Homelessness Reduction Bill (Third sitting)

Karen Buck Excerpts

Committee Debate: 3rd sitting: House of Commons
Wednesday 7th December 2016 Public Bill Committees

[The Parliamentary Under-Secretary of State for Communities and Local Government (Mr Marcus Jones)]

I thank the hon. Gentleman for the constructive conversation that we had following last week’s Committee sitting. I am pleased that he recognises that local housing authorities must already have regard to the significance of any disruption that would be caused by the location of the accommodation to the employment, caring responsibilities or education of the person or members of the person’s household, under article 2 of the Homelessness (Suitability of Accommodation) (England) Order 2012.

I look forward to working with the hon. Gentleman on the successful implementation of the Bill. As he said, that will include working with the sector on the code of guidance and on the co-production of templates for personalised plans on this and other elements of the Bill; re-emphasising to local authorities the importance of complying with the suitability order; and taking the further steps that he has just mentioned.

[Ms Karen Buck (Westminster North) (Lab)]

Will the Minister assure me that, within the code of guidance and his follow-up to ensure that local authorities are implementing it, due regard will be given particularly to the most vulnerable children with special needs? I say that because only this week I dealt with a case—one on review—where a family with a severely disabled child attending a special school in central London had been placed by Westminster Council in Essex, requiring the parents to get up at 5 in the morning and commute for five hours a day. That child has now been in that situation for many months—

[The Chair]

Order. Minister.

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[Andy Slaughter]

The clause and amendments go to the heart of the dilemma that we talked about last week on clause 2. Almost everyone on the Committee supports the intentions of the Bill and the extension of the duties to local authorities, but that poses a substantial question about the additional burden and cost placed on local authorities. We continue to wait with bated breath for the Minister’s pronouncements on finance that we were promised for the Committee stage.

My amendments are probing—I do not intend to press them to a vote—because at the end of the day having a review provision in the Bill is right. I am sure Committee members have read the briefings we have had from London Councils and the LGA. London Councils estimates at least four additional stages for which a review might be requested. The very helpful explanatory notes to the Bill give eight examples of circumstances in which a decision may be reviewed.

Review decisions have become something of an art in local authorities. Highly experienced housing officers seem to spend their entire lives constantly writing reviews of homelessness decisions. In many cases, the decisions were thorough and proper—they have to be, one reason being that they are subject to review by the county court. Additional resources and staff are likely to be needed by local authorities not only internally, but because of a lot more proceedings in the extremely overstretched county courts, which already have substantial waiting lists for hearings.

There are two examples in the briefings. The group of east London authorities estimates that review processes will cost an additional £4 million a year. Swindon Borough Council estimates that it will need to employ two to three officers in addition to the existing seven employed in its homelessness section. These are substantial resources for individual authorities, but spread across the country they would be a huge additional burden.

I hope to keep my comments uncharacteristically short on the amendments because the Government have an opportunity to show that they have thought about the consequences of the Bill. The debate on Second Reading showed that we have largely discussed and agreed the principles of the Bill and the additional duties.

We want to know how the Bill will work. This is a good example of where the Government can show that they have already thought about it. When I talk to my local authority and others, particularly in London where pressures are highest, there is huge concern they will be overwhelmed when the Bill is enacted. In many cases, having cut their budgets by about 50%, they simply do not have the resources to deal with the provisions.

[Ms Buck]

I rise briefly to echo the points made by my hon. Friend on the review process. This is potentially life-changing. A review is important because it could be the difference between an individual and a family having a prospect of security in their housing conditions or being left to fend for themselves despite their vulnerability. It is essential that local authorities ensure that there is a proper review process at every stage. I support the principles of the Bill in ensuring that, with the additional duties and expectations it introduces, there is capacity for review at every stage of the process. However, as my hon. Friend said, it is critical that that process is properly supported and resourced.

I would like to know from the Minister what estimates his Department has made of the additional number of reviews that are expected in different local authorities. We know that the burden of responsibility will fall particularly heavily on London local authorities and those on the front line. What expectations does the Minister have of the additional costs? If those costs are not fully funded by local authorities, one disturbing consequence will be that the review process will be delayed.

I am sure I am not alone as an MP in frequently dealing with very distressed constituents who come to me saying that they have come to the end of the review process only for the local authority to ask for additional time, leaving them in emergency accommodation in very unhappy circumstances and often huge psychological distress. It is very important that we do not allow that to happen.

Finally, as my hon. Friend said, the Bill has to be seen in the context of an unprecedented squeeze specifically on funding for housing services in local authorities. Shelter has estimated that housing services—not the provision of housing; just the administration of housing services in local government—have fallen by 8% in the past year alone and by almost a quarter since 2010. That is a bigger single reduction than in any other area of local authority services. We all support the Bill, but it is absolutely incumbent on the Minister and Department to recognise that point, ensure that the resource implications are spelled out and understood by the Committee, and make a commitment to full funding.

[Mrs Drummond]

I disagree with the amendment because the review process is important to give everyone a voice and ensure a fair and transparent service. It is therefore vital that the process is extended to cover all relevant decisions that can affect an applicant’s journey under the new duties. I disagree with the amendment because it would remove protections from the applicant.

The amendments would remove the statutory right of review in two instances. First, it would remove a person’s right to review

“any decision of a local housing authority…as to the steps they are to take under subsection (2) of section 189B”.

Those steps are the reasonable steps the authority must take to help to secure accommodation. Secondly, the amendments would remove a person’s right to review

“any decision of a local housing authority…as to the steps they are to take under subsection (2) of section 195”,

which comes from the fact that the authority

“shall take reasonable steps to secure that accommodation does not cease to be available”.

I understand that there might be a resource implication, but it is extremely important that vulnerable people get the right review processes so that they can get accommodation under the Bill.

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[Ms Buck]

I shall be brief, as I endorse everything said by my hon. Friend the Member for Dulwich and West Norwood. The cultural change that the Bill proposes is welcome. Many MPs have experienced dealing with constituents who faced homelessness and were left, in the most extreme cases—though it is not unusual—with their possessions piled up on the pavement outside their home, while the bailiffs were there and they waited for the local authority to assume its duty for them.

It is right that everything possible should be done to prevent that. The earlier we intervene, the better. As has been said, however, there are major structural pressures that militate against the effective delivery of what we hope the Bill will achieve. That does not detract from the aims and objectives, but it means that the Government must pay the matter serious attention.

We already know, from the prevention work done in priority homelessness cases under the prevention and relief of homelessness measures, what some of those structural problems are. The end of a shorthold tenancy is the principal driver of homelessness and, as my hon. Friend has just said, in many cases that is consequent on a section 21 notice being issued because a landlord knows that more money can be earned from a rental property, particularly in high-value areas such as London.

Research done with the Residential Landlords Association shows that only 7% of landlords in inner London are now prepared to let to people on housing benefit. The figure is about one in four across London as a whole, and it has been falling rapidly. A quarter of the cases that the prevention and relief of homelessness measures deal with are related to housing benefit problems—sometimes administrative, but often simply a shortfall. The Government are making such shortfalls worse by the extension of the benefit cap and will certainly make them worse with the additional local housing allowance measures that are being brought in.

The very people at whom the Bill is aimed—the non-priority cases and single homeless people, many of whose situations are terrible but who cannot cross the threshold into priority need—are precisely the ones most at risk from the additional squeeze on local housing allowance. In such circumstances the Government always say that the answer lies in discretionary housing payment measures, inadequate as they are, but the crux is that those payments are temporary.

I have raised that argument many times in this place: when we talk about measures to prevent homelessness and ensure that people are given some form of housing security, it is not good enough to rely on a local authority’s discretionary—the clue is in the name—housing payments, which are by definition time limited. They can mean the difference between homelessness today and in six, eight or 10 weeks’ time. They are not a means of protecting even priority households—households with children, elderly people or people with disabilities—from homelessness. They are certainly not going to be enough to protect non-priority and single people, whom we want and need to assist.

Does the Minister think that the discretionary housing payment scheme also needs to be reviewed? Should the temporary nature of such assistance be reviewed, if we are to make the measure work?

[Michelle Donelan]

I echo colleagues’ comments that clause 4 is the heart and core of the Bill—it is fundamentally about preventing homelessness, which is why we are here. The clause would end the current postcode lottery—it is also a time lottery, because someone can get help one day when they might not the next. It can depend on the area, which person they see, and a number of factors such as how busy the council is.

I am sure we all agree that the introduction of a standard system across the UK is fair, right and proper. It will mean that no one who is vulnerable can be turned away. The fact that we are increasing the window from 28 days to 56 days will prevent homelessness. We see constituents week after week in similar situations when they have left it too late after being given advice. The measure is about helping them and untying our councils’ hands.

There has been a lot of talk about burdening councils, but some parts of the Bill, including extending the time window to 56 days, actually untie councils’ hands. The relief duty means that those who need help will get it, and not just those who are deemed priority need on a particular day. That will help charities by allowing them to have more time to get on with helping homeless people rather than fighting councils over viewing people as priority need.

The clause will make things cheaper in the long run for councils and at a national level. Statistics show—this is echoed by my local charities including Doorway in Chippenham—that most people in the initial stages of being threatened with homelessness do not have the same complex needs such as mental health issues, drug abuse and alcoholism as people in later stages. The current system exacerbates problems and causes people a great deal of pain, as well as cost. It is our duty to try to alleviate and avoid that pain.

The success of prevention will be seeing people in the round, and implementing the duty in conjunction with the assessment and the personal plan. Preventing homelessness is possible only if we look at people as people and not as statistics. We must look at the other problems they endure and allow for more partnership working with other bodies. I fully support the clause, which is the essence of the entire Bill.

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[Mr Jones]

Since 2010, local authorities have successfully prevented homelessness in over 1 million cases using funding that the Government provide to local housing authorities. However, not every household that needs help and support to avoid a homelessness crisis has always received it. The clause will ensure that that help is extended to all eligible households, and that is why the Government support this Bill and welcome this new duty. It will require authorities to take reasonable steps to help households retain their accommodation or secure alternative accommodation, and so prevent their homelessness. Any eligible household that is threatened with homelessness will be entitled to this help and assistance regardless of priority need, local connection and intentionality.

[Ms Buck]

Will the Minister clarify whether the financial support that he brings forward in respect of the Bill will include specific and funded provision for assistance with deposits?

[Mr Jones]

I hear what the hon. Lady says. There are already many local authorities that make provision for deposits.

[Ms Buck]

And lots that do not.

[Mr Jones]

I think that local authorities need to look at that in the context of the fact that preventing somebody from becoming homeless is far cheaper than when somebody actually becomes homeless and they have to pick up the pieces from that. As the hon. Lady said from a sedentary position, not all authorities do this, but the best ones do. I reassure her that—picking up on a point made by the hon. Member for Hammersmith who said that this Bill is not accompanied by a strategy—we do very much have a strategy around homelessness prevention and there are many other measures that the Government are embarking on to prevent homelessness. Within that, the advice, guidance and support we give to local authorities to help them to prevent people from becoming homeless will help in the way that she identifies.

The type of help that people receive will be based on the information identified during the assessment process, which I spoke about when we discussed clause 3. The steps to be taken under the personalised plan are also developed during the assessment process. For example—picking up on the point made by the hon. Member for Westminster North—if the main issue is that a household cannot secure a rent deposit and that is the only barrier to their finding a home, the local authority can provide that deposit and the household can look for their own accommodation.

Introducing a wider-ranging prevention duty that extends to those who are not in priority need will help far more people. It will help them significantly at an earlier stage as well. This will bring a number of advantages. First, households will receive better, more consistent support. Secondly, they will get that help earlier, which is more effective but also costs less. The combination of those two factors means that fewer households will have to experience the stress and upheaval of a homelessness crisis. That will help reduce the number of homelessness acceptances, reducing the costs for local authorities.

The duty itself lasts for 56 days and comes to an end in a number of different ways. It might be helpful if I say a little more about some of the most important. The way we envisage its being ended most frequently is, of course, through helping to secure accommodation or by helping people to remain in their existing homes. Therefore, if an authority is satisfied that the applicant has suitable accommodation and there is a reasonable prospect of their retaining it for at least six months, the duty successfully comes to an end. That is what has happened in Wales and we expect to see a similar effect, if less pronounced, in England. The duty can also come to an end if the steps taken by the local authority and the applicant themselves have not prevented homelessness. In this case, the relief duty applies, meaning that people get continued help and support. I will talk about the support available when we reach clause 5.

Clause 4, alongside clauses 7 and 3, also places an element of responsibility on households themselves. They will be expected to take certain identified steps to help prevent their own homelessness. However, requiring co-operation in this way means that if an applicant deliberately and unreasonably refuses to co-operate, the duty can come to an end. How this works will be explained when we discuss clause 7, when we will also consider the safeguards built into the process.

The hon. Member for Hammersmith mentioned a potentially increased case load and a 266% increase as a result of the duty. We recognise that increases in different parts of the country will differ. However, to say that the increase will be 10 times higher than that in Wales is unrealistic. Broadly speaking, any rise will come from those not in priority need. We would have to ask why so little support had been offered and why there had been such a rise when authorities already have obligations that they should follow.

The hon. Member for Dulwich and West Norwood mentioned supply, which is an important part of the issue. The Government have committed £8 billion to provide 400,000 affordable housing starts by 2020-21. The Committee will have heard the comments made by my hon. Friend the Minister for Housing and for London. The Government’s White Paper will be published shortly and will elaborate on the Government’s plans in this area.

The hon. Lady also mentioned additional regulation on landlords. It was a pleasure to serve with her on the Committee that considered the Housing and Planning Bill, which has now been enacted. We introduced significant measures to tackle rogue landlords. I do not think anybody on this Committee would argue with the Government’s intent to drive rogue landlords out of business. As for further regulation of landlords, we always need to get the balance right. If regulation goes too far, we might reduce the supply of homes in the private rented sector, as was the case before the Housing Act 1988, which introduced the shorthold tenancy because the supply of private rented property had very much been diminished. The hon. Lady also mentioned prevention and keeping households in their existing homes. At present, half of all the prevention work that takes place results in people staying in their existing homes.

The hon. Members for Westminster North and for Sheffield South East mentioned affordability, discretionary housing payments and the local housing allowance. They will know that the amount set aside for discretionary housing payments has doubled in this Parliament to £870 million. I understand the hon. Lady’s point about discretionary housing payments being a temporary measure, but they allow households and authorities the time and space to look again at the circumstances and take action. In some cases, it gives the time to help people move into work or improve their situation in other ways.