships and to how it is a good thing to use the decent homes programme to build up jobs by offering training and opportunities through apprenticeships for people to take advantage of the investment in construction. That is another important angle, but to some extent it will be undermined by the cuts made to the decent homes programme.

My hon. Friend the Member for Lewisham East (Heidi Alexander) said that too many people still live in substandard accommodation. She spoke eloquently about the impact that that has on people’s lives, and she referred to the embarrassment and shame that people feel, because they live in substandard accommodation. It is not their fault, and we have an obligation to people to ensure that they can enjoy their home. Nobody should be forced to endure that feeling of embarrassment and shame, because of inadequate investment by their local authority and central Government. I share her belief that, in certain circumstances, demolition is the only option. In numerous examples around the country, we have seen that selective demolition has had a significant impact and improved the overall standard of the housing estate, where it has taken place. She concluded by discussing the uncertainty about whether Lewisham will be able to deliver its decent homes standard.

The right hon. Member for Bermondsey and Old Southwark (Simon Hughes) referred to authorities having to have a two-star rating. In a letter to the Chair of the Communities and Local Government Committee, the Minister said:

“To improve fairness in allocating local authority decent homes funding, we will no longer require ALMOs to have passed a housing inspection with a 2* rating”.

Hopefully the Minister will confirm that that is the case and that consequently Lewisham will be able to access the funding that it needs and deserves.

My hon. Friend the Member for Islington North (Jeremy Corbyn) made a number of important points and referred to the cuts building up problems for the future. I share my hon. Friend’s concern that it is short-sighted to make deep cuts now, because, in the long term, everyone pays a bigger price, both in human and financial terms. My hon. Friend also congratulated—I want to share in offering those congratulations—people such as caretakers, street cleaners and other public sector workers on doing an excellent job. They are all too often castigated, and they are not celebrated enough. I welcome his comments in that regard.

My hon. Friend also made an important point about high rents in the private sector, people being forced into the private sector and the problems associated with the quality of private-rented accommodation, because of inadequate regulation. The decision of the Government to impose restrictions on housing benefit is a blunt instrument, which penalises people who have, through no fault of their own, been forced to live in the private-rented sector. A better route may have been to restrict the level of rents that landlords can charge, as well as looking at restricting housing benefit. Perhaps the Minister will comment on that. It is wrong to penalise people because they are poor. This impacts not only on poorer people, but on people on middle incomes as well. He rightly pointed out the impact that poor quality housing has on health, education and general quality of life. He referred to the need for greater protection, regulation and security for people living in the rented sector.

The hon. Member for Loughborough (Nicky Morgan) referred to the danger—she repeated the point that other hon. Members have made—of the housing stock deteriorating if we do not invest appropriately. She is right to worry, and she is right to be more worried by the cuts being pushed through, ironically enough, by her own Government. Interestingly, she made the point about the need for adaptations as well. That is another area for disabled people that is extremely important. More people are living longer now, and there is a greater need for disabled facilities grants. It is another area where local authorities will struggle to meet the demand. They are already struggling, but the problem will become even more acute, because of the cuts that are being pushed through.

My hon. Friend the Member for Vauxhall (Kate Hoey) referred to the first four years of the Labour Government—I have already touched on this point—where housing was not given sufficient priority. She said that housing is the most important issue in her constituency, and she also repeated the impact of poor housing on health. She also stressed the importance of insuring that in any investment programme we secure value for money. She said that if we are not careful, there is a danger of cartels being created and the public sector not getting good value for money. We could actually get more bang for our buck, as it were, if we were to bear down more severely on that. My hon. Friend also made a good point about the use of empty homes and being more flexible, and she referred to the GLC. That is a good example to cite, and I am interested in the Minister’s remarks about it.

My hon. Friend the Member for Nottingham South (Lilian Greenwood) referred to the withdrawal of a huge PFI scheme that would have dealt with the problems in the Meadows estate. I know that area well, given that it is close to my constituency. Indeed, I had a job with Henry Boot plc as a bricklayer on the Meadows estate when it was being built, but I must say that I am not responsible for it, as I took a job on another building site.

My hon. Friend eloquently outlined the impact of the decent homes programme on her constituents. She discussed not only bricks and mortar, important though they are, but how such matters impact on the lives of ordinary people and improve the quality of their life. Indeed, she said that 80 apprenticeships have been created, and as a result of the cuts to the programme in Nottingham, fewer apprenticeships will be taken on now than would have otherwise been the case.

The right hon. Member for Bermondsey and Old Southwark said that the largest proportion of council tenants is located in his constituency. He also had the good grace to refer to the legacy of previous, progressive Labour councils going back as far as the 1920s. Those councils set an excellent standard. I share his view about ALMOs being down to a local decision. When that is appropriate and tenants want it, that is fine, but it should not be forced on them. He, too, made the point about the private rented sector and the fact that most of the overall housing stock in the country that is not up to a decent standard is in the private rented sector. Only 56% of privately rented accommodation comes up to the decent homes threshold. That matter needs urgent attention, and I hope that the Minister will deal with it in his concluding remarks.

[Simon Hughes]

I wonder whether the Minister will at least lodge the Select Committee’s recommendation, which the previous Government did not pick up—it might not be possible to do so immediately—that VAT changes to allow renovation and new build should be treated similarly. That could be a Government policy, because it would address the renovation backlog, including that in the private sector.

[Chris Williamson]

The right hon. Gentleman makes a pertinent point with which I entirely concur. Earlier, he reiterated comments made by other hon. Members about the important of flexibility to deal with empty homes. It is important that we put on the record what a wonderful scheme the decent homes project was and note the £40 billion investment. The decent homes programme has delivered more than 700,000 new kitchens and 525,000 new bathrooms for tenants throughout the country. One million people have received new central heating systems and 750,000 people have had their homes rewired. It has certainly gone a long way to address the legacy of dilapidation that the Labour Government inherited from the previous Conservative Administration, which was in power from 1979 to 1997, and 92% of the country’s social housing stock meets the decent homes standard. It has helped to regenerate local areas, and it has particularly helped to address the problem of low demand.

The Chartered Institute of Housing has said:

“The setting of the standard, the ten-year target, the allocation of the resources and the near achievement of the target can be regarded as a major success story”.

The National Housing Federation has said that the programme has

“undoubtedly helped to raise the quality of homes benefiting millions of tenants.”

However, as hon. Members have said today and, indeed, as the recommendations from the Committee’s report point out, there is still more to do. The standard should include a minimum energy efficiency rating, which is clearly important. The backlog needs to be cleared, and there should be funding to deliver both new homes and the maintenance of and improvements to existing stock.

The think-tank for London Councils has pointed out that London Councils remains concerned about the funding shortfall to deliver the decent homes programme. As my right hon. Friend the Member for Lewisham, Deptford (Joan Ruddock) pointed out, London alone needs £2.5 billion to complete the programme, and about 10% of London’s stock is below the standard, which represents 46% of the national total. That is a major issue that clearly needs to be addressed.

In a series of letters to the Chair of the Committee, the Minister stated that

“the Government is constrained in its ability to commit to specific housing policies, including the way forward for tackling poor housing and energy efficiency.”

He went on to state in that letter, which he sent in July:

“The Government’s key priority is to devolve power from Whitehall to people, neighbourhoods, communities and…institutions”.

He also stated:

“Councils need the freedom to make the best long term decision for their housing, and it is critical that reform is able to deliver that.”

Of course, that has been done in the context of unprecedented cuts in funding for local authorities. I would be interested to hear from the Minister how he thinks councils will be able to deliver the ambition that he set out in his letter, when he is responsible for imposing huge cuts. In the letter, he also referred to the green deal. Although the green deal is welcome, it is inadequate for addressing the need for energy efficiency in people’s homes.

In a second letter, the Minister stated:

“Throughout the spending review the Government has been guided by a commitment to fairness, protecting the most vulnerable people in our society and as far as possible protecting frontline services.”

However, the reality is that the cuts are impacting disproportionately on the poorest people in society. Local authorities with the greatest needs are bearing the biggest cuts, so I wonder how the Minister can square that statement with the reality of their funding decisions.

I am running short of time, so I will conclude simply by saying that if we compare the policies being pursued by the present Government with those of my right hon. Friend the Member for Wentworth and Dearne (John Healey), when he was the Minister with responsibility for housing, hon. Members will see that he published a paper that would have enabled the decent homes programme to have been completed. His proposal would have ensured that local authorities could keep 100% of the capital receipts and would have seen an expectation that at least 75% of those receipts were reinvested in housing. That would have been a boost not only for the people living in those areas, but for the construction sector and jobs. It would have helped to deliver the Government’s stated intention of a private sector-led recovery. There are many questions that the Minister needs to answer in relation to this whole agenda because, if the ambition of a private sector-led recovery is to be realised and if the interests of tenants are to be met, the Government need to consider a significant change in direction.

--- Later in debate ---

[Grant Shapps]

We could knock these figures back and forth, but I reject the idea that the cut is about 50%. I accept, however, that more money needs to be spent on decent homes.

[Chris Williamson]

Will the Minister give way?

[Grant Shapps]

I hope that the hon. Gentleman will not mind my making a little progress. Others have spoken for a lot longer than I will get to respond to the many points that have been raised.

We are putting in £2.1 billion, but I would estimate that we need about £3.5 billion to truly finish the programme. I expect that, by April, about 210,000 homes will still be in need of decent homes funding, and the programme throughout this Parliament may cover about 150,000 of them.

The Chair of the Select Committee also asked for greater flexibility for local authorities to, for example, put in a boiler but charge 0.5% more rent. That is a very sensible suggestion and it requires no intervention from me. Local authorities are absolutely within their rights to do that. The guideline rents that we currently provide mean that they already have flexibility, and the direction of policy in the Localism Bill, which is at Committee stage, is to do precisely what he says. It is an excellent idea and one of the very good suggestions that have been made.

My hon. Friend the Member for Carshalton and Wallington (Tom Brake) raised the issue—perhaps he did this inadvertently, but it also came up in a later exchange—of the value of ALMOs versus housing associations versus local authorities. I do not particularly want to enter into this debate, other than to say that, from a Government perspective, I have a completely neutral view on whether an ALMO is better than a local authority or a housing association. Indeed, there have been some very interesting exchanges throughout the afternoon, and they have all been argued from the individual perspectives of constituency MPs. We know that, at certain times, an ALMO can be very good or very bad, and the same can be said about a local authority or a housing association.

There are even arguments about the size of housing associations, from vast conglomerates—I have a great deal of sympathy with some of the comments about the distances sometimes involved—to some small ones. In my experience, having travelled around the country a lot, looking at different types of housing, there is no single prescription for the right size or shape of organisation to run housing.

The hon. Member for Stockport (Ann Coffey) made a number of interesting points. I was impressed in particular by her comments on the quality of the environment and on how important design is to the way people feel, which was picked up again by my right hon. Friend the Member for Bermondsey and Old Southwark (Simon Hughes), when he talked about walking into a block of flats and how the entranceway can make all the difference.

The hon. Member for Stockport also made the point about walking into the home of someone who has had the decent homes work done—the delighted tenant—and sharing in that delight. I am sure that, as constituency MPs, we have all been in that position. I put it on record that, in the previous Parliament, I was the Conservative Opposition Member who represented the most council tenants in the country—I have not checked for this Parliament. On many occasions, however, I have walked into a kitchen or bathroom and been greeted by the delighted tenant. It is an absolute pleasure.

I also put it on record that I believe in the decent homes programme. It was an achievement of the previous Government. I accept the comments of the hon. Member for Vauxhall (Kate Hoey) and others, including the hon. Member for Derby North (Chris Williamson), that it probably started four years too late, but it did a lot of good work. I also accept the arguments of the hon. Member for Islington North (Jeremy Corbyn) and others, that it sometimes carries on doing work where it is not quite required to do so, or doing it in a uniform or almost machine-like fashion, at times unnecessarily ripping out perfectly good accommodation or facilities, as mentioned by other Members.

My hon. Friend the Member for Wolverhampton South West (Paul Uppal) talked about the importance of apprenticeships. I absolutely agree with what I thought was a thoughtful contribution from him. We have a great opportunity, with today’s economic backdrop, to ensure that local skills are being used or upgraded to provide improvements for people’s homes. It is the perfect mix and combination, given the opportunity of the £2 billion-plus to ensure that it happens in the future.

The hon. Member for Lewisham East (Heidi Alexander) made a number of interesting points about estates still requiring regeneration. I offer to engage with the hon. Lady to listen to the problems and to be of as much assistance as possible. It is not easy, the money does not exist and we have had to make difficult decisions, as she and everyone else appreciates.

However, I wanted to correct one point in the hon. Lady’s speech, when she seemed to suggest she believed that the local authority would have to contribute 10% towards the costs of decent homes. That is not what the Government said. I said that if more than 10% of repairs were needed in order to reach decent homes standard—if there were more than 10% non-decent stock, in other words, which I believe would be the case in Lewisham—authorities can apply for decent homes funding. It is not that they are then expected to pitch in 10%, although in fact it might be a good idea for them to do so. I just wanted to ensure that that got on the record.