Social Housing (Regulation) Bill [HL]

Lord Bourne of Aberystwyth Excerpts

2nd reading
Monday 27th June 2022 Lords Chamber

[Lord Bourne of Aberystwyth (Con)]

My Lords, it is a great pleasure to speak in strong support of the Second Reading of the Social Housing (Regulation) Bill. I declare my interest as set out in the register. I, too, congratulate my noble friend on a maiden speech of great distinction. It was truly excellent.

It is a great pleasure to follow the right reverend Prelate and to agree with much of what has been said. So far this has been a debate of almost universal consensus, but I take issue with the noble Baroness, Lady Wilcox, with whom I am normally totally in agreement, and point out to her that many of these problems are of long standing and did not suddenly arise in 2010. Nevertheless, she made a great stump speech and I know the noble Baroness is very capable of that.

Any fair-minded person would say that it is high time that we responded to the Grenfell fire with this legislation. We do that here and I congratulate my noble friend on the legislation, which is totally appropriate. The proactive regulation regime being introduced and the refining of the regulatory position are desirable, as are the strengthening of enforcement powers and the toughening up of enforcement rules. That said, when my noble friend responds to the Second Reading, will he deal with some of the costs on the social housing regulator that may be increasing and seal off that issue? I am not sure whether the costs are considerable or not.

These regulations will govern 4 million households; that is significant. They will help give some closure to the people involved in the Grenfell fire. I was Minister in the department at the time and I remember the lasting horror of that as if it were yesterday—it has been quite a long while now. I think this will help give some sort of closure, as will decisions on prosecutions, although I recognise that this is well outside my noble friend’s control as a Minister. Not all government Ministers recognise that there is a division of powers but I know my noble friend does. I am conscious that, while no doubt progress is being made, it is somewhat slow.

I am very pleased that there is something specific on electrical safety checks in the legislation that we will be considering. Members will recall that, although the cladding obviously made a massive contribution to the spread of the fire, in legal terms it was caused by an electrical fault. I pay tribute here to the work of Electrical Safety First, an excellent organisation led by Lesley Rudd, Ron Bailey and others, which does first-class work in this area and has been focusing attention on the need to extend electrical safety checks from the private sector to include the social sector. The Bill will do just that. I hope that the consultation going on in parallel with this will be comprehensive and will look at all checks of installations of appliances so that we can deal with an all too common cause of housing fires in our country. Again, that will be a welcome development if, again, somewhat late.

I join my noble friend Lord Young in asking about the relationship between the housing ombudsman and the regulator; I am not clear in my own mind how that would work and would be grateful for any clarity. I also join him as another spear carrier behind the chariot of the noble Baroness, Lady Hayman, as it proceeds in the fight on climate change and related issues, in this case particularly including energy efficiency. We will be looking at that keenly as the legislation progresses. Nevertheless, we should all give a warm welcome to this legislation; no doubt we will seek to improve it as it goes through Committee and Report.

Social Housing (Regulation) Bill [HL]

Lord Bourne of Aberystwyth Excerpts

Committee stage
Tuesday 6th September 2022 Lords Chamber

[Baroness Hayman (CB)]

My Lords, it may be helpful to the Committee to continue the theme of energy efficiency, rather than going through the amendments numerically, so I will do so. I declare my interest as co-chair of Peers for the Planet. As the noble Baroness, Lady Pinnock, said, I have Amendment 21 in this group, and I am very grateful for the support of the noble Lords, Lord Bourne of Aberystwyth and Lord Foster of Bath, who have added their names to it.

At Second Reading of the Bill in July, there was similar support from across the House—on all Benches—for action on energy efficiency in the social housing stock. The Minister himself described action as a “must”, but I am afraid he stopped there in describing how that action would actually be implemented. As the noble Baroness, Lady Pinnock, said, social housing tenants are among the most vulnerable in the current energy crisis. The Government’s own most recent data shows that 72% of new lead tenants were not in employment; 20% of new lettings were reserved to those who were statutorily homeless. Research by the Energy and Climate Intelligence Unit shows that houses in EPC band D, which are 35% of social housing, will pay £600 more a year under the cap as it is at the moment than those in band C, and forecasts from Cornwall Insight suggest that that could be doubled next year.

The money that we are led to believe will be spent in subsidising—paying for—those bills is money that literally goes up in smoke. The money spent on home insulation and energy efficiency is money that does not have to be spent year after year when we have an energy price crisis. This was recognised by the Government in the clean growth strategy in 2017, when they committed to consultation on minimum energy performance standards in social housing, but we have seen no plan—not even a consultation on a plan or a plan on a consultation. Hence the need to take action in the Bill to put the requirement in primary legislation and get moving with doing this.

As the noble Baroness said, this amendment is more detailed than hers. We have framed it as a duty on the Government to publish a strategy. I hope that others will agree that this is the most appropriate approach. It should not be a duty on social housing providers to improve properties without any government support, nor a duty on government to go into properties that they do not own and forcibly improve them without landlord and tenant consent. A duty for a strategy will require input from social housing providers, tenants and community groups and the specialist and general firms who carry out the work.

The amendment is relatively simple. Proposed new subsection (1) gives the social housing regulator the power to set standards in relation to energy demand—a slightly different approach from that in Amendment 1 —and requires the regulator to have regard to the Government’s strategy on this topic when it does so. Proposed new subsection (2), which is the meat of it, requires the Government to set out an energy reduction strategy, with four key points.

The first is the rollout of low-carbon heat, so that it accounts for 100% of installations by 2035. The low-carbon heat could equally well come from heat pumps or local heat networks. This is simply putting a commitment that the Government have already made, but are not making a lot of progress with, on a statutory footing.

The second is an EPC rating of C for all social housing properties by 2028. The Committee on Climate Change has recommended that year; the Government have suggested 2030, but it is important that we make progress now.

The third point is to have interim targets for the first two points. We have all seen the dangers of putting very high-level commitments out in principle while not seeing any plan for their implementation and no milestone so that we can tell how far we are going. Interim targets would give transparency for tracking the government target for energy-efficiency improvements made each year and would maintain momentum.

The fourth point is a plan to support social housing providers in engaging with one another, the social housing regulator, and a single source of government advice. This is really important. One of the things that people are flailing around for is the best way to do things in the current crisis. It is tremendously important that the Government, who have referred to providing a source of advice, do so urgently, so that we do not all reinvent wheels all over the place. Proposed new subsection (3) requires the Government to consult the Climate Change Committee, which has significant expertise in this area, when producing their strategy—another belt and braces to ensure that we are making progress.

Ideally, we would be tackling energy efficiency across all fields. There is a huge gain to be made there. The noble Lords, Lord Bourne of Aberystwyth and Lord Whitty, and I will be tabling amendments to the Energy Bill for a broader government strategy. However, we can and should make progress now with this particularly vulnerable group of people. As I said, 2017 was the first time that this was mooted by the Government. The adage is that the best time to plant a tree is 10 years ago. The best time to have begun this strategy was five years ago, but the second-best time to plant a tree is today. I hope that the Minister will respond by doing this now.

[Lord Bourne of Aberystwyth (Con)]

My Lords, it is a great pleasure to follow the noble Baroness, Lady Hayman, and to support her in this amendment, along with the noble Lord, Lord Foster of Bath, who has also added his name to it. I declare my interests as published in the register. I am also a member of Peers for the Planet. It sounds like saying that I am a member of Alcoholics Anonymous, not that I have ever had to do that. This is an extremely important amendment.

As has been noted, at Second Reading there was very strong support from around the House for the Bill’s objectives, and I am clear that that will remain the case. There is also strong support from around the Committee for the Government’s commitment to achieving net zero, and for the work of the Committee on Climate Change. What we need to do, through this legislation, is provide some heft to that commitment, because what is lacking, as the noble Baroness noted, is a road map to take us to the very noble aim of net zero. As the noble Baroness, Lady Pinnock, rightly said, since Second Reading, it has become even more evident how important this is—in very graphic terms, with the eye-watering price of energy and energy security centre stage following the dreadful situation in Ukraine. I think that is recognised by the incoming Prime Minister, but I say to the Minister, who has a long list of things to take up with the incoming Prime Minister and Ministers, that this is an opportunity for a very early demonstration of this Government’s commitment to tackling this very serious issue by tackling not just climate change but the energy security issue and, not least, the eye-watering cost of energy that we face currently.

At this juncture it is clear, as clear as it can be, that any action to reduce energy demand is sensible and vital. As is often said, the energy that is cheapest is the energy that we do not use. One thing we can perhaps take some comfort from, in a slightly bizarre way, is that we have got more ground to make up in this country than many other countries in relation to energy efficiency. There is a lot we can be doing; there is massive scope for energy efficiency and, indeed, for demand reduction, which this amendment is geared to. By reducing energy demand, we contribute to the fight for net zero, we contribute to helping ease the massive cost of energy and we also contribute to our energy security. These three pillars are all vital in this battle, and this amendment—a very modest amendment, really—would contribute to all three. The commitment to the low-carbon heat target of 100% of new installations of heating appliances and a minimum EPC rating of C for all social housing is, I believe, achievable and vital.

I appeal to the Government to come forward with a positive programme of engagement with social housing landlords, and advice, also very sensible and provided for in this amendment. I am sure it would have support from all corners of the Committee and would contribute in a very positive way to something that we know our country needs to do. I trust that the Government will demonstrate their commitment to net zero, to easing the cost of energy and to achieving energy security by supporting this amendment. It is a practical, pragmatic, sensible response to the energy crisis, will be seen as such, and will be seen as an early demonstration of the commitment of this Government. So I hope that is what the Minister will say when she responds to this group of amendments.

[Lord Foster of Bath (LD)]

My Lords, I begin, as I did at Second Reading, by reminding noble Lords that this Bill is part of the response to the Grenfell Tower fire. Yet again, I offer my condolences to the families and friends of those who lost their lives in that dreadful tragedy. I support all the amendments in this group, including Amendment 21, which carries my name alongside those of the noble Baroness, Lady Hayman, and the noble Lord, Lord Bourne, both of whom have done excellent work in these areas over several years. I also support the amendments from my noble friends Lady Thornhill and Lady Pinnock, and of course I particularly support the amendment from the noble Lord, Lord Best, whose work on housing over many years has been inspirational.

Millions of families live in social housing. They are often the least well off and impacted the most by the current rocketing energy prices. We have something like 15 million homes, across all forms of tenure, that are below energy performance certificate band C; in other words, we have 15 million homes that are inadequately insulated, and many of them are in the social housing sector. As a Times article said a week ago:

“Our latest analysis, published today in partnership with economists at the CEBR, underlines the scale of the growing energy efficiency divide in Britain. From October, the two thirds of households living in homes rated below the government’s target EPC C rating, are set to pay £748 more per year for their energy than the third living in homes at or above the threshold.”


As the Minister knows, I have, through two Private Members’ Bills, one of them still awaiting a Committee stage—I hope she might help me out with that—and amendments to other pieces of legislation, frequently raised the need for the Government to place their own already agreed targets for improving energy efficiency into legislation to give the industry, so badly let down by previous schemes, the confidence it needs to invest in the technology, skills and equipment to achieve this. Like the noble Baroness, Lady Hayman, and others, I have tabled amendments to the Energy Bill to seek to achieve that.

Social Housing (Regulation) Bill [HL]

Lord Bourne of Aberystwyth Excerpts

Report stage
Tuesday 18th October 2022 Lords Chamber

Social housing is not, I recognise, the sector with the absolute worst energy efficiency, but it still has 1.4 million properties that fall below EPC band C and it has the highest proportion of tenants living in fuel poverty. Taking action in this sector will not only help those tenants but also help to scale up the market for a wider role for energy efficiency improvement and low-carbon heating; it will build up the skills base and provide employment and make a significant dent in the liability created by the energy price guarantee that we will be debating tomorrow. Last week, the noble Lord, Lord Callanan, referred to the need for a holistic approach to energy efficiency; this amendment is our attempt to bring that holistic strategic approach in the context of social housing, and I hope that the Minister, even at this late stage, may feel able to accept it.

[Lord Bourne of Aberystwyth (Con)]

My Lords, I support the amendment in the name of the noble Baroness, Lady Hayman, and in doing so declare my interest as on the register and that I am a member of Peers for the Planet. As the noble Baroness said, the amendment has also been signed by the noble Lords, Lord Foster of Bath and Lord Whitty, and I am sure that I send the best wishes of the whole House to the noble Lord, Lord Whitty, for a speedy recovery.

Let me say something first about energy efficiency before moving specifically to the amendment. In the area of energy efficiency, we are presented with a sweet spot where we can do a considerable amount for so many different areas of activity. First, on energy security, which is clearly a problem for many countries, including our own, we can ensure that we garner and use our supplies sensibly. Therefore, ensuring that energy is sensibly used seems to me to be of paramount importance.

In addition, particularly in this area of activity, by ensuring that energy is conserved we are helping those who are least able to pay for it. That has become more important since the action of the new Chancellor. I applaud the action he has taken in general, but of course it will present a potential headache in six months’ time for people who are unable to pay their energy bills. This is a way of helping in that regard.

In addition, by promoting energy efficiency we are providing jobs for people, which seems a sensible thing to do. Therefore I am unable to understand why the Government do not move to do something constructive in this area. It could be done with very little cost and would show a commitment to tackling climate change, which of course is the most important global area we are looking at.

The Government profess that they are supportive of action to combat climate change. Indeed, they are supportive of the Climate Change Committee and so on. But words are cheap. When it comes to action, we very often find the Government wanting and not providing leadership. I have the utmost respect for my noble friend the Minister. I know her well. I like her. I think she is a good Minister. But the Government are dragging their feet in this area and the lack of strategy is worrying. We have seen where a lack of strategy has led on the economy, and the same will happen in this area if we are not careful. Leadership has been left to Back-Benchers. There has been no leadership from the Government. They have not come up with their own proposals in relation to the amendment we are putting forward for a strategy. Have the Government proposed their own strategy? No. Are they against having a strategy in this area? It would seem so. I will happily give way to the Minister if she is able, at this stage, to say that she will bring forward a strategy at Third Reading —or later today, perhaps. But there is no strategy from the Government. There is a void here and that really is appalling.

We heard the Government say previously that there needed to be consultation, and this is one reason why noble Lords are being invited to vote against the amendment. The amendment provides for consultation. If the Government think it insufficient, let them say that the consultation should be carried out in a different way. But there is a practical, sensible provision for consultation here that I think has the support of the House. If it were not a whipped vote, it would probably go through nem con. I cannot understand why the Government are opposing this. It makes total sense. It is practical, pragmatic and sensible. If the Government do not like parts of the amendment, they should say what they are. As the noble Baroness said, this consultation has been on the stocks for five years. That is an awfully long time in terms of climate change. In another five years, we shall have lost Tuvalu to the world. If we sit back and do nothing, we are signing up to that.

So it is for the Government now to come forward with some leadership in this area. So far, there has been a void and it looks like that will continue. I strongly support this amendment. I invite the Government, even at this 11th hour, to say that they will support it, or come forward with an amendment of their own to ensure that we are able to do something constructive in this area. It is easy to say that you are signed up against climate change, but it is action that is needed, not just warm words.

[The Lord Bishop of Chelmsford]

My Lords, it is good to see this important Bill continuing its progression through this House. I begin by declaring my specific interests as the Church of England’s lead bishop for housing and as a beneficiary of the Church Commissioners.

I add my support to Amendment 1 in the name of the noble Baroness, Lady Pinnock. As the energy crisis unfolds, it is surely wise to address the issue of energy efficiency in the social housing sector in a systematic way, by including it as a fundamental objective. Many who live in social homes are among those with the lowest incomes, so they are already struggling to meet their energy bills right now. In addition to immediate relief and support, we also need to address energy efficiency to ensure true affordability in the long term.

Amendment 2, tabled by the noble Baroness, Lady Pinnock, would secure continued accountability on progress to remove dangerous cladding and the remediation of fire safety work—an important part of ensuring that a tragedy such as the Grenfell tower fire cannot happen again. As the Archbishops’ commission on housing, church and community rights states in its Coming Home report:

“The Grenfell victims and bereaved families deserve a profound change of culture in the housing sector to make the safety of residential housing stock an absolute priority.”


I also support Amendment 14, tabled by the noble Baroness, Lady Hayman. A government strategy setting out a plan of energy demand reduction for social housing will be a significant step towards reducing energy bill costs and meeting our net-zero targets. Our national commitment to net-zero carbon emissions by 2050 will be achieved only if we are intentional about building to high thermal efficiency standards.

I very much look forward to the Government’s response on these important amendments, and to working with noble Lords across all Benches to address this nation’s housing crisis. Clearly, there is consensus across the House on the importance of addressing the major problems we now face in our social housing sector.