Local Housing Allowance and Homelessness

Matt Western Excerpts

Wednesday 24th July 2019 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in this important debate. I thank the hon. Member for Ealing, Southall (Mr Sharma) for setting the scene so well, and all hon. Members for their substantial contributions. As always, I will give a Northern Ireland perspective on the matter and give an idea of what is happening there.

It is good to see the Minister in his place. He has not been in post long, but hopefully he will continue in it long after today. I know that he has a deep interest in this subject, and we look forward to hearing his response to the genuine questions that we have, because I know that he will do his best.

Despite targeted affordability funding, less than 10% of the local housing allowance rates now cover the rent of the cheapest 30% of private homes. That is a chasm of difference, which is very hard to equate, as other Members have said. Many people who cannot get on the social housing ladder and who have no family to take them in realistically have to resort to sleeping on the streets. It is not by choice; it is almost by design that they are unable to find accommodation.

I have had a number of such cases in my constituency. Entering the private housing system is not an option for many benefit claimants, given how high the cost of rental is in the private housing sector. People without a partner who are benefit claimants cannot realistically get a one-bedroom flat through social housing and cannot afford to get one through private rental under the current allowances, because the two figures just do not equate, as I have said.

The hon. Member for Westminster North (Ms Buck) mentioned a mother with two children who are visually handicapped, who has to use the money that should be purposely set aside for their disability to pay the rent, so that they have accommodation and the children can get to school. That is a supreme example of the problems that people have, and I am sure that the Minister will respond to it specifically if he can.

Given the issues, why should we expect people to try and get suitable accommodation? I know the difficulties in my area. My staff and I were working with a young man who was literally sleeping in a garage. He was 40, so not entitled to homeless points, despite our efforts on his behalf. We all tried to get him into accommodation in the area, but he could not get a one-bedroom flat in his price range. His elderly mother—very often, family members step in—ended up paying the difference, but when she passes away, hopefully not for a long, long time, I do not know where this troubled young man will be. He will certainly not be in a private rental.

Nobody should have to sleep on the streets in this day and age, as I think all of us—the Minister, the shadow Minister, the hon. Member for Stockton North (Alex Cunningham), and all right hon. and hon. Members here today—realise. I believe that we must try to bring more people into employment, so that they do not have to rely on benefits to provide them with a stable home. I will make some comments and ask some questions about that shortly, because this issue is not just the Minister’s responsibility; other Departments have a role to play as well.

The local housing allowance should be a safety net for people, so that they can find a job to provide them with a bit more stability. Yes, some people may undoubtedly seek to take advantage of the benefits system as an excuse not to find a job, but I have to say that, from my evidential basis, I do not see that. I am not saying that it does not happen, but I do not see it in my constituency.

There is a genuine lack of housing at these prices, and private rental landlords are sometimes loth to take universal credit or housing benefit tenants, and especially not at a discounted rate. There is a very difficult balance to strike between a rental that is correct and a housing benefit or universal credit system that helps people to stay in the accommodation they are in.

[Matt Western (Warwick and Leamington) (Lab)]

The hon. Gentleman is making an extremely powerful and important speech. He seems to be making the case for much-needed and industrial-scale social rented housing, which would provide people with basic security of tenure for their home, so that they can then get a job and enter the workplace with that assuredness. I think he is also saying that there is such a big gap between housing costs and local housing allowance provision, particularly for one-bedroom accommodation.

[Jim Shannon]

I have been a great believer in social housing. I have supported it all my life, and I regularly have people coming to me trying to access it. It is incredibly important for those who cannot afford to buy their own home—even more so today. Alongside that, when it comes to social housing, we must provide a benefit system, and the LHA enables people to stay in their accommodation, so the hon. Gentleman is absolutely right. I totally agree with what he said.

I have sympathy for those experiencing difficulties and recognise that people may be experiencing difficult times that prevent them from finding a job. I believe that help should be available to them, but there is another aspect of this issue, and that is getting the right qualifications to find a stable job—a reality that some people fail to face up to in school. In 2017, 16.6% of Northern Ireland residents aged between 16 and 64 had no qualifications. I believe that these problems are intrinsically linked, which is the point I made earlier. It is not just the Minister’s Department; the Department for Education, the Department of Health, the Department for Work and Pensions and others all have a role to play. To tackle homelessness, we must tackle the problem of people having no qualifications, as low-skilled jobs are becoming harder and harder to come by nowadays.

Unfortunately, homelessness and deaths are linked, and I will give hon. Members some statistics—I cannot say that they are exactly linked together, but the stats may just tell us something. In Northern Ireland from October 2017 to the end of August 2018, an average of 13 homeless people per month had their housing applications closed due to death. Of the deceased, 63% were aged 60 or younger and the youngest was only 18. The majority, 93, were male. Their cause of death is unknown; I make that comment clearly. This is a problem, and I believe that these people should be helped. These figures are distressing, and it is horrendous that people cannot get a helping hand to lift them out of the difficult situation they are in.

A new strategy is required if we seek to solve the homelessness problem across the UK. Getting more people into work and getting people with the right qualifications would be steps in the right direction.

To conclude, support should be available to those in need, and certainly used as a springboard to get them into employment and keep this fine nation going forward, but in the short term we need affordable housing—the hon. Member for Warwick and Leamington (Matt Western) referred to social housing. That housing simply is not there at present. We need funding to build affordable housing, and for rent control as well. We simply should not have people on the streets in this nation, and we need to do all we can to ensure fit-for-purpose allowances in areas with a lack of one or two-bedroom accommodation, as compared with those on the housing stress list.

--- Later in debate ---

[Liam Byrne]

We do not know, because obviously there is not a safeguarding adult review for everyone who dies. There should be a safeguarding adult review for everyone who dies, because my hon. Friend the Member for Ealing, Southall made a sensible but crucial point: that local housing allowance is absolutely part of this crisis. He is absolutely right. The average LHA in Birmingham, which is £132 a week, covers only two thirds of the cost of a median home in our city. However, it would be delusional to pretend, as our current Mayor has tried to do, that local housing allowance is somehow the nub of the changes we need to make.

The truth is that to fund tax cuts for the lucky, this Government have reduced social insurance for the unlucky to a clutch of shreds and patches. This Government have now cut back so hard that social insurance in this country is now in systems failure. I know the Minister will say that it was a hard choice, but the truth is that it was the wrong choice. The tax cuts that have been handed out to British corporates now total £110 billion. Overwhelmingly, that money has either gone back to shareholders or is lodged in those corporates’ bank accounts. It was the wrong choice, because rather than strengthen the hand that helps, this Government chose to feather the nests of those who already had plenty.

I will illustrate the systems failure that we now face. From all my interviews with homeless citizens in Birmingham through the long nights, what has become clear is that three systems are needed: a benefits system, a health system and a housing system. All three are now in crisis. Mental health caseloads in our region are now rising four times faster than funding. Addiction services in our region have been cut back by between 12% and 20%. The University of Birmingham has concluded that the health services provided to homeless people are now so bad that those people are actually being denied access to basic health services. Housing benefit hands cash to the landlords of houses in multiple occupation in a way that is completely unregulated, with no obligation on them to provide much-needed counselling or support. There is no regulation of private landlords worthy of its name, and as my hon. Friend the Member for Westminster North (Ms Buck) said, the conditions that we now contend with are absolutely disgraceful.

We are building affordable homes in our region so slowly that it will take us until the 2050s to clear the council waiting lists across the region, which now number well over 50,000. Just to add insult to injury, although the Government promised £211 million to build new homes, according to parliamentary questions they have handed out only £2 million. That means that £209 million is left in the Treasury when we have people dying on the streets of our city.

[Matt Western]

My right hon. Friend is making a powerful and important speech. Does he agree that there are two issues: that the Government are hiding behind statistics about housebuilding that are inflated through permitted development rights and in other ways, and that we are seeing an increase in HMOs? The provision is completely inappropriate for the housing and social needs in our communities.

[Liam Byrne]

My hon. Friend is absolutely right. We are hiding behind definitions of “affordable housing” that are frankly meaningless in the real world. What we need to be doing is building houses for social rent—what used to be called council houses. Let us again build council houses that communities can be proud of.

This systems failure is now killing people, as should be obvious to all of us in this House. I pay tribute to the incredible coalition of kindness in my city that is trying to turn the tide, particularly Councillor Sharon Thompson, who knows a thing or two about homelessness, Jean Templeton, who is chairing the Mayor’s taskforce, and the 14 or 15 different outreach groups that make sure that the homeless people in our city are not actually starving on the streets. However, what those people need is a Government who are on their side, and are prepared to make sure that the Mayor does not spend £1 million on secret consultants, but puts that money into ensuring that there are more emergency shelter places than there are rough sleepers.

We need a hard duty on all public services to act together and collaborate to prevent homelessness from happening in the first place. We need a region-wide private landlord licensing scheme. We need to expand accommodation in refuges. We need a universal offer on all public services for vulnerable people. We need to double the pace of council house building. We need to end the Vagrancy Act 1824 and reintroduce housing benefit for the under-25s. We need to end the lunacy of the “no recourse to public funds” rule, and we need an urgent review of the exempt accommodation rules.

George Dawson, the founder of the civic gospel in our city—the precursor of municipal socialism—once asked his congregation,

“Are you prepared to vindicate the enormous wealth of some men, side by side with the extreme poverty?”

I am not prepared to live in a city where we have cranes in the sky, but homeless people dying in the doorways. We need an emergency response to this moral emergency, and I hope the Minister will drive it through with today’s new Prime Minister.