Homelessness Reduction Bill (Seventh sitting)

Helen Hayes Excerpts

Committee Debate: 7th sitting: House of Commons
Wednesday 18th January 2017 Public Bill Committees

The funding announcement, which the Minister promised throughout our proceedings, is important. I welcome the announcement yesterday, but I press him to announce additional news on funding on Report, when the Bill eventually gets there.

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

I would like to take this opportunity to comment on yesterday’s long-awaited announcement of funding for the Bill. The first thing to say is that the lateness of the announcement combined with its lack of detail is somewhat at odds with the cross-party spirit in which the Bill is being brought forward. All members of the Committee want major reform of homelessness legislation, so that it has a transformative impact on homelessness, but Opposition Members have always been clear that the Bill’s success will depend on the Government’s commitment to resourcing the new burdens in the Bill realistically and properly.

I am concerned about several aspects of yesterday’s announcement. I want to put those concerns on record, and I hope that the Minister will respond to them. First, the Government must publish more detail on the formula and the assumptions used to calculate the funding commitment. How does that commitment relate to local authorities’ estimates of costs? The briefing states that it does relate to them, but does not say how. What are the assumed activities that it will fund?

A number of the Bill’s clauses change the way that local authorities will work with applicants who find themselves homeless, but the funding announcement does not make explicit the nature of the activities that the money is expected to fund. The briefing talks about an increase in cases, but does not say how local authorities’ activities will differ under the new prevention duty. It is based on the assumption that practice will change and that local authorities’ workload will increase, but I am simply not sure how that detail has been worked through. How do the new activities that local authorities will undertake under the new prevention duty relate to an increase in applicants, who may come forward earlier in the process? How are those two dynamics flushed out in calculating the funding? How does the funding commitment take into account regional variance in cost and, in particular, the much higher costs faced by London boroughs?

From what I can tell from the detail behind the announcement, there appears to be an assumption that most of the additional money will be spent on administration and officer costs, not costs related to, for example, supplementing somebody’s rental payments in order to sustain their tenancy during a period in which they are working through a benefit sanction. We need to understand that, because local authorities need to understand how the funding can be applied practically, and whether it is enough to make the difference we want.

It is important that the Government publish the distribution of funding across the country, by local authority, as soon as possible. On the face of it, if the funding is evenly spread, which I do not think it will be, £300,000 will be allocated per council area. If that is the distribution, or if the distribution looks anything like that, that is of great concern to me. It is significantly less than the sum—possibly considerably more than £1 million—allocated to the London Borough of Southwark under the trailblazers programme. That sum was presumably what the Government believed Southwark needed to undertake that work as a trailblazer. We need to understand how the distribution will work across the country and how it will relate to local authorities’ calculations about their additional costs.

Finally, it is of some concern that the Government’s announcement shows funding for two years, but none at all for the third year. While the Bill is clearly intended to reduce costs and homelessness, the desperate shortage of genuinely affordable housing, in London in particular, and the need for other measures—such as, in my view, tenure reform of the private rented sector—to help to reduce homelessness, it is at least possible, if not probable, that the reduction in costs and homelessness will not be entirely achieved within the first two years.

Without a commitment to looking again at funding beyond the first two years, and to fund local authorities as needed beyond that period, this really does not look like a long-term commitment from the Government to sorting out homelessness; it looks like a headline announcement to tick a box that says that the Government have fulfilled their pledge to fund the new burdens in the Bill. I am concerned that, having received the announcement very late in the day, we are left without time to consult properly with local authorities at a detailed, fine-grain, local level, or to scrutinise properly the level of funding, what it will fund and how local authorities have worked that through. Without that, I am concerned that this funding commitment simply lacks credibility. I therefore ask the Minister to confirm the funding arrangements beyond the first two years, and to come back with the further detail I have requested.

The lateness of the announcement, combined with the announcement we will receive and further amendments to the Bill on Report, somewhat undermine effective scrutiny of the Bill. Scrutiny, particularly of a Bill that commands cross-party support, is about strengthening legislation and making it as good and effective as possible. It is an important process from which the Government have nothing to fear. I regret that we have received this information so late in the day that the Committee, members of which have such a significant amount and depth of knowledge of homelessness and the process in the Bill, has not had the opportunity to scrutinise and debate it in greater depth. I therefore hope that the Minister will provide additional information as soon as possible, and that on Report we will have an opportunity to debate and scrutinise the clause with the benefit of further input from local authorities.

I represent two local authorities, Lambeth and Southwark, which are at the forefront of the intensification of the problem of homelessness. They are both under extreme pressure from the growth of homelessness in recent years, and are both doing the best they can on this significant set of challenges. Both authorities welcome the principle and intention behind the Bill, but they cannot be expected to work miracles. They need the Government to put the resources into officer time, and the funding necessary to mitigate and prevent homelessness properly within existing arrangements; into the provision of more genuinely affordable housing; and, perhaps more importantly than anything else in the very short term, into the reform of the private rented sector, so that authorities do not feel the pressure of successive no-fault evictions under the section 21 process presenting at their door.

[Will Quince]

I support clause 1. Extending the period for those threatened with homelessness from 28 to 56 days is one of the Bill’s core elements, and it will make the biggest difference.

I very much welcome the clear definition of tenants as homeless once a valid section 21 notice has expired. I have been one of the largest critics of local councils that routinely dish out the advice to stay in a property until the bailiffs arrive. I have had numerous people come to my constituency surgeries who have reached crisis. They went to the council at the first available opportunity, when they knew they were getting into difficulty—they were getting into rent arrears or had complex needs, as the Minister pointed out earlier, or problems such as relationship breakdown—and their landlord was looking to end the tenancy, but they were told at that point by the local authority, “Stay in the property. Come back to us when you’re in crisis—the point at which the bailiffs are knocking on your door.” I have raised concerns about that for numerous reasons. Apart from the financial pressure it puts on that family, there is a huge social cost to them as well. I have two young children, and I cannot imagine what that is like.

I had a call recently from a constituent who told me that the bailiffs were at the door, and because she would not let them in, they smashed the window and tried to encourage and coax the children to open the door while she was not looking. That will stay with those children forever. If local councils are giving out this advice, it is disgraceful.