Homelessness Reduction Bill

Clive Betts Excerpts

2nd reading: House of Commons
Friday 28th October 2016 Commons Chamber

[Mr Clive Betts (Sheffield South East) (Lab)]

Let me begin by expressing my thanks and gratitude to the hon. Member for Harrow East (Bob Blackman), not merely for his Bill but for the enormous amount of work that he has done over the last few weeks in building a coalition of support across the House and among outside organisations. We should not underestimate his commitment, or his success in building that support for his Bill.

Members have referred to the work of the Communities and Local Government Committee. We in the House are used to following precedents—we seem to do it all the time—but I think that, on this occasion, we have actually created a precedent. A report from a Select Committee has provided the basis for a private Member’s Bill, the Bill has then been subjected to pre-legislative scrutiny by the Select Committee, and the Committee’s subsequent report has helped to produce the Bill in its final form. That, I think, is unique. No one can find an example of its being done before. It is an important example of the two ways in which Back Benchers can best shape and influence legislation in this House—private Members’ Bills and Select Committees—coming together in a powerful way to produce legislation that has support right across the House and will, I hope, reach the statute book. I thank all my colleagues on the Select Committee for the work they have put into it.

Homelessness is a growing problem, as can be seen from the 50% increase in local authority acceptances since 2010 and the growing number of rough sleepers. We also know that the figures do not reflect the true situation. The UK Statistics Authority has said that the figures are not fit for purpose and the Government have agreed to review them, but this is a difficult job. It is difficult enough trying to count rough sleepers. The St Mungo’s estimates for London are eight times higher than the Government figures. We also know that many people go to a local authority and are not recorded properly. Then there are the thousands or tens of thousands who are living in overcrowded accommodation or sofa surfing, and who do not present to a local authority at all. They are not counted in the figures, but we know they are there. The problem is therefore far bigger than the figures indicate.

The Bill, admirable though it is and despite its support across the House, will not deal with the fundamental problem of the housing crisis in this country. There is a shortage of housing caused by decades of not building enough homes by Governments of all political persuasions. Interestingly, when the Select Committee asked three young witnesses what was the most important thing this House could do to deal with homelessness, they all said, “Build more social housing.” That was reflected in recommendation 3 of our first report on homelessness, which stated:

“There is therefore a case for the development of homes for affordable rent which we encourage the Government to act on by working with local authorities to deliver the homes that are needed at a local level.”

It is helpful that the new Minister for Housing and Planning is beginning to reflect that point in his comments. We look forward to the White Paper and the autumn statement, which hopefully will recognise that although homes to buy are important, there are many people who cannot afford to buy and who need a home for rent. That is something for the Government to consider.

[Emma Reynolds]

I welcome my hon. Friend’s focus on the housing crisis and the failure of the Government to deal with it. Obviously, successive Governments have failed to build enough homes. May I bring him back to his point about supply? Is it not the case that some of the Government’s policies, such as forcing councils to sell council homes and watering down section 106 agreements to focus purely on starter homes, rather than council homes, are making the problem much, much worse?

[Mr Betts]

Personally, I agree with my hon. Friend. The Select Committee looked at this matter for our report on housing associations and the right to buy, and that was reflected in our report on homelessness. We accepted that there should be a housing programme to provide more homes in local areas to reflect local needs, and that it should include homes to buy and homes to rent. That was agreed across the parties. There is a need to recognise that housing markets are different across the country and that what is appropriate in London is not necessarily appropriate in the north-east. It is appropriate to look at local need and provide the homes that are needed in particular areas. There was all-party support for that.

The Select Committee looked at the problem of the growing gap between private market rents and the local housing allowance. Some 40% of homelessness cases are caused by the ending of an assured shorthold tenancy, often because the tenants cannot afford to pay the rent. In Westminster, the gap between the average rent and the local housing allowance is £500 a month. But it is not just Westminster: in Cambridgeshire, the gap is £250 a month. Those are large figures. If the local housing allowance is frozen from now until 2020, the gap will get worse. Recommendation 2 of the Select Committee’s first report on homelessness states:

“Local Housing Allowances levels should also be reviewed so that they more closely reflect market rents.”

There was cross-party agreement on that. It is a problem that in many areas, when people are made homeless, there is no social housing for them to go into and no private rented housing they can afford either. That needs to be addressed.

There are also problems with supported housing, although the Government have rowed back from their initial intention to relate the cost of supported housing to the local housing allowance. This still needs to be thought through. There are particular problems for people in supported housing who get back into work and then find that they cannot meet the cost of supported housing because housing benefit is withdrawn completely. That problem was raised with the Select Committee by a lot of young people during our inquiry and it needs to be addressed. People must be able to get back into work without finding, suddenly, that they have lost their supported housing at the time they most need it.

[Mr Andrew Smith]

I congratulate my hon. Friend and his Select Committee on the work they have done. Is there not also an acute problem that arises from the cuts to housing-related support? For example, Oxfordshire County Council, because of cuts in Government support, is drastically cutting the support it gives to local homelessness hostels and threatening to end it altogether in three years. Even with all the measures in this Bill, if that went ahead, it would be a disaster because hostels would close and people would be forced on to the streets.

[Mr Betts]

Certainly, when the initial proposal was made that the costs of supported housing would be related to the local housing allowance, virtually every provider of supported housing said that they would not be viable. The Government have rowed back from that and are now talking about splitting the housing benefit element and the care and support element. That might be a sensible way to help people who get jobs and ensure that they do not lose all their support, but the Government might still want to think again about the proposal to force supported housing providers to reduce their rents each year. That will cause problems for many of them and they are still raising it as a concern.

The Select Committee found that there was a need to offer better support and advice to people who present as homeless. As the hon. Member for Harrow East said, the Bill will not end homelessness, but it will address a very real problem. We saw some good examples of local authorities dealing with homeless people. In Birmingham, we saw a truly joined-up service, with the housing authority, the children’s service, charities and the health service all working together. Unfortunately, that is not the case everywhere. Crisis sent its mystery shopper into 87 local authorities and 50 of them were found to have got it wrong. The variation in support for homeless people is simply unacceptable. Crisis was very clear about that when it came to the Select Committee, and our report said:

“We have received too much evidence of councils and their staff treating homeless people in ways that are dismissive and at times discriminatory. This is unacceptable.”

Hopefully, the Bill and the better code of practice that the Government are going to bring forward will address those issues.

The hon. Member for Harrow East outlined the important measures in the Bill, which I and the Select Committee support entirely. The extension in the time when homelessness should be addressed by local authorities from 28 days to 56 days will provide more time for preventive work. The measures to improve support and advice are very welcome, as is the proposal for a personal plan for individuals who present as homeless. It is important to talk to people about what is and is not possible in addressing their homelessness needs right from the very beginning.

I hope it can be written in at some point that, in addressing those needs, regard should be given to the care and support that homeless people get from family members and others, and to the schools their children go to. Perhaps that can be contained in the code of practice that Ministers will bring forward, because those things are important. We heard evidence of people being offered homes that were a two-hour journey from their children’s school. If at all possible, that should be avoided.

[Nusrat Ghani (Wealden) (Con)]

I commend my hon. Friend the Member for Harrow East (Bob Blackman) for bringing this important Bill to the Floor of the House.

On the point the hon. Member for Sheffield South East (Mr Betts) has just made, I want to say that families have changed; there are many more broken families and single men and women out there. We need to treat them all equally, especially a man who becomes single but still wants access to his family and the school his children go to. We need parity across the system, with single men treated equally if they become vulnerable and homeless.

[Mr Betts]

There is a very real problem in that for local authorities, which can end up providing two homes for a family when it splits up. That is a real challenge and I have a lot of sympathy with local authorities, but equally with the people who want to keep contact with their children and maintain good parental relationships.

I welcome the personal plan and the preventive measures, and particularly the measures in clause 1 and a stop to the nonsense that homeless people, who are already stressed out and traumatised, should have to go through a court process and sometimes end up being evicted before the local authority will help them. That is crucial to the success of the Bill and to giving homeless people a better deal.

I have something to say about the wording of the Bill. Local authorities can decide they will force people to go through the court process if they can show they

“have taken reasonable steps to try to persuade the landlord to—

(i) withdraw the notice, or

(ii) delay applying for an order”.

That may be reasonable if authorities use the measure reasonably, but I am worried it provides a loophole that authorities that are not being reasonable could use to force more people through the court route than intended. We will need to closely monitor the legislation to make sure that unintended consequence does not arise.

[Stephen Pound]

My hon. Friend speaks from a position of great knowledge. I entirely endorse his point about schooling: anyone who goes to Slough station at 7 o’clock in the morning will see 20 or 30 children wearing Ealing school uniforms, making a two-hour journey. That is heart-breaking.

One of the fastest-growing areas of homelessness is parental exclusion. It seems to be perverse to ask a mother or father to evict, through the courts, their daughter or son. Does my hon. Friend agree that parental exclusion should be examined in detail in Committee?

[Mr Betts]

The hon. Member for Harrow East will know far more about the intended mechanics of the legislation, but I think the point is that when someone is threatened with homelessness they go to the authority, and now they will be entitled to proper advice and support, including the working out of a personal plan, from the very beginning. That is a key part of the legislation. It will not solve every problem for every person who is homeless or threatened with homelessness, but it should provide a much better service for people in the situation that my hon. Friend mentions.

The duty of public authorities to refer to a housing authority someone who is homeless or threatened with homelessness is very relevant. I ask the hon. Member for Harrow East, however, whether there is a possibility at some point of extending beyond a duty to refer, to a duty to co-operate. If someone is homeless, they often have mental health problems or are faced with domestic abuse or other issues related to their homelessness such as unemployment or benefits problems. The Committee’s report on homelessness recommended having a joined-up approach, and it would be an improvement to get all public authorities working together.

Finally, it is crucial that we get the code of practice in place. I would like to hear from the Minister whether the code will be available for Members to look at before the end of our consideration of the Bill. The Government have codes of guidance at present but unfortunately they do not always work. A classic example is that currently in the code—a Minister has recently written to councils reminding them of this—if a local authority does an out-of-area placement of a homeless family, they are supposed to tell the receiving authority that that family is coming to them because they may have other needs that need addressing. In many cases that does not happen, however, despite the guidance saying it should. A code of practice ought to strengthen the code of guidance, and authorities ought to have to follow it. We want to hear that Ministers will put in place proper monitoring arrangements to make sure all the good measures are delivered in practice for people who are homeless or are threatened with homelessness.

This Bill will not remove homelessness, as the hon. Gentleman has accepted. However, there has been such a cross-party effort to try to get this right, from the hon. Gentleman, from the Select Committee and from a wide group of organisations including Crisis, that we hope it will improve the situation for the homeless and those threatened with homelessness in a very meaningful way.

[Several hon. Members rose—]

--- Later in debate ---

[Mr Jones]

I thank the hon. Lady for bringing up a point that Members across the House have rightly raised today. I shall say more about this later, but I hope that I will be able to reassure her and other Members that the Government are absolutely committed to providing new funding to local authorities to allow them to discharge the new duties in the Bill.

As I was saying, preventing homelessness as early as possible is critical. Importantly, the Bill places a duty on local authorities to start helping applicants 56 days before they are threatened with homelessness. This doubles the current period for help and brings it more into line with the notice period for ending an assured shorthold tenancy, which is currently the lead trigger for statutory homelessness acceptances.

The Bill will place a duty on local authorities to take reasonable steps to prevent homelessness for eligible households threatened with homelessness. It will also ensure that other local services refer those who are either homeless or at risk of being homeless to local authority housing teams, and that care leavers are more easily able to establish a local connection and so are not deterred from seeking support, should they need it.

The Bill will make a real difference; it offers support to a much wider group of people who need it than the existing legislation, which is why I am today pleased to offer the House the Government’s full and unfettered support for the Bill. I can confirm that the Government will fund the additional costs of the Bill, in line with the long-standing new burdens arrangements.

As I said to the hon. Member for Wolverhampton North East (Emma Reynolds), there will be new funding for local authorities. We will work closely with local authorities and homelessness charities to ensure the successful implementation of the Bill. That includes a commitment to working together on any guidance and codes of practice that will be required to sit alongside the new legislation.

[Mr Betts]

I welcome the Minister’s assurance about the codes of practice. His efforts to get Government support for the Bill are greatly appreciated. On the money, aside from the initial work with the LGA to get the new burdens figures agreed, does he accept that it is difficult to predict the precise costs of the legislation? Will he reflect on whether, once the legislation has been in operation for a year, he should sit down with the LGA again to see whether the initial figures are correct or in need of revision?

[Mr Jones]

I thank the hon. Gentleman for his kind words about my work on this important matter. In view of the changes recently made to the Bill, we are looking very carefully at the costs. We acknowledge that the Government will have to deal with the new burdens that will come with the legislation. We are speaking to the LGA and will continue to do so. We are also speaking to local authorities about the costs that will be incurred. He makes a good point; in the past few months, I have created a local authority working group. Local authorities come to the Department to discuss various issues and good practice that they are promoting. We are certainly listening to what that group is saying and feeding that into the work being done by the cross-Government ministerial working group.