Supported Housing

John Healey Excerpts

Wednesday 25th October 2017 Commons Chamber

[John Healey (Wentworth and Dearne) (Lab)]

I beg to move,

That this House calls on the Government to halt its current plans to cap, at the local housing allowance rate, help with housing costs for tenants of supported housing and to adopt instead a system which safeguards the long-term future and funding of supported housing, building on the recommendations of the First Joint Report of the Communities and Local Government and Work and Pensions Committees of Session 2016-17, Future of supported housing, HC 867.

This is the third Labour-led debate to confront the Government about their plans for supported housing. Perhaps it is a case of third time lucky, after the Prime Minister announced at Prime Minister’s questions this morning that the Government had backed away from capping help with supported housing costs at the local housing allowance rate. I am really glad, as I was in previous debates, to see so many Members from all parts of the House in the Chamber. The Prime Minister’s announcement was certainly welcome, and it was good to see Labour yet again winning the argument and making the running on Government policy.

[Frank Field (Birkenhead) (Lab)]

I am sure my hon. Friend the Member for Sheffield South East (Mr Betts) will also try to catch my right hon. Friend’s eye, but may I say that this was a unanimous proposal from two Select Committees—the Work and Pensions Committee and the Communities and Local Government Committee —and that we are immensely pleased by the Government response? May I also take this opportunity to thank the hon. Member for Gloucester (Richard Graham), who was the lead member of the Work and Pensions Committee on the report and steered it to success?

[John Healey]

My right hon. Friend is absolutely right. He pre-empts some of the tributes I am going to pay to members of his Committee and the Communities and Local Government Committee for the role they have played. In particular, I want to pay tribute to the hon. Member for Gloucester (Richard Graham) and my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes), who chaired the sittings on the very important joint report, which was published back in May.

After what the Prime Minister said at Prime Minister’s questions earlier, we now know what the Government will not do, but we do not know what they will do. She said that the full announcement on future plans will be made on Tuesday, which is Hallowe’en, so the real question is: will this be trick or treat? Let us hope that this is third time lucky, and that the Government get the policy right this time. Ensuring that they did was the purpose of this debate, and even after the Prime Minister’s partial statement about the Government’s future plans, it remains the purpose of this debate.

Since November 2015, these plans have been like the sword of Damocles hanging over the homes of more than 700,000 frail and elderly people, young people leaving care, homeless people and those with dementia, mental illness and learning disabilities, as well as ex-service veterans and women fleeing domestic violence. We called this debate to give a voice to the continued urgent warnings of organisations such as Mencap, Age Concern, Centrepoint, the Salvation Army and Women’s Aid, and their concerns are still important as the Government finalise their plans. We called this debate to give Parliament a further opportunity to play its proper role in challenging and contributing to Government policy decisions, and our concerns are still important today. I trust that Ministers realise that Parliament, the housing sector and the Government must all play an essential part in sorting out a good, long-term system for supported housing for the future.

It is now nearly two years since the Chancellor revealed the plan for crude cuts to supported housing via the local housing allowance, it is over a year since the second version of the same plan was announced and there is now less than 18 months until any changes are set to start. The fears of many of the most vulnerable people in our society are very real, and the damage is already being done to vital specialist housing at a time when we already need at least 17,000 more such homes. The National Housing Federation reports that 85% of all building plans for new supported, sheltered or extra care housing have been halted over the past two years by the Government’s plans, and the Salvation Army says that the future of nine in 10 of its lifehouses for homeless people

“could be placed at risk.”

Our motion is designed to map a way forward. It calls on the Government, first, to halt its current plans—tick. That is what the Prime Minister announced today, and that is what the Government say they will do. It also calls on the Government to adopt instead a system that safeguards the long-term future and funding of supported housing, building on the recommendations of the joint report. I hope that Members on both sides of the House will signal their support for this approach during the debate, and then back the motion so that the will of Parliament is clear to the Government.

Together, the Communities and Local Government Committee and the Work and Pensions Committee have done a really important service to the House and to the Government with their recent report. As I did earlier, I pay tribute to the hon. Member for Gloucester and my hon. Friend the Member for Dulwich and West Norwood. I look forward to their speeches and to the contributions of many hon. Members on both sides of the House who I have previously heard make a very persuasive case in calling on the Government to change their plans.

Let me turn instead to the heart of what is at stake and what still remains to be settled. The decision to drop the local housing allowance part of the plans is welcome, as we and the Select Committee have been clear about the Government’s error in this regard: it is too low and too variable to be the basis for supported housing. Will the Minister confirm today that any system for setting the level of support for those in supported housing will take full account of the costs? Will he confirm that the long-term funding levels will reflect the need for supported housing now and in the future? Will he guarantee that this policy will not be subject to the same ill-conceived, ill-judged decisions that we have seen over the past two years?

[Stephen Timms (East Ham) (Lab)]

I am grateful to my right hon. Friend for giving way, and I agree with what he is saying. Does he agree that it was a particularly bizarre proposal to link funding to the local housing allowance when all the evidence shows that the cost of providing supported housing bears no relation whatever to the local housing allowance in a particular area?

[John Healey]

My right hon. Friend is exactly right, and the Select Committees’ joint report was very clear about that.

Not only does the LHA bear little relation to the actual cost, when the cost of providing supported housing is pretty consistent wherever people are in the country, but an LHA-based approach—I am glad the Government have backed off—would cause particular problems in the north and the midlands, where the level of the LHA is much lower. In my own area, the South Yorkshire Housing Association says that the majority of the 1,000 places it provides in supported housing for the frail elderly, people with learning disabilities and the homeless are at risk, and describes that approach as “catastrophic”. My right hon. Friend the Member for East Ham (Stephen Timms), who knows such a great deal about welfare and benefits issues, is absolutely right.

[Kate Green (Stretford and Urmston) (Lab)]

My right hon. Friend is right that LHA would be completely unsuitable as a measure when rental costs and local housing markets are different, but is it not also the case that support costs vary between, say, sheltered housing at one end of the scale, where there might effectively just be a concierge service, and intensive support for ex-offenders or young people leaving care at the other?

[John Healey]

That is true, and my hon. Friend is another of the House’s experts in this area. However, it is also the case that the housing benefit element of the costs of supported housing is designed to cover the housing costs and the management of housing costs, not the personal or support care costs.

Sometimes there is a confusion of those issues, but there should be no confusion for the Minister or the Government. In their own review in 2011, they listed the main reasons behind the costs of supported housing, where housing costs are often greater than those for general needs housing, saying that they included

“providing 24 hour housing management cover…providing more housing related support than in mainstream housing…organising more frequent repairs or refurbishment…providing more frequent mediating between tenants; and…providing extra CCTV and security services”.

My hon. Friend the Member for Stretford and Urmston (Kate Green) is absolutely right, and I am sure that the House will look forward to hearing her speak, and that she too will welcome the Prime Minister’s partial announcement today.

For all of us in this House and, in particular, for the 700,000 people who currently have their homes in supported or sheltered housing, what the Government do instead matters a great deal. The devil is always in the detail and the funding. We are told that we will have to wait until next week for the detail, so let me turn to funding. The previous Secretary of State for Work and Pensions, now the deputy Prime Minister, said in a written ministerial statement in September 2016:

“we will bring in a new funding model which will ensure that the sector continues to be funded at current levels”.—[Official Report, 15 September 2016; Vol. 614, c. 37WS.]

That is simply not true. Total funding is only protected in year one, 2019-20. In year two, the sector faces a funding cliff edge with cuts of more than £500 million scheduled from April 2020. Government Members are right to look puzzled and a little alarmed. This has not been mentioned by Ministers and it is only evident in the small print of the Treasury’s fiscal reports. If Members look closely at the Treasury documents, as I have, they will see exactly what the Government plan.

On page 87 of the Budget 2016 Red Book, table 2.2 shows that the Government scored cuts to supported housing spending of £390 million in 2020-21. Following the pledge by the then Secretary of State for Work and Pensions to protect funding, page 12 of the Treasury’s 2016 autumn statement policy costings report reflected the commitment that overall funding for supported housing will be the same in 2019-20. However, it also confirmed that the amended policy announced by the right hon. Gentleman will

“generate additional savings in subsequent years as it is applied to the stock of supported housing tenants”.

In other words, that includes all current supported housing tenants and not just, as originally planned, the new ones. It shows additional cost cuts in 2020-21 of £160 million. Of course, that was updated in the Budget 2017 Red Book to £165 million. As well as the £390 million of cuts already announced, therefore, there will be a further cut in 2020-21, the second year of any new system.

The upshot is clear: Ministers have lined up costs for this programme. And they have lined up cuts of over half a billion pounds for year two of any new system they put in place, and further cuts after that. This is a funding cliff edge for existing supported housing and it entirely demolishes Ministers’ claims that they will protect supported housing. Will the Minister confirm today that the Government will make good this funding gap in full, so that the Prime Minister’s pledge this morning to the House in Prime Minister’s questions can be properly honoured?

In our motion, we say the Government should adopt a system that

“safeguards the long-term future and funding of supported housing.”

I want to set out four tests for the Government, which explain what we mean and how we will judge the detail of any plans for change. First, any new funding system must reflect the real cost of running supported housing. Secondly, any new funding system must be needs-led and be able to deal with increases in demand and need for supported housing, not subject to arbitrary cash limits such as departmental revenue spending. Thirdly, any funding model for the future must take account of the particular needs of very short-term accommodation, including homeless hostels and women’s refuges—this is one of the very serious failings with universal credit. Fourthly, and most importantly, any new funding system must not lead to the closure of any vitally needed supported housing.

This is a Government with no majority or mandate for domestic policy, because this is not covered by their deal with the Democratic Unionist party. It is Britain’s first minority Government for 38 years. As a Parliament, and as Members on all sides, we are still coming to terms with the much bigger role and much stronger say we have in Government policy decisions. The influence—[Interruption.] The Minister snorts, but the truth is that the influence of Members from all sides has had a very significant bearing on the policy on supported housing. It has been very significant so far, but there is a good deal more to do. I trust that Ministers will see this debate as another important contribution.

[Mr George Howarth (Knowsley) (Lab)]

Will my right hon. Friend give way?

[John Healey]

I will. I was just about to finish, but I will give way to my right hon. Friend.

[Mr Howarth]

Good timing on my part! I suggest to my right hon. Friend that a fifth test might be in order: would any new Government scheme enable more supported housing to be built, thereby releasing family housing for those in housing need, while also saving money on care home costs further down the line?

[John Healey]

My right hon. Friend is right; perhaps that should be a fifth test. Certainly the first part of any fifth test must be whether, when the Government announce their plan, all the schemes halted in the last couple of years then get the go-ahead.

Finally, Parliament, the housing sector and the Government must together sort out a good long-term system for supported housing. I hope that our motion and this debate can be the basis for just that.

--- Later in debate ---

[Mr Jones]

Organisations like the Salvation Army provide a very important service in many communities throughout the country, helping some of the most vulnerable people who have ended up on the streets and sleeping rough. As I think was mentioned in the joint Select Committee report, we have been very conscious of the need to look after the future of short-term as well as longer-term supported housing. That point was also made by the right hon. Member for Wentworth and Dearne. I think that when our proposals are presented, the hon. Gentleman will see that we have certainly considered organisations that provide short-term supported accommodation, and we want to ensure that people receive the help that they need from organisations such as the one he mentioned.

Our consultation ended earlier this year. We welcomed all 592 responses, and since then we have taken careful stock of the views of local government providers and tenants. As I have already said several times, we also welcomed the Select Committees’ inquiry and subsequent report on the future funding of supported housing. I thank the hon. Member for Dulwich and West Norwood (Helen Hayes), my hon. Friend the Member for Gloucester (Richard Graham) and the other members of those Committees for the part they played in putting forward many solutions on this important issue that we must get right. As I have said on several previous occasions, when our final proposals come forward it will be seen that we have listened.

[John Healey]

Will the Minister give the undertaking that when the Government are finally ready to announce their full proposals, that announcement will be made here in the House, and that the Minister responsible will make an oral statement so that Members of all parties have a chance to hear and to question the Minister about those plans?

[Mr Jones]

These are very detailed proposals because this is a very detailed policy area, and therefore Members will need to digest them. I will be candid with the right hon. Gentleman: we are currently considering what form that response takes, in terms of how we inform the House. However, we will certainly want to set out our plans, which we think are a very positive solution to the challenges in this regard, and will want to engage not only with Members, but with providers and investors, and with the people who receive this important support.

--- Later in debate ---

[Caroline Dinenage]

That flies in the face of what the National Housing Federation said; the Government are giving confidence to suppliers to build into the future.

As my hon. Friend the Member for St Ives (Derek Thomas) said, we recognise and celebrate the diversity of the supported housing sector and we are reflecting this in the design of the reformed funding model. We want to ensure that the model is flexible and responsive to meet the variety of needs and demands placed on it for such a diverse sector and client base. Across the Government, we have considered the needs of all supported housing groups, including those with learning difficulties, physical and sensory disabilities and mental health problems, older people and those experiencing homelessness and seeking refuge from domestic abuse. We are working hard to ensure that the funding model reflects the unique range of provision in the supported housing sector, and we are listening to the sector to make sure we get that right. I believe that that will be seen in our response to the consultation, and we have always been clear that we are committed to developing a separate model that will work for short-term accommodation.

I want to address some of the concerns raised today about short-term supported and emergency housing such as hostels and refuges, which play a vital role in providing consistent, high-quality support for many vulnerable people who have experienced or are experiencing a crisis, such as fleeing domestic abuse. That was mentioned by a number of Members from all parties. We have always been very clear that we are committed to developing a separate funding model that will work well for people requiring help from these types of accommodation. As a former Minister for Equalities, I carry on my passion for tackling domestic abuse, which is a key priority for this Government.

We fully support the valuable work carried out by women’s refuges and other supported accommodation providers, and we are fully committed to ensuring that victims of domestic abuse are not turned away from the support that they need. Since 2014, we have invested £33.5 million in services to support victims, and the number of beds for victims of domestic violence has gone up. I want to be unambiguous about this: everyone who uses short-term supported and emergency housing such as hostels and refuges and who is eligible to have their housing costs met by housing benefit under the current system will continue to have these costs met through any new funding model for short-term accommodation.

My hon. Friend the Member for Walsall North mentioned the YMCA setting, social enterprises and adopting to change. We welcomed his valuable and characteristically positive addition to the debate, and that is exactly the kind of innovative and flexible approach that the Government promote. It is absolutely right that we should do our best in government to listen to and support the sector, but we should also take the opportunity to recognise the tireless work and groundbreaking approaches, such as that which he identified today.

We have listened to the views of the sector on sheltered and extra care housing through its response to our consultation, through its participation in our task and finish groups and through its involvement in the joint work of the Communities and Local Government and Work and Pensions Committees. We have heard the concerns that it has raised, and it is clear that an alternative model is required to secure supply. The Government recognise that supported housing helps many vulnerable people to stand on their own feet and lead independent lives. We have done a lot of work to understand the needs of individuals who live in long-term supported housing. We are committed to protecting and boosting the provision of supported and older people’s sheltered housing and to ensuring we get the new model right to ensure that that housing is funded sustainably in the long term.

The Government are clear that everyone who would be eligible under the current system to have their supported housing costs met by housing benefit will continue to have their housing costs met under the new funding model. We are committed to protecting provision of supported and older people’s sheltered housing to ensure that we get the new model right and that funding for supported housing is sustainable.

The Government’s intention is to find the best means to deliver improvements in quality, oversight and value for money, while recognising the need to give appropriate consideration to the concerns raised by the sector through the consultation and the Select Committees. I can confirm that we will be able to announce the plans for supported housing next week and answer many more of the questions that hon. Members have raised. I am convinced that, when the announcement is made, it will be clear that we have listened and properly consulted and considered the concerns of all.

Question put and agreed to.

Resolved,

That this House calls on the Government to halt its current plans to cap, at the local housing allowance rate, help with housing costs for tenants of supported housing and to adopt instead a system which safeguards the long-term future and funding of supported housing, building on the recommendations of the First Joint Report of the Communities and Local Government and Work and Pensions Committees of Session 2016-17, Future of supported housing, HC 867.

[John Healey (Wentworth and Dearne) (Lab)]

On a point of order, Mr Deputy Speaker. After the Prime Minister made an announcement at Prime Minister’s questions, ahead of our Opposition day debate today, that the Government will drop their plans for a crude cap and cuts to supported housing, have you or Mr Speaker had any indication that Ministers, when they make the full announcement next week, which the Minister has just mentioned, will come and make the announcement to the House with an oral statement? In the light of the unanimous support for our motion tonight and the widespread concern about the Government’s plans over the past two years on both sides of the House and across the sector, it is clearly really important that Members can question Ministers on the announcement in full that they make.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

The one thing we can be sure of is that I have been given no notice that anybody is coming forward and I do not think Mr Speaker will have been given notice at this stage. What I would say is that the right hon. Gentleman has certainly put on record his concerns. His views and opinions have been recorded. As he would expect, it is not for the Chair to look at the decision on the vote. That is a matter for the House and certainly not the Chair.