Insolvency of Registered Providers of Social Housing Regulations 2018

Lord Beecham Excerpts

Tuesday 20th March 2018 Grand Committee

[Baroness Golding]

My Lords, I am sorry for that interruption. I wish to ask a very simple question. Some weeks ago the chairman of my local housing association, which took control of all the council housing in the area many years ago, announced that it was no longer a public provider but a private one. There have been arguments about what she said but, if it is now a private provider, will it come under the terms of the regulations?

[Lord Beecham (Lab)]

My Lords, I refer again to my relevant interests. Has there been any consultation with, for example, the Local Government Association about the possible role of local housing authorities in this situation? In other words, could they be another potential source—I am not sure what phrase I am looking for here—for taking over the responsibility, as opposed to it necessarily being another housing association? In certain areas it might be more feasible for the local housing authority to do that. If the Government have not considered that, could they now take a look at it?

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, I draw the Grand Committee’s attention to my relevant interests, which I mentioned on the previous order. I am always slightly concerned when I hear mention of the dreaded Housing and Planning Act; it really is one of the worst and most ill-thought-out pieces of legislation that any Government have put on the statute book in recent times. Unfortunately, I regularly have to remind noble Lords of that. I think it is a terrible piece of legislation.

Having said that, I read the regulations and their Explanatory Memorandum before today’s Committee and I am happy to support them as far as they go. As we have heard, they seek to extend a new protection regime that already applies to registered social housing providers that are companies to registered societies and charitable incorporated organisations. I am happy to support that.

I am aware that this has come about following discussions between the department and the lending sector. I am also aware of the issue of the Cosmopolitan Housing Group in the north-west of England, which has had problems. Although in the end they were resolved, they have highlighted some weaknesses in the statutory provisions governing insolvency in a registered provider of social housing. Many providers now have to make other arrangements regarding how they do their business and have to cross-subsidise things, which exposes them to more risk, so I am happy to support the regulations before us.

Paragraph 10.3 in the Explanatory Memorandum states:

“An Impact Assessment has not been prepared for this instrument. However, an assessment of impact will be published alongside this instrument”.


I have it here. Can the Minister tell me the difference between an impact assessment and an assessment of impact? Certainly this one is easier to read than the others; perhaps that is the difference. Can he tell us the status of it compared to impact assessment? Are they the same and, if not, why has this arrived? I would be keen to understand that. Having said that, I understand the regulations and am happy to agree them.