Housing Benefit and Supported Housing

Debate between Marie Rimmer and Alan Whitehead

Wednesday 27th January 2016 Commons Chamber

[Dr Whitehead]

Indeed, and my hon. Friend makes an important point. I was perhaps being a little kind to the discretionary housing fund, in that so many things are being poured into it that the chances of it having a material impact in this field, even on a limited basis, look to be fairly low.

The other question is what happens with new schemes that develop in future. The Society of St James has recently received substantial capital donations to develop new properties to extend its services, but there is no chance that those sorts of schemes can now go ahead, because there is no prospect of them being funded properly once they have been built. Indeed, it would be deeply irresponsible.

[Marie Rimmer]

I have one experience already from St Helens. Helena housing has stopped four extra care schemes totalling 500 units. The impact of the change on those schemes alone is a £2.3 million deficit.

[Dr Whitehead]

My hon. Friend underlines powerfully the importance of understanding just how early organisations such as the Society of St James and the ones her constituency have to take decisions about what they do in future. In that context, a one-year moratorium will not make any difference to those decisions, because those schemes are concerned about the long-term security of revenue. It is very likely—it is certainly not scaremongering—that those schemes will disappear immediately, not in the future. The whole system will be greatly the poorer as a result.

Whether the Minister thinks in retrospect that the problem was not of his own making because he did not notice it arriving from the Treasury, or whether he was told too late for him to do anything about it, or whether he did something and the Treasury ignored him, there is an issue for him to address right now. The central question for the Minister in my mind boils down to this: if we assess the impact on the organisations at the heart of the process of caring—in addition, they save the state large amounts of future public expenditure because they keep the people they care for and assist out of prisons, psychiatric institutions and emergency services by securing their accommodation in the community—what will he do immediately that specifically puts the problem right for the Society of St James in Southampton?

If the Minister does not have an answer to that question, he has a great deal of thinking to do about the wider issue. Up and down the country, those organisations—they are voluntary organisations rather than local authority organisations—find themselves holed below the water line. Unless the Minister can come up urgently with either a patch or a new boat, that will be the reality of the situation over the next period. I urge him to take action at the earliest possible opportunity to ensure that important organisations such as the Society of St James can continue their good work in future.