Homelessness and Rough Sleeping

Lilian Greenwood Excerpts

Wednesday 18th December 2013 Westminster Hall

[Shabana Mahmood]

My hon. Friend is absolutely right that the problem is national. I am an MP for the country’s second city—despite what my Mancunian colleagues might think—which has the largest local authority in Europe, so the pressures in Birmingham are stark, but homelessness presents itself across the country in different ways.

[Lilian Greenwood (Nottingham South) (Lab)]

My hon. Friend is already making a powerful case. Does she share my concern that local authorities, in particular those facing the highest levels of need—I am sure that Birmingham is similar to Nottingham in that regard—are actually facing disproportionate Government cuts? Homelessness prevention services and other discretionary services are increasingly being cut to meet those demands. Is she as worried as me that that will actually lead to an increase in those seeking help with homelessness?

[Shabana Mahmood]

My hon. Friend is absolutely right. I will come on to some of the issues she raises later in my speech and I will use the example of SIFA Fireside, a charity in my constituency, to illustrate the pressures that homelessness services are under. Where are people supposed to go when services are being cut? I hope that the Minister may be able to provide some guidance on what I can say to my constituents when they ask me, because I simply do not have any answers for them.

In 2012-13, 922 households in Birmingham were in temporary accommodation, which is up 32% on the previous year, and 115 of them were in bed-and-breakfast accommodation. Just like my constituent, households have often found themselves in bed-and-breakfast accommodation that is not fit for purpose. When I was first elected in 2010, the majority of homelessness-related cases that came to me involved people who could be described as vulnerable, such as women escaping domestic violence, people with mental health problems and people with drug or drink issues. I had several cases of people who had left the care system without adequate support and had found themselves homeless. There were also people who had come out of prison and who may have been in and out of prison over many years. A chunk of my casework involved people with unregularised status in this country, such as the people living in a twilight world while waiting for a decision on their asylum case from the UK Border Agency, as was, or the Home Office. Such people had no recourse to public funds and were homeless as a result.

Now, however, although those groups remain well represented in my homelessness case load, I am seeing an increase in the number of people—families, in particular—who have been made homeless as a result of their private sector tenancy coming to an end and their being unable to find or afford anywhere else to live. Some months ago, for example, I met a couple who had a business a few years ago, but it had run into trouble as a result of the recession. They had lost it and could not keep up the payments on their home, so they lost their home as well. They managed to get other jobs, earning much less than before, but a job is a job. They are working hard and were renting in the private rented sector, but the rent went up and they could not afford the increase, so they found themselves homeless. They were struggling to find anywhere else to live that they could afford on their budget.

I am seeing many more cases of that nature. The end of a private sector tenancy now accounts for 22% of all homelessness acceptances nationally, a rate that I fear is likely to increase further and, in my constituency, the biggest rate of increase that I am seeing in my own case load. The two main, connected reasons are that the cost of renting is going up—since 2010, it has increased by more than twice as much as wages—and house building is at its lowest peacetime level since the 1920s. The failure to deal with housing supply is not only causing a huge strain now, but storing deep problems for us as a society for the future.

To go back to the case of my constituent, let us think about the effect on her two daughters. Even when I met them in my surgery, they were quite down and displaying a nervous disposition; their mum told me how their performance at school had dipped; and they were upset. As I mentioned earlier, I was struck by how their only ask was somewhere clean to live. The pressure on families and young people, children in particular, from always being desperate to move and never being able to put down roots causes those young people lasting harm, which will present itself in different ways in the future, whether in educational outcomes or in their level of confidence. Those are deep problems.

Homelessness is an isolating and deskilling experience for the people affected. It affects their health and well-being in a significant and often lasting and damaging way. It affects the educational outcomes of the children who find themselves homeless alongside their families. In addition, as my hon. Friend the Member for Nottingham South (Lilian Greenwood) said, the organisations that are there to help when people find themselves homeless are also under acute pressure.

If we look at Birmingham city council first and foremost, it is facing some of the largest cuts in local government history. Over the next few months, the council will have to make difficult choices that will permanently change the social fabric of the wonderful city of Birmingham. There are a number of pressures, but housing supply is key, and the waiting list for people who want to transfer to other council housing is large.

--- Later in debate ---

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

I congratulate my hon. Friend the Member for Birmingham, Ladywood (Shabana Mahmood) on securing the debate and on making a very powerful case. As she and others have said, in recent years, we have seen homelessness up overall. We have seen rough sleeping up by 60% in London in just two years alone, and we have seen homelessness in London rise by more than a third in just three years. All that was entirely predictable and it was predicted, because it has arisen not entirely by accident, but by a foreseeable combination of circumstances. There is the continuing squeeze on house building and particularly affordable house building—last year we saw the lowest level of housing completions since the 1920s—and the failure, which many of us have been flagging up for several years, of the Department for Communities and Local Government and the Department for Work and Pensions to have even the most basic conversation about how their policies interact.

What is most striking in London and the south-east is the extent to which the Government’s policies on social security, especially the housing support safety net cuts, have led directly to the rise in homelessness, particularly in London. A staggering figure was flagged up by the estimable Crisis and the Joseph Rowntree Foundation in their 2013 homelessness report: there has been a 316% rise in homelessness due to the end of assured shorthold tenancies in London—that is private sector tenancies. Overwhelmingly, the end of those assured shorthold tenancies is either because the tenant can no longer afford the rent—they were relying on the assistance of housing benefit—or because landlords, in an increasingly competitive market, are withdrawing those properties from the sector, which is a point that I will briefly return to in a minute.

London is not the only area affected, although with that 316% rise it is at the sharp end. We saw a 128% increase in homelessness due to the end of assured shorthold tenancies in the south, and even in the north of England, which does not have the same housing pressures, there was a 73% rise. The Government’s welfare policy is without doubt driving homelessness, especially for families.

The problem is by no means over. The Money Advice Service told us just this week that rent arrears are the fastest growing debt problem. We have seen an average of 60%—nearly two thirds—of household income in the private rented sector being taken up by rent. That is clearly unsustainable. People are struggling to keep the roof over their heads. They are relying on a safety net that is increasingly being stripped away from them, and it is driving homelessness.

[Lilian Greenwood]

My hon. Friend is making a very powerful speech. Does she share my concern that things are only going to get worse, with council tax support being further withdrawn, and particularly with the loss of transitional relief, which provided a little bit of leeway this year? Next year, it will be far more difficult for low-income families to get by.

[Ms Buck]

Of course. That is absolutely true. As my hon. Friend says, many families are facing a multiple attack on their living standards. The same families who are affected by cuts in housing support are also being affected by cuts in council tax support, and it is adding to their crisis.

At first, homelessness led to a surge in the use of bed-and-breakfast accommodation, as hon. Members have said, which is ridiculously expensive and wholly unsuitable. The Labour Government were absolutely right, more than a decade ago, to make it illegal for local authorities to keep families with children in bed-and-breakfast accommodation for more than six weeks. The growing pressure of homelessness meant that local authorities, including Westminster, were breaching that six-week standard, which cost an absolute fortune—millions and millions of pounds. Local authorities had to place people in the Premier Inn hotel and the Jurys Inn hotel in Chelsea, because they could not find accommodation. Of course, they were breaking the law and were roundly told off by Ministers for doing so.

I am delighted that Westminster, in particular, is no longer using bed-and-breakfast accommodation for more than six weeks. That has been a significant change in the past few months. But what has happened? It is like squeezing a balloon: unless the circumstances change, the pressure simply builds somewhere else. What has happened is that local authorities are beginning to use something called annexe accommodation which, in some cases, is merely bed-and-breakfast accommodation with a gas ring. It is not always; sometimes it is different kinds of accommodation. It is basically self-contained, but it is booked nightly and has no time limit on its use. Local authorities—in particular, inner London authorities under pressure—are now using that nightly booked accommodation, which means that families, including many of those I am dealing with, literally do not know from one day to the next where they will be going for their accommodation. Many of the annexes are out of borough, so families have to commute their children in from the outskirts of London to maintain their school places. They cannot move their child’s school to the local authority area in which they are now placed—it may be Hounslow; it may be Enfield; it is many miles away—because they do not know whether they will still be in the same local authority area tomorrow.

Families tell me that they are getting up at half-past five in the morning to get their children, who are sometimes five or six years old, ready for school, because it takes them two hours to get there. They have to go by bus because they cannot afford the train. Those families are commuting their children two hours to school and two hours home at night. Understandably, the schools then come to me and say that children are falling asleep at their desks because they are being put under that pressure. Even children with special needs were being placed in this accommodation, despite the local authority telling me that that was not the case. We hope that is now being addressed, but unfortunately we are now seeing more and more such loopholes being used.

We were told by Ministers that other than in very exceptional circumstances local authorities should not place homeless families from their areas well away from their communities, in out-of-borough placements. In fact, out-of-borough placements have risen in every quarter bar one since 2011 to more than 4,000. Out-of-borough bookings rose to 14,535. This is according to London Councils’ monitoring of the issue last year. Local authorities made 11,262 out-of-borough nightly bookings, which is a total scandal. I do not believe, and I hope that the Minister will tell us that he does not believe, that people should be treated in that way. These are families and children. They are often very vulnerable families. They are often families facing multiple pressures and difficulties.

The Minister’s predecessor, the hon. Member for Hertford and Stortford (Mr Prisk), told us that local authorities had been using “unacceptable and avoidable” measures and that they should offer accommodation locally as far as possible. Indeed, speaking in response to a press story in December 2012, a Department for Communities and Local Government spokesman said:

“Councils can meet housing need through social housing or high-quality private rented housing in their area. Unless there are exceptional circumstances, there is no excuse for moving homeless families to other areas, and they must absolutely not apply a blanket policy of relocating families out of the capital.”

What we are seeing in London and in the south-east more generally is a surge in placements out of borough, completely in breach of that assurance that we were given. We are seeing more and more pressure building up; it is a pressure-cooker situation. Many local authorities are competing for increasingly scarce accommodation for these placements and the situation is unsustainable.

I hope that the Minister will today tell us that he will ensure that local authorities do not place families well away from their children’s schools, their communities, their support networks and the elderly relatives for whom they provide care; ensure that local authorities can access temporary and emergency accommodation for families; deal with the scandal of long-term nightly booked accommodation; and provide the framework for a sustainable policy to help those vulnerable families who are facing this terrible crisis of homelessness.