Supported Housing: Benefit

Helen Hayes Excerpts

Wednesday 20th July 2016 Commons Chamber

[Helen Hayes (Dulwich and West Norwood) (Lab)]

It is a pleasure to follow the hon. Member for Thirsk and Malton (Kevin Hollinrake) with whom I serve on the Communities and Local Government Committee.

My constituency benefits from a wide and diverse range of supported housing schemes, which play a fundamentally valuable role in enabling people, who would not otherwise be able to do so, to live independently —whether it is for a period of time following a particular trauma such as domestic abuse or for the long term. Supported housing gives people dignity and community. It contributes to the kind of society that we want to be, advances equality and saves the state money.

Among the excellent supported housing in my constituency, we have women’s refuges; housing for blind and partially sighted residents run by Action for Blind People; a foyer run by Centrepoint, which is also very concerned about the withdrawal of housing benefit from 18 to 21-year-olds; an Emmaus community supporting homeless people back into work and permanent accommodation; housing for residents with learning disabilities run by L’Arche and others; extra care housing for older residents, the need for which is growing exponentially; and many others. Each provider has been thrown into turmoil by the proposal to cap housing benefit to the level of the local housing allowance.

Earlier this year, I met a number of housing associations and voluntary sector organisations that provide supported housing in my constituency. Without exception, they expressed their concern about the proposed cap. Housing associations, without exception, said that they would be able to provide less supported housing if the cap is introduced; that they will not invest in new schemes; and that some of them will seek to dispose of existing supported housing schemes. Several said that supported housing was already subsidised by other parts of their business, and others that, while at the moment that covers their own costs, the finances were already very precarious.

The announcement of the review was welcomed, but since then the lack of further clarity and the delay in making a decision has also caused problems. Such is the uncertainty caused by the review that Emmaus, which runs housing for people who were formerly homeless, told me that it is postponing investment decisions and is unsure about whether to continue some of the schemes that it runs. These are homes that people rely on now. The fact that their futures are now in jeopardy underlines the urgency of the situation.

The challenge presented by the introduction of the housing benefit cut to the level of the LHA is further compounded by other changes that have been introduced. The national living wage, while welcome, is not supported by any increase in the funding for providers that will have to implement it, and that is squeezing their finances. Cuts to local authority funding are reducing the extent to which support services are there for those who need them, placing further emphasis on the support directly provided by the providers of supported housing.

The impact of the Housing and Planning Act 2016, not least on the starter homes obligation on local authorities, will reduce the extent to which providers across the social housing sector are able to provide supported housing. Brexit creates further uncertainty for the construction sector, and potentially threatens the ability of housing associations to borrow from the European Investment Bank and other sources at preferential rates, which further damages the ability of the sector to deliver supported housing.

At the time of a Communities and Local Government Committee meeting a few weeks ago, the Minister, Lord Freud, was stuck on a plane, I believe, but his official, Peter Searle, was there to answer questions from the Committee. I asked about the timescale for announcing the outcome of the review on the LHA cap. Peter Searle said that it would be announced before the recess. Will the Minister please explain why this commitment is not being met, and why we are heading into the recess with further uncertainty and turmoil for the supported housing sector?

With the timescale for this review, the Government are treating with contempt a sector which makes nothing but a positive contribution to supporting some of our most vulnerable residents. I hope that, when summing up, the Minister will clarify the timescale for a decision on the review, confirm that the cap will not be implemented as planned, and set out an approach to supporting and investing in supported housing to enable a strong sector to meet current as well as future needs for some of our most vulnerable residents.