Supported Housing: Benefit

Marcus Jones Excerpts

Wednesday 20th July 2016 Commons Chamber

[Grahame M. Morris]

I thank the hon. Gentleman for his intervention and for the courteous way in which he met the delegation from Mencap. As a basic principle, however, surely we should compile the evidence and assess it before making a decision, but the Government have made an announcement, and that has introduced uncertainty. That is why schemes have been cancelled and why housing providers are giving notice of their intention to close facilities. A basic principle needs to be applied. The amount of time that the review has taken—I think it is of the order of 19 months or so—is another issue. Does it really have to take that long to have an impact study on which the Government can base their policy?

I will make progress because a lot of right hon. and hon. Members want to take part and I do not want to stifle their contributions. In my opening remarks, I said that these cuts make no financial sense. I remind Ministers that the Government’s own Home and Communities Agency has found that supported housing provision has a net positive financial benefit of about £640 million for the UK taxpayer every year. Rather than cutting provision for supported housing, the Government should now expand and improve it. The National Housing Federation has calculated that there is a current shortfall of 15,640 supported housing placements, so there is already considerable pressure on the sector. I have mentioned some of the reasons for that. Local authorities, housing associations, charities and other providers in this sector really want to deliver the supported housing that the people of this country need, but delivering this ambition is virtually impossible because the Government have made the operating environment so uncertain.

Incredibly, in last year’s autumn statement, the then Chancellor introduced the cap on housing benefit to local housing allowance levels without the Government actually knowing what its impact would be. My right hon. Friend the Member for Wentworth and Dearne highlighted this point when he spoke at this Dispatch Box in January. Before the debate, he had asked Ministers for evidence about the impact of the decision. Specifically, if memory serves, he asked the Minister—

[The Parliamentary Under-Secretary of State for Communities and Local Government (Mr Marcus Jones)]

Not me.

[Grahame M. Morris]

Perhaps I am mistaken and it was one of the Minister’s colleagues.

My right hon. Friend asked how many elderly people, how many women fleeing from domestic violence, how many people with mental health problems and how many young people leaving care would be affected, but, incredibly, the then Minister for Housing and Planning was not able to provide an answer. If the Government do not know how many people in supported housing are in receipt of housing benefit, how can we expect them to make a decision? It is absolutely vital to have such information to hand to make an informed decision. Ministers did not know what a profound impact their decision would have on providers and on the people who depend on these services, and it seems that they still do not know, unless they are just not answering questions on this.

To be fair, Ministers did commission an evidence review, but that was back in January 2015. Even though the review had not reported on its findings at the time of the last autumn statement, the then Chancellor still ploughed on regardless. Six months ago, my right hon. Friend was assured that the review would be ready later this year. The Under-Secretary of State for Communities and Local Government, the hon. Member for Nuneaton (Mr Jones), teased us in the Adjournment debate last week by suggesting that the review would be published imminently.

Did Ministers know what the impact would be when the Chancellor included this decision in his autumn statement? They did not know what the impact of their decision would be—that is for sure—when the issue was debated in this House six months ago. That raises the question: what is happening, and when will we know?

When it comes to making policy, Ministers are old hands at making policy in an evidence-free zone. The use of evidence to develop policy seems to be an alien concept to the Government, but I would have thought it was in the natural order of things. This is something of a travesty. Although the Government’s evidence review seems to have ground to a halt, Ministers cannot claim to be completely ignorant. After all, the providers of supported housing have made their feelings known. I am sure that Ministers—even those in the new ministerial team—have met housing associations, charities and providers. We have met them regularly, and they have made their views absolutely plain.

I have mentioned the views of David Orr. He has said that housing

“providers across the country will be forced to close schemes.”

He has described the difference between supported housing and general needs social housing and explained why rents in supported housing are higher. He has pointed out that

“the uncertainty about the future approach is already leading to supported housing under development being delayed or cancelled because of the long lead times involved in investment and development.”