Local Housing Allowance and Homelessness

Jim Shannon Excerpts

Wednesday 24th July 2019 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in this important debate. I thank the hon. Member for Ealing, Southall (Mr Sharma) for setting the scene so well, and all hon. Members for their substantial contributions. As always, I will give a Northern Ireland perspective on the matter and give an idea of what is happening there.

It is good to see the Minister in his place. He has not been in post long, but hopefully he will continue in it long after today. I know that he has a deep interest in this subject, and we look forward to hearing his response to the genuine questions that we have, because I know that he will do his best.

Despite targeted affordability funding, less than 10% of the local housing allowance rates now cover the rent of the cheapest 30% of private homes. That is a chasm of difference, which is very hard to equate, as other Members have said. Many people who cannot get on the social housing ladder and who have no family to take them in realistically have to resort to sleeping on the streets. It is not by choice; it is almost by design that they are unable to find accommodation.

I have had a number of such cases in my constituency. Entering the private housing system is not an option for many benefit claimants, given how high the cost of rental is in the private housing sector. People without a partner who are benefit claimants cannot realistically get a one-bedroom flat through social housing and cannot afford to get one through private rental under the current allowances, because the two figures just do not equate, as I have said.

The hon. Member for Westminster North (Ms Buck) mentioned a mother with two children who are visually handicapped, who has to use the money that should be purposely set aside for their disability to pay the rent, so that they have accommodation and the children can get to school. That is a supreme example of the problems that people have, and I am sure that the Minister will respond to it specifically if he can.

Given the issues, why should we expect people to try and get suitable accommodation? I know the difficulties in my area. My staff and I were working with a young man who was literally sleeping in a garage. He was 40, so not entitled to homeless points, despite our efforts on his behalf. We all tried to get him into accommodation in the area, but he could not get a one-bedroom flat in his price range. His elderly mother—very often, family members step in—ended up paying the difference, but when she passes away, hopefully not for a long, long time, I do not know where this troubled young man will be. He will certainly not be in a private rental.

Nobody should have to sleep on the streets in this day and age, as I think all of us—the Minister, the shadow Minister, the hon. Member for Stockton North (Alex Cunningham), and all right hon. and hon. Members here today—realise. I believe that we must try to bring more people into employment, so that they do not have to rely on benefits to provide them with a stable home. I will make some comments and ask some questions about that shortly, because this issue is not just the Minister’s responsibility; other Departments have a role to play as well.

The local housing allowance should be a safety net for people, so that they can find a job to provide them with a bit more stability. Yes, some people may undoubtedly seek to take advantage of the benefits system as an excuse not to find a job, but I have to say that, from my evidential basis, I do not see that. I am not saying that it does not happen, but I do not see it in my constituency.

There is a genuine lack of housing at these prices, and private rental landlords are sometimes loth to take universal credit or housing benefit tenants, and especially not at a discounted rate. There is a very difficult balance to strike between a rental that is correct and a housing benefit or universal credit system that helps people to stay in the accommodation they are in.

[Matt Western (Warwick and Leamington) (Lab)]

The hon. Gentleman is making an extremely powerful and important speech. He seems to be making the case for much-needed and industrial-scale social rented housing, which would provide people with basic security of tenure for their home, so that they can then get a job and enter the workplace with that assuredness. I think he is also saying that there is such a big gap between housing costs and local housing allowance provision, particularly for one-bedroom accommodation.

[Jim Shannon]

I have been a great believer in social housing. I have supported it all my life, and I regularly have people coming to me trying to access it. It is incredibly important for those who cannot afford to buy their own home—even more so today. Alongside that, when it comes to social housing, we must provide a benefit system, and the LHA enables people to stay in their accommodation, so the hon. Gentleman is absolutely right. I totally agree with what he said.

I have sympathy for those experiencing difficulties and recognise that people may be experiencing difficult times that prevent them from finding a job. I believe that help should be available to them, but there is another aspect of this issue, and that is getting the right qualifications to find a stable job—a reality that some people fail to face up to in school. In 2017, 16.6% of Northern Ireland residents aged between 16 and 64 had no qualifications. I believe that these problems are intrinsically linked, which is the point I made earlier. It is not just the Minister’s Department; the Department for Education, the Department of Health, the Department for Work and Pensions and others all have a role to play. To tackle homelessness, we must tackle the problem of people having no qualifications, as low-skilled jobs are becoming harder and harder to come by nowadays.

Unfortunately, homelessness and deaths are linked, and I will give hon. Members some statistics—I cannot say that they are exactly linked together, but the stats may just tell us something. In Northern Ireland from October 2017 to the end of August 2018, an average of 13 homeless people per month had their housing applications closed due to death. Of the deceased, 63% were aged 60 or younger and the youngest was only 18. The majority, 93, were male. Their cause of death is unknown; I make that comment clearly. This is a problem, and I believe that these people should be helped. These figures are distressing, and it is horrendous that people cannot get a helping hand to lift them out of the difficult situation they are in.

A new strategy is required if we seek to solve the homelessness problem across the UK. Getting more people into work and getting people with the right qualifications would be steps in the right direction.

To conclude, support should be available to those in need, and certainly used as a springboard to get them into employment and keep this fine nation going forward, but in the short term we need affordable housing—the hon. Member for Warwick and Leamington (Matt Western) referred to social housing. That housing simply is not there at present. We need funding to build affordable housing, and for rent control as well. We simply should not have people on the streets in this nation, and we need to do all we can to ensure fit-for-purpose allowances in areas with a lack of one or two-bedroom accommodation, as compared with those on the housing stress list.