Policing and Crime Bill (Second sitting)

Debate between Jack Dromey and Craig Whittaker

Tuesday 15th March 2016 Public Bill Committees

[Craig Whittaker]

Q Dame Anne, could I just come back to you? It was really good to hear that the Government were listening to your ideas and allowed you to get on and do the IPCC work. Could I just touch on what you said? I think that you said that the Bill goes “some way” towards being an effective complaints system. Do I detect that we could have done more?

Dame Anne Owers: The decision was made, and I understand why, to proceed by way of amending current legislation, rather than starting with a blank sheet. There are still a lot of tie-ups between complaints and discipline in a way that you might not do if you started from scratch. To be honest, I am grateful for what there is, so I am not about to say that the exercise should not be done. I understand exactly the pressures of legislative time and so on. There is still quite a considerable tie-up between the two, but I hope that, between us, the police and crime commissioners and ourselves will be able to develop a more effective way of handling complaints in the first instance. You should not start an investigation by saying, “Who dunnit?” You should start an investigation by saying, “What happened?”

[Jack Dromey]

Q May I ask a completely separate question? Alex, I think this goes to you. We heard evidence earlier today—this morning from two of the three police organisations and this afternoon from the National Police Chiefs Council—in respect of the provisions on bail. Sara Thornton, in particular, raised concerns about the sheer scale of the numbers involved because of the trigger that is proposed in the Bill. In her words, because of the bureaucracy that would be attached, large numbers of superintendents would have to supervise the making of the necessary arrangements. Separate concerns were expressed about what we have come to call the Dhar clause, arising out of what happened in relation to the Dhar case.

I have read your evidence, and the final paragraph says that

“in relation to the Bill’s changes to the length and authorisation of pre-charge bail, the College is currently evaluating the outcomes of a pilot study that may provide a clearer indication of costs or benefits to these…changes. Until the evaluation is complete the College will be unable to provide a final view on this issue and we will endeavour to update Parliament”.

I have not seen an impact study prepared by the Government. There may be one in the Department, but I have not seen it. It seems from what has been said here that it is common ground that we need to change the bail arrangements and how they work. Against the background of the reservations that have been expressed, one would hope that you have evidence-based legislation, as opposed to legislation to be followed by an evidence base.

General matters

Debate between Jack Dromey and Craig Whittaker

Tuesday 21st December 2010 Commons Chamber

[Craig Whittaker (Calder Valley) (Con)]

Let me take this opportunity, Mr. Deputy Speaker, to wish you and all Members of the House, as well as its staff and their families, a very merry Christmas and a happy new year.

In April 2008, the previous Government introduced the local housing allowance as a new way of calculating housing benefit for tenants in the private sector. The allowance is paid directly to the tenant, who should pass it on to the landlord as rent. The housing allowance and direct payments to tenants allow prospective tenants to “shop around” with their allowances, but following the introduction of local housing allowances more than 41% of private landlords—an increase of 4%—are not letting to tenants who receive such allowances, mainly because of the lack of a guarantee that rents will be received. The greatest difficulty facing many landlords with local housing allowance tenants is their inability to obtain rents. Currently, when tenants are in arrears, landlords must wait for a minimum of eight weeks before they can request direct payments.

I recently attended a meeting of the Calderdale landlords association in Calder Valley. The picture that was painted was of a sector in meltdown. No fewer than 350 properties belonging to the members of the association who were present at the meeting are in danger of being withdrawn from those receiving local housing allowances, entirely owing to the lack of guarantees.

In far too many cases throughout England, tenants move in, pay the first month’s rent, and then do not pay for two months. Leaving arrears, they then move across the border to neighbouring local authority areas and repeat the process. Then, of course, they move on again. Many pay only three months’ rent in 12 months. The cost to landlords is getting out of hand, and the practice is keeping rental charges far too high. Honest, decent people who pay their rent on time are subsidising many people who do not. A landlord who contacted me recently said that in a portfolio of 15 houses, seven tenants were more than two months in arrears, and five of them had moved on owing well over £1,000 each in rent. The cost to landlords of pursuing back rents is also expensive, and landlords incurring that additional expense often have no chance of receiving any money at all. As a result, many landlords do not pursue back rents, as by doing so they would only add to their losses.

At a time when supply should be increasing to meet increasing demand and take advantage of higher rents, stock levels in the sector fell by 2.7% between the first and second quarters of the year. As a consequence, not only is supply much tighter, but rents increased at a rate of 2.3% over the same period because supply is so much lower than demand.

Other issues in the sector are causing a decline in stock levels. The taxation system provides little incentive for investment in accommodation; we should allow the private rented sector to be treated in the same way as businesses. The system is also failing to identify vulnerable people who, even under the current arrangement, should be eligible for direct payment of their local housing allowance to their landlords. Many tenants are failing to manage their finances properly, falling into rent arrears and having their tenancies terminated. The safeguarding processes that exist are failing. Many landlords are reporting that rents have not been paid this month, as some tenants are choosing to spend their housing allowance on Christmas rather than paying their rents.

The solution to the crisis that is starting to develop is quite simple. The Residential Landlords Association, Shelter and Crisis all agree on two specific points. First, their tenants—who consist overwhelmingly of claimants of local housing allowance—say that they would prefer the allowance to be paid directly to their landlords. That would help people to manage their finances, and would reduce the temptation to use the allowance to pay other debts rather than paying rent. It would also provide tenants with security so they could be sure that the rent had been paid and there was no chance of losing their home.

[Jack Dromey]

The hon. Gentleman’s heart-rending appeal on behalf of landlords is very interesting. Will he join me in extending similar concern to the 67,000 families in the midlands facing an increase of an average of £9 a week as the consequence of £1.8 billion being taken out of housing benefit by his Government—families who can ill afford to pay £9 a week extra?

[Craig Whittaker]

I thank the hon. Gentleman for that intervention. I am sure he will agree that it was the previous Government who brought in the housing allowance, which is hindering the progress of the private rented sector and stopping investment in it, as I mentioned.

The rule by which the local housing allowance can be paid directly to landlords only when claimants become eight weeks in arrears should be replaced when a sum of one month’s rent falls into arrears for 14 days. That would prevent tenants in difficulties from getting further into debt. Allowances should also be paid calendar-monthly in advance, in line with normal rental payment practices.

For a system that was set up to give people their own choices, its failure is producing a system where rents are on the rise because of the shortage of housing in the sector and because of those who do not pay their rent and buck the system. That is without question increasing rents in the sector. That is not fair, it is not sustainable and it needs to change.