Housing Benefit and Supported Housing

Debate between John Healey and Lord Evans of Rainow

Wednesday 27th January 2016 Commons Chamber

[John Healey]

My hon. Friend, who chairs the Select Committee on Communities and Local Government, understands this better perhaps than anyone in the House. There is no alternative to the supported housing needed by many of the most vulnerable people, and which they have at present. That is why Ministers must act immediately to exempt supported housing in full from the crude cuts and undertake a detailed consultation with providers about how such housing can be secured in future. Before Christmas, I revealed the scale of the problems facing people in specialist supported housing.

[Graham Evans (Weaver Vale) (Con)]

Will the right hon. Gentleman give way?

[John Healey]

No, I will carry on for the moment.

Since then, we have had a series of half-baked statements from the Government. The first was, “This is unnecessary scaremongering.” Not true—we are giving voice to the warnings and evidence from those who have the facts and will have to manage the consequences. Those are organisations the British public trust and respect, including Age UK, Mencap and Women’s Aid. Secondly,

“nothing will change until 2018.”

Not true—the cut and the cap apply to new tenancies from April this year, so the problem is immediate. My local housing association, South Yorkshire Housing Association, has told me that

“it takes time to rehouse anyone, let alone the most vulnerable people. Consultation on scheme closures will need to begin within a matter of weeks”.

No one will sign contracts for supported housing when they do not know whether the basic costs can be covered. New investment has already been stopped in its tracks: one in five providers have frozen investment and new schemes, according to the Inside Housing survey. Golden Lane Housing, Mencap’s housing arm, had plans for £100 million of investment over the next five years in supported housing across England, but they have been scrapped.

Thirdly,

“Additional discretionary housing payment funding will be made available to local authorities, to protect the most vulnerable, including those in supported housing”.

Not true—the fund is run by councils to deal with emergency applications from people already coping with the bedroom tax, the benefits cap, and the cuts in the last Parliament to the local housing allowance. Awards often run for only a few months. The fund is currently £120 million a year, and it is a short-term and overstretched measure.

Policy costing in the autumn statement scores the cost of the Chancellor’s housing benefit cut at £515 million. The Government proposed to top up the discretionary housing payments fund by not £515 million but £70 million. Housing organisations rightly dismiss the idea that the fund is the solution, saying that that is “nonsense and unworkable”.