Temporary Accommodation

Lee Dillon Excerpts

Thursday 24th October 2024 Commons Chamber

[Josh Babarinde]

There is a lot of clairvoyance and telepathy going on here, because I will also refer to that matter later. We absolutely need to consider what is going on with LHA rates, which have been frozen at the same level since 2011—a different era.

The Local Government Association said that local authorities in England have spent £2.29 billion on temporary accommodation—a 29% increase on the previous year, and 300% since 2015—and one in four councils say that they are likely to need emergency Government support to avoid a section 114 notice. So what are the solutions?

First and foremost, we must urgently improve conditions for families in temporary accommodation, such as Kelly’s. They should be entitled to essential facilities, and every effort must be made to prevent them from being displaced from their communities, support networks and the advice they need and deserve. Councils need emergency support to help them to avert imminent financial crisis. Eastbourne borough council leader Stephen Holt, who is also in the Public Gallery, led an emergency summit last year after which 118 other cross-party council leaders wrote to the previous Chancellor with proposals for emergency support. Those proposals fell on deaf ears, so I draw the Minister’s attention to that letter now. It includes proposals to uprate LHA rates with a view to updating them from their outdated 2011 levels.

We also need to address the appalling practice of people opportunistically renting private rented sector homes for the sole purpose of immediately sub-letting them to councils, at an inflated rate, so they can be used as temporary accommodation. That is contributing to the inflation. Beyond that, the Government must urgently publish a strategy to end homelessness in all its forms as soon as possible. That must involve building more homes, especially social housing.

[Mr Lee Dillon (Newbury) (LD)]

My hon. Friend mentioned that 150,000 children are growing up in temporary accommodation. Does he agree that the health and educational outcomes of those children are adversely affected by their being in temporary accommodation, but the risk of moving reduces their chance to have a settled community and build up lifelong friendships? By developing more social homes with social rents, we would be able to give people secure tenures, and by removing hope value in development land parcels, we could develop more and cheaper social housing, reducing the economic pressures on the Government.

[Josh Babarinde]

My hon. Friend is absolutely right, which is why I am proud that the Liberal Democrats have been campaigning for Britain to build 150,000 social homes a year; that was in our manifesto. Having grown up in social housing, I am especially proud of that commitment.

To conclude, I say to Kelly that I hope I have said what needs to be said, in the place that it needs to be said in, and to the person it needs to be said to. On behalf of all families in temporary accommodation, and all those who would otherwise find themselves there in the future, I make a plea to the Government: honour their experiences with reform, and dignify their humanity with action. Please do not let us and our councils down. This Government are our last hope.

--- Later in debate ---

[Rushanara Ali]

I will come on to what we hope we can do in the coming weeks and months. All temporary accommodation must be safe and suitable for the households affected. Interventions in place at the moment include our homelessness advice and support teams, who are drawn from local authorities and the homelessness sector to help local authorities address the placement of families in bed-and-breakfast accommodation for more than six weeks. However, I am clear that to turn this around, we have to tackle the root causes of homelessness and rough sleeping. We need to put in place lasting solutions, rather than quick fixes. For too long, we have seen the lack of a strategic approach.

The hon. Member has used his debate to highlight the devastating effects on his constituents. The story he shared is a powerful one that we can all relate to—one all our constituents have faced. Hon. Members have rightly raised the subject of the pressure on council finances. This Government are absolutely committed to resetting the relationship between local and central Government, and working in partnership in the interests of those living in temporary accommodation and who face homelessness. We want to work closely with the different nations, learning from each other about what works, as well as with regional and local government.

The Government will get councils back on their feet by providing multi-year funding settlements, ending the competitive bidding for pots of money and reforming the local audit system. We have heard from numerous councils that annual allocations are deeply problematic. The competitive nature of funding is really not helpful, and we need much more collaboration. We recognise that councils know their communities best, and with greater stability, they will be in a better position to enhance local services and facilities. I have seen many great examples of innovation and really effective work at local level, and we need to support those efforts and ensure that they are scalable. Local and national Government can learn from each other about the best models and best practice. How local government is funded is crucial in enabling councils to deliver the local services residents need, and it is also of course crucial in delivering on our missions. That is why we are committed to improving the local government finance landscape in this Parliament.

The hon. Member for Eastbourne and others have raised concerns regarding the different kinds of financing mechanisms and benefit subsidy payments for temporary accommodation. We appreciate that these are difficult times and understand the funding pressures local authorities are experiencing. The Department for Work and Pensions continues to keep rates for temporary accommodation subsidy under review and any future decisions on the levels of subsidy will be taken in the context of the Government’s missions, the goals on housing and the fiscal context.

Spending plans for the 2025-26 period will be set at the Budget on 30 October, as hon. Members know. Following the Budget, future funding allocations for homelessness and rough sleeping services will be confirmed later this year. We understand this is very challenging for the sector, and we are working closely with local authorities and want to continue to extend that work to ensure that we do all we can to relieve pressures and continue to support them.

[Mr Dillon]

With the benefits cliff edge, does the Minister agree that those in temporary accommodation should be given longer to be able to progress on to paying or having their benefits stopped, so that they can build up a bit of a nest egg? That way, when they move out of temporary accommodation, they are being set up for a chance to succeed in the tenancy by being able to furnish their homes right from the very outset, rather than having to start from scratch each time and not having any funds to call upon.

[Rushanara Ali]

The hon. Member raises the important barriers to employment that I know are exercising my ministerial colleagues in the Department for Work and Pensions, not least as they look at tackling the child poverty challenge—another dimension to the housing crisis. He makes an important point, and I hope we can continue to get those inputs from colleagues as we make progress on the work, which I will come on to, that we will do in relation to the inter-ministerial taskforce on homelessness.

On the housing funding point, we recognise the challenges with the cost of temporary accommodation, and earlier this year the Government confirmed allocations for round 3 of the £1.2 billion local authority housing fund, which is expected to provide around 7,000 homes by 2026. Eastbourne is due to receive around £4.4 million, and this fund aims to ease local homelessness pressures, reduce spending on unsuitable bed and breakfast accommodation and provide safe and sustainable housing for those fleeing persecution.

I recognise that, as others have pointed out, there is more to do, but this is an important part of the funding settlement that is currently available and is necessary in dealing with the supply issue, although of course we have a wider agenda on housing supply. We will deliver the biggest increase in social and affordable house building in a generation; we will build 1.5 million homes over the next five years. We are also committed to abolishing section 21 no-fault evictions, preventing private renters from being exploited and discriminated against—the hon. Member for Eastbourne raised that and gave a powerful example from his constituency in his opening remarks. The Renters’ Rights Bill will give renters much greater security and stability so they can stay in their homes for longer. The issues around safety and the decent homes standard will be addressed through extending Awaab’s law so that it covers private landlords. This will significantly reduce the number of poor-quality privately rented homes and empower tenants to raise concerns. Issues around quality of housing are not addressed, and we need to make sure that that is tackled. We very much hope that the combination of provisions we have already started will allow us to begin to make progress quickly.

It is just over three and a half months—just more than 100 days—that we have been in power, but we are determined to tackle these issues. I know that some of the other issues that have been raised, such as the out-of-area placement of our constituents, are deeply damaging. Families are moved away from their networks, from schools, from health providers and from other support systems. We are clear that if a local authority places a household into accommodation in another local area, they are required by law to notify the local authority of that placement. We have to build homes in the areas where they are needed so that we can reduce the need for out-of-area placements. That is why we will keep our focus on the house building agenda. Unless we tackle the supply of housing—affordable and social housing, along with other kinds of housing—we will be stuck in this cycle, and nobody wants that.