Provisional Local Government Finance Settlement

Debbie Abrahams Excerpts

Thursday 17th December 2020 Commons Chamber

[Robert Jenrick]

I will happily write to my hon. Friend with the full details with respect to Blaby District Council. Across the country, we have announced today that we will be doing a further year of the new homes bonus, backed by over £600 million of Government money, but we will also be consulting on the future of the new homes bonus. The new homes bonus is an important part of the finances of many local councils, but it is widely perceived to be a poor incentive for councils to get on and build homes, so the consultation will ask how we can develop a new incentive that supports those councils that need to build homes and those that have high ambitions to get on and build. Fortunately for my hon. Friend, his council and those that surround it in Leicestershire are among the most ambitious councils in the country when it comes to house building.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab) [V]]

Like others, I am very concerned that the increase in local authority budgets is largely predicated on an assumption of a rise in council tax and the social care precept. This tax is highly inappropriate in the current circumstances and fails to recognise the different needs of local economies such as mine in Oldham and Saddleworth. To be frank, it is just not good enough for the Secretary of State to say that it is up to local authorities what they do. When is he going to reimburse Oldham Council for its covid-associated deficit, forecast at more than £10 million in 2021-22? What will he do to fulfil the Conservative manifesto pledge to level up regarding council funding, given the disproportionate cuts that northern local authorities have faced over the last 10 years?

[Robert Jenrick]

As I said in answer to the hon. Member for Bedford (Mohammad Yasin), it would not be right for me to say publicly how much a local council has self-reported as having spent on covid-19 expenditure, but across the whole country, we have more than compensated local councils for the costs they have incurred. We have provided Oldham with £33.5 million so far. In addition, it will be making use of the sales, fees and charges scheme, which provides 75p in the pound, and the council tax and business rates scheme that we have announced today, which does the same thing, so I rather suspect that Oldham will receive as much money as it requires over the course of the year. The hon. Lady did not welcome the fact that Oldham is part of the towns fund—I look forward to seeing the proposals that it brings forward—or that we provided £1 million to Oldham earlier in the year, so that it can get on and take forward some of those exciting ideas as soon as possible.

Local Government Finance (England)

Debbie Abrahams Excerpts

Monday 24th February 2020 Commons Chamber

[Robert Jenrick]

Let me make some progress.

Taken together, these measures mean that the Government are making almost £6 billion available next year across adult and children’s social care. I appreciate that this is only the start. Fixing social care is one of the defining issues of our generation, which is why this Government will be commencing cross-party talks on social care very soon to get this right once and for all. We welcome hon. Members from all parts of this House to participate in those talks and to do so in a spirit of finding a consensus and of moving forward as a country.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I cannot help but feel concerned that, in spite of what the Secretary of State is saying, the reality around both planned cuts and cuts that will result from the so-called fair funding review will actually make my local authority more than £8 million worse off, when it has already had £200 million cut since 2010. What will that mean to the people—both adults and children—who rely on social care?

[Robert Jenrick]

I do not doubt the hon. Lady’s sincerity in raising the question, but I do warn against unnecessary scaremongering. The reports that we saw in the press on the fair funding review were put out by the Labour party’s local government press office. They were not based on any actual numbers created by my Department. We have not even published the consultation yet, and so I would disregard them. In fact, the Local Government Association itself later went on to say that these figures are not reliable and are not something on which local councils should make spending decisions. We will proceed with the fair funding review, and I will come on to speak more about that in a moment. We think that it is right that we update what is undoubtedly an antiquated formula and that we base the funding of local public services more closely on the needs of local communities.

Oral Answers to Questions

Debbie Abrahams Excerpts

Monday 24th February 2020 Commons Chamber

[The Minister of State, Ministry of Housing, Communities and Local Government (Mr Simon Clarke)]

We are always up for new ideas. Town deal boards should be business-led and representative of their communities. We provided guidance on their membership and made it clear that we expect to see a business chair and the local MP on the board. We will set out a clear decision-making process for boards to follow.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

T2. Some 850,000 people are currently living with dementia, and that includes 2,000 people in my Oldham East and Saddleworth constituency. The typical care costs for somebody living with dementia are £100,000. In its Fix Dementia Care campaign the Alzheimer’s Society has called for an additional £8 billion to be spent on social care, including £2.65 billion specifically for dementia. What discussions has the Secretary of State had with the new Chancellor to ensure that that happens?

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Luke Hall)]

The Department has regular conversations with the Treasury about all sorts of matters. We are investing £1 billion in social care funding, and £500 million is available to local authorities. I am happy to meet the hon. Lady to discuss that campaign.

Homelessness

Debbie Abrahams Excerpts

Wednesday 29th January 2020 Commons Chamber

[Robert Jenrick]

We are keen for more parts of the country to benefit from the initiative.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I thank the Secretary of State for giving way; he has been very generous. I have had constituents living in tents, cars—one even in a cave. All those cases—I have many more, and I am not just talking about street homelessness—were related to problems with social security. Two thirds of local authorities predict that the roll-out of universal credit will increase homelessness. What are the assessments of both the Secretary of State and the Under-Secretary of State for Work and Pensions, the hon. Member for Colchester (Will Quince)?

[Robert Jenrick]

I think I have answered that question. We do not recognise some of the figures that we have heard. In fact, the evidence that I have seen has suggested that rent arrears have fallen over time, in the case of those individuals who have moved on to universal credit.

To support the rough sleeping initiative programmes such as those that I have visited in recent months, I allocated this week up to £112 million to fund the programme for a third year. That represents a 30% increase in funding for this already proven successful programme. Councils, charities and organisations throughout the country will be able to use that money to fund up to 6,000 new bed spaces and 2,500 rough sleeping support staff.

Domestic Abuse

Debbie Abrahams Excerpts

Monday 13th May 2019 Commons Chamber

[James Brokenshire]

I thank the hon. Lady for highlighting that specific service; I know that the Minister for Women, my hon. Friend the Member for Louth and Horncastle (Victoria Atkins), who is on the Front Bench, has visited it. Ultimately, we want to ensure long-term sustainability and confidence in service provision to meet local needs. I remain open-minded about how we look at this as the consultation develops. The duty is intended to place in the minds of local authorities the way in which funding is provided and the need for services for children or other specialist support, outreach or accommodation-based services. The point of the consultation is to listen and ensure that when we implement this through the Bill, we do it well.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I, too, welcome the statement from the Secretary of State, but both the supply of refuge places and whether women feel able to leave the abusive relationship they are in are very much dependent on social security support. What discussions has he had with the Work and Pensions Secretary, particularly in relation to universal credit—we believe that a split payment should be automatic—and the two-child limit?

[James Brokenshire]

I assure the hon. Lady that work across government is taking place on these issues—in the context of the Domestic Abuse Bill and more broadly on the availability of welfare, which, as she rightly says, is often one of the key elements in the support for and funding of rental and other aspects of need. On the point she makes about leaving the abusive relationship, a number of people actually want to stay in a particular home, and this is therefore about how the provisions in the Domestic Abuse Bill work in relation to extra sanctions and such measures. We talk about the concept of accommodation-based services, but important as refuges are, and they are hugely important, we equally recognise that there are other needs, and this is about the way in which that service and such support can be delivered.

Tenant Fees Bill

Debbie Abrahams Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Wednesday 5th September 2018 Commons Chamber

[Rishi Sunak]

I am happy to tell my hon. Friend that the fees he mentions are specifically banned under this piece of legislation. The Bill has been drafted tightly to ban all fees in connection with a tenancy. It is specifically drafted to capture fees such as the ones he raises, so those fees will no longer be in place once the Bill is enacted.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

Could the Minister expand on who will be monitoring what happens with default fees? Some charities, including Shelter and Citizens Advice, have concerns that this might be used as a loophole for additional costs. Who will monitor the Bill and the default fees arrangements after the Bill is passed?

[Rishi Sunak]

If you will indulge me, Madam Deputy Speaker, I will expand a little to answer that question. The great thing about the Bill and the simplicity of a ban is that tenants’ ability to self-enforce will be greatly enhanced, which is something that was recognised by various people in the industry who gave evidence to our Bill Committee. Attached to any tenancy agreement is a consumer guide on how to rent and how to let, which provides straightforward advice for a tenant on what is and is not permissible. That will enable them to know whether something they are being charged is not appropriate.

At that stage, there are several avenues for redress that the tenant can pursue. It is mandatory for letting agents to be a member of a redress scheme, and we are consulting on extending that to landlords, but in the first instance there are redress schemes that the tenant can go to. Obviously they can talk directly to the agent and the landlord themselves. If the tenant does not get satisfaction in those conversations, the next step would be to go to the first-tier tribunal. That was recommended by the Housing, Communities and Local Government Committee, and the Government were happy to introduce it into the Bill as an accessible place for our constituents to go and seek redress.

If the tenant is not happy at that level, they can go further—to the county courts, where further redress can be sought. The body enforcing all this at local level will be the local trading standards authority, which in most cases is the upper-tier authority. Sitting on top of all that will be a lead enforcement authority, which the Government will nominate—this is similar to the role that Powys County Council plays for the estate agency industry in Wales—that will also have the ability to enforce.

[Debbie Abrahams]

The Minister is being generous with his time. I absolutely understand what he is saying, and the arrangement seems very comprehensive. My concern, given the emaciated state of trading standards and other local authority enforcement agencies, is that this will not be an effective way of monitoring the situation. Tenants in such a position are still vulnerable, with potentially little legal redress other than by themselves. Is there no opportunity for the Government to monitor what is happening with default fees?

[Rishi Sunak]

I am sure that the hon. Lady knows that it would not be appropriate for the Government to monitor every single rental transaction that takes place, but the job of the lead enforcement agency is to have exactly that oversight for the industry. I would point out that the Government will fund the first year’s cost for trading standards and enforcement authorities to the tune of about £500,000. Thereafter, the fines under the legislation will enable enforcement authorities to recoup some of the costs, and indeed to invest some of that money in better enforcement. To go back to the heart of the hon. Lady’s question—

Northern Rail Services: Greater Manchester

Debbie Abrahams Excerpts

Wednesday 6th June 2018 Westminster Hall

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

It is a pleasure, as always, to see you in the Chair, Mr Howarth. I congratulate my hon. Friend the Member for Bolton North East (Sir David Crausby) on his comprehensive and historical analysis of the failings of the transport network, and particularly of Northern rail in its delivery of services to so many of our constituents.

I will focus specifically on the recent timetable changes and how they came about, and what I think the Government should have done to address these problems before they actually happened. I also have some specific questions about compensation and contingency arrangements. I was promised by the Secretary of State that things would improve by today, but I am afraid that the information I have so far is that there has been no improvement at all.

As colleagues have mentioned, there have been many issues with the new timetable, including a shortage of properly trained and available drivers who are qualified to run the new services, as described in last year’s Gibb report, and, as my hon. Friend mentioned, the overrunning of engineering works—specifically, the electrification of the Manchester-Bolton-Preston line. Those issues meant that the proposed new timetable had to be overwritten, delaying its launch and the driver training for the new routes. Network Rail’s planners were unable to confirm routes and times until a matter of weeks before the revamp, rather than the normal three to six months for a routine change. Will the Minister explain why the timetable changes were not deferred once these multiple problems became clear?

We have heard words of remorse from the Transport Secretary, Network Rail and others, but in addition to many constituents asking me to raise the matter with the Transport Secretary last November, many rail experts also raised these issues. They have been proven right. Why were they not listened to? How could this have gone so horribly wrong, and why was there no delay in implementing the new timetable?

The Transport Secretary said in the Chamber on Monday that

“both Northern and GTR were not sufficiently prepared to manage a timetable change of this scale… Neither Northern nor GTR had a clear fall-back plan.”—[Official Report, 4 June 2018; Vol. 642, c. 50.]

If that was the case, why were Ministers and officials within the Department not aware of it beforehand? Surely, given the sheer scale of the changes being introduced, they should have been closely monitoring this.

In Oldham East and Saddleworth there has been deep concern from passengers at Greenfield station for many months about the proposed new timetable, with a reduced service and capacity at peak hours, destinations changing from Manchester Victoria to Manchester Piccadilly and poor connection times via Stalybridge, as well as ongoing accessibility issues at Greenfield. I wrote to the Secretary of State about these issues last November, and in response the then Transport Minister, the hon. Member for Blackpool North and Cleveleys (Paul Maynard), said the new timetable would deliver “significant reliability benefits”. The evidence has shown that response to be completely wrong. Given that “significant reliability benefits” have not been delivered, will the Minister ensure that future timetable planning now underway for the December changes will actively involve rail users and not ignore their concerns?

The impact of the timetable changes on people’s lives cannot be underestimated, particularly on those with caring responsibilities. Parents who were previously able to drop their children off at school before getting their morning train into Manchester now struggle to do so if they are to get into Manchester for 9 am. The changes to the timetable mean that there is a 44-minute gap between 7.45 am and 8.30 am, which is the time that they are able to do so after dropping their children off. Their return journeys are equally fraught, with not just too few trains between 5 pm and 6 pm, but the timings of these trains being at 5.17 pm and 6 pm.

We realised that the new timetable was going to play havoc with the lives of working people using Greenfield station in particular, but the chaos since 20 May has been far worse than we feared. Both Northern and TransPennine Express trains have frequently been cancelled and have too often been late as well. The TPE delays significantly impact on constituents interchanging at Stalybridge and have a knock-on effect on their arrival at work

As I told the Transport Secretary following his statement in the Commons, on Monday there were five cancellations at Greenfield station alone, and that was before the evening peak. That was under the new emergency timetable that was meant to address these issues, but made things worse. Such a level of incompetence from TPE and Northern is unacceptable and my constituents deserve much better.

The Government must ensure that appropriate compensation is paid to season ticket holders and that there is a reduction in general ticket prices. The announcement that there will be a special compensation scheme for passengers on affected routes on Northern is to be welcomed, but passengers affected by disruption to TPE services must also be included. The Government also need to look at wider compensation for people who may have had their wages docked or even worse. We have heard of cases where people are on final warnings and have been threatened with losing their jobs.

What details can the Minister provide on how passengers will receive appropriate redress for the disruption and other hardship that they have experienced since 20 May? My constituent’s children were under intolerable stress on their way to exams and experienced delays, which adds to their stress.

[Kate Green]

I am grateful to my hon. Friend for drawing attention to the situation faced by constituents trying to travel to exams. I know of exactly the same situation. Even more shockingly, when a taxi had to be used and the cost was claimed back from Northern rail, it said that such expense would not be covered by the compensation system.

[Debbie Abrahams]

Clearly that is absolutely unacceptable. I hope the Minister will reassure us that that will not be the case and that he will take that up with Northern.

We need timescales, eligibility requirements, details of how passengers can claim, and confirmation that entitlements will be similar to those conferred by last year’s Southern passenger compensation scheme, as mentioned by the Transport Secretary on Monday. Will the Minister confirm that compensation for poor service will be measured against the original timetable proposed, not the slimmed-down one now on offer? Will Northern tickets be able to be used on other operators and modes of transport, as called for by my colleague, the Greater Manchester Mayor, Andy Burnham?

Northern’s action to set a unilateral timetable should not go unchallenged. I repeat my earlier point: passengers must be engaged with and consulted on the timetable. What discussions has the Minister had with Northern on customer consultation on the timetable? The Transport Secretary assured me and my hon. Friends the Members for Stalybridge and Hyde (Jonathan Reynolds) and for Colne Valley (Thelma Walker) on Monday evening that the emergency timetable will deliver significant improvements by today. I have mentioned what we have found out so far, but I will hold the Secretary of State to that.

What contingency arrangements are in place to remove the franchise from Northern if services do not rapidly improve for passengers across Greater Manchester? I would expect the contingency arrangements to be in place already. Finally, will the Department look to give Transport for the North the necessary policy and financial powers to ensure oversight of all suburban and regional services and work in tandem with Network Rail?

It is clear from this fiasco that our railways cannot be cared for properly from London, and the failure to fairly fund transport in the north exacerbates the problems we face, with deferred electrification and poor-quality, ageing rolling stock. The Minister will be aware that local and regional newspapers yesterday joined together under the banner #onenorth to fight for the north and called on the Government to prove their commitment to our region. I hope that his response will show that commitment.

--- Later in debate ---

[The Minister of State, Department for Transport (Joseph Johnson)]

It is a pleasure to serve under your chairmanship, Mr Howarth, and I congratulate the hon. Member for Bolton North East (Sir David Crausby) on securing this important debate and giving us another opportunity to discuss the disruption on Northern rail services.

The Department is focused on ensuring, as rapidly as possible, that the industry restores reliability for passengers to acceptable levels. I assure passengers who have been affected that I share their frustration, and we have heard from hon. Members across the House about how their constituents have been affected in a number of completely unacceptable ways. I echo my right hon. Friend the Secretary of State’s words of sympathy on Monday, as well as the apology that he gave to the House. That mirrored the apologies from the chief executives of Northern rail and Network Rail, as well as from train operators in other parts of the country, for everything that has gone wrong and for all the difficulties that have been caused to people in the north of England and other parts of the country.

The new timetable was introduced on 20 May, and as a number of Members have acknowledged, this episode has overshadowed what should have been a positive story for our railways and the economy as a whole. The May 2018 timetable change was planned to deliver more services up and down the country as part of the biggest modernisation of the railway since Victorian times, taking into account the great growth in passenger numbers in recent years. As we have heard, for Northern rail, which is co-managed through the Rail North Partnership on behalf of Transport for the North and the Department for Transport, that timetable change unfortunately resulted in significant disruption and inconvenience for passengers and the travelling public as a whole.

Northern’s new timetable was planned to improve services for passengers across the north, and it was intended to increase services by 1,300 a week. It was designed to give passengers the benefits of the unprecedented investment that we are making, including an expanded train fleet. It was also intended to take advantage of big infrastructure projects such as the Ordsall Chord, which has linked Manchester’s three main train stations for the first time, as well as the upgrade of Liverpool Lime Street and of tracks between Manchester and Liverpool. Further investment will deliver faster and more frequent services, with more seats, by 2020. That includes upgrading the route between Manchester and Blackpool via Bolton and upgrades to the Calder Valley routes, ahead of significant improvements to the transpennine route from next year. By 2020, all Northern and TransPennine Express trains will be new or refurbished, with—finally—the Pacer trains entirely gone.

A number of hon. Members mentioned the regional disparity in funding, which they indicated was part of an underlying problem. Going forward, we want to ensure that any disparity that there may have been in the past gets comprehensively addressed. I hope hon. Members will find it comforting that the Infrastructure and Projects Authority analysis of planned central Government transport investment shows that, over the next four years, the north will receive more investment on a per-person basis, at £1,039, than the south, at £1,029.

I want to go into more detail about what went wrong and answer the questions from my hon. Friend the Member for Hazel Grove (Mr Wragg) about who knew what, when, and about why there was not adequate intervention if that was indeed the case. I will need to backtrack on the sequence of events. After the decision was taken in the summer of 2017 to de-risk the potential delay of infrastructure from the major timetable change in December 2017, Northern planned to introduce changes in two phases, in December 2017 and in May 2018, with the May 2018 change, recasting services around Manchester, being most significant. The planned changes for May were underpinned by planned line speed improvements and electrification of the route between Manchester and Preston via Bolton. As hon. Members have noted, that would enable Northern to operate electric rolling stock, freeing up diesel units to provide additional capacity on other parts of Northern’s route.

In line with normal industry deadlines, Northern submitted its proposed timetable for May 2018 to Network Rail in August 2017, and Network Rail agreed it in November 2017. Network Rail had expected to complete the work that would facilitate that timetable change before May 2018, but faced significant complexities based on the interconnectivity of the network and the planning by all operators, and in January 2018 it acknowledged that it was unable to complete the work as expected. Those delays were further exacerbated by the disruption caused by Storm Emma and the severe cold spell—the beast from the east.

After it became apparent that the Manchester to Preston electrification was not going to be completed for May 2018, Northern took on the task of wholesale replanning of rolling stock, staff rostering and driver training to accommodate the lack of wiring on that route. As hon. Members will know, that is because drivers have to undergo essential safety-related route training before trains can operate on new lines. For Blackpool, that meant retraining 400-plus drivers from all the depots that operate that route.

[Debbie Abrahams]

Were not some of the delays, and the causes of the delays, predictable? Surely there should have been contingencies in the upgrading process and plans that would have accounted for that. If that was not the case, what is the Minister doing on, for example, penalties in relation to the franchise so that he is able to claw back from the providers?

[Joseph Johnson]

That is a good question, and one of the things that Stephen Glaister’s review will be looking at very carefully. It will look at all the processes that went into the creation of the May timetable and all the planning and preparation around it, to answer those kinds of questions and to see what lessons can be learned for future timetable changes, including the December timetable change. I will come on to compensation, if the hon. Lady hangs on for a second; I want to ensure that I complete the account of how we got to the May timetable change and what lessons we can learn from that.

I was talking about the training of drivers. Some drivers have been unavailable for their normal train-driving duties while they were and are undergoing that training. To make a difficult situation worse, Northern was unable to ask its drivers to work on their rest days for the last three months of this period, because, as hon. Members will know, ASLEF declined to extend the rest day working agreement that ended in February. That meant that Northern has not been able to absorb those exceptional or last-minute training needs and provide the additional flexibility for the train driver rosters that it needed to.

Let me turn to the questions about who knew what, when, and about where the DFT was in all this. In January, Network Rail informed the Department that it would not complete its upgrade of the Manchester to Preston route in time for the May timetable change. In response, Northern developed a new timetable in a compressed period and briefed stakeholders on the reasons why that was required. Following that, the late completion of the Blackpool to Preston blockade in mid-April meant that Northern had less time to complete those plans and its driver training. Northern then did not finalise its plan for the timetable until three days prior to its introduction. Industry readiness boards assured the Department and the Secretary of State that the timetable was ready for introduction, and the Department was not made aware of any expectations of high levels of cancellations.

Hon. Members have asked about compensation to reflect the significant inconvenience experienced by passengers. There is no doubt, and the Department accepts, that Northern passengers have faced totally unsatisfactory levels of service. I have met with many colleagues in the House, and I have also heard directly many stories from the travelling public of how the disruptions have impacted the lives of all those constituents.

It is entirely right for all those affected by the disruption to be properly compensated. I encourage passengers, in the first instance, to continue to use Northern’s Delay Repay compensation mechanism for affected journeys. Northern operates the Delay Repay compensation system for all its passengers. Under that scheme, as hon. Members will know, passengers are entitled to claim compensation for each delay of 30 minutes or more that they experience, whatever the cause of the delay. There are no exclusions for weather or other delays outside the control of the rail industry.

The Office of Rail and Road guidelines require train operators to respond to claims within 20 days of their receipt. Northern has assured the Department that it is working hard to respond to all claims within industry standards. I acknowledge the complaints that the hon. Member for Bolton North East has made about various aspects of the Delay Repay scheme. The Department is discussing with Northern ways in which we expect it to reduce its processing time for Delay Repay claims.

In his statement on Monday, the Secretary of State announced that, in addition to the standard Delay Repay compensation mechanisms, there would be a special compensation scheme for Northern passengers, subject to agreement by the board of Transport for the North. It is to be funded by the rail industry and will ensure that regular rail customers receive appropriate redress for the disruption that they have experienced. The industry will imminently set out more detail of the eligibility requirements and how season ticket holders can claim. However, the Secretary of State has already indicated, at a high level, that he expects that the scheme should offer Northern passengers who have experienced protracted disruption of this kind similar entitlements to those under Southern’s passenger compensation scheme last year.

Tenant Fees Bill

Debbie Abrahams Excerpts

2nd reading: House of Commons
Monday 21st May 2018 Commons Chamber

[James Brokenshire]

The hon. Lady has intervened early, and that is a point that I will come on to. I would say that that is a maximum level, but I will deal with the specific issue in my remarks.

I am pleased that the Tenant Fees Bill was introduced to Parliament soon after my appointment. It is the latest step in our work to create a housing market that is fit for the future. I have been greatly encouraged by the broad support for banning unfair fees—something that has come through very clearly in our consultation. We have listened and we are taking action. This Government are making sure that everyone, whether they rent or own their home, has a safe, secure and affordable place to call their own.

I am confident that the Government’s ambitious house-building programme will transform the sector in the years to come, but it is also important that we help people now. The Tenant Fees Bill will enable us do this. It will ensure that tenants will no longer be stung by hidden costs. In the first year alone, we believe this could collectively save tenants as much as £240 million a year.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I congratulate the Secretary of State on his appointment. Will he explain why the impact assessment did not assess the pass-through effects on tenants? With the reduction in fees and so on, how can we guarantee that the costs will not be passed through into rents for tenants?

[James Brokenshire]

If the hon. Lady looks at the impact assessment, she will see that it has been calculated as a straight transfer through. I know that there will be a lot to discuss in Committee. It covers that pass through—the costs do not represent increased expenditure by letting agents and landlords, but the value of time spent reading guidance and reconsidering business models is also reflected in the net present value in the impact assessment. The hon. Lady will no doubt want to scrutinise this in further detail as the Bill proceeds through Committee.

The costs include unfair letting fees, with tenants facing bills for hundreds of pounds for simple things, such as reference checks, which on the market are often free, or £30 at most. Our consultation has found that tenants have to pay an average of £137 for a reference check. Then they are hit by fees for drawing up a tenancy agreement, for inventory checks and even for just picking up keys for their property. This, I should underline, is all alongside their deposit and the first month’s rent up front. That is just at the start. There are fees on renewal, and fees when they leave the property. Often people are not just paying the fees once; they are put through the same process every single time they have to move home. These are often young people who would rather put that money towards a home of their own, but they have no control over that. Tenants have no power to negotiate, as agents are appointed by landlords. Some use tenant fees to compensate for artificially low rates for landlords. This is simply not fair and we must now move to protect consumers.