Homelessness Reduction Bill

Lord Kennedy of Southwark Excerpts

2nd reading (Hansard): House of Lords
Friday 24th February 2017 Lords Chamber

[Lord Kennedy of Southwark (Lab)]

My Lords, I preface my remarks by referring noble Lords to my interests in the register: I declare that I am an elected councillor in the London Borough of Lewisham and a vice-president of the Local Government Association. We support the Bill and wish it safe passage through your Lordships’ House. The Opposition Front Bench will not be tabling any amendments and I urge all other noble Lords not to do so.

I very much agree with the opening remarks of the noble Baroness, Lady Grender, and I associate myself with them. She made important remarks about the data used by DCLG, which I fully endorse. I will look more closely at figures we get from the department on different areas in the future. I pay particular tribute to Crisis, which is the national charity for single homeless people and has supported and championed this legislation. It has worked hard to get the Bill to this point and is to be congratulated that in its 50th year of campaigning for single homeless people it is on the verge of bringing about a major positive change in the law. It is a campaigning organisation that works all year round as well as providing services to homeless people at Christmas. I also pay tribute to Bob Blackman MP for steering the Bill so ably through the House of Commons.

The right reverend Prelate the Bishop of Southwark highlighted the fantastic work undertaken across the diocese of Southwark by volunteers and voluntary organisations who work to combat the nightmare of homelessness, the physical and mental harm and the constant presence of danger and risk of violence that living on the street brings. The Bill before us today, so ably introduced by the noble Lord, Lord Best, seeks to refocus the efforts of local authorities on the prevention of homelessness. It carries new duties for local authorities to intervene at earlier stages to prevent homelessness and to take steps to secure accommodation for those who are homeless. I very much agree with the comments of the noble Lord, Lord Bird, who spoke about the emphasis on prevention and the dramatic effect that can have.

Homelessness is something that no civilised society should have to put up with. It is very likely that noble Lords passed homeless people as they travelled to this noble House. They are outside every railway station in the vicinity: Charing Cross, Waterloo and Victoria. They are sleeping in Westminster tube station, near the entrance to the Palace. The noble Baroness, Lady Grender, also referred to this. There are people sitting in doorways facing another cold night on the streets, and this has not been the coldest winter we have experienced in recent years. The situation is truly appalling. It is a national disgrace and a personal tragedy for the people who are homeless that we have arrived at this situation.

The situation has got worse since 2010 and the blame for that lies squarely at the Government’s door. According to the Office for National Statistics, local authorities accepted that 14,930 households had been statutorily homeless between 1 July and 3 September 2016. The ONS also reported that the total number of households in temporary accommodation as of 30 September 2016 was 74,630, a 55% increase from the figure of 48,010 on 31 December 2010—a record the Government should be truly ashamed of.

My noble friend Lady Armstrong of Hill Top referred to the welcome measures in the Bill. The new duties in the Bill that will become the responsibility of local authorities include: an extended period in which an applicant is to be treated as homeless, increasing from 28 to 56 days; strengthened advice and information obligations on housing authorities to prevent homelessness; and a new duty to assess and agree a personalised plan, which will require a local authority to carry out an assessment of the applicant’s case. The prevention duty will require local authorities to ensure that suitable accommodation does not cease to be available to applicants who are threatened with homelessness. Further, the relief duty requires local authorities to help secure accommodation for all applicants who the authority is satisfied are homeless and eligible for assistance.

The noble and gallant Lord, Lord Stirrup, made a powerful plea to help veterans who have found themselves homeless after service to their country in some of the most difficult and challenging circumstances imaginable. The specific provisions in the Bill are most welcome in that respect. The noble Earl, Lord Listowel, made telling points about the plight of care leavers and I agree wholeheartedly with his comments. The noble and learned Baroness, Lady Butler-Sloss, told the House about the particular plight of people who have been trafficked and have no rights or status and often find themselves on the streets, as well as the risk of British people being taken into slavery after being targeted at soup kitchens. I was not aware that we had become a source of slaves for other countries. That is a truly shocking revelation.

There are problems with the Bill and, of course, they start with the funding. Originally, the funding announced was £48 million, which was allocated on the basis of £38 million in the next financial year and the remainder the following year, and from then on nothing at all—not a penny provided to local authorities. As a result of amendments passed in the Commons, a further £13 million has been allocated to cover the additional new duties. It is important to note that the new money goes with new responsibilities. There has been no increase in the original sum of money to fund the items in the Bill before it was amended. This sum of money is just not enough to fund the new duties that will be placed on local authorities. Local authorities need to be fully funded to provide what will be required of them. London Councils, which the right reverend Prelate the Bishop of Southwark referred to, estimates that in the next financial year £77 million will be spent by local authorities in delivering this new duty in London alone. That is £16 million more in one year than the entire funding so far provided by the Government for England and Wales for two years. We risk a serious funding crisis.

I am aware of the commitments given in the other place by Marcus Jones MP that the legislation will be reviewed within two years. I welcome that and ask the Minister to repeat that assurance in the House today. But I go further and ask the Minister to tell us when the review will happen within the two years. What happens if after only a few months it becomes clear that the Government’s own figures—their allocation of resources—are woefully inadequate? What urgency are the Government going to place on this review to establish what the real costs are and what funding is really needed? These are serious matters, dealing with vulnerable people. Let us be clear: in itself, legislation will not significantly reduce homelessness if it is not properly funded. Without that being addressed, we run the risk of unlawful decisions; repeat homelessness, with damaging consequences for children and families; and a lack of meaningful outcomes for single people at the end of the process. That is good for no one.

The Bill and its possible effects must also be considered in a much broader picture. The fact is that budget reductions in a whole range of areas have an effect here and you cannot change the law in just one area and hope to solve the problem. Let us take local housing allowance as an example. If the freeze in local housing allowance continues until 2020, councils will struggle to pay rents for the cheapest properties in 80% of local authority areas. The noble Lord, Lord Best, set out the problems here and called for the Government to take action; otherwise, the problem will get worse. The right reverend Prelate the Bishop of Rochester made important remarks concerning the housing supply and housing costs. I agree with him that this well-intentioned Bill must not be allowed to fail due to policy differences in other parts of government. A much wider effort is needed to tackle homelessness across a range of services, properly joined up to deliver the changes we all want to see. To date, we are not seeing that from the Government and that is what they need to focus on to tackle the horror of homelessness.

Looking at the Housing and Planning Act 2016—a truly awful piece of legislation from the Government—the forced sale of high-value council homes is only going to make trying to deal with homelessness more difficult. I support people wanting to own their own home but the ham-fisted measures in that Act are at odds with the aims of this Bill. Those include: the obsession with starter homes; the lack of support for local authorities to build more council homes; and the other obsession, the unaffordable “affordable rent model”, when we should be delivering more social housing. That is the key to a lot of our problems but the Government just do not want to go there. We need an increased supply of housing, especially social housing, with a long-term objective of reducing housing benefit expenditure. But the freezing of local housing allowance by the DWP risks undermining a policy and a measure put forward by the DCLG. The noble Lord, Lord Kirkwood of Kirkhope, made telling points about the growth of income inequality. He also referred to cuts to various benefits and the effect they have on homelessness. I agree wholeheartedly with his comments. This is not an example of good government or joined-up thinking. It is an example of a Government using money to alleviate the homelessness they have created.

Homelessness should be eradicated in one of the richest countries on the planet. It can be done and it should be done, but it will not be achieved by the passing of this Bill alone. It is a well-intentioned piece of legislation, which can make a real, positive contribution to ending homelessness, but it will be truly effective only as part of a much wider approach to tackling the problem that cuts across government and is seen as a priority for the Government to deliver on. I hope the Government are going to do that and for that to happen there will need to be a raft of other changes across numerous government departments. I wish the Bill well. It is an important first step. As I said at the start of my remarks, I want the Bill to become law. To assist in that, the Opposition Front Bench will not table any amendments and I urge all noble Lords to do the same. In conclusion, I thank the noble Lord, Lord Best, for his sponsorship of the Bill and look forward to it becoming law in the next few weeks.

[The Parliamentary Under-Secretary of State, Department for Communities and Local Government and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, I thank all those who have taken part in this Second Reading. I give a strong thank you to my honourable friend Bob Blackman, who has done sterling work in the other place; as we heard from the noble Lord, Lord Kirkwood, his has been an extraordinary success, not just in steering the Bill through the Commons but in achieving what he has in financial terms. Notwithstanding what the noble Lord, Lord Kennedy, suggested about the Bill coming without money, it has come with a significant amount of it. I congratulate my honourable friend on what he has achieved and thank him for being here today—it is good to see him.

I also thank the noble Lord, Lord Best, for giving a masterful exposition of the position in opening the debate on the Bill. He gave the unanswerable case for it, which I think all noble Lords have accepted without exception. I thank noble Lords for stating that they do not want to see any amendments coming forward, particularly the noble Lord, Lord Kennedy, who is opposite. I am very grateful as this is the way to ensure that this becomes law, which is what we all want.

This debate has shown the House of Lords at its best and made an unanswerable case for it, with all corners of the House and all political parties coming together for the common good. The noble Baroness, Lady Grender, made the point very movingly about the things that unite us, so in addition to the political parties we have had the right reverend Prelates the Bishop of Southwark and the Bishop of Rochester, and then, speaking on behalf of the armed services and others, the noble and gallant Lord, Lord Stirrup. There was then a powerful speech from somebody who really understands this area because he has lived it in a way that the rest of us have not: the noble Lord, Lord Bird, who has vast experience and wisdom on this area from the Big Issue and many other aspects.

From the legal perspective, we heard from the noble and learned Baroness, Lady Butler-Sloss, and from a ministerial perspective, the noble Baroness, Lady Armstrong, spoke of when she was in charge of exclusion policy. The noble Baroness, Lady Grender, of course led Shelter and my noble friend Lady Manzoor has vast experience in law and health. The noble Lord, Lord Kirkwood, spoke of his experience in the other place and of private Members’ legislation. The noble Earl, Lord Listowel, has, I know, vast experience and wisdom in this area. I am very grateful for the support that my Front-Bench colleagues, the noble Lords, Lord Shipley and Lord Kennedy, bring to the task of ensuring that the Bill gets on to the statute book.

The noble Lord, Lord Best, opened with a helpful overview of the Bill and why it is needed. As I say, I thank him for sponsoring such important and much-needed legislation, which is clearly supported by all parts of this House. I am proud that the Government have given their full support to the Bill. I say this tentatively now in view of what the noble Baroness, Lady Grender, said, but I believe that the number of statutory homeless acceptances is down from its peak in 2003. I will write to her, if I may, in relation to the data issue, copy that to all noble Lords who participated in the debate and put a copy in the Library. I could not agree more that we can operate as an evidenced-based Government only on the basis of reliable data. That is certainly what we want to do.

Mention has also been made of the role of other groups. Faith groups were mentioned, quite rightly, by the right reverend Prelate the Bishop of Rochester, who I know has taken a lead on this in the Church and done much in relation to homelessness shelters. On a recent visit to Peterborough, I was pleased to meet some of those providing support as part of the network he referred to. The right reverend Prelate the Bishop of Southwark also spoke, for example, of his experience of what is happening in Wandsworth and Croydon. I thank them because, whatever happens today, there is always a role for faith and voluntary organisations to come together. They are trusted, familial and responsive. They are a vital part of the fabric and mosaic in this area.

This important legislation will reform the support offered to everyone at risk of homelessness. People need a roof over their heads, a phrase which I think was used by the noble and gallant Lord, Lord Stirrup, about this basic human need. Local housing authorities will have a duty to provide support to all those affected, not just those covered under existing legislation. Services will focus on intervening earlier and working with people before they reach a crisis point. People facing a homelessness crisis will get quicker help to resolve it.

I particularly draw your Lordships’ attention to Clause 2, which was referred to elliptically and once or twice directly during the debate. This clause and its new section extend the duty on local housing authorities to provide or secure the provision of free advisory services. Services must be designed to meet the needs of particular groups including: in new subsection (2)(b), care leavers, who were mentioned by the noble Earl, Lord Listowel, and, in new subsection (2)(a), ex-offenders—I believe it was the noble Lord, Lord Shipley, who referred to people coming out of prison and youth detention. Victims of domestic abuse, mentioned by my noble friend Lady Manzoor, are referred to in new subsection (2)(d), as are those leaving the Armed Forces, who were mentioned by the noble and gallant Lord, Lord Stirrup, and others, in new subsection (2)(c).

On the point made by the noble and learned Baroness, Lady Butler-Sloss, I got the answer ready as she was going through her speech; she then presented the answer in reference to new subsection (2)(g). I agree that that subsection at the end of the new section should encompass the cases of overseas trafficked victims and victims of modern slavery. I would like to pick up that point in a letter, if I may. I will have a general letter to noble Lords who participated in the debate to pick up the various points made and any that I might miss—although I hope I do not.

The noble Lord, Lord Best, spoke of the new duty to prevent homelessness, which requires local housing authorities to help eligible applicants who are likely to become homeless within 56 days. This doubles the prevention period set out in existing legislation and, for those who are already homeless, the relief duty means that local housing authorities will work with them for up to 56 days helping them to relieve their homelessness, regardless of whether they are in priority need. These are essential sections—or clauses—of the Bill and demonstrate the potential that it holds to change the lives of some of the most vulnerable people in our society.

As the noble Lord, Lord Best, said, and he was echoed by others, the collaborative spirit in which the Bill has been taken forward is unique. I would like to share some detail on the positive outcomes that have been achieved through that approach. When the draft Bill was first published, the DCLG Select Committee and local authorities highlighted some areas of concern about the cost and burden on local housing authorities. Many of them were addressed in the Bill when it was introduced—for instance, removing the requirement to provide 56 days’ emergency accommodation for anyone who needs it, which was thought to be unworkable. The Government remain committed to helping those sleeping rough through our £50 million homelessness prevention programme and, in particular, the £20 million rough sleeping prevention fund, which was referred to by many noble Lords during the course of the debate.

This approach allowed the Government to support the Bill from an early stage and, critically, it ensured that local authorities are now supportive of the Bill. The collaboration has continued throughout the Bill’s passage in the other place with close engagement between my honourable friend Bob Blackman, the Government and other key stakeholders. Crisis was quite rightly praised for its role in relation to this legislation.

Mentioning Crisis leads me to say in relation to point made by the noble Earl, Lord Listowel, about Crisis, financial support and security that I will write him into the write-round letter so that that point is covered.

The importance of voluntary organisations, as well as faith bodies and the third sector, in support was mentioned. I shall not go through the list, other than mentioning Crisis, because it has played a special part in this legislation, but there are manifold examples up and down the country of local support from voluntary organisations, as well as the bigger names, if I can call them that, which do sterling work across the sector. I know we are all very grateful for what they help us to achieve and for tackling the scourge which this legislation will help with.

Groups representing landlords and local government were concerned about Clause 1. It tackles the bad practice whereby some local housing authorities—certainly not all of them—advise tenants facing eviction to remain in properties until the bailiffs arrive, which is clearly bad advice. Landlords were concerned that flexibility included in the original drafting could be misused by some local housing authorities to delay their obligations to help tenants. They and the LGA were concerned that the clause was too complex and could be misinterpreted.

The Government and Bob Blackman worked with landlord groups, the LGA and homeless charities to simplify the clause, while retaining the core principle that any applicant with a valid Section 21 notice that expires in 56 days or fewer is to be treated as threatened with homelessness. This should ensure that valuable opportunities to prevent homelessness are not lost and that households are more likely to get the help they need at the right time. We have also committed to working closely with stakeholders on the guidance around this clause and, indeed, all clauses in the Bill. Alongside this we will work with stakeholders to improve our understanding of the scale and nature of the issue and use that evidence to consider whether further action should be taken.

Clause 7 contains provisions to incentivise applicants to co-operate with their local housing authority and allows the prevention and relief duties to be ended where an applicant deliberately and unreasonably refuses to co-operate with steps in their personal plan. Following discussions, this clause was amended to remove wording that presented a wider formulation of the circumstances in which a notice could be given. This ensures that the bar is set suitably high and does not disadvantage vulnerable applicants who may find it difficult to engage with services in the usual ways.

To ensure the Bill contains the right incentives, Clause 7 was also amended to ensure that where an applicant refuses a suitable offer of accommodation at the relief stage, the relief duty will end and the applicant will not progress to the main homelessness duty. However, alongside this change further amendments were made to safeguard the protections for those with a priority need, including requirements and checks for the accommodation offer and a right to review the suitability of the offer. Where an applicant requests a review of the suitability of the accommodation they have been offered, in circumstances where the main duty does not subsequently apply, the duty to provide interim accommodation will continue until the applicant has been informed of the review outcome. As noble Lords will appreciate, this has been quite a complex issue to work through, but through active and constructive engagement Clause 7 now provides the right balance between incentives and safeguards.

Finally on changes to the Bill, during the Committee in the other place’s consideration of its detail, Members raised concerns about Clause 12, which extends the requirement to carry out additional checks to ensure that property secured with a private landlord under the new prevention and relief duties is in reasonable physical condition, safe and well-managed. As drafted, this protection was not extended to certain categories of those in priority need, including families with dependent children or pregnant women. In response, the Government amended the clause to cover all those with a priority need.

Turning to matters raised today, noble Lords asked valid questions about funding for local housing authorities. Let me repeat the commitment made by the Minister for Local Government, Marcus Jones, in the other place: the Government will provide funding of £61 million to local government to meet the new burdens costs associated with the Bill in this spending review period. We will also work closely with the LGA to develop a fair distribution model for the funding, reflecting the different need in different areas and the additional pressures and costs faced by councils in areas such as London. The final new burdens assessment will be published once this distribution formula is agreed and the Bill has completed its passage through both Houses.

The Minister for Local Government, my honourable friend Marcus Jones, also committed the Government to reviewing the implementation of the Bill, including its resourcing and how it is working in practice, concluding no later than two years after commencement of the substantive clauses of the Bill. I gladly repeat that commitment. In relation to Private Members’ Bills, I think these provisions are unique. Bob Blackman has done extremely well in negotiating them and they take us forward in an agreed away. I hope this provides assurance to noble Lords who have spoken today about the costs of the Bill and its implementation.

Noble Lords, particularly the noble Lord, Lord Bird, also talked about the underlying causes of homelessness and the importance of preventing it at a very early stage. That indicates how this is very much a cross-government issue. It is not confined to DCLG, as noble Lords reflected in contributions. It is far more wide-ranging than that. The Bill will certainly make a considerable difference, but nobody, including those participating today, believes that this is a silver bullet that will completely crack the issue of homelessness in our society, which is something all of us in such a wealthy country share responsibility for.

The Bill will reform the support offered to people facing the threat of homelessness or already at crisis point. The Government are also responding through the housing White Paper published by the Department for Communities and Local Government on 7 February. Key matters are out for consultation until 2 May, as noble Lords will be aware. The importance of the White Paper was mentioned by many noble Lords, including the noble Lord, Lord Best, in opening. In it, the Government acknowledge that the pace of housebuilding has been too slow for decades—this is not a problem that suddenly happened but one for which we all share responsibility—creating a housing market that is failing too many. When I say housing market, this is not just about purchase of houses, as the housing White Paper makes absolutely clear. There is a range of measures, as the noble Lord, Lord Best, correctly said: self-build, custom build, an emphasis on rental which did not exist previously, the need for council house building and so on. There are many weapons in the armoury to tackle the scourge of homelessness and we should not shun any one of them. As I say, I encourage noble Lords and others, through this debate, to participate in the open consultation.

As I say, the White Paper includes a number of measures that address homelessness. We are working with the British Property Federation and National Housing Federation to ensure that family-friendly tenancies of three years or more are made available, which is important. We will consult ahead of bringing forward legislation to ban letting-agent fees to tenants, which will reduce up-front costs. I pay tribute to the pioneering work done by the noble Baroness, Lady Grender, which exemplifies the importance of looking at what is happening in the rest of our country and learning from the devolved Administrations. Reference has already been made to Wales, and to Scotland in the case of letting fees. Within the department I have set up a forum which looks at devolved issues and in which representatives of all four parts of the country discuss issues. I will try to ensure that this is on the next agenda, although it is for Northern Ireland to put it together, as we have already had one meeting here in London. It is important to learn from devolved areas and to share our experiences as well, of course.

In implementing the Bill, the Government will also take the opportunity to learn from our existing programmes, particularly as we review and update the Homelessness Code of Guidance for Local Authorities, working with local housing authorities and others with the appropriate interest and expertise. The Government are committed to building up evidence and good practice through our £50 million homelessness prevention programme, which I have already mentioned. We are supporting 84 projects across all regions of England, to ensure that more people have tailored support to avoid becoming homeless in the first place and receive the rapid support they need to make a sustainable recovery from homelessness.

I referred to the need for all Governments to work across departments. Reference has been made to the Ministry of Defence and its success with the military covenant, which has certainly helped here. Noble Lords also raised concerns about the impact of the Government’s DWP-led welfare reforms. I will perhaps cover some of the detail of that by writing round, but will take up some of the points made by the noble Baroness, Lady Armstrong, about the local housing allowance policy and supported housing. We are of course ensuring that supported housing is not affected until I think April 2019 and then looking at a new funding model. I am very happy to offer to engage with the noble Baroness on this—I know we have previously had meetings on housing. I will try to pick up some of the points about social investment bonds and so on in the write-round letter. It is a point well made, and I am not disputing the importance of ensuring that if one government department does something, we are all marching in the same direction. That is entirely fair.

There are many reasons for homelessness, as I said earlier, and housing itself is only part of the solution. That is why I am pleased the Government are giving their full support to the Bill, because it is part of the solution. This important legislation rightly puts the focus on prevention and on working with people before they face a crisis. I apologise for mentioning the very old cliché that prevention is always better than cure, but it is a point that has been widely shared across the Chamber.

I think the noble Lord opposite is keen to get in, and I will finish by repeating my thanks to the noble Lord, Lord Best, for sponsoring this legislation so effectively and thanking the many organisations that have contributed to its scrutiny and improvement. I also thank my honourable friend Bob Blackman in the other place for seizing this opportunity with his Private Member’s Bill, and for doing such unique and pioneering work on an issue on which I think the whole country is in agreement. I certainly believe the House of Lords is. On behalf of the Government, I give their support to the Bill and discourage any noble Lord from putting down amendments.

[Lord Kennedy of Southwark]

I thank the Minister. I did not want to intervene but on his second point, I want to be absolutely clear that I did not say the Bill comes with no money. I said it does not come with enough money. I based that on the figures from London Councils and contrasted those with the Government’s funding today. I refer the Minister to the Hansard report of today’s debate.

[Lord Bourne of Aberystwyth]

My Lords, I thank the noble Lord for that. The point I was seeking to make, although perhaps I did not make it as elegantly as I might have done, is that this situation is unique in terms of private Member’s legislation coming with any government money at all. I know the noble Lord welcomes that; equally, I understand that, speaking as he did as the 13th speaker, his welcome for it was perhaps always going to be muted. I accept his cry, which I suppose is usual from all opposition parties, of, “Let’s have some more money”.