Oral Answers to Questions
Kevin Hollinrake Excerpts(6 years, 2 months ago)
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Kevin Hollinrake (Thirsk and Malton) (Con)
The Secretary of State for Work and Pensions (Ms Esther McVey)
When we were here last, Members in all parts of the House were asking whether Citizens Advice could be more involved with universal credit. I am pleased to inform them today that I went away and secured that agreement, and that Citizens Advice, as an independent organisation, will be giving universal support and assisting claimants with universal credit.
Kevin Hollinrake
Universal credit was introduced in my constituency early in 2017. Although there were initial problems following the changes made by the Government at the end of last year, Citizens Advice has reported a significant reduction in the number of difficulties. Jobcentre Plus staff also report a very positive effect in getting people back to work. Does that endorse the principle that we should seek not to reject universal credit, but to reform it?
Ms McVey
My hon. Friend is right. Work coaches are saying that this is the best system that they have ever had. It has been helping 1,000 people into work each and every day since 2010. My hon. Friend is also right to say that when we see that things need to be improved and adapted, we listen, we learn, and we change it as it goes.
Oral Answers to Questions
Kevin Hollinrake Excerpts(6 years, 10 months ago)
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Ms McVey
One thing on which both of us will agree—on which, indeed, Members in all parts of the House will agree—is that no child should be growing up in poverty. If we take action to ensure that families are working, those children will not be in poverty. We know for certain that if a child’s family are working, that child is much less likely to be in poverty when it grows up and is more likely to attain higher school qualifications. That is the action that this Conservative Government are taking.
Kevin Hollinrake (Thirsk and Malton) (Con)
The Minister for Employment (Alok Sharma)
Through universal credit, we are providing personal budgeting support, which is available through conversations with work coaches. That is making a great difference to those who need such help.
Financial Guidance and Claims Bill [Lords]
Kevin Hollinrake ExcerptsMonday 22nd January 2018
(6 years, 10 months ago)
Commons ChamberRead Full debate Financial Guidance and Claims Act 2018 View all Financial Guidance and Claims Act 2018 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 70-I Marshalled list for Third Reading (PDF, 106KB) - (20 Nov 2017)
Ms McVey
First, debt is not rising. It has actually fallen over the past eight years, but it is still too high. This new body will offer guidance and advice, so that people understand what loans they are taking out and, fundamentally, what paying them back will mean for them. Secondly, we are today putting in place the legislative framework to set up the body, but it will determine the key things it wants to pursue. I am convinced that it will listen to the advice that the hon. Gentleman and others put forward.
The new body will also provide advice on a breathing space scheme, providing additional support to the Government’s policy development. The scheme will allow an individual in problem debt to apply for a period of protection from further fees, charges and enforcement action, alongside establishing a statutory debt management plan. One of the new body’s key functions will be to support over-indebted consumers, ensuring the provision of high-quality debt advice that is free at the point of use. Last year, the Money Advice Service spent £49 million to fund 440,000 debt advice sessions. We want the new body to build on that good work.
Kevin Hollinrake (Thirsk and Malton) (Con)
Further to the point that the hon. Member for Nottingham East (Mr Leslie) made about financial resilience, is the Secretary of State aware that household debt as a proportion of household income rose from 93% to a peak of 157% in 2008, under the previous Government? Does not that demonstrate that these kinds of measures are essential in helping people to make sensible choices about their finances?
Ms McVey
My hon. Friend makes a good point. Household debt rocketed under the previous Labour Government, and we are now ensuring that it comes down, because it is still too high. I particularly appreciate that the Bill has cross-party support, because we all know that we need to help people who are in debt.
As a result of a range of broader reforms and initiatives, such as automatic enrolment, which has increased the number of people saving into pension schemes and the pension freedoms that allow anyone aged 55 and over to take their whole pension as a lump sum without paying tax on the first 25%, the number of people looking for high-quality, impartial financial guidance continues to rise. We look forward to the new body meeting those challenges, building on the existing good work of the Money Advice Service, the Pensions Advisory Service and Pension Wise.
Universal Credit Roll-out
Kevin Hollinrake Excerpts(7 years, 1 month ago)
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Kevin Hollinrake (Thirsk and Malton) (Con)
The hon. Lady said earlier that the up-front payment is, in her words, a loan. If it was not a loan, it would increase the overall quantum of benefit paid to recipients. Is that what she is proposing?
Debbie Abrahams
I will say exactly what I am proposing very shortly.
If the Government’s position is that Opposition day debate motions should have no binding effect on the actions of the Government, it fundamentally alters the relationship and balance of power between the Executive and Parliament. It would mean that apart from votes on legislation and matters of confidence, the Government could ignore the decisions and will of Parliament. This is very dangerous ground, and the situation needs to be seen in the context of the blatant power grab by the Executive that we witnessed on Second Reading of the European Union (Withdrawal) Bill last month.
Debbie Abrahams
Absolutely. Surely what is happening is not right, so we must stop this.
I will now make some progress, although I will take more interventions later. People might not have kept up with the hundreds of stories that we have heard from colleagues on both sides of the House, but we must make sure that the Government’s flagship programme is amended to take account of the real hardship that people are experiencing. We have heard about that hardship not just from claimants, but from charities that deal with claimants, as well as many other organisations.
There are three key issues with universal credit: the programme’s design flaws, which have been there from the outset, as I mentioned last week; the cuts that were introduced in 2015; and various implementation failures. First, I will talk about the programme’s flaws. The six-week wait before new claimants receive any payment is particularly draconian, and it is having real impacts. Four weeks of the waiting period are to provide that universal credit can be backdated, but an additional week’s wait was added as policy, and claimants must wait a further week for their payment to arrive. That is believed to be one of the primary drivers of the rise in debt and arrears.
Kevin Hollinrake
The hon. Lady talks about a six-week delay before any payments are received, but she will be aware that up-front payments are made available at the initial stage, so does she accept that that is not quite the case?
Debbie Abrahams
No, I do not.
It is so important to stress that half of those in rent arrears under universal credit entered arrears after making a claim. We know that one in four is waiting more than six weeks, and one in 10 is waiting more than 10 weeks.
Kevin Hollinrake
The hon. Lady says there is mayhem. In my area, universal credit was rolled out 15 months ago, and although there are undoubtedly some problems, it is certainly not mayhem, and the measures introduced by the Government in recent weeks will fix the vast majority of the problems. So may I give the hon. Lady, and hopefully her constituents, the comfort that this will not be mayhem?
Carolyn Harris
I do not agree, and I can give examples from the summer when there was mayhem, even before this system came into operation.
How can Conservative Members be so oblivious to the predicament they are putting people in? [Interruption.] If they quieten down, they will be able to listen to what I have to say.
During the summer holidays I became aware of the empty shelves in my local food bank. These shelves were empty because mothers could not afford to feed their children. They were relying on the free school meals during term-time, but during the school holidays they had no choice but to visit the food banks. So I decided to do something: I set up a lunch club for local children. I anticipated that me and my team would feed around 500 children, yet we ended up feeding 6,638 over 10 days. That was the scale of the problem, and that was before universal credit.
So how on earth are my constituents going to cope at Christmas with less money coming in and an even greater demand for money going out? Should I start planning a Christmas lunch club now, and asking local companies for donations yet again, or will the Government please open their eyes, look at the situation they are creating, and put a hold on the roll-out until the fundamental flaws of this ridiculous universal credit are resolved?
Kevin Hollinrake (Thirsk and Malton) (Con)
It is a pleasure to follow the hon. Member for High Peak (Ruth George), who has made some sensible points about the Government listening and our not wanting to get people into debt at the start of this difficult time in their lives.
Universal credit was introduced into Thirsk and Malton 15 months ago, and I am in no way ignorant or in denial; nor do I lack compassion about some of the difficulties that have been caused. In my experience, the vast majority of people have not suffered difficulties, but some have. Those difficulties fall into two different categories: technical and structural.
The technical difficulties are to do with mistakes, both by the user entering into the system and the people administering it at the benefits end of the system. There have been difficulties, and I have written to the Minister about them and know he will respond in detail. There are also structural difficulties with the monthly payment cycle, when many of my constituents, especially at the lower end of the income scale, get paid weekly. That has caused some cash-flow problems for some of my constituents.
Do I want to go back to the old system, or do I want a pause? I absolutely do not. Like many colleagues in this place, I have met staff at my citizens advice bureau, and have sat in on consultations with people accessing benefits, some of whom said before to the introduction of universal credit, “I cannot work more; there is a 16-hour limit on how much I can work.” The CAB itself has advised that that is the position. We do not want to return to that situation. We also do not want to return to a situation that is less effective at getting people into work and keeping them in work.
I also make a plea for the taxpayer in this debate. There are two sides to this coin. As the Prime Minister said last week, the Government have no money: all money is simply collected from the taxpayer and redistributed. Since the partial introduction of this basket of reforms, there are now 700,000 fewer workless households, and 40,000 households where people have never previously worked who are now in work. That is a benefit both to the taxpayer and the people in those households, particularly the young people in them. There has therefore been a fundamental improvement in many cases
I made the point earlier that the shadow Minister, the hon. Member for Oldham East and Saddleworth (Debbie Abrahams), described the upfront payment as a loan. Will she clarify that point? Is she saying that she does not want to make it a loan, but instead wants to make it an extra payment? That would add a burden on the taxpayer; that will mean more money has to come from the taxpayer. If that is what she wants, she should clearly set out her spending plans and calculate what extra payments she is going to make. Would that be fair, too, to those who do not ask for the upfront payments? We must take the taxpayer into account in our discussions on this matter.
I would unquestionably like to see some changes, particularly to shorten the timescale from six weeks to ease the burden on some of my constituents who are paid weekly and to make sure the upfront payments are available and also publicised to all who apply for universal credit. It would also be sensible to make more people aware that rent can be paid directly to the landlords in the social housing and private rented sectors and to have more training and ownership for the people who work to deliver these benefits. Other than that, I absolutely welcome this change.
Oral Answers to Questions
Kevin Hollinrake Excerpts(7 years, 2 months ago)
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Mr Speaker
If the hon. Member for Thirsk and Malton (Kevin Hollinrake), who has a similar inquiry at Question 17, were standing, I would call him, but if he is not, I will not—
Kevin Hollinrake
Housing and Social Security
Kevin Hollinrake Excerpts(7 years, 5 months ago)
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John Healey
We need to do both, of course. The major flaw with Help to Buy is that nearly a fifth of the people being helped to buy through the scheme are not even first-time buyers. Nearly 4,000 being helped by Help to Buy are on incomes of more than £100,000. It is not well targeted and it is not good use of public money. It could be spent much better, especially on helping younger people on ordinary incomes to get their first foot on the housing ladder.
Kevin Hollinrake (Thirsk and Malton) (Con)
The right hon. Gentleman says that a £100,000 income should be too high to qualify for Help to Buy. What level would he set it at?
John Healey
We would be happy to consult on that. My main argument is with Ministers. They are making the wrong judgments and they are not putting in place the help that young people need in particular. That is why—the hon. Gentleman may know this—the number of homeowners under 45 has fallen by 900,000 since 2010. Young people’s hopes and dreams of ever owning their own home are being completely dashed, and the Government have no plan in this Queen’s Speech or in their manifesto to fix that.
In truth, the Prime Minister is locked in place by her party only until its members judge that they can dump her without facing the British people again in a fresh election. It was Margaret Thatcher who said:
“Minority Governments can only struggle on from day to day with a series of short-term measures. They can’t and don’t tackle the longer-term questions that affect the future of our nation and the wellbeing of all of us.”
The question for the Queen’s Speech is whether the “short-term” will be days, weeks or months. On 8 June, the Prime Minister asked the people for their judgment on seven years of Conservative Government, and they gave it. Real wages have fallen, Government debt has risen, investment in new transport and housing has been slashed, the NHS is in crisis, schools are cutting teachers and last year, more than a million people used a food bank. At the same time, there have been big income tax cuts for the top earners, with more tax cuts to come for the richest on wealth that they do not even earn. We have had seven years of failure and a party with no answers to people’s problems, no hope for the future, and no plan to change the country for the better or to make government work in the interests of all.
John Healey
Good. It is a small number, and it has a zero in it—and nothing else.
Let me return to the serious points that I wish to make. Secondly, let me say to the Secretary of State that all markets, organisations and consumers need regulation to guarantee safety, ensure fair practices, safeguard standards and stop abuse; yet that is not the mindset of current Conservative Ministers. Never again can a Minister who is challenged on fire safety measures say, “It is not the Government’s responsibility,” and justify it by citing the Government’s “one in, two out” rule on regulations. That must change.
Kevin Hollinrake
The right hon. Gentleman must accept that it was this Government who introduced improved regulations insisting on the installation of smoke alarms and carbon monoxide detectors in homes in the private rented sector, and, for the first time, required electrical safety checks and checks on appliances from this autumn.
John Healey
But my goodness, didn’t people—including us—have to argue hard for those basic regulations? Why did the hon. Gentleman and his colleagues, when the Bill that became the Housing and Planning Act 2016 was going through the House, reject intervention and regulation to ensure that all private landlords at least made their homes fit for human habitation before letting them? This is a Government whose mindset can see regulation only as red tape, and who do not see what the Prime Minister described as the important role played by good regulation in the public interest.
John Healey
This is precisely about politics. This is precisely what the House should do, and, in fact, it is precisely about what the Prime Minister said this morning. Indeed, my third point follows on from the point that she made when she talked about the fundamental issues that underpin the detail of what we have also been discussing.
Sections of our people feel marginalised and ignored, and that is what happened to the tenants at Grenfell Tower. It is no good the hon. Gentleman huffing and puffing; the Prime Minister said that this morning. She recognised it. However, this is a Government whose housing regulator has now dropped any real requirement for the voice and views of tenants and residents on governing boards to be heard, and who, in 2010, abolished the National Tenant Voice, which we had set up. Its establishment resulted from a report called “Citizens of equal worth”. Many Grenfell Tower residents, and other social housing tenants, will feel that that rings hollow in this day and age.
Let me now deal with the specific failures on housing. Two thirds of people now believe that the country is experiencing a housing crisis. Everyone knows someone who is affected—people who are unable to obtain a home that they need or aspire to. Many of the housing decisions made by Ministers since 2010—decisions that the Secretary of State boasts about—have made the problems worse. Because Ministers have done too little for first-time buyers on ordinary incomes, home ownership has fallen to a 30-year low. They have given private landlords a freer hand and rejected legislation requiring properties to be fit for human habitation, so 11 million private renters have fewer consumer rights than they have when they buy a fridge-freezer. They have stripped away protections for people who need help with housing, so the number of people sleeping rough on our streets has more than doubled. They have cut investment and outsourced responsibility for building new homes to big developers, so, on average, fewer new homes have been built since 2010 than under any peacetime Government since the 1920s. That is the track record of the Secretary of State and his colleagues.
After seven years of failure, it is clear that the Conservatives have no plan to fix the country’s housing crisis. Some of what the Secretary of State has said this afternoon, and has said before, about house building and tenants’ fees is welcome, but there is nothing in the manifesto or in the Queen’s Speech to tackle the wider causes of the housing crisis.
John Healey
I have given way twice to the hon. Gentleman, and I want to finish my speech so that others can speak.
There is nothing to change the scandal of rising rough-sleeping homelessness. There is nothing to deal with the lowest level of new affordable house building in 24 years, nothing to reverse the rapidly falling level of home ownership among young people, nothing to secure supported and sheltered housing for the future, and nothing to scrap the hated bedroom tax.
However, there is an alternative, as we showed in our Labour manifesto. It is possible to fix the failings in the housing market and in housing policy. I am not just talking about a fully-fledged new Department for Housing to reflect the seriousness of the crisis, to spearhead our new deal on housing and to tackle the crisis. I am talking about a new deal for first-time buyers, with no stamp duty, guaranteed “first dibs” on new homes built in their local areas, and 100,000 new FirstBuy homes at a discount price linked to local average incomes. I am talking about a new deal for homeowners to stop leaseholders being ripped off, and a new homeowner guarantee to help people to pay the mortgage if they lose their jobs. I am talking about a new deal on house building, with at least a million new homes built over the current Parliament, and a new target for 250,000 new homes a year to be built by 2022, a level that should then be sustained each year for the five years of the next Parliament.
I am talking about a new deal on affordable homes. I am talking about building at least 100,000 genuinely affordable homes to rent and buy a year, with the biggest council house-building programme in more than 30 years. I am talking about a new deal for private renters to establish new consumer rights, with legal minimum standards, as well as making three-year tenancies the norm, with an inflation cap on rent rises. Finally, I am talking about a new deal on homelessness, involving a new national mission and plan to end rough sleeping—not some time in the future, as the Secretary of State says, but during the next Parliament.
Ministers have no domestic programme in the Queen’s Speech, and no majority in the House of Commons. I offer them our new deal on housing: a deal between the people of this country and the Government, and a bold, long-term plan to start to fix our country’s housing crisis and meet people’s housing needs and aspirations. If they too are willing to offer people that hope, I offer them Labour’s support as they put it into practice; but if they are not, they will have to make way for a party that can change the country for the better, and can make government work for the many and not the few.
Kevin Hollinrake (Thirsk and Malton) (Con)
It is a pleasure to speak in this debate and to follow such excellent maiden speeches from Members on both sides of the House. I was here to listen to the tremendous contribution made by my hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke)—the first, I am sure, of many in this House.
I must draw the House’s attention to my entry in the Register of Members’ Financial Interests. I have been involved in the property market for 25 years and am still involved. I am deeply passionate about it, and I am very pleased by the Government’s clear and ambitious plans to increase house building by 1 million homes between 2015 and 2020, and by 500,000 more by 2022. Those are very ambitious plans.
I am delighted to see that the shadow Secretary of State is back with us in the Chamber. I tried to intervene on him earlier to question one or two of the facts that Opposition Members keep repeating. They keep saying that since 2010 house building has fallen to its lowest level since the 1920s, but the House of Commons Library shows that some 100,000 houses were built in 2009-10, and 153,000 in 2016. Where do these figures come from? The claim is that affordable housing building is at a 24-year-low—the shadow Secretary of State can intervene on me on this point—but we know that in the past six years we have built 304,900 affordable homes, and in the last six years of the Labour Government, 294,000 affordable homes were built. Members can choose their own opinions, but they cannot choose their own facts.
Ms Buck
Is the hon. Gentleman querying the Department for Communities and Local Government’s own statistics, on its website, which show that there has been a 97% drop in the number of social housing completions since 2010? Those figures are there on the website now to be inspected.
Kevin Hollinrake
The hon. Lady raises a valid point. There is a different definition. Social housing is part of the overall definition of affordable housing—that is true. The shadow Secretary of State will tell the hon. Lady that that is true. It is also true that we are building more affordable homes than the Labour Government were in their final six years in office.
Building more homes has to be our objective and Members on both sides of the House will agree that we must reform the planning process to deliver more homes and release more land, whether that is brownfield or greenfield. That must take up some of the slack to deliver the amount of housing we need.
We need not just to deliver more land but to reinvigorate some of the sectors of house building on which we have come to rely. Some of that is about our local authorities, and the Select Committee on Communities and Local Government reported on that just before Dissolution. We believe that local authorities should be given the opportunity and more levers to increase house building to previous levels—they were building about 100,000 homes a year back in the 1970s—but only if those houses are properly designed and communities are designed properly around those developments.
The key element of reforming planning to deliver more homes is the role of small and medium-sized enterprises in house building. In 2008, SMEs built 44% of new homes delivered in this country. Today, they deliver 26% of homes. It is not just about land; it is also about capacity. The difficulty for small house builders is that they cannot find the land. That is the primary difficulty: finding access to the land and to the finance.
A White Paper from the Department has accepted that we need to deliver more housing for more small sites, and proposes that in the future, instead of local authorities simply allocating a huge site that is ideal for a huge house build and drawing a big red ring around it, which is probably easier for those local authorities, a certain number of sites in that local plan must be allocated for smaller sites and for small and medium-sized enterprises. It recommends that 10% of those sites should be half a hectare or less. That is good progress, but we need to go further if we really want to get small builders back into the business of building houses. It is critical that they do that.
The other principal problem is finding finance. It is almost impossible for an SME house builder to get finance for their developments. The Government have recognised this with their £3 billion home building fund, but we need to go further. We need to ensure that the mainstream high street banks lend to those SMEs. Those banks are their first port of call, but that is a difficult conversation at the moment. In Germany, the state-backed bank, KfW, sits behind the loans to SME house builders, meaning that builders can keep building. Through that, Germany has been far more successful in ensuring that there is a mixed delivery of house building.
For the next couple of minutes, I will focus on something else of huge significance to the industry: the tenant fees ban. I am still involved in the business and I am told by my finance director that the ban will cost us around £800,000 a year, so hon. Members might think that I am against the legislation, but I support the fee ban. I recognise that there is a problem. It cannot be right that when a tenant finds a property they want, they are susceptible to charges of which they were not aware and which can vary wildly between different letting agents.
All legislation that we bring forward in this place cannot just be about the measures. Delivery—the oversight and enforcement—is also needed. My concern is whether the measure will be delivered with that proper oversight and enforcement. The team that currently manages that within the sector is the National Trading Standards Estate Agency Team near Bangor. That team does not have the capacity to deliver the necessary oversight. We need to ensure that if this legislation is brought forward, it drives out the cowboy operators, who will try to find a way around the rules, which cannot be right. If the legislation is well thought through, it can include new measures about rental property standards. We need to ensure that the rented property sector delivers an appropriate standard of rented accommodation.
Housing Benefits (18 to 21-year-olds)
Kevin Hollinrake Excerpts(7 years, 9 months ago)
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Caroline Nokes
This is not about the demonisation of young people; it is about encouraging young people to make sensible and rational choices about where they are going to live, whether or not they are in work.
Kevin Hollinrake (Thirsk and Malton) (Con)
As a parent of two children between 18 and 21, I would be appalled if I felt that they had left home to live a life on housing benefits while they still have a bed in my house. Will the Minister confirm that support will be made available for those who are vulnerable or have complex needs?
Caroline Nokes
I thank my hon. Friend for that, and absolutely yes. Those who cannot live with their parents and those in receipt of the main disability benefits will be exempt from this policy.
Oral Answers to Questions
Kevin Hollinrake Excerpts(8 years ago)
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Penny Mordaunt
The hon. Gentleman makes a very good point. It is one that I, as a former Armed Forces Minister, have discussed with the Department. That is why we have specific questions related to our armed forces in the Green Paper. It is a good idea.
Kevin Hollinrake (Thirsk and Malton) (Con)
The most challenging gap that we need to bridge in the disability employment statistics is the one relating to people with learning difficulties. In answer to a written question, the civil service was unable to break down the stats to show how many people with learning disabilities were employed. Does the Minister agree that those stats are vital to help us to provide policies and support for people in these circumstances?
Penny Mordaunt
I agree absolutely, which is why we are doing that at as local a level as possible. On 5 December we are holding a drop-in session to which every Member of this House will be invited. As well as giving them information about how they can run local events to encourage participation in the Green Paper consultation, we will be giving them some local data so that they can get that local focus on the people we are currently trying to help and the unmet need.
Oral Answers to Questions
Kevin Hollinrake Excerpts(8 years, 2 months ago)
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Kevin Hollinrake (Thirsk and Malton) (Con)
The Secretary of State for Work and Pensions (Damian Green)
On the day that the country is celebrating our Paralympic athletes, I am sure the whole House will want to join me in thanking them for a summer of thrilling and inspirational sport.
It is right that we continually review the way support is offered to and accessed by disabled people. That is why I was pleased to announce an end to stressful and bureaucratic employment and support allowance reassessments for people with the most severe lifetime conditions. We are also transforming the way disabled people access support through our new digital Access to Work platform and providing help to budding disabled entrepreneurs to set up their own business.
Kevin Hollinrake
I am holding a round-table event on 31 October for those with disabilities, parents and employers, to try to remove the barriers to employment. Does the Secretary of State agree that for some the barriers are simply too high? Will he welcome the positive response from Disability Rights UK to his recent announcement that those with long-term and severe disabilities will not have to undergo regular repeat assessments of their condition?
Damian Green
I congratulate my hon. Friend on the round table. He is right that there are too many barriers to work for disabled people, and this Government are determined to do everything possible to break down those barriers. Like him, I was pleased that a number of disability groups welcomed the announcement that I made on 1 October. I was particularly pleased to see the chief executive of the MS Society, Michelle Mitchell, say that it was a victory for common sense. She went on to say:
“We are therefore delighted that the Government has listened to our concerns and have agreed to stop reassessments”.
I am pleased that the sector was so pleased with the announcement.
Supported Housing: Benefit
Kevin Hollinrake Excerpts(8 years, 4 months ago)
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Grahame M. Morris
With respect, I must point out that Government decisions should be based on evidence. Before embarking on a plan and a policy, it would be sensible to look at the evidence objectively and scientifically. If the hon. Lady wants expert opinion, I am happy to give her that and to quote the chief executive of the National Housing Federation, David Orr, who met the then Housing Minister on 18 December last year. He said—this is an expert in the field—that the impact of the local housing allowance cap will be
“stark and make it extremely difficult for any housing associations to develop new supported housing.”
He also said:
“providers across the country will be forced to close schemes.”
There is plenty of evidence of that, and I am sure that Members on both sides of the House have had representations from housing associations and housing providers.
Kevin Hollinrake (Thirsk and Malton) (Con)
Does the hon. Gentleman understand that a research project is now looking at this evidence? That conflicts with his motion on the Order Paper, which says:
“the Government intends to cut housing benefit for vulnerable people”.
That is pure scaremongering.
Grahame M. Morris
It is a matter of fact. It is a kind of chicken-and-egg situation: surely you review the evidence before you announce a decision and then put it on hold. I believe the review was started in 2015—perhaps the Minister can correct me if I am wrong—so why are we still waiting for the results? Why did the Chancellor of the Exchequer make an autumn statement that had huge implications for some of the most vulnerable people living in supported housing, without looking at the evidence first?
Damian Green
There is no disagreement between us. In cash terms, nobody will see their payments change until April 2018. That is what I was referring to. As I said, I expect to make an announcement in the early autumn. I hope that will provide the certainty that the sector is quite reasonably demanding.
Of course we understand that there are higher costs associated with providing supported housing than with providing general needs housing. I recognise the potential impact that this policy could have on the sector and its ability to support vulnerable people. I am also aware that this policy needs to be considered not on its own, but alongside other policies that affect the sector, including the 1% annual rent reduction for social sector tenants in England.
To return to the point about timing, in March, the Minister for Welfare Reform announced an exemption for this sector for one year. I hope that has provided some assurance for providers that nothing will happen precipitately while we complete the evidence review. That exemption, and a similar deferral of the 1% rent reduction, has been welcomed by the sector generally and, in particular, by the much-quoted National Housing Federation. When the deferral was announced, its chief executive said:
“We are pleased that the Government is listening to our concerns and has delayed the application of the LHA cap to people in…supported and sheltered housing.”
He also welcomed the fact
“that there will be a full strategic review into how these services are funded and we will contribute fully to that review.”
I am very grateful to the NHF for making that commitment. It is doing so and will continue to do so until we find a solution.
We require a solution that is flexible enough to meet the needs of service users and providers while remaining affordable for the taxpayer and delivering value for money. We have been working with and listening not just to providers of supported housing and umbrella bodies—the NHF and the Local Government Association—but to individual local authorities and other local commissioners, as well as to those who represent the vulnerable groups who live in supported housing. We have of course also consulted the Welsh and Scottish Governments about the implications for them. That extensive dialogue has been crucial in shaping our thinking on this important issue. I want to continue that exchange of information and ideas.
Kevin Hollinrake
I welcome my right hon. Friend to his post. As part of the solution he mentions, will he look at the perceived barrier preventing people who benefit from this kind of accommodation from getting back into work? People I have met in these kinds of facilities locally feel that they cannot earn enough to be able to pay back the effective £250 a week cost of the accommodation.
Damian Green
My hon. Friend makes a profound point, not just about this specific issue but about, in essence, a huge amount of the work of my Department. Enabling people who are not in work to get back to work in some form is not only the best thing for the public purse but—absolutely and most importantly—almost always the best thing for them as well. For many of the people in the vulnerable groups we are talking about it will be especially valuable. Making sure that we come to a solution that contributes to that is absolutely vital.
Kevin Hollinrake (Thirsk and Malton) (Con)
It is a pleasure to follow the right hon. Member for Wentworth and Dearne (John Healey), who has much experience in these matters. It is clear from all the remarks made this afternoon that everyone in this House supports supported housing. One of the most inspirational parts of our job is visiting organisations such as Ryedale YMCA in Malton, Yorkshire Housing, North Yorkshire County Council and its facilities, and Arc Light in York, which are all helping vulnerable people to get back on their feet.
Interestingly, at Ryedale YMCA about £83 a week is allocated for accommodation for the young people it supports but we are talking about £111 for the support costs. If this local housing allowance cap did apply to this sector, that facility, like many others, would have to close. I know the Government accept this position; I have written many letters to them and they absolutely understand the need. I do, however, support their policy review in this area. Housing benefit in the social sector has reached £13.2 billion, which represents a 25% rise over the past 10 years. It is right to review spending, not only to make sure that taxpayers’ money is spent wisely, but to look for sustainable solutions in a way that protects the most vulnerable.
I accept parts of the motion; yes, supported housing should be exempt from the cap on LHA. I do not, however, accept the motion where it says that
“the Government intends to cut housing benefit for vulnerable people”.
That is clearly not the case—or Opposition Members do not know that is the case, as this is subject to a review. They are causing distress to their own constituents.
John Healey
But we do know this. If the hon. Gentleman looks in the Red Book, he will see, scored by the then Chancellor, savings for three years from 2018-19 for this measure on housing benefit of £990 million. We know this. That is the problem, that is the decision and that is what needs to be reversed.
Kevin Hollinrake
But does the right hon. Gentleman accept the number of times it has been said by Ministers that this is subject to a policy review, which is due out in the autumn? Therefore, to say that this is going to happen is absolutely wrong.
I do accept that uncertainty is being caused by this policy decision, and we should think through a policy before we announce it. This does disincentivise investment. The National Housing Federation has said that 1,200 new units are on hold because of this policy—this potential policy. It is vital that we deliver these units to meet the overall need to build more homes. We are building many more homes—the figures are almost double those from 2009. We built 166,000 in the most recent year, whereas 90,000 were built in 2009. We need to get to 250,000 homes a year, but we will do that only by allowing either national Government or local government to build more affordable rented homes. The last time we built 250,000 homes in a year was in 1977, when local authorities built 108,000 homes. We absolutely feel that affordable homes to rent must be part of the solution.
Julian Knight
Does my hon. Friend recognise that the Labour party has nothing to lecture us about on building social housing, as it built next to no social housing in its 13 years in government?
Kevin Hollinrake
My hon. Friend is absolutely right.
As others want to speak, I will move on to one other point, which is the disincentive for the young people in these facilities, which do a fantastic job. Recently, on a visit to Arc Light in York, I met two young men in their 20s: one was a brickie and the other a joiner. They were perfectly capable of working, but were totally deterred from working, because they felt that if they were in work, they would have to pay the full costs of that accommodation—£250 a week—which is a huge disincentive. That may not be quite true. Lord Freud wrote to the Communities and Local Government Committee for clarification, but the Chair of the Select Committee was not quite clear on the point.
Jess Phillips
From my experience, that is a problem with the current system of housing benefit. It is much harder for people who are in employment to stay in supported accommodation, because they do not qualify for housing benefit at a higher rate. That is something that absolutely must be sorted out in any system. We are not saying that it is perfect, but that is definitely one of the problems.
Kevin Hollinrake
I am very glad that we agree on that point. The other impression that I got from these young people was that they did not seem to feel any particular urgency to get back into work. We should consider whether we are providing the right incentives and encouragement for these young people, who are perfectly capable of working, to get into work.
In conclusion, I do accept some of the points in the motion, but certainly not all of them, and for that reason, I will be voting against it in the Lobby this evening.