Prevention of Social Housing Fraud Bill

David Nuttall Excerpts

Friday 13th July 2012 Commons Chamber

[Richard Harrington (Watford) (Con)]

I beg to move, That the Bill be now read a Second time.

I was very fortunate to be drawn in the ballot for private Members’ Bills in a position where I felt I could do something that would make a difference to people’s lives. I know that everybody says that when they do well in the ballot, but I realised that it was important to do something in an area in which I had some interest in the past and in which I believed I could build a consensus in the House. My short experience has told me that that is the best way to make any progress. I thank Members in all parts of the House who have helped me with the Bill, including the current and previous Governments. Having been through most of my right hon. and hon. Friends and colleagues, I can say that I have had unanimous support.

The Bill has one clear objective—to prevent the fraudulent use of social housing, which has gone on for so long. Constituents and others who wrote in once the Bill had received some publicity found it strange that illegally sub-letting social housing—a flat or house that formerly would have been known as a council house and which is now part of social housing—is not a criminal offence.

[Mr David Nuttall (Bury North) (Con)]

I congratulate my hon. Friend on his success in the ballot. He mentions that the problem has been going on for a long time. Is there any particular reason why he felt it necessary to introduce the Bill now? Is the problem getting worse? How have we managed without such a measure for so long?

[Richard Harrington]

My hon. Friend, as usual, makes a considered point. I do not quite know the answer. I do not know why the problem has not been dealt with before. When researching the subject, I noticed that it had been talked about for a long time. Bodies such as the Serious Fraud Office and the National Audit Office have identified the problem, and for years Governments have had it on their mind, but it is one of those small things that slip through the net of legislation.

--- Later in debate ---

[Richard Harrington]

I thank my hon. Friend for her comments.

I find it strange that many other types of social housing fraud are already criminal offences. It is well known that making fraudulent right-to-buy applications, lying on forms when applying for social homes and misrepresenting financial circumstances to obtain social housing are all caught by criminal legislation, but sub-letting is important, because the authorities perceive it to be the most prevalent abuse and it has never been included in such legislation.

[Mr Nuttall]

My hon. Friend could be forgiven for not knowing the answer to this question, but I hope that he may able to assist me. As we have heard in his excellent speech, this problem is prevalent throughout the country. What action has been taken in the past when it has occurred? Surely the courts and the police could have prosecuted for offences such as obtaining a pecuniary advantage by deception.

[Richard Harrington]

I will make every attempt to answer my hon. Friend’s question. There are two answers. First, it is possible to bring prosecutions for fraud under the Theft Act 1968. He mentioned obtaining pecuniary advantage by deception, which is what the offence was called when I last studied law in 1979, but that may have changed; I was not very good at the subject then, and I am certainly a lot worse now. I think that there have been some criminal prosecutions. However, I know from speaking to people at the housing associations and enforcement officers at local authorities that it is quite hard to prove in court that there was a fraudulent intent. Far too many cases of blatant abuse have not gone through the necessary hoops to be caught by the Theft Act but are still basically fraudulent in the context of my argument.

The second answer to my hon. Friend’s question is that—