Homelessness Reduction Bill

Lyn Brown Excerpts

2nd reading: House of Commons
Friday 28th October 2016 Commons Chamber

[Mike Gapes (Ilford South) (Lab/Co-op)]

Last night, I attended an event organised by TELCO, the citizens’ organisation for east London. It is working to establish a community land trust. The event was hosted by the Salvation Army, which, in a few weeks’ time, will open a night shelter in my constituency. It does that every winter. Two thirds of the people who stay in that night shelter will not in any way be affected by this Bill because they have no recourse to public funds. There are many thousands of people on the streets of London who are sleeping rough and who, because they do not have EU treaty rights or for other reasons, have no recourse to public funds. That homelessness problem will continue regardless of what this Bill does.

[Lyn Brown (West Ham) (Lab)]

Is it not true that if we are to deal with street homelessness, which many people think we are talking about when we are discussing homelessness, it will require a lot more money to deal with the very complex needs that those people have?

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[Lyn Brown (West Ham) (Lab)]

I am delighted to speak today, but I will not stand here and pretend that this Bill will solve the homelessness crisis, because it will not. It will not build a single new home; it will not place more properties in the social sector; and it will not reduce the crippling rents that my constituents face.

My constituency of West Ham is in the London borough of Newham, and we, like other London boroughs, are bearing the brunt of this housing crisis. An average family in Newham looking for a home cannot think about buying one, because the average house price is £352, 272, which is simply out of reach of all but a few. The majority seeking a home want to enter social housing, with its affordable rents and more secure tenancies—let us face it, families in private accommodation often have to move yearly—but there is a waiting list of 16,755 households. As a result, many families have no choice but to look at homes in the private rental sector. If they were affordable, that would not be so bad, but they simply are not.

According to the Valuation Office Agency, the current median rent for a three-bedroom property in the private sector in Newham is £1,600 per month. Detailed research from the council shows that the median household income in the borough, after tax and benefits, is £18,604, or £1,550 a month. That is right: the average private sector rent in our borough is higher than the average after-tax income. It is truly a disastrous situation.

With such an acute housing crisis, it is no wonder that Newham Council has to deal with a huge amount of cases in which residents are threatened with homelessness. In 2015-16, the council received 2,488 homelessness applications, whereas Ribble Valley Borough Council in Lancashire received just seven. Newham’s rate of homelessness acceptance—that is, the proportion of households that it accepts as homeless—is almost five times higher than the English average. That is striking. The council faces an unenviable task, with a huge workload and shrinking resources.

In Newham, we have great charities such as Caritas Anchor House, which provides temporary accommodation and support for our homeless community, who are trying to get off the street and stay off the street. This year, it supported 37 residents into full-time employment and 84 residents into independent living. It is not just a shelter; it is a source of community support with high-quality professionals. It provides hope for those who desperately need it.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

My hon. Friend is making a very powerful speech. My borough of Hounslow is also suffering in similar ways, with thousands on the waiting list and people becoming homeless. I have been struck by the fact that when I go to schools and ask about under-achievement, the issue of housing repeatedly comes up. Children’s uncertainty about where they are living and will live has an impact on their levels of attainment, as well as their wellbeing. Does she agree that this is a completely false economy, with a long-term impact on our prosperity?

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[Lyn Brown]

I certainly do agree. I often say that I was privileged to live in a council flat in east London, and that provided me with the security to learn and do as well as I could. My little sister, who is no longer little—well, she is little, but no longer young—is doing well as a solicitor, and I am standing in this House. We could not have done that without the security of a council property behind us.

This week, I met some of the people living in Anchor House, and I was really impressed by their resilience and aspiration. One woman entered Anchor House soon after being evicted following a mental breakdown and hospitalisation. She was on the streets for some time, but found her way to the charity. She is now training to be a youth worker and wants to take a degree to help her career. I met a man who decided that living on the streets was better than living at home, because that was the only way that he could free himself from the company of family who were encouraging him to take drugs. He is now clean and training to be a tunneller. These people were excited by this Bill, because they thought that it would prevent people from finding themselves in the same situation as them. It is because of their hope that I support it.

If the Government are not to destroy the faith of those people, two things need to be done. First, the duties on councils must come with up-front, realistic costs. There was a 26.5% increase in households assessed for homelessness in the first year after new homelessness duties were introduced by the Welsh Government. The Welsh Government anticipated that, and thankfully funding was provided to deal with it. We can expect even greater increases in our workload in London, where the housing crisis is that much more acute. In fact, boroughs such as Newham will have to process an additional 7,581 applications a year as a result of clause 3, and that must come with proper resources.

The Government must provide sufficient funds for the Bill’s money resolution, but they must be based on the needs of those local authorities that will have to deal with the extra workload. It is no good giving extra money to areas that, frankly, do not have such needs or concerns about the workload, and less money to those of us who do. The Government should not pass the buck without the bucks.

The Government also have to acknowledge that changing council duties is only one small component in the fight to reduce homelessness. More homes need to be made available in every sector, and more services and support, such as those provided by Caritas Anchor House, are needed to deal with the complex needs of those who have been driven to street homelessness. The Bill could be a step in the right direction, but only if it has appropriate Government support.

[Several hon. Members rose—]