Housing and Planning Bill

Lord Beecham Excerpts

Monday 14th March 2016 Lords Chamber

Moved by

[Lord Beecham]

80: Clause 81, page 35, line 27, leave out paragraph (c)

[Lord Beecham (Lab)]

My Lords, this group deals with the supply of information by HMRC in respect of the income of tenant households, as enshrined in Clause 81. The clause states that HMRC may disclose such information for the purpose of enabling a housing authority to determine whether it is obliged to charge a tenant a specific rent level and for determining what that level should be.

Subsection (2) provides, reasonably enough, that the information may be disclosed only to a local housing authority, the Secretary of State or a body with which the Secretary of State makes arrangements for the information to be passed between HMRC and local housing authorities, but it also, somewhat mysteriously, provides that it may be disclosed to,

“a public body that has been given the function of passing information between HMRC and local housing authorities”.

It is one thing for HMRC to supply details to a local housing authority but quite another for it to do so to some as yet undefined organisation—in the words of the Explanatory Notes,

“a single body nominated by the Secretary of State to act as the ‘gatekeeper’ for this purpose”,

albeit that HMRC has agreed to this procedure. Perhaps the Minister will indicate whether there was a proper consultation with HMRC or whether it was simply asked to frank the proposal.

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[Baroness Williams of Trafford]

I hope I will give further comfort to the noble Lord.

The HMRC data-sharing powers allow a sharing of income information for the landlord’s purposes under this policy only. If the landlord shares the information with anyone else, powers in the Bill could see criminal proceedings brought against them.

It may be that noble Lords have in mind that local authorities already contract their services out to private companies to collect personal information on income, and that they may do the same for the operation of this policy. Those authorities which contracted out services would have very clear rules in place about that function. The powers in the Bill do not cover that function. I therefore assure noble Lords that we take data security very seriously.

Amendment 80 would remove the subsection which allows HMRC to disclose information to a public body which has been given an intermediary function between HMRC and local housing authorities. I thank the noble Lords, Lord Kennedy and Lord Beecham, for this amendment, as it gives me an opportunity to provide greater clarity over the subsection’s purpose. The intention is to enable data sharing by HMRC and local authorities for the purpose of income verification in the most appropriate way. The clause enables the function to be passed to a public body to act as a gatekeeper of information.

We are developing our thinking around how this function would operate in practice if it is needed. We want to retain flexibility in the Bill so that we can put processes in place to help local housing authorities implement the policy in a streamlined and efficient way. This may involve the creation of a public body to carry out that function on behalf of others.

The aim of this provision is to make the process as simple as possible to implement if HMRC needs to share information. I hope that noble Lords will understand that, should it be necessary to do it via a public body, that option should be available.

[Lord Beecham]

How does the possibility of a private organisation being involved fit with the requirements of the 2005 Act? Is a private organisation somehow to be made into a public body to carry out the function? I do not see how that works.

[Baroness Williams of Trafford]

My understanding, my Lords, is that it will be private data to a public body.

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[Lord Beecham]

Perhaps I may interrupt the Minister in order to ask the Bill team or someone to check on the applicability or otherwise of the Commissioners for Revenue and Customs Act 2005 in relation to this matter because I do not think that any of us are really in a position to confirm what the position is. I think that this needs proper legal advice.

[Baroness Williams of Trafford]

I most certainly will do that, and I now know what the 2005 Act is; I defer to the noble Lord’s knowledge in that.

Amendment 80A seeks to put into the Bill a reference to arm’s-length management organisations; that is, tenant management organisations and local housing companies, in relation to the bodies that HMRC information can be passed to. I understand the intention behind the amendment, but I believe it to be unnecessary. Local housing authorities which have outsourced part or all of their housing management functions to another body such as an ALMO will have done so under powers in the Housing Act 1985. The Act provides that any function performed under such an agreement shall be treated as if it were done by the local housing authority. Therefore, when that housing management function includes functions related to implementing the policy for high-income social tenants, such as determining and setting rents, an ALMO or other body would be treated as if it were the local housing authority. In short, the reference to “a local housing authority” in Clause 81 already includes a body carrying out that housing management function on behalf of the council.

Once again, I hope that my reassurances—although I am not sure they have—have been enough to persuade the noble Lord to withdraw his amendment.

[Lord Beecham]

My Lords, I beg leave to withdraw the amendment.

Amendment 80 withdrawn.

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[Lord Bassam of Brighton]

I am reassured by some of what the Minister has said, but to be able to test the Government on this, we need to see the guidance. This is a deeply worrying set of provisions for many tenants. The interaction between family life, secure tenancies and people’s aspirations when they live in a local community is very intense. This is creating a sense of insecurity on many of our council estates.

[Lord Beecham]

It is also a disincentive for people to invest in their homes, which they do now. They not only look after their homes but improve them. If you are not sure of being able to stay on as your child gets to the point of leaving school, or if you are a couple living in a house and your five years is coming up, is that not likely to result in a decline in the investments that people make in their homes which do huge credit to many tenants now?

[Baroness Williams of Trafford]

My Lords, I have seen many different types of social housing, some of which is incredibly well looked after and some of which is not well looked after at all. Living somewhere for a long time does provide incentives but one of the biggest incentives—I know I will hear a “Boo!” go round the Committee—is when someone buys their home. I can tell when someone has bought their home because those houses are immaculate.

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Moved by

[Lord Beecham]

82GAA: Schedule 7, page 131, line 24, at end insert—
“(3A) A review under this section must be carried out in accordance with a clear and accessible policy that outlines—(a) the circumstances in which the landlord may and may not grant another tenancy,(b) the advice and assistance the landlord will give to the tenant in the event they decide not to grant another tenancy,(c) the way the landlord will address the needs of households who would be at risk of homelessness in the event they decide not to grant another tenancy, and(d) the way the landlord will tailor advice and assistance to meet the needs of vulnerable groups.(3B) The Secretary of State shall be responsible for preparing, publishing and updating as necessary the policy under subsection (3A).”

[Lord Beecham]

My Lords, this amendment relates to Schedule 7 to the Bill, which refers to what is to happen in respect of a landlord’s obligation to deal with the ending of a fixed term of a tenancy. The amendment seeks a review of what will happen in accordance with a “clear and accessible policy” which outlines a series of factors: first, the circumstances in which the landlord may or may not grant another tenancy; secondly, the advice and assistance that can be given to the tenant in the event that it is decided not to grant another tenancy; thirdly, the way the landlord would address the needs of households that would be at risk of homelessness as a result of the failure to renew the secure tenancy; and, finally, the way advice would be tailored and assistance given to meet the needs of vulnerable groups. To back this up, there is a requirement that the Secretary of State should prepare, publish and update as necessary the policy to enshrine these principles.

The object is to offer at least a measure of comfort to those who find their secure tenancy ending, to assist them in relocating in a suitable way, and to ensure that they receive all necessary support from their landlord. It is a perfectly sensible approach and I hope that the Minister will concur. The amendment is meant to be constructive and helpful to both landlord and tenant. It is important that we allay some of the fears and misgivings which may arise in the minds of tenants if it is decided that their security is to end. One would hope that this would not be a frequent occurrence, but when it does occur there is a clear obligation on the landlord to make the best provision possible for alternative accommodation and to support the tenant through that process. I beg to move.

[Baroness Evans of Bowes Park]

My Lords, I thank noble Lords for this group of amendments, which deal with the review that local authority landlords will be required to carry out towards the end of the fixed term. It is an important new protection that will ensure that those who need long-term support are provided with more appropriate tenancies as their needs change over time, and that households are supported to make the transition into home ownership where they can.

Amendment 82GAA would require the Government to publish a policy that local authorities would need to follow when carrying out the review, including about the advice and assistance that landlords should offer where tenancies are not renewed, and how landlords should address the needs of those at risk of homelessness. I do not believe that this amendment is necessary, for several reasons. Firstly, it is our intention to provide guidance to local authorities on the sort of factors we expect them to consider when carrying out the review and it is therefore not necessary to provide for this on the face of the Bill.

Secondly, while I agree that landlords should provide advice on housing options if they decide not to renew a tenancy, this is already provided for in the Bill. Thirdly, as I have said, local authorities have strong incentives not to allow the end-of-tenancy review to create future homelessness acceptances.

Amendment 82GAC would require local authorities to consider whether a decision not to grant another tenancy could result in homelessness and, if they think it could, would require them to provide the tenant with advice and assistance on finding another home. Where a landlord decides not to renew a tenancy, the provisions in the Bill already ensure that the tenant has the opportunity to challenge the decision, as I explained previously, as well as sufficient time to find alternative accommodation following advice from their landlord on buying a home or other housing options. There are also existing duties under the homelessness legislation that require local authorities to give advice and assistance to those who are homeless and threatened with homelessness. For these reasons, we do not believe that the amendment is necessary.

Amendment 82GAD would mean that whenever the local authority decided on review that it was unrealistic for the tenant to buy a home, it would have to grant a further social tenancy. We want local authorities to use the tenancy review points to support tenants to move towards home ownership where it is appropriate, but of course we recognise that this will not be a viable option in every case. Where families continue to need social housing, of course the local authority will be able to offer a further tenancy at the end of the fixed period. Where tenants’ financial circumstances improve significantly, councils may decide that they are able to move out of the social rented sector into private rented accommodation, or they may decide to offer a further tenancy but on a higher rent.

[Baroness Evans of Bowes Park]

It would not say much for the behaviour of the local authority, which has a responsibility. I would hope that that would not happen. Obviously, as I have said, there is an opportunity for the decision to be reviewed and then to go further, to the county court—so there are options available for a prospective tenant.

I hope my responses provide reassurance that within the Bill there are adequate safeguards for tenants. The new review procedure will ensure that landlords make appropriate decisions, based on households’ housing needs, and that where they decide to terminate a tenancy, landlords will need to give ample notice and provide advice to support tenants’ access to alternative accommodation. These changes are about supporting local authorities to make the best use of their social housing stock and supporting tenants into home ownership, not making the vulnerable homeless. With these assurances, I ask the noble Lord to withdraw his amendment.

[Lord Beecham]

At this time, I am not disposed to prolong the agony. I beg leave to withdraw the amendment.

Amendment 82GAA withdrawn.

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Moved by

[Lord Beecham]

82GAE: After Clause 114, insert the following new Clause—
“Incidence and prevention of homelessness
(1) Upon the coming into force of this Act, the Secretary of State must undertake a review of the incidence and prevention of homelessness and rough sleeping.(2) The review should include consideration of the effect that Chapters 3 and 6 of Part 4 will have on levels of homelessness and rough sleeping in each local authority area.(3) A report on the review must be published, and laid before each House of Parliament, no later than six months after the coming into force of this Act.”

[Lord Beecham]

Perhaps I should just say something. I am not going to make a long speech on this, your Lordships will be pleased to know.

[The Deputy Chairman of Committees (Lord Faulkner of Worcester) (Lab)]

The noble Lord needs to move it.

[Lord Beecham]

I will formally move it. I just think we need a proper debate, not at 11.30 pm, on the growing problem of homelessness and rough sleeping. We will deal with that on Report if the Government are not able to come forward with some assurances in the mean time. But it is too late to get into such an important issue, so I shall move the amendment formally.

[Baroness Lister of Burtersett]

I will speak to Amendments 82GB and 82GC. They would provide a right to succession and secure tenancy for a carer where there is no spouse or common-law partner. Without this, carers who have given up so much to care for a parent or sibling could be rendered homeless when the person they have cared for dies or moves into residential care, even if they have lived in the property for many years. This is because, as it stands, Schedule 8 to the Bill will standardise all secure council tenancies by removing the automatic right to succession for anyone but a spouse or common-law partner, as with all secure tenancies granted after 2012.

Carers UK demonstrates the potential impact of such a measure through the story of John, who gave up his music career to care for his father who had Alzheimer’s disease and his mother who had severe psychiatric problems, moving back into his parents’ council property to become a full-time carer in 2010. Last year, John’s father had a severe fall and was hospitalised, and later moved permanently to a nursing home due to his care needs. John’s mother has now become impossible to care for and the family are exploring the option of residential care due to her increasing needs. Under the Bill, if John’s mother moves into care, he will have no right to succeed to the tenancy and will be evicted from the family home by the council.

The least we can do for carers such as John, who gave up his career to care for his parents and depleted his savings in doing so, is ensure that they have the ability to stay in their home once their caring role ends. While local authorities will continue to have discretion to grant succession rights in certain cases, the guidance on this is very poor and must be updated to include carers—something I hope the Minister will look at. Better still, their right to succession where there is no spouse or common-law partner, should be enshrined in legislation.

Lastly, it is important to note that these amendments are in line with recommendations put forward by the Law Commission’s review of housing. The Law Commission recommended that in the absence of a spouse or partner a “reserve successor”, such as a carer, should be able to inherit the home if it is their only or principal residence. In fact, until 2012 the government guidance also recognised that those providing care should have the opportunity to inherit the tenancy. However, I understand that this section of the guidance to local authorities was removed in 2012. The Minister very kindly agreed to meet Carers UK to discuss the previous amendment. I suggest that we add this issue to the agenda for such a meeting, especially in the context of the Government’s carer strategy, currently in development, which looks at how we can better support carers across all aspects of their lives.

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We believe that the changes strike the right balance between protection for tenants and their families, and flexibility for landlords. On the basis that we would be happy to discuss the issue further with Carers UK, we hope that the noble Lord will be happy to withdraw his amendment.

[Lord Beecham]

I accept the noble Baroness’s invitation and beg leave to withdraw the amendment.

Amendment 82GAE withdrawn.