Supported Housing (Regulatory Oversight) Bill

Debate between Felicity Buchan and Clive Betts

Committee stage
Wednesday 11th January 2023 Public Bill Committees

[Mr Betts]

I echo the comments of the hon. Member for Harrow East, my honourable Select Committee friend. We worked together closely on the Bill, as did the whole Select Committee; our report on the issue was unanimous. We described what we saw, which—notwithstanding the excellent provision that does exist in the sector—is a system and a delivery of service that is in many respects a complete mess. We saw appalling examples of accommodation that was not fit for purpose, and that the supposed support in this supported accommodation did not exist, consisting as it did of a “support worker” opening a door and shouting up the stairs, “Are you alright, then?” It was absolutely dreadful.

What was in some ways even worse is that the taxpayer was paying millions of pounds for this service, although the Department for Work and Pensions could not actually tell us how much. In the end, though, the Committee is not asking for more money. We are saying that the money that is there could be spent an awful lot better. Delivering to very vulnerable people a better service than they are currently getting and improving the lives of people in communities that have been blighted by this are the objectives we have in mind for the legislation. We do not want to drive out good providers or close down good accommodation. We want to get at the rogue providers who operate scams to make millions of pounds out of housing benefit at the expense of vulnerable people who are not getting the service they deserve.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Felicity Buchan)]

It is a great pleasure to serve under your chairmanship, Mr Efford. I thank all Members who have joined us this morning, including my hon. Friend the Member for Harrow East, whom I congratulate on reaching Committee with the Bill. I agree with both what he said in his introduction and the comments from the hon. Member for Sheffield South East.

Supported housing is a vital safety net for many people, enabling them to live independently with some support. There are many excellent examples of supported housing providing support for people experiencing homelessness, older people, people with a disability and those suffering from mental ill health, to name but a few, but as we are all aware, there are rogue landlords operating supported housing schemes. Those landlords are exploiting the vulnerable people they are supposed to be helping. This is completely unacceptable. We must continue to deliver a clear message to those providers: their time is up.

This Bill, which the Government support, includes a range of measures to drive out rogue providers and drive up the quality of supported housing. It is a very important measure that comes after many Government interventions. In October 2020, we published the national statement of expectations setting out the Government’s vision for quality supported housing. In the same month, we launched the pilots, and in March 2022, following the evaluation of the pilots, we announced our intention to bring forward regulations. I am delighted that my hon. Friend the Member for Harrow East has come forward with his Bill. We have also announced that over the next three years we are expanding the pilots to 22 new local authorities, with a further £20 million programme of support. The Government are sending a clear message: we will not tolerate abuse of the supported housing system. Time is up for rogue landlords.

Clause 1 places a duty on the Secretary of State to set up a new advisory panel and to appoint a chair to the panel through consulting the members. The new panel will advise on the design and implementation of the measures in the Bill. It will be able to take a strategic view of our plans, as well as undertake its own work related to supported housing. This is an excellent opportunity to bring together key stakeholders to share their expertise and to advise the Government. The advisory panel will give Government direct access to stakeholders and their knowledge of the sector at a crucial time when we will be consulting on how best to deliver and implement the measures in the Bill. The panel will consist of those with an interest from across the supported housing sector, including but not limited to those who represent the interests of registered providers, local housing authorities, charities providing supported housing and residents of supported housing. I look forward to convening the panel at the earliest opportunity.

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[Felicity Buchan]

Absolutely. I think that the sector is very supportive of what we are doing with this private Member’s Bill. There is some concern about unintended consequences, and that is why consultation will be key.

I would be happy to discuss the amendment further with the hon. Member for Sheffield South East as an option in the consultation document, rather than setting it out in the Bill. I urge him to withdraw his amendment.

[Mr Betts]

Given that assurance, I will not press my amendment. I look forward to further consultations on it.

[The Chair]

Thank you, Mr Betts—

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[Felicity Buchan]

On amendment 2, it is unusual for the Government to be required, in a Bill, to make progress reports on individual Bill measures in the way proposed in this amendment. Clearly, there are already well established methods for holding Government to account—including by inviting or calling Ministers to one’s Select Committee. However, there is a requirement in relation to the licensing regulations—this is in clause 4(2)—for the Secretary of State to give a progress report if he has not put in place the licensing regulations after 12 months.

Today, I can give an oral commitment here in Committee that if that clause is triggered, we will also give an update on the national supported housing standards at the same time. On that basis, I ask the hon. Gentleman to withdraw his amendment.

I turn to clause 3 stand part. Clause 3 enables the Secretary of State to prepare and publish new national supported housing standards. The standards will cover both the adequacy of the accommodation and the quality of the care, support or supervision provided. They will be enforced through the licensing schemes to ensure that only those who meet the standards will be granted a licence.

To take up the point made by my hon. Friend the Member for Dover, our intention is firmly to work with DWP to look to align the national housing standards with housing benefit. I absolutely agree with her that we need to cut out the financial incentive for rogue operators. I reassure her that I had a conversation yesterday with my opposite number in DWP and we are fully aligned with those objectives.

[Mr Betts]

I accept the Minister’s assurances that when producing the report relating to licensing, as detailed in clause 4(2), she will also publish an update on progress with national housing standards. On that basis, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 3 ordered to stand part of the Bill.

Clause 4

Licensing Regulations

Question proposed, That the clause stand part of the Bill.

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[Mr Betts]

I will speak to amendment 3 and raise a couple of other issues relating to the provisions under consideration.

On amendment 3, during our Select Committee inquiry one of the issues we heard from those concerned was how individuals got into exempt accommodation and how often people with very different needs—and sometimes very different but challenging behaviour—get put together in a completely inappropriate way. The worst examples were of women fleeing domestic violence being housed in the same building as people who have been perpetrators of that violence in the past. We heard about people trying to give up an addiction who were housed in the same building as people with a track record of dealing drugs. It was simply not appropriate; there is no control over who goes where. Gumtree and Facebook were regular means by which individuals accessed exempt accommodation. That was not satisfactory.

The standards to be enforced are set out in clause 5(3). Everyone agrees that licences should cover the standards of accommodation, as well as the use of the accommodation, the provision of care—or lack of it in some cases—and compliance with the national supported housing standards. The one thing the Bill is missing is the issue of access to that accommodation. That is why I put into amendment 3 words about,

“conditions relating to the assessment of the needs of persons who are residents or potential residents of supported exempt accommodation.”

We should take account of people’s needs and ensure that in future housing people with completely different and often conflicting needs and lifestyles—such as the perpetrators of domestic abuse being housed with victims of domestic abuse—simply cannot happen.

I accept that the wording may not be completely correct. I am hopeful that the Minister will accept the spirit of what I am trying to put forward, if not the precise wording. I look forward to what she has to say.

I have two other points. As the hon. Member for Harrow East said, of key importance are clauses 4 and 5, on licensing. Clause 2, on local supported housing strategies, places additional requirements on local councils. Will the Minister confirm that those requirements will be considered as new burdens, and that appropriate discussions will happen with the LGA and councils about that?

Finally, one of the most appalling things we heard about in our inquiry was the scams that take place. In the end, we could improve the accommodation for the same money that has been spent, had it been spent better. One of the examples we heard was about the council leader in West Devon. Quite rightly, we have heard a lot about Birmingham—my hon. Friend the Member for Birmingham, Selly Oak was the first Member who came to me to say that this was a major problem that the Select Committee needed to look at—but we heard from the leader of West Devon about a portfolio of 12 properties that were sold to a special purpose vehicle for £6 million. On the same day, they were sold to an offshore investment company for £18 million. That is a £12 million profit for a portfolio of properties.

What is happening in many cases is that it is not property organisations that provide exempt accommodation. Organisations buy up these properties and rent them to an organisation—sometimes one they have created themselves as a subsidiary—that is not for profit. But that not-for-profit organisation is charged an enormous rent by the profit-making organisation, and that feeds through into the level of housing benefit that is eventually paid out on behalf of the occupiers of exempt accommodation. It is that sort of scam that needs to be stopped.

I would like to ask the Minister for some assurances, having looked at the wording in clause 5(5)(b) on

“removing or restricting an entitlement to housing benefit”

and limiting the rent. Will the Minister be looking to stop these sorts of scams by using the powers set out in the Bill so far?

[Felicity Buchan]

I will start with amendment 3, then move on to amendments 5 to 9, and then I will follow up on the points raised by hon. Members.

On amendment 3, the Government agree that it is vital that the needs of supported housing residents are properly assessed so that they get the help they need, and for supported housing to deliver the right outcomes. My original intention was to include the requirement for individual needs assessments in the national supported housing standards, as that will be a needs assessment and will cover the accommodation provided and the care and support package.

The hon. Member for Sheffield South East has raised an interesting point, and I agree that putting the measure on the face of the Bill may have some merit. However, more detail is needed to flesh out the amendment. It particularly needs to spell out what the needs assessment covers in more precise language and how it interacts with care, support and provision. I would be happy to talk more about the matter with the hon. Gentleman, and I am happy to consider making changes to be introduced by the Government on Report. On that basis, I ask him to withdraw amendment 3.

I understand that amendments 5 to 9, tabled by my hon. Friend the Member for Harrow East, are technical and are there to remove the Local Government Association from being named as a statutory consultee. The Government believe that “statutory” can remain on the face of the Bill in respect of amendments 5 to 8. I could go into more detail, but in the interests of time, and as this is a more technical matter, I ask my hon. Friend to withdraw the amendments to delete “statutory”, because we believe that removing it does not materially affect the duty being placed on the Secretary of State to consult the named organisations.

On amendment 9, I understand that the Local Government Association has requested this change. I am happy to support the removal of its name from the clause, but elsewhere in the Bill we have referred to “local housing authorities” and “social services authorities” and I am disinclined to introduce a third term. I propose to my hon. Friend that we work on an alternative, including local housing authorities or social services authorities, and that the Government will table that amendment on Report.

[The Chair]

Mr Betts, did you want to speak? I got the impression you did not want to get up.

[Mr Betts]

I was hoping to say one or two things and that the Minister might respond to my points about new burdens and benefits.

[Felicity Buchan]

I completely forgot; I was trying to rush through the amendments. My apologies.

First, on new burdens assessments, I confirm that an assessment will be made and that local authorities will get money for any new burdens. I anticipate that the new burdens will come about through setting up the strategies for the five-year period, and the initial set-up of the licensing scheme.

Secondly, I agree with the hon. Member for Sheffield South East that we cannot allow the scams to continue. It is an absolute outrage that public money is going towards rogue landlords when it should be used more effectively to help vulnerable people in society. That dovetails with the point, made by my hon. Friend the Member for Dover, that we need a linkage between housing benefit and the national supported housing standards. The hon. Member for Sheffield South East has my word that the Department for Levelling Up, Housing and Communities, working closely with the Department for Work and Pensions, will look to get rid of the scams. Clearly, it will take work and require a lot of deep analysis, but we are determined to look to make that linkage with the DWP.

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[Felicity Buchan]

As with amendment 2, which was about a reporting requirement for housing standards, I am prepared to give a commitment in this Committee: if we are required to report on licensing regulations after 12 months, we will include an update on the progress on information sharing powers. I agree with the hon. Member for Harrow East that we need to be sensitive about the sharing of information, given the involvement of people such as domestic abuse survivors. Information about their current residence is very sensitive, so, again, consultation is key. We may have to exempt certain groups, but it is an important clause.

[Mr Betts]

I was hoping that the Minister would say something about reporting on progress, or how that might be done in due course.

[Felicity Buchan]

I did make a—

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[Bob Blackman]

I thank the Minister for the information on consultation. This is a key area. The sort of people we are trying to drive out of business will use every and any loophole there is, so getting the exact wording right is vital. I accept completely what my hon. Friend has said about the consultation.

Question put and agreed to.

Clause 12 accordingly ordered to stand part of the Bill.

Clauses 13 and 14 ordered to stand part of the Bill.

New Clause 2

Charter of Rights for residents of supported exempt accommodation

‘(1) A local housing authority in England must publish a Charter of Rights for residents of supported exempt accommodation (“Charter of Rights”).

(2) A Charter of Rights under subsection (1) must be published—

(a) within three months of the date on which this Act comes into force, and

(b) annually thereafter.

(3) A Charter of Rights under subsection (1) must contain—

(a) a statement of the rights of residents of supported exempt accommodation,

(b) a statement of the responsibilities of providers of supported exempt accommodation,

(c) information about support services for residents of supported exempted accommodation.

(4) In preparing a Charter, the local housing authority must consult—

(a) residents of supported exempt accommodation,

(b) providers of supported exempt accommodation, and

(c) civil society organisations.

(5) The Secretary of State must by regulations require a provider of supported exempt accommodation to—

(a) ensure that its staff are aware of the Charter of Rights published by the local housing authority,

(b) provide a copy of the Charter of Rights to every resident in the supported exempt accommodation it provides,

(c) have regard to the relevant Charter of Rights in exercising its functions.

(6) A statutory instrument containing regulations under subsection (5) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.’—(Kate Hollern.)

Brought up, and read the First time.

[Mr Betts]

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

I am moving the new clause on behalf of my hon. Friend the Member for Blackburn (Kate Hollern), who tabled it. I will not spend long on this, but I promised that I would move it so that the Minister could respond.

The intention of the new clause is simply to put the needs and rights of those resident in supported exempt accommodation at the heart of our debate in Committee. In the end, that is what we are trying to do: provide better accommodation for people who are often in desperate and real need. I will not press this to a vote, but I want the debate to be about how the Minister might think the issues raised in new clause 2—on having the rights of residents recognised formally—will be best addressed in the Bill.

[Felicity Buchan]

The new clause would require all local authorities in England to produce a charter of rights for supported housing residents. That seems to have significant risk of overlap with the national supported housing standards. For some of the reasons already outlined by my hon. Friend the Member for Harrow East, for local authorities each to produce their own charters would be unhelpful. We need consistency.

I make the point that while individual local authorities will decide whether they put in place a licensing regime, guidance will be issued to ensure consistency across the local authorities. We believe that the national housing standards will have a more consistent national approach, and an enforcement mechanism through licensing. We will therefore not support the new clause.

In answer to the hon. Member for Sheffield South East, vulnerable people should clearly be at the heart of our concerns. At the moment, unfortunately, in certain situations rogue landlords are paid too much Government money, and the Government need value for money for the taxpayer. Simultaneously, vulnerable residents are not getting the support that they need. I give the hon. Gentleman my assurance that vulnerable residents will be a major focus of our consultation, which will be there to ensure that their needs are met through the national supported housing standards.

[Mr Betts]

I accept the Minister’s assurances. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

Bill to be reported, without amendment.