Supported Housing

Margaret Greenwood Excerpts

Tuesday 29th November 2016 Westminster Hall

[Margaret Greenwood (Wirral West) (Lab)]

I thank my hon. Friend the Member for Bermondsey and Old Southwark (Neil Coyle) for securing today’s debate on an important topic, and for giving such a balanced picture of the impact of Government policy. We have heard important contributions from hon. Members across the House, including the hon. Member for Waveney (Peter Aldous), who spoke of the shadow of uncertainty over the sector—something that I think everyone present will recognise—and described concern about the development of a postcode lottery. He called for a one-nation solution.

We heard contributions from my hon. Friend the Member for Coventry South (Mr Cunningham) and from the hon. Members for St Ives (Derek Thomas), for Taunton Deane (Rebecca Pow), for South Down (Ms Ritchie), for Linlithgow and East Falkirk (Martyn Day), for Kilmarnock and Loudoun (Alan Brown) and, of course, for Strangford (Jim Shannon). The hon. Member for Strangford spoke about the importance of providing appropriate accommodation for people with mental health issues. The hon. Member for Banff and Buchan (Dr Whiteford) did a good job of summing up the debate, and dealt particularly with the point that the special needs that make people eligible for supported housing can also make it harder for them to find employment. I think that all hon. Members would agree that money spent to keep people living in their constituencies is money well spent.

As has been said, the Government plan to cap housing benefit at local housing allowance levels for people living in supported housing schemes and to introduce a reduction of social rents in England of 1% a year. The housing benefit cap will force the closure of tens of thousands of supported homes for people most in need. The National Housing Federation predicted that 82,000 specialist homes would be at risk of closure if the cap and rent cut were implemented. Why the Government would pursue such destructive policies, which will drastically decrease the amount of supported housing that is available, is a question that still needs to be answered, especially when a number of national studies have demonstrated that supported housing services provide excellent value for the public purse. That is particularly true in relation to keeping the costs of health, care and criminal justice down—something that several hon. Members have mentioned.

Supported housing is one of the fundamental building blocks of independence. It includes a variety of schemes designed to provide both housing and support to help vulnerable people live as independently as possible in their community. Supported housing in the community is vital to the wellbeing of those people, and presents the best opportunity for them to take control of their lives. That is exactly why the Government must ensure that there is good local supported housing. Will the Minister explain what the Government are doing to ensure that the supported housing sector is properly funded to provide a vital service to vulnerable people?

Supported housing is a lifeline for people in vulnerable and sometimes dangerous situations. It is a way for vulnerable people to maintain their dignity and a degree of independence. Those are real people, with real problems, who need our support during these hard times. They are not statistics, or potential savings. They are domestic abuse survivors escaping abusive partners, older people in need of additional support, people with mental health issues or learning or physical disabilities, who need specialist care, or they are homeless people in desperate need of a safe place to sleep for the night. That is just a snapshot of the types of people who rely on supported housing. Anyone who leaves the Palace of Westminster late on a Monday night and walks past people sleeping in sleeping bags in doorways will be acutely aware of how desperate the situation is. Are the Government not ashamed to turn their back on the most vulnerable people in society?

Supported housing is a place of sanctuary and much-needed refuge. For example, the domestic violence charity Women’s Aid reported that 67% of its affiliated refuges in England would face closure if the local housing allowance cap were applied, while 87% of them would be forced to scale down their operations. With nowhere to go, women fleeing domestic violence would have even more perilous lives. What steps are the Government taking to ensure that there is good quality and properly funded supported housing for those who need the safety and security it offers? Good, well-funded and integrated supported housing makes economic sense. Evidence shows that it delivers average net savings to the public purse of about £940 per resident per year. Does the Minister agree that the cost benefit of supported housing is beneficial to the public purse, and that it should be properly funded?

I am pleased that the Government have finally listened to the Labour party and to housing and community groups, and have decided at least to delay the implementation of the LHA plan that was included in the previous autumn statement. However, the future of supported housing is still not secure. The Secretary of State’s written statement of 15 September promises at column 38WS to make “efficiency savings” to the supported housing sector in the same way as the rest of the social sector. The Government last week published a consultation, seeking views on their plans for a new housing costs funding model for supported housing. Will the Minister explain what exactly those efficiency savings will entail and how supported housing can be expected to make efficiency savings in a housing crisis? Ministers have promised a new, ring-fenced, fund; however, the similar, and once ring-fenced, Supporting People fund has been slashed by 45% since 2010. What guarantees can she give that a new fund will not also be cut?

The uncertainty is having an immediate impact; it has left tens of thousands of the most vulnerable people in limbo. Services coming up for re-tender are at risk of closure, irrespective of the outcome of the consultation. The charity Mencap said that the proposed cap had caused 80% of plans for new supported housing to be put on hold, and 40% of existing schemes to be threatened with closure. Does the Minister agree that the decision on the cap was merely delayed, causing unnecessary anxiety for those concerned?

Riverside has looked at the possible geographical difficulties of the new top-up scheme. I share its concerns about where the line is drawn between housing costs met by DWP through a national benefits system, and additional housing support costs met through locally administered funding pots. With LHA rates more modest in many lower-value areas of the country, significant top-up would be required just to meet core rent and basic accommodation-related service charges. For example, the LHA level for a one-bedroom Riverside home in Hull is £69.73, as opposed to £260.64 in Westminster—a difference of £190.91. In many lower value areas, significant top-up would be required. The local top-up funding allocations will need to perform a very different role in different parts of the country. In my area of the north-west, along with the rest of the north and the midlands, the top-up funding will mainly be meeting core rents and services, compensating for the fact that LHA rates are so much lower. In other areas, top-up funding can support new services.

The Government have committed to continue supporting “specialised supported housing”, but will still impose savings on general supported housing. Can the Minister explain what constitutes specialised supported housing as opposed to just supported housing? Homeless Link has said that the definition of “specialist” covers very few supported projects and would protect very few homelessness services. I would argue that any housing that provides expert support to vulnerable people is specialised and therefore should be protected from the LHA cap. Anyone in the sector will say that shelters and refuges are at capacity. It is already a struggle to provide the support needed to help people live independently. Vulnerable people are being turned away. That is happening now, and I dread to think what will happen when the Government finally announce the outcome of their consultation.

Supported housing is oversubscribed and more units are desperately needed. The Government need to do much more to secure the long-term future of supported housing. People who have fallen on hard times should not bear the brunt of Tory economic mismanagement. They deserve dignity and support. I urge the Government to rethink their position urgently, to listen to the deep concerns expressed by the supported housing sector and to ensure that all supported housing is fully exempt from the cuts.