(7 years, 11 months ago)
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It is a pleasure to serve under your chairmanship, Mr Howarth, and it is always a pleasure to follow the hon. Member for Waveney (Peter Aldous), who made some good points and struck a better note than some of his colleagues have done.
Repeat debates on the same subject suggest either that someone is going for easy political point scoring or that the matter is one that the Government are continuing to get wrong. In this case, it is clearly the latter, and I congratulate the hon. Member for Bermondsey and Old Southwark (Neil Coyle) on securing the debate.
In a debate last year, I stated that the Government’s housing strategy was a mess, unless we assumed that they wanted to dismantle the entire social housing concept. A year on, my sentiment remains the same. We only need to look at last week’s autumn statement to see that it allocated a further £0.25 billion to the right-to-buy pilot. Given the volume of right-to-buy properties that end up in the private rental market, that becomes a problem pushing up the housing benefit bill. The Government need to consider that, rather than attack supported housing, which provides lifeline services.
Supported housing provides refuges that can end years of hell, save people from domestic abuse, prevent rough sleeping, support people with mental health issues and allow older people to live independently in a safe environment. All those things combined can lead to an offset of savings within the NHS or can eliminate the need for people to be housed in more intensive and expensive residential homes, so helping to prevent bed blocking in hospitals.
My local Kilmarnock Women’s Aid organisation confirmed that it provides
“information, support and temporary refuge accommodation to women, children and young people experiencing domestic abuse.”
It believes that the
“impact of benefit sanctions and reforms are already having a disproportionate effect on women and lone parents. Universal Credit, which will be paid monthly to one householder, further increases the possibility of financial abuse.”
Therefore, it states:
“If refuge services are not exempted from Housing Benefit, a vital lifeline for women and children to find safety from domestic abuse could be lost.”
Against that backdrop, and as proof of a lack of joined-up government thinking, we have had a policy announcement confirming that the Government had no idea of its actual impact, which led to delays—which are welcome, but still only delays—consultation and now loose and woolly ideas for the future. The lack of greater detail from the Minister leaves a lot of uncertainty in the sector. There were some interventions on localism earlier, but the proposals do not offer confirmation that that will work; there is still insufficient clarity about what will happen.
In the here and now, we have had confirmation of the 1% rent decrease from 2017 in the supported housing sector, which will impose cuts on supported accommodation. The delay in the introduction of the local housing allowance cap until 2019-20 simply looks like a stay of execution, unless further clarity is provided.
Last year, an Inside Housing survey revealed the stark reality that 95% of providers might close their schemes, and the Government’s proposals have not changed much since then, apart from the possibility of some additional funding. The thing is, though, that we do not know how that funding will work. Will it make up the complete shortfall? I suggest that it will not, or else there would be no point in introducing a more convoluted system. The Government now seem to be hiding behind the discretionary housing payments excuse that they used for the bedroom tax. The Government have been defeated in the courts over the bedroom tax, so who knows what lies in the future for this?
As my hon. Friend the Member for Linlithgow and East Falkirk (Martyn Day) said, it is a minor comfort that the relevant funding will be devolved to Scotland, although the Scottish Government are already spending £100 million to mitigate other Tory policies, and the Scottish Federation of Housing Associations has estimated a loss of funding of up to £14 million per annum. Will the Government take account of real need when looking at provision of top-up funding? Will the uplifts provided to the fund in future be at a flat rate? We need more clarity.
In a previous life, as a councillor, I was pleased to see the construction of a new development, Lilyhill Gardens, which provided supported accommodation to people with special needs, allowing them to live independently with the support of a telecare package. That project was truly transformational for the tenants, and won several awards. Local authorities and other providers would like to roll out similar models, but how can they do so when future funding is insecure? It is important that the Government provide clarity. In Scotland, we are trying to reshape the social housing model and provide a stock that is better suited to people’s living conditions and demographics, but it is really difficult to do that without clarity about funding. That could lead to bed-blocking and other things that will cost more money in the long run. Will the Minister reconsider this issue, apply an exemption to supported housing and abandon the Government’s penny wise but pound foolish strategy?
Order. I will begin calling the Front Benchers at 10.30 am. Will the hon. Member for Strangford (Jim Shannon) bear that in mind?