Levelling-up and Regeneration Bill

Matthew Pennycook Excerpts

Report stage
Tuesday 13th December 2022 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

I think it may be useful to colleagues if I explain how we intend to conduct the debate. Many Members wish to speak, and there have been and will be quite lengthy Front-Bench speeches. The debate has to finish at 6 o’clock. I want to give priority to those who have amendments tabled in their names—by and large, not everybody. I will have to put on a time limit of six minutes or five minutes. If we do not do that, we will not have a chance of getting anywhere near everyone in, or even everyone who has tabled amendments. That is just a warning—the time limit will come in after the shadow Minister.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

I rise to speak to the new clauses and amendments in my name and those of my hon. Friends. It is two weeks and two significant concessions to large groups of disgruntled Government Back Benchers later, but it is a pleasure to finally be back in the Chamber to conclude the Report stage of this Bill. As my hon. Friend the Member for Nottingham North (Alex Norris) made clear on day one of Report, in 27 sittings over a four-month period, the Bill was subject to exhaustive line-by-line consideration. Such was the appetite to participate in the Committee’s proceedings that not only was it formally adjourned to allow new members to take part, but we enjoyed appearances from seven different Ministers, some of whom even had more than a passing familiarity with the contents of the legislation.

I thank my hon. Friends the Members for York Central (Rachael Maskell), for South Shields (Mrs Lewell-Buck) and for Coventry North East (Colleen Fletcher) and the hon. Member for Westmorland and Lonsdale (Tim Farron) for so ably scrutinising in Committee the many technical and complex provisions that the Bill contains. The new clauses and amendments that we have tabled for consideration today are almost identical to a number of those we discussed at length in Committee. That deliberate choice reflects not only the importance we place on the matters that they relate to, but the lack of anything resembling robust and convincing reassurances from Ministers in Committee in respect of the concerns that they seek to address. Indeed, if anything, the debates that took place and the responses provided by successive Ministers served only to harden our view that a number of the measures in the Bill relating to planning and the environment would almost certainly have adverse impacts.

Our hope, perhaps a forlorn one, Madam Deputy Speaker, is that the new ministerial team may have used the almost 50 days since their appointment to further interrogate the potential risks posed by those measures in the Bill that are controversial and to reflect on the wisdom of proceeding with them.

Part 3 of the Bill deals with a wide range of issues relating to both national planning policy and local and neighbourhood planning. Many of the clauses that this eclectic part contains are unproblematic, but others are contentious, and we raised detailed concerns in Committee about several of them. Amendments 78 and 79 seek to address arguably the most disquieting, namely clauses 83 and 84, concerning the future relationship between local development plans and national planning policy given statutory weight in the form of national development management policies. We welcome the fact that new section 38(5B) of the Planning and Compulsory Purchase Act 2004 in clause 83 provides communities with greater confidence that finalised local plans will be adhered to and any safeguards they contain respected. However, we believe that new subsection 5C in clause 83, in providing that anything covered by an NDMP will not only have legal status but will take precedence over local development plans in any instance where there is found to be a conflict between the two, represents a radical centralisation of planning decision-making that will fundamentally alter the status and remit of local planning in a way that could have a number of potentially damaging consequences.

I must make it clear that our concern in relation to the effect of this subsection would exist even if the Government had published the national planning policy framework prospectus and provided hon. Members with an overview about what NDMPs are likely to cover. The fact that they have not and that we therefore still have no idea precisely what these new statutory national policies will eventually contain—coupled with the fact that clause 84 of the Bill makes it clear that NDMPs can cover any policy area relating to development or use of land in England and can be modified or revoked without any form of consultation if that is the wish of the Secretary of State of the day—merely heightens our concerns.

We know that there is significant anxiety across the House about the future implications of NDMPs, and rightly so, because legislating to ensure that they overrule local plans in the event of any conflict does represent a radical departure from the status quo. As we argued in Committee, what is proposed is a wholly different proposition from the current application of the NPPF, and our fear is that it will lead to the erosion of local control in a way that threatens to transform what is currently a local plan-led system into a national policy-led system.

[Sir John Hayes]

The hon. Gentleman must recognise that the local plan process has been distorted by the imposition of housing targets driven from the centre. Indeed, individual planning applications have often been skewed because local authorities, even where they do not want to accept the application, feel they cannot reject it because they would lose on appeal if they are not meeting the national housing targets. Surely he would welcome the Government’s sharp turn in that direction.

[Matthew Pennycook]

That is slightly separate from my point about NDMPs, but the right hon. Gentleman gives me an opportunity to respond to the Government’s announcement on housing targets. The problem he identifies ultimately resides in the Government’s lack of strategic planning and effective subregional frameworks for housing growth. There is a case for reviewing how local housing targets operate, but to render them effectively unenforceable without a viable alternative, in the middle of a housing crisis, is the height of irresponsibility. We do not know the extent, but it will cause damage by reducing housing supply, with the economic growth impact that implies. We regret that the Government have backed down in the face of their Back Benchers on this point.

[Sir John Hayes]

I have not heard the hon. Gentleman perform at the Dispatch Box before, but he clearly knows his subject well and delivers his case effectively. There has long been a misunderstanding that housing is entirely about supply, as it is also about the fluidity of the housing market. He might want to add to his considerable stock of knowledge an understanding that, according to the Empty Homes Agency, there are 750,000 empty homes. That number is persistent, and no Government of any colour have managed to adopt policies to bring those homes into use.

[Matthew Pennycook]

There is a point to what the right hon. Gentleman says. It is partly about the distribution of who can buy the houses that come online, but it is also partly about supply. The Minister has confirmed that the 300,000 annual target remains Government policy. It remains an aspiration, yet the Government, by removing the enforceability of local housing targets, have made their job of boosting supply far harder, and they are not meeting the target as it stands.

[Several hon. Members rose—]

[Matthew Pennycook]

I will give way one final time, and then I will make some progress.

[Chris Grayling (Epsom and Ewell) (Con)]

The hon. Gentleman represents a seat in outer London, so he will understand that there are constraints on the ability of some areas to absorb development. The Government are simply saying that a local authority should use best endeavours but that there will be circumstances in which it simply cannot meet an arbitrary numeric target. As an MP for an urban area, surely that is something he should welcome.

[Matthew Pennycook]

I disagree with the right hon. Gentleman’s analysis. We do not know precisely what the Government have in mind for local housing targets, but my reading of their announcement is not that local authorities will simply use best endeavours. Although local house building targets will remain as an aspiration, they will not be enforced and we will therefore see a hit to housing supply, with a resulting hit to economic growth.

[Kelly Tolhurst]

rose—

[Matthew Pennycook]

I want to make some progress, so I will not give way.

We take issue with the Government making local housing targets unenforceable in the absence of a viable alternative to try to maintain supply.

We believe it is essential not only that the process by which the Secretary of State must designate and review an NDMP involves minimum public consultation requirements and an appropriate level of parliamentary scrutiny, but that the scope of an NDMP to override local plans is suitably constrained. On that basis, I commend amendments 78 and 79 to the House.

Part 4 addresses the new infrastructure levy, which is the Government’s proposed replacement for the present arrangement by which local planning authorities secure developer contributions. We believe the new levy is one of the most consequential aspects of the Bill and has potentially far-reaching implications not only for the provision of core infrastructure but for the supply of affordable housing. Although we fully appreciate that schedule 11 merely provides the basic framework for the levy, with a detailed design to follow, and that the levy’s implementation will take a test-and-learn approach, we are convinced that, as a proposition, it is fundamentally flawed.

As we argued in great detail in Committee, the deficiencies inherent in a rigid fixed-rate mechanism for securing both infrastructure and affordable housing, based on the metric of gross development value, almost certainly means the levy will prove onerously complicated to operate in practice and that, overall, it will deliver less infrastructure and less affordable housing in the future, while putting the development of less viable sites at risk.

For that reason, we remain of the view that if the infrastructure levy is taken forward, it should be optional rather than mandatory, with local authorities that believe that the needs of their areas are best served by the existing developer contributions system able to continue to utilise it. Taken together, amendments 81 to 83 and 91 would ensure that local authorities retain that discretion, and I hope the new Minister, whom I welcome to her place, will consider them carefully, along with amendment 86, which seeks to address a specific concern about how viability testing will inform the levy rate-setting process.

Amendment 84 seeks to ensure that if the Government insist it is made mandatory, the new infrastructure levy must deliver sufficient levels of affordable housing. Since the publication of the Bill, Ministers have repeated ad nauseam that the new levy will secure at least as much affordable housing as developer contributions do now, yet the Government have so far been unable to provide any evidence or analysis to substantiate why they believe it can fulfil that objective. More importantly, there is nothing in the Bill to ensure that the commitment made by successive Ministers with regard to affordable housing will be honoured. At present, proposed new section 204G(2) of the Planning Act 2008—in schedule 11, on page 291 of the Bill—only requires charging authorities to have regard to the desirability of ensuring that levels of affordable housing are

“maintained at a level which, over a specified period, is equal to or exceeds the level of such housing and funding provided over an earlier specified period of the same length.”

Put simply, the Bill as drafted would enable—one might even say encourage—inadequate levels of affordable housing supply to remain the norm by making them the minimum requirement.

If we want to ensure that the new levy secures at least as much affordable housing as is being delivered through the existing developer contributions system—and ideally more—we believe the Bill needs to be revised. That is not a view confined only to this side of the House. In the foreword to a report published only yesterday by the Centre for Social Justice, the hon. Member for Walsall North (Eddie Hughes)—himself a former Minister in the Department—argues in relation to the levy that

“it would be good to see stronger safeguards in primary legislation, rather than in regulations, for protecting and increasing the existing levels of affordable housing supply funded in this way”.

Not for the first time, I find myself in agreement with the hon. Gentleman.

[Bob Seely]

One of the specific things that my right hon. Friend the Member for Chipping Barnet (Theresa Villiers) and I requested in our agreement with Ministers was to make it easier for councils to increase the percentage of affordable housing. Clearly there is the economics of how that can happen, but we absolutely encouraged them to allow us to have that wording, so that in a place such as the Isle of Wight we could dramatically increase affordable housing as a percentage of housing. We actually put this at the centre of our plans.

[Matthew Pennycook]

Increasing the supply of affordable housing, which is at pitifully low levels, is a laudable aim. I agree with the hon. Member on that, and I therefore hope he can support our amendment 84, because it would achieve the objective in relation to the infrastructure levy by requiring charging authorities to ensure that levels of affordable housing are maintained at a level that, over a specified period, enables any given authority to meet the housing need identified in its local development plan, and I commend it to the House.

Turning to part 5 of the Bill, this concerns the Government’s proposed new approach to assessing the potential environmental effects of relevant plans and major projects—namely, environmental outcomes reports. Chief among several concerns we have about the proposed EOR system are the deficiencies of clause 122 in relation to non-regression safeguards. While we welcome the inclusion of this clause in the Bill as a means of constraining the use of the wider regulation-making powers in part 5, we are concerned that the clause as drafted contains a series of loopholes. First, use of the relevant non-regression provisions is entirely at the discretion of the Secretary of State. Secondly, the Bill stipulates that the principle of non-regression will only apply to the

“overall level of environmental protection”,

rather than specific aspects of it. Thirdly, the definition of environmental law used in the relevant subsection will limit the extent to which it can provide protection against potential future regression.

The Minister who responded to the debate on this issue in Committee provided some measure of reassurance as to why the clause is drafted in the way it is, but our concerns have not been entirely assuaged. We have tabled amendment 88 to ensure that the new system of environmental assessment would not reduce existing environmental protections in any way, and I look forward to hearing how the Minister responds to it in due course.

We want to see many other changes to the Bill. Among other things, we have tabled amendments and new clauses to ensure that the Government undertake a comprehensive review of the extension of permitted development rights since 2013; to allow local authorities to hold planning meetings virtually or in hybrid form; and to place a duty on local planning authorities to appoint suitably qualified chief planning officers.

Of particular importance to us is the need to ensure that the Bill fully aligns the planning system with the UK’s climate mitigation and adaptation goals. In Committee, Ministers argued repeatedly that existing local and national duties, requirements and powers are sufficient to ensure that the planning system responds as required to the climate emergency, yet that is demonstrably not the case, given that the system regularly throws up decisions that are seemingly incompatible with the need to make rapid progress towards net zero emissions by mid-century and to prepare the country for the changes that are already under way. That is likely to remain the case until the Government produce clear and unambiguous national policy guidance, in the form of a revised NPPF, and legislate for a purposeful statutory framework to ensure genuine coherence between our country’s planning system and its climate commitments. New clause 98 would deliver the latter, and I urge Members to support it.

Before I turn to a number of the substantial Government amendments that have been tabled since the Bill left Committee, I will speak briefly to new clause 114. As you will know, Madam Deputy Speaker, despite a notional majority of more than 80, the Government are developing an alarming habit of allowing national policy to be dictated by the demands of amorphous groups of their own Back Benchers. In the case of onshore wind deployment, the Government’s weakness in the face of such demands is all ostensibly to the good, because Ministers are now seemingly committed to amending the NPPF to finally end the harmful effective moratorium imposed on onshore wind since 2015.

However, the written ministerial statement published last Tuesday provoked more questions than it answered. For example, what criteria will Ministers specify to determine what qualifies as a demonstration of local support for onshore wind projects, given that there is certainly no clear indication that the Government are minded to bring consenting for onshore wind in line with other forms of infrastructure, as it should be?

To take another, there is the assertion in that statement that we need

“to move away from the overly rigid requirement for onshore wind sites to be designated in a local plan.”—[Official Report, 6 December 2022; Vol. 724, c. 9WS.]

What is meant by that? The Minister will know that sites do not have to be identified in local plans to receive consent for onshore wind deployment, but there is a strong presumption that they should be, and rightly so. If we are to strengthen our energy security, cut bills and reduce emissions, we need local authorities to proactively consider the opportunities within their boundaries for the deployment of all forms of renewable energy, including onshore wind generation.

Given the degree of ambiguity that now surrounds the Government’s position, it is hard to escape the conclusion that the Secretary of State has simply sought to buy himself the time he needs to get this legislation passed by alighting on a form of words nebulous enough to temporarily appease the warring factions within his party.

New clause 114, in contrast, is clear and unambiguous. It would require the Government to remove the onerous restrictions that the NPPF places on the development of onshore wind projects, and it would ensure that local communities have their say via the planning process, without imposing a uniquely restrictive consenting regime upon only this form of renewable energy generation. It would ensure that local authorities must at least explore the desirability of renewable energy deployment, including onshore wind, as part of the local plan preparation process, and I commend the new clause to the House.

Turning finally to a number of the Government amendments that have been tabled in recent weeks, Government new clauses 49 to 59 insert an entirely new part into the Bill, as the Minister said, that enables community land auction pilots to take place. As many Members will be aware, such auctions are not a novel concept, having been first proposed as far back as 2005. On paper, the premise appears entirely sensible. Landowners would have the freedom to voluntarily come together to grant options over land in the area of a participating local planning authority, with a view to it being allocated for development in the local plan. On the assumption that the option value would be significantly less than the market value for housing development, and that landlords will release said land at the lower price to realise the guaranteed short-term return, the authority in question will be able to exercise or sell the option, capturing some of the increased value uplift and using it to support local development.

In practice, the idea is riven with flaws. First, the circumstances for which this theoretical arrangement is designed—namely, a collection of small and completely substitutable land parcels with multiple landowners—bears little relation to the characteristics of the actual land market across the country.

Secondly, the idea that auctions will drive down land prices in the absence of any element of compulsion is frankly for the birds. One need only look at Transport for London’s disappointing experience with the development rights auction model to see how the proposed arrangement will fall short in that regard.

--- Later in debate ---

[Rachael Maskell]

Every day, we see an increase of 29 new short-term holiday lets. Therefore, the Government’s step-by-step process will not be sufficient in holiday hotspots, which are targeted by a very aggressive investor market for short-term holiday lets. I thank my hon. Friend, but does he agree that we need to get pace behind this to ensure we protect our communities from the extraction of housing by investors?

[Matthew Pennycook]

My hon. Friend is absolutely right, and she is not the only hon. Member for whom this is an acute problem: I have heard Members say in several debates over the past year that this is a huge problem in their local areas. She will remember that there was a real difference of opinion in Committee about how bold the Government need to be in response to this problem and how quickly they need to act. I urge the Minister to think again about what additional provisions can be put into the Bill to go beyond the registration system.

[Nickie Aiken (Cities of London and Westminster) (Con)]

In Westminster alone, we have 13,000 short-term let properties, so we are fully aware of the issues. I often advocate licensing schemes, but I think that a registration scheme under new clause 119, which I support, is a good first step. It is important to remember that no two local authorities are the same, and we have to respond to them. Does the shadow Minister agree that this is a good first step? A licensing scheme may be appropriate eventually, but let us go with a registration scheme first.

[Matthew Pennycook]

I agree and disagree with the hon. Lady. I agree that it is a good first step, and I disagree in the sense that the Government cannot consult for a number of years on what additional measures might be required. We are ultimately talking about local discretion to apply, whether it is use classes or a licensing scheme, but we think that, such is the acute nature of the problem in particular parts of the country, a registration scheme is not enough. We cannot wait until 2024 for additional measures.

[Stella Creasy]

Does my hon. Friend, like me, share the sense of mysticism that I suspect parents around the country will feel about the fact that the Government consider childcare to be a “non-infrastructure item”? The Minister just said that—I hope she misspoke. Parents recognise that, just as we fund roads so they can drive to work, funding childcare helps them get to work. That is why many local authorities do not do deals to invest in childcare and make sure it and childminders are part of our local economies. That is why we need things such as amendment 2.

[Matthew Pennycook]

We believe it is essential that the infrastructure levy is designed and implemented in a way that, first and foremost, ensures local authorities deliver the necessary amount of affordable housing and core infrastructure to support the development of their area. For that reason, we raised concerns in Committee about the possibility that the levy could be spent on non-infrastructure items such as services that are wholly unconnected to the impact of development on communities, without those needs having been met. However, as my hon. Friend knows—as any parent knows—childcare is infrastructure. Given the acute pressure on childcare places in many parts of the country, we agree that there is a case for explicitly making reference to childcare facilities in the list of infrastructure in proposed new section 204N so that local authorities are aware that they can use levy proceeds to fund it as part of developing their areas.

There are a number of useful provisions in the Bill that we support, but we fear that any benefits that might flow from them will ultimately be undermined by others that risk causing serious harm, whether it be to already low levels of affordable housing supply, the status and remit of local planning or important environmental protections. If the legislation before us were only an idiosyncratic mix of the good, the half-baked and the bad—a typically Govian curate’s egg, one might say—that would be disappointing enough. What adds to the frustration we feel is the fact that, in a larger sense, it represents a real missed opportunity to enact the kind of planning reform that is required to meet the multiple challenges that we face as a country: to tackle the housing crisis, to respond to the climate emergency, to address our rapidly degrading natural environment, and to better promote health and wellbeing.

We have a chance today to overhaul the Bill in a number of important respects. We have a chance to rectify the aspects of it that are problematic and enable it to address the vital issues on which it is currently silent, and I urge the House to come together to do so.

[Several hon. Members rose—]

Social Housing and Regulation Bill (First sitting)

Matthew Pennycook Excerpts

Committee stage
Tuesday 29th November 2022 Public Bill Committees

[The Chair]

Copies of written evidence that the Committee receives will be made available in the Committee Room and circulated to Members by email.

We will now begin line-by-line consideration of the Bill. A selection and grouping list for today’s sittings is available in the room. It shows how the clauses and selected amendments have been grouped for debate. Amendments grouped together are generally on the same or similar issues. Please note that decisions on amendments do not take place in the order they are debated, but in the order that they appear on the amendment paper. The selection and grouping list shows the order of debates. Decisions on each amendment and on whether each clause should stand part of the Bill are taken when we come to the relevant clause.

A Member who has put their name to the lead amendment in a group is called first. Other Members are then free to catch my eye to speak on all or any of the amendments in that group. A Member may speak more than once in a single debate. At the end of the debate on a group of amendments, I shall call the Member who moved the lead amendment again. Before they sit down, they will need to indicate whether they wish to withdraw the amendment or to seek a decision on it. If any Member wishes to press another amendment in the group to a vote, they will need to let me know in advance.

Clause 1

Fundamental objectives

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

I beg to move amendment 13, in clause 1, page 1, line 5, at end insert—

‘(aa) after paragraph (a) insert—

“(aa) to ensure the provision of care and support services in supported exempt accommodation and in temporary accommodation are adequate, well-managed, safe, and of appropriate quality,”’.

This amendment would ensure that support services provided to residents of supported exempt accommodation and temporary accommodation for those properties that already fall within consumer regulation are adequate and of an acceptable quality.

[The Chair]

With this it will be convenient to discuss new clause 8—Standards relating to supported and temporary accommodation—

‘(1) The Housing and Regeneration Act 2008 is amended as follows.

(2) In section 192 (Overview)—

(a) in paragraph (a), after “social housing” insert “, supported exempt accommodation and temporary accommodation”

(3) In section 193 (Standards relating to consumer matters)—

(a) in subsection (1), after “social housing” insert “or accommodation to which subsections (1A) to (1D) applies”

(b) after subsection (1) insert—

“(1A) The Secretary of State, after consultation with the regulator, may by order bring into consumer regulation accommodation managed or in the control of a registered provider that falls within subsection (1C) or subsection (1D).

(1B) An order under subsection (1A) may apply to either subsection (1C) or (1D) only or to both and orders commencing either can be made separately at different times and for any part of England.

(1C) The accommodation to which this subsection applies is supported exempt accommodation as defined by regulations under subsection (1E).

(1D) The accommodation to which this subsection applies is temporary accommodation as defined by regulations under subsection (1E).

(1E) The Secretary of State may by regulations set out the classes of accommodation that fall within subsection (1C) or subsection (1D) and may define each class by reference to the Housing Benefit Regulations 2006 or the Universal Credit Regulations 2013.”

(c) in subsection (2), after paragraph (2)(d) insert—

“(da) standards relating to supported exempt accommodation or temporary accommodation,”’.

This new clause would ensure that providers of supported exempt accommodation and temporary accommodation who are registered with the regulator and charge market rents covered by housing benefit are brought within the scope of the new consumer regulatory regime.

[Matthew Pennycook]

It is a pleasure to begin our line-by-line consideration of the Bill with you in the Chair, Sir Edward, and in a Committee with a considerable amount of housing expertise, which I hope will put us in good stead for further improving the Bill. The Opposition have consistently maintained that the Bill is uncontroversial legislation, and we welcome it and the measures it contains.

We desperately need to build more social homes, but we also need to ensure that our existing stock is of good quality and well managed. Almost half a million social homes fail to meet the Government’s decent homes standard and, as that standard is not a requirement, it is almost impossible to enforce.

The Regulator of Social Housing can and does react to systemic failings among registered providers—for example, the request for evidence issued in relation to damp and mould following the coroner’s report into the death of two-year-old Awaab Ishak in 2020—but at present it has no proactive way of regulating consumer standards. The spotlight of media attention, tenant campaigning or intervention by individual hon. Members should not be required to trigger the appropriate response to substandard conditions in social housing, yet that is all too often the case.

To ensure that tenants are properly protected by a robust, effective system of regulation, major reform is needed. Indeed, it is long overdue, and the Secretary of State was right to concede, in the wake of Awaab’s untimely death, that the Government have been too slow to toughen regulation in this area.

Despite its limited number of clauses, the Bill is therefore of real significance for millions of social housing tenants across the country. That is why the Opposition regret how long it took the Government to bring it forward, and it is why we want to see it on the statute book as soon as possible. To that end, we want to see the Committee to sit no longer than is absolutely necessary. However, we are determined to see the Bill strengthened in a number of areas, so that standards in social housing markedly and rapidly improve, tenants are able in practice to pursue and secure effective redress, the collective voice of tenants is heard more audibly and they have a greater role in shaping national policy, and we are better able to respond to pressing issues affecting some of those living in social housing, such as serious violence.

We owe it to the bereaved and the survivors of Grenfell, Awaab’s family and all those social tenants currently living in appalling conditions to pass the most robust legislation that the House can possibly deliver. To that end, we have tabled a limited number of amendments in key areas, the intention of which is to persuade the Government to reflect sincerely on how the Bill might be improved still further. Although we intend to work constructively with Ministers to secure the Bill’s speedy passage out of Committee, we expect the Government to give serious consideration to the arguments that we make in respect of those amendments.

Amendment 13 and new clause 8 relate to supported exempt accommodation and temporary accommodation. The new clause would provide the Secretary of State with the power to bring properties let at market rents by non-profit making providers of supported exempt or temporary accommodation registered with the regulator into the scope of consumer regulation. It would allow Ministers to do so at a time of their choosing and on an area-by-area basis as required. The amendment would extend the regulator’s fundamental objectives to the care and support services provided by supported exempt and temporary accommodation in relation to properties that already fall within the scope of consumer regulation.

I want to be clear at the outset that these proposals do not seek to extend the scope of the regulatory framework provided for by the Bill to all non-registered supported exempt and temporary accommodation providers in a way that could place unreasonable burdens on the regulator. Rather, they would apply only to those landlords who are registered, or entitled to register, with the regulator as non-profit making providers because they let some properties at below market rents—that is, social housing.

The purpose of these two related proposals is to address an existing loophole that, unless addressed, will remain a problematic gap in the consumer regulatory regime after the Bill has come into force. It is that non-profit making providers of supported exempt or temporary accommodation can let properties at market rents that are eligible for housing benefit support on the basis that “more than minimal” care, support or supervision is being provided, without those properties coming within the scope of consumer regulation.

We know that the regulatory gap is currently being exploited by unscrupulous providers. The three biggest registered providers of non-commissioned exempt accommodation in Birmingham last year, Reliance Social Housing CIC, Ash-Shahada Housing Association Ltd and Concept Housing Association CIC, received £159 million in housing benefit payments for 16,370 market rent properties that fell outside consumer regulation. They were able to operate those properties free from the fear of intervention on consumer standards grounds, because they collectively operate 310 properties—in Reliance’s case, it is just six—at below market rents.

As a result of the regulator being unable to enforce against poor performance by providers in relation to market rent properties that they operate on the basis of consumer standards, the regulator can enforce against bad practice in such cases only on grounds of economic viability. It has done so—for example, it found the large, Birmingham-based Reliance to be non-compliant with the governance and financial viability standard in October last year. However, Opposition Members struggle to understand why the Government have not enabled the regulator to take action against supported exempt and temporary accommodation providers letting units at market rents who fail to meet expected standards, using the tools provided for by the new proactive consumer regulatory regime introduced by the Bill, given that permitting it to do so would simply provide an additional weapon in the regulator’s arsenal when it comes to clamping down on unscrupulous providers.

It is true that clause 8(d) tightens the definition of what constitutes a non-profit making provider. That should help to ensure that some of the most flagrant abuses, such as out-of-balance portfolios, can be clamped down on. However, it will not end all instances of rogue providers gaming the system by letting some properties at below market rents, registering as non-profit making providers on that basis, and then operating far larger numbers of substandard market rent properties outside the scope of consumer regulation. For example, those with more balanced portfolios—presumably even if that were achieved on the basis of a split of 51% of properties let non-profit and 49% for profit—will escape the provisions of clause 8 that I just referred to.

We recognise that the Government support, as we do, the Supported Housing (Regulatory Oversight) Bill introduced by the hon. Member for Harrow East. I am pleased that the hon. Gentleman is on the Committee with us. His Bill will enhance local authority oversight of supported housing and thereby enable local authorities to drive up standards in their areas. However, it does not contain provisions to close the particular loophole that is the focus of amendment 13 and new clause 8. As such, if the Government do not accept our amendments or bring forward their own to tackle the loophole in question, enforcement action on the part of the regulator in these cases will be confined to matters of economic regulation.

One element of our concern about the gap in the proposed consumer regulatory regime that the amendments seek to address is that, once the hon. Gentleman’s Bill has received Royal Assent, rogue providers of supported exempt accommodation will be incentivised to exploit this loophole further, as it will be one of the last remaining loopholes because their operations will be hampered by the range of measures in the hon. Gentleman’s Bill. Using the Bill before us to address the issue of supported exempt and temporary accommodation landlords who are already partially regulated would also close down the loophole more quickly than would be possible by doing so through the Supported Housing (Regulatory Oversight) Bill, because it will be some time before that Bill is in Committee, and the detailed regulations required to give it full effect will take some time to be passed.

If the Government were persuaded of the merits of the argument underpinning amendment 13 and new clause 8, they could determine to deal with supported exempt accommodation and temporary accommodation separately. We ultimately decided that the amendments should cover both, because there is good evidence to suggest that the loophole is being increasingly exploited by private temporary accommodation providers, in particular those providing nightly paid temporary accommodation, who often describe themselves as social landlords but who are exempt from consumer regulation in relation to substandard properties they let at market rents at great cost to the taxpayer.

Dealing with supported exempt accommodation and temporary accommodation together is also an attempt to pre-emptively address the scenario in which the Government accept that properties let at market rents by registered non-profit making providers of supported exempt accommodation should be covered by consumer regulation and legislate to that end, but, by setting aside market rent temporary accommodation let by registered non-profit providers, ensure that that becomes an obvious target for rogue providers seeking to escape consumer regulation standards.

I appreciate fully—I expect that the Minister will respond along these lines—that the Government will be reluctant to re-open at this stage of the Bill’s proceedings what and who falls within the ambit of the new consumer regulatory regime, but surely they cannot believe that the Bill as drafted ensures that support services beyond general management that are provided to residents of supported exempt and temporary accommodation will be of acceptable quality, or that non-profit making registered providers can simply ignore consumer standards when it comes to those properties let at market rents eligible for housing benefit support.

The issues that are the subject of these two amendments will need to be addressed if the Government are serious about clamping down on rogue providers who take public money while failing vulnerable people. I hope that the Minister can signal that the Government are minded to act either by accepting the amendments or by bringing forward their own in due course.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Dehenna Davison)]

It is a pleasure to serve under your chairmanship today, Sir Edward. I am incredibly grateful to the shadow Minister, the hon. Member for Greenwich and Woolwich, for the constructive way he has embraced this debate, for the Opposition’s broad support for the Bill, and for his commitment to ensuring that the regulator is as robust as it can be. On that point, we have certainly found some early agreement.

As the hon. Member outlined, amendment 13 would extend the remit of the regulator to the care and support provided to residents in supported exempt accommodation and temporary accommodation, while new clause 8 would extend the remit to those types of accommodation when they are not social housing but are held by a registered provider.

Temporary accommodation and supported housing that meets the definition of social housing is already regulated under the regulator’s standards, and the Care Quality Commission already regulates the provision of personal care in supported housing. The support needs of people in supported housing are wide, varied and often complex compared with those living in general needs accommodation. That is why we are supporting targeted measures in the Supported Housing (Regulatory Oversight) Bill, introduced by my hon. Friend the Member for Harrow East, to tackle the issues we are seeing in supported housing. I echo the shadow Minister’s comments; I am very grateful that my hon. Friend is bringing his incredible expertise to the Committee.

While there are many excellent supported housing providers, the Government recognise that there are some rogue supported housing landlords. Let me be completely clear for the record: any abuse of the supported housing system will not be tolerated. The Supported Housing (Regulatory Oversight) Bill will introduce national standards to be applied to supported housing and to give local authorities new powers to introduce licensing schemes and other enforcement powers.

Temporary accommodation is a key safety net for homeless households in this country. The homelessness code of guidance is clear that, at a minimum, temporary accommodation must be free from all category 1 health hazards, as assessed by the housing health and safety rating system, and it must be suitable for all members of the household. Households have the right to request that the council reviews the suitability of their accommodation.

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[Maggie Throup (Erewash) (Con)]

It is a pleasure to serve under your chairmanship, Sir Edward. I think this is an important Bill. Amendment 13 and new clause 8 relate to supported exempt accommodation and temporary accommodation when provided by providers that are the subject of other parts of the Bill. The hon. Member for Greenwich and Woolwich made a very good case.

The hon. Member for Mitcham and Morden made a passionate speech, and I think we can all relate to what she was saying, because we all have examples in our constituency of providers who sound very legitimate and credible, but after they are looked into, it turns out that they are not. They are fly-by-nights who are just taking the opportunity provided by the loophole in regulations. We can all cite examples of HMOs that have been passed by councils because the councils do not have the powers to stop them. The impact on neighbourhoods is quite dire, and it really does destroy local communities.

While I appreciate the intentions behind the Opposition’s amendments, I think the better place to close the gaps in regulation would be in the Bill from my hon. Friend the Member for Harrow East. This measure is obviously needed, but I think this Bill is the wrong place for it. I hope to speak later about some of the specific issues in my constituency and the importance of regulating the providers and ensuring the provisions of the Bill are met, because they are so needed.

[Matthew Pennycook]

That was an incredibly informed and helpful debate. I just want to say at the outset that we fully appreciate how complex an area of law and regulation this is. I have done enough of these Committees to know that the Minister is not going to simply stand up and accept the amendments we have cobbled together just on the basis of my speech, however good it might have been.

I will try to respond to the points made, which I take in the constructive spirit they were offered in. I do not think many of the points made get to the heart of what the amendments are driving at. I agree with the hon. Member for Harrow East: there is a plethora of regulators in housing and planning generally, and I am concerned that we are creating overlap and confusion in various ways. I will come to how that might be true in relation to the ombudsman and the regulator when we discuss clause 5, but that is absolutely a point.

The Minister made the point well: the private Member’s Bill of the hon. Member for Harrow East, the Supported Housing (Regulatory Oversight) Bill, includes a range of targeted measures to address the scandal—we all agree it is a scandal—of rogue providers of exempt accommodation and temporary accommodation in many cases. However, as I made clear, that Bill does not address this gap. The hon. Member for Erewash said that if it is not covered by these amendments, it can be done via the Supported Housing (Regulatory Oversight) Bill, but it is not in that Bill. Perhaps it will end up in that Bill after Committee stage, in which case we will be entirely happy with that being a vehicle for it rather than this Bill, but it needs to be addressed.

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[Dehenna Davison]

Absolutely, we will take this away. I would be grateful for the expertise of all on the Committee, including the hon. Member for Mitcham and Morden, who made an incredibly passionate case. Let us have a roundtable discussion about how best we can take this forward following Committee.

[Matthew Pennycook]

I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Question proposed, That the clause stand part of the Bill.

[The Chair]

With this it will be convenient to discuss the following:

New clause 2—Regulator duty to report on safety defects—

‘(1) In fulfilling its consumer regulation objective under section 92K of the Housing and Regeneration Act 2008, the regulator must report to the Secretary of State on actions taken by registered providers to remediate unsafe external wall systems and other historic fire safety defects in social housing.

(2) A report produced under this section may make recommendations to the Secretary of State on further action required to sufficiently address identified issues.’

This new clause would ensure that in meeting its fundamental objective to support the provision of social housing that is well-managed and of appropriate quality, the regulator would be required to report to the government on the progress of building safety remediation.

New clause 3—Regulator duty to support provision of social housing—

‘(1) In fulfilling its economic regulation objective under section 92K of the Housing and Regeneration Act 2008, the regulator must–

(a) within six months of this Act receiving Royal Assent, and

(b) at intervals of no more than three years thereafter

provide a report to the Secretary of State on whether the supply of social housing in England and Wales is sufficient to meet reasonable demands.

(2) A report produced under this section may make recommendations relating to how to ensure that the provision of social housing in England and Wales is sufficient to meet reasonable demands.’

This new clause would ensure that in meeting its fundamental objective to support the provision of social housing sufficient to meet reasonable demands the regulator would be required to report to the government on adequacy of social housing supply.

[Dehenna Davison]

Clause 1 relates to the fundamental objectives of the Regulator of Social Housing and adds safety and energy efficiency of tenants’ accommodation and transparency. New clauses 2 and 3 seek to take that further and expand the role of the regulator into new areas.

New clause 2 relates to monitoring the remediation of unsafe cladding and other fire safety defects in the social housing sector. I want to make clear from the outset that nothing is more important to this Government than making sure people are safe in their homes. The tragic, horrendous case of Awaab Ishak, which we are all unfortunately now familiar with, has highlighted the crucial role of registered providers of social housing in making sure that happens.

The Bill sits alongside other key reforms that we have introduced in response to the Grenfell Tower fire, including the Building Safety Act 2022 and the Fire Safety Act 2021. New clause 2 is incredibly well intentioned, given what it seeks to achieve, but the Bill is not the correct vehicle for it. A duty should be placed on the Regulator of Social Housing to undertake such monitoring. The regulator is not a specialist fire or building safety body. The proposed new clause would be a significant expansion of the regulator’s remit. Currently, the regulator does not have the expertise to fulfil that function effectively.

The question of who should undertake that kind of role is, however, an important one for Government. The Department is evaluating options on how best to monitor and report on the progress made in remediating unsafe cladding and other fire-safety defects. It is important that the work is done at pace, but thoroughly. I understand that hon. Members will be keen to study its outcomes and implications for future policy, but I must reiterate that it would be improper to pre-empt it while it is ongoing by allocating responsibility for that highly important function without the benefit of fully understanding the options. We need to ensure that that work is undertaken by those with the correct skills, expertise and capacity. My concern with new clause 2, therefore, is that it would make for a hasty decision that might mean we do not achieve the desired outcomes in the optimal way.

I turn to new clause 3. The hon. Member for Greenwich and Woolwich is right to draw attention to the importance of increasing the supply of social housing. In the levelling-up White Paper, we made it clear that we want to

“increase the amount of social housing available over time to provide the most affordable housing to those who need it.”

Our £11.5 billion affordable homes programme will play an important role in achieving that aim, as will the measures we have taken to support increased council house building.

For its part, the regulator has an objective to support the provision of sufficient social housing. It discharges that role through its work to ensure that private registered providers are financially viable, efficient and well governed. In turn, that helps providers to obtain funding to enable them to deliver more social housing. However, I do not agree that we should make the regulator responsible for assessing the adequacy of social housing provision in England or, indeed, in Wales. I am concerned that such an additional role could divert resources away from the activities that should be the focus for the regulator, which is setting standards for social housing so that landlords are clear about expectations on them to deliver quality of housing, to monitor compliance with those standards and, where necessary, to undertake relevant enforcement action.

Organisations outside Government often publish their own analysis of the level of need for social housing. There are a number of different approaches to assess that, and not necessarily a single right answer. I am therefore not convinced that the regulator stepping in to provide its own assessment is the right approach. It should focus on the task at hand and on standards, quality and enforcement. On that basis we would not want to accept new clauses 2 and 3.

[Matthew Pennycook]

I thank the Minister for her explanation of the clause and for the response to the two new clauses tabled by the Opposition. As the Minister has made clear, with a view to providing for a stronger and more proactive consumer regulatory regime, the clause expands the regulator’s fundamental objectives as set out in the Housing and Regeneration Act 2008 to include those of safety, transparency and—following the well-deserved success of Baroness Hayman’s amendment in the other place on standards relating to energy demand—energy efficiency.

My response to the case that the Minister made against new clauses 2 and 3 has, thankfully, pre-empted a number of the points she has just made. New clause 2 seeks to ensure that in meeting its fundamental objective to support the provision of social housing that is well managed and of appropriate quality, under proposed new subsection (3)(a) of the amended 2008 Act the regulator would also be required to report to the Government on the progress of building safety remediation in the social housing sector.

According to the Department’s own figures, every one of the 160 social sector buildings identified as having unsafe aluminium composite material—ACM—cladding, similar to that which covered Grenfell Tower, have been remediated through the social sector ACM cladding remediation fund. When it comes to buildings in the social sector with unsafe non-ACM cladding systems, we know that, as of 31 October, 251 have applied for Government funding for remediation. Alarmingly, as things stand, not a single one of those 251 buildings has been remediated.

Perhaps more worryingly, we have no estimate of the total number of social sector buildings with unsafe non-ACM cladding systems, because social landlords can apply for Government funding only if the costs of remediation are unaffordable or if there is a threat to their financial viability. We have no idea whatsoever how many social sector buildings have other non-cladding building safety defects.

There is a wider debate to be had outside this Committee about social landlords’ restricted access to funding for non-ACM remediation work, given the impact that has on social tenants, whose rent payments are contributing to the costs of the works required, and on providers in terms of upgrade and maintenance works, services provided such as welfare advice and the supply of new social homes.

However, all new clause 2 seeks to achieve is to make the regulator—which, as a result of the Bill will now have to perform its functions with a view to supporting the provision of social housing that is safe—report to the Secretary of State on the progress of remediating unsafe external wall systems and other historical fire safety defects in social housing, and provides it with the opportunity to make recommendations to the Secretary of State on further action required.

Speaking for the Government in the other place in response to a similar amendment in the name of Baroness Pinnock, Baroness Scott of Bybrook argued, as the Minister just has, that the type of monitoring sought by new clause 2 would not be “appropriate” for the regulator to undertake because

“it is not a specialist health and safety body.”—[Official Report, House of Lords, 6 September 2022; Vol. 824, c. 114.]

I am afraid that we find that argument wholly unconvincing.

New clause 2 does not seek to impose a duty on the regulator to carry out inspections of social sector buildings that are either potentially unsafe or identified as unsafe and in need of remediation or to physically monitor the progress of remediation works. As such, it does not require the regulator to possess the relevant professional skills, expertise and capacity necessary for assessments of that nature. All it would require is that the regulator be responsible for reporting to the Government on the progress of remediation in respect of social sector buildings—on the overall number of such buildings identified as having defects and the progress of whether they have started and completed remediation.

Given that the regulator already collects data from registered providers to inform its regulation of standards, and that the Bill ensures that one of the regulator’s new fundamental objectives will be the safety of buildings, we believe it is entirely reasonable and appropriate to task it with reporting to the Government along these lines.

As the Minister made clear, the Government have been at pains over recent months to stress they are examining options for monitoring and reporting remediation progress in future. Yet, as we consider the Bill today, neither the Department nor the new Building Safety Regulator is providing accurate data with regard to the scale of the building safety challenge in the social housing sector, or progress toward meeting it; no firm proposals have been brought forward by the Government to address that gap; and we have no guarantees that appropriate measures will be forthcoming any time soon, although I take at face value what the Minister has just said.

The Bill rightly ensures that the provision of safe, high-quality social housing will be integral to the function of the regulator’s role. There can be no more important task in respect of social housing—I think we are agreed on this point—than to ensure that buildings that are either covered in combustible material or riddled with other non-cladding safety defects are made safe. New clause 2 would ensure the regulator monitors progress to that end and reports to Government. I urge the Minister to rethink. If the Government are not minded to amend the Bill as new clause 2 seeks, I urge them to bring forward other proposals for monitoring this important element of the remediation drive in the near future.

I turn to new clause 3. In a similar way to how new clause 2 seeks to place additional requirements on the regulator in relation to its fundamental objective to support the provision of social housing that is well-managed and of appropriate quality, new clause 3 seeks to ensure that, in meeting its fundamental objective under the 2008 Act to support the provision of social housing that is sufficient to meet reasonable demands, the regulator would also be required to report to the Government on the adequacy of social housing supply.

The problem to which this new clause relates is well known. While more people than ever are struggling to afford a secure place to live, nowhere near enough social homes are being built. Almost 1.2 million households in England are now languishing on a housing waiting list. The Green Paper that foreshadowed the Bill stated:

“Social housing remains central to our supply ambitions.”

Despite that, the Government are doing nowhere near enough to deliver the volume of social homes our country needs.

Not only are the Government failing to build the volume of social homes that we need, but by means of reduced grant funding, the introduction of the so-called affordable rent tenure, increased right-to-buy discounts and numerous other policy interventions, we would argue that they have actively engineered the decline of social housing over the past 12 years. The result is that not only were fewer than 6,000 social homes constructed last year but over 21,000 were sold or demolished—a net loss of 15,000 desperately needed genuinely affordable homes.

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[Dehenna Davison]

I will be brief and just say that I recognise the arguments made by the shadow Minister, but I hope he recognises the arguments that I made in my opening statement. I have made a commitment to my hon. Friend the Member for Harrow East that before Report we will sit down to discuss the issues further and make sure the regulator has the teeth it really needs.

Question put and agreed to.

Clause 1 accordingly ordered to stand part of the Bill.

Clause 2

Advisory panel

[Matthew Pennycook]

I beg to move amendment 14, in clause 2, page 1, line 18, at end insert—

“(2A) The Panel may provide information and advice to the Secretary of State about, or on matters connected with, the regulator’s functions and wider issues affecting the regulation of social housing (whether or not it is requested to do so by either the regulator or the Secretary of State).”

This amendment would enable the Panel to provide information and advice and to proactively raise issues affecting social housing regulation more generally directly to the Secretary of State.

[The Chair]

With this it will be convenient to discuss amendment 15, in clause 2, page 2, line 17, at end insert—

“(8) The Panel must be chaired by a tenant of social housing.

(9) The Chair is responsible for setting Panel meeting agendas.

(10) The majority of persons appointed to the panel must be tenants of social housing.”

This amendment would ensure that tenant representation on the advisory panel is mandatory and that tenants are able to influence effectively what information and advice is presented to the regulator in respect of issues affecting social housing regulation.

[Matthew Pennycook]

For all its technical complexity, the Bill is ultimately about those who live in social housing and overhauling regulation to ensure that they are treated fairly by landlords who are well run, responsive, transparent and accountable. In considering the detail of the Bill, we must never forget that the impetus for it was the deaths of 72 men, women and children in the early hours of 14 June 2017. Those 72 human lives were ended in an inferno fuelled by the highly combustible cladding system installed on the outside of the tower block in which they lived, despite the fact that tenants had repeatedly sounded the alarm about the building’s safety defects and the fact that warnings were going unheeded.

I have met and spoken to Grenfell United, as I assume the Minister and many other Members have. I once again pay tribute to them and the wider Grenfell community. I know that what the survivors and the bereaved are determined to achieve is not only justice, but lasting change in how social housing is regulated and the power that tenants themselves can exercise. We firmly believe that the empowerment of tenants must be at the heart of the Bill, and we believe that a key test of its robustness is whether it establishes mechanisms that will enable tenants to influence in practice the regulator’s approach to regulating standards; to shape any future changes to regulatory standards and codes of practice; and to proactively raise wider issues affecting social housing regulation and policy, not just with the regulator but with Ministers.

The Government ostensibly agree that tenants are at the heart of the Bill, and Ministers have repeatedly assured us that one of its primary objectives is to give social housing tenants a voice and ensure that it is listened to. Yet when it comes to providing ways in which tenant representatives can exert a measure of control over the work of the regulator, shape the future direction of the regulatory arrangements that the Bill establishes and proactively influence national regulation and policy so as to shape the services that tenants receive from their landlords, we feel that the Bill is somewhat lacking in ambition.

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[Dehenna Davison]

I am grateful to the shadow Minister for making his case for amendments 14 and 15. Amendment 14 seeks to enable the advisory panel to provide information and advice and to raise issues affecting social housing regulation directly with the Secretary of State. The social housing White Paper made it clear that the purpose of the advisory panel was to provide independent and unbiased advice specific to the regulator on matters connected to regulation. Clearly, the views of tenants are central to that objective.

As the hon. Gentleman outlined, in parallel we also established the social housing quality resident panel, which will provide an opportunity for us to hear from tenants. The aim of the resident panel is to enable tenants to share their views directly with Government and Ministers on their approach to improving the quality of social housing, and on whether the Government’s interventions will deliver the changes that they want to see.

The resident panel is made up of 250 social housing residents from across the country and from diverse backgrounds. They met for the first time last week on 26 November, and will meet approximately monthly over the coming year, with opportunities for the agenda to be shaped by panel members. At that meeting, residents told the Secretary of State for Levelling Up, Housing and Communities, my right hon. Friend the Member for Surrey Heath (Michael Gove), that the most important issues to them were how repairs are dealt with, how landlords are held to account and how complaints are handled by their landlords and the housing ombudsman. The Department’s resident panel and the regulated advisory panel have a specific role and remit to ensure that tenants’ views are properly represented to both Ministers and the regulator.

Amendment 15 seeks to require a social housing tenant to chair the advisory panel and have responsibility for setting the agenda that the panel considers. It also seeks to ensure that social housing tenants comprise the majority of panel members. We share the notion that it is vital that tenants’ voices are heard, but it is important that the advisory panel considers the full range of regulatory issues that the regulator has to tackle. That means that we need to allow a diverse collection of voices to share their knowledge and opinions with the regulator.

Consumer matters are rightly at the forefront of the Bill but, equally, working to resolve some of the economic issues should not be diminished. Legislating for a tenant to chair and set the agenda and requiring the majority of the panel members to be tenants would not support what we are trying to achieve with the advisory panel. I am concerned that being too prescriptive in legislation about how the advisory panel must operate may prevent the panel from having the flexibility to decide how it best operates. In practice, I expect that all members of the advisory panel, along with the regulator, will shape how it works and what it considers.

We are committed to ensuring that tenants can effectively engage with the Department and the regulator, and that tenant voices are at the heart of social housing regulation and policy, but we do not feel that amendments 14 and 15 are necessary to achieve that so I ask the shadow Minister to withdraw them.

[Matthew Pennycook]

I thank the Minister for that helpful response, and I take on board the concerns she raised about the amendments.

I am slightly concerned about the lack of what we would consider to be true tenant empowerment. The quality resident panel is important, but it only lasts a year, so how will we get ongoing tenant engagement with the work of the regulator to inform how it operates, to shape future regulation, which is part of its remit, and to raise future issues of concern to tenants nationally, in terms of social housing regulation and policy? We do not think the Bill allows for that, and in all honesty I cannot understand the Government’s objection to allowing the advisory panel to notify Ministers directly, rather than the regulator, in certain rare circumstances. As the Minister said, the panel is at present constituted by the regulator, which appoints its membership, and it can only provide views directly to the regulator. We think there are some circumstances in which it may need to do otherwise. I hope the Minister takes away those points.

[Eddie Hughes]

Although there might be some deliberation about this mechanism, there are several mechanisms through which resident organisations are able to engage with Ministers and the regulator. I am delighted to see representatives of Grenfell United in the Public Gallery. There is a regular opportunity to meet Ministers, although it is not prescriptive and perhaps not as frequent as many would like, but the Government are certainly determined to build on it.

[Matthew Pennycook]

We recognise that Ministers meet tenants and tenant representatives frequently. My concern is that if tenants on the advisory panel have an issue that they feel is sufficiently serious that they need to bring it to the attention of Ministers, rather than the regulator, they should not have to rely on attempting to get a meeting with Ministers. There should be a mechanism through which they can put serious issues on the desk of the Secretary of State or the Minister if they feel that they, as well as the regulator, need to know about them. That is the point we are trying to address with amendment 14.

On amendment 15, I understand the Minister’s concerns about being too prescriptive, but I urge the Government to go away and think again about the membership of the advisory panel. I appreciate fully the need to have a diverse panel, but as I read clause 2(4), there is nothing on the face of the Bill to prevent the Government from putting one tenant or tenant representative on the panel and leaving it at that. There is no minimum quota for tenants, and we want tenant voices to be properly represented.

[Bob Blackman]

The shadow Minister is making a good point. We want to empower tenants, but his proposal could have an unintended consequence. Supposing tenant representatives on the board cannot agree among themselves who will be the chair, the panel could meet, but obviously that would be a difficult situation. There may potentially be social tenants from various parts of the country, representing different organisations. It is therefore not appropriate to prescribe a chair on the face of the Bill; that would defeat the objective. It might well be that we could find some suitable wording about the number of representatives, but I do not think we should force the panel to have a particular individual or representative as the chair.

[Matthew Pennycook]

The point about obvious issues around tenant representation and selection is well made, although those issues exist for the quality residents panel and the 250 members it selects. They have existed every time we have tried to create a body that gives voice to residents, so I do not think they are insurmountable. I welcome the fact that the hon. Gentleman thinks a minimum level of tenant representation on the panel is a good thing, and I urge the Government to think again about that.

We ultimately want to achieve tenant empowerment on the advisory panel so that tenants can be confident that, when the advisory panel gives information and advice to the regulator about the new system of regulatory standards, its voice is properly heard and it can bring issues to the attention of Ministers if required. I hope the Government will take away the points we have made about the amendments. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

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[Dehenna Davison]

Clause 4 and Government amendments 1 and 2 deal with the regulator’s fee-charging powers. As we heard from a number of hon. Members on Second Reading, the Regulator of Social Housing must be provided with the necessary funding to enable it to deliver the outcomes the Bill is designed to achieve.

Once the new consumer regime is implemented, the regulator will see substantial growth in its regulatory activity, which means its costs will increase significantly. It is Government policy to maximise the recovery of costs of arm’s length bodies, so clause 4 will refine the existing fee-charging power to allow for the cost of some additional functions to be recovered, and to charge fees that cover costs of activities that may not be connected to the specific fee payer, such as the cost of investigation and enforcement. Any significant changes to the design of the regime will be consulted upon and require ministerial approval.

Government amendments 1 and 2 also address the regulator’s fee-charging powers. The amendments remove specific provision allowing the regulator to charge following the completion of inspections, if authorised by the Secretary of State by order. The existence of that special provision relating to fees for inspections is no longer necessary given the changes we are making to the regulator’s general power to charge fees. That power will now allow it to cover the cost of inspections in its fees for initial and continued registration.

Leaving the provision in legislation erroneously risks causing confusion and casting doubt on the regulator’s ability to set fees to cover inspections as part of its general fee-setting power. As such, the change serves to ensure that there is greater clarity and consistency in this legislation.

Clause 4 establishes the parameters to the regulator’s fee-charging powers and makes clear that it can charge the sector for costs that may be unconnected to the specific fee payer. Government amendments 1 and 2 support clause 4 by delivering a technical change that will ensure there is no confusion over the powers available to the regulator to deliver maximum cost recovery. On that basis, I commend the clause to the Committee and beg to move the amendments.

[Matthew Pennycook]

I thank the Minister for that explanation of Government amendments 1 and 2. As she makes clear, clause 4 amends section 117 of the Housing and Regeneration Act 2008 to clarify the extent of the regulator’s fee-charging powers. New subsection (4A) adds to the 2008 Act and makes it clear that the regulator has the power to recover the cost of activities it does not currently charge social housing providers for.

If I understood the Minister correctly, Government amendment 2 revises section 202 of the 2008 Act because the powers in new subsection (4A) are sufficiently broad to cover charging providers fees for inspections. In short, as I hope she agrees, this is just a tidying-up exercise, the rationale for which is that the power is being omitted from section 202, concerning inspections only, because it more properly fits within section 117, concerning fees generally, to ensure that references to fee charging are all in one place in the 2008 Act. If that is the case, and amendment 2 in no way prevents the regulator from charging fees for inspections, we take no issue with it, because it is important that the regulator is able to charge fees to cover the significant costs involved in overseeing the comprehensive and rigorous Ofsted-style inspections regime that the Bill introduces.

The amendment raises wider issues relating to the resourcing of the regulator. Since the Bill’s publication, we have consistently expressed concern about the very real risk that the regulator will struggle to discharge its new functions and that it will not be adequately resourced to perform its enhanced role, in particular in relation to inspections. Prior to the Bill’s publication there were already concerns, expressed by the Select Committee and others, as to whether the regulator had the resourcing, skills and capacity to continue to regulate economic standards adequately, given the complex financial and corporate structures proliferating in the sector.

The new consumer regulatory regime will impose significant burdens on the regulator. The Minister stated on Second Reading that the Government are

“firmly committed to ensuring that the regulator has the resources that it needs not only to deliver the new consumer regulation regime but to ensure that it continues to regulate its economic objectives effectively.”—[Official Report, 7 November 2022; Vol. 722, c. 83.]

She also suggested that the Government were potentially minded to introduce changes to the fee regime to ensure that the regulator is funded appropriately. We accept that the Government have made limited additional funding available this financial year to support the new regime, but we are concerned that there may still be a resourcing challenge for the regulator. I would welcome any further assurances from the Minister that the regulator will have all the resources it needs to discharge the enhanced functions that the Bill requires of it.

[Dehenna Davison]

I am grateful to the shadow Minister for raising the question of resourcing. We touched on this on Second Reading, as he highlighted. He is right that in this financial year we are providing £4.8 million to aid the regulator in its vital work, but this is why it is so important that we get the fee charging regime right—to ensure that the regulator is properly resourced. As we have discussed today, on Second Reading and in the other place, the regulator needs the teeth to be able to do its job, and a huge part of that is resourcing. He is right that, effectively, we are tidying the legislation up to make it a bit neater and ensure further clarity, so I hope he will support these amendments.

Amendment 1 agreed to.

Amendment made: 2, in clause 4, page 4, line 16, at end insert—

‘(7) In section 202 of the Housing and Regeneration Act 2008 (inspections: supplemental) omit subsections (4) to (7).’—(Dehenna Davison.)

This amendment repeals the provisions of the Housing and Regeneration Act 2008 which provide specific powers to enable the regulator to charge registered providers of social housing fees for inspections.

Clause 4, as amended, ordered to stand part of the Bill.

Clause 5

Relationship between regulator and housing ombudsman

Question proposed, That the clause stand part of the Bill.

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[Matthew Pennycook]

I will be brief, but there is an issue that we want to highlight in relation to clause 5, which is about the relationship between the regulator and housing ombudsman. Clause 5 amends the Housing and Regeneration Act 2008 and the Housing Act 1996 to add measures on the relationship between the two bodies, so that they can exchange information quickly and effectively to provide better protection for tenants, all of which is entirely to the good and uncontroversial. However, consideration of the clause provides me with an opportunity to seek clarification from the Minister about the precise role of each body in the reformed regulatory regime that the Bill establishes.

Taken at face value, the role of each body is clearly delineated: the regulator regulates registered providers in England, while the housing ombudsman seeks to resolve complaints from individual residents about their registered provider. The regulator operates on a top-down basis, and the housing ombudsman operates on a bottom-up basis. However, when one considers how the reformed regulatory regime will operate in practice, things start to appear somewhat more complicated.

First, if my reading of the Bill is correct, the regulator appears to be able to intervene in individual complaints. Clause 31, for example, enables the regulator to arrange for an authorised person to take emergency remedial action in respect of individual premises following completion of a survey. Presumably, it is therefore necessary for the regulator to receive a complaint from a tenant who fears they are at risk of an imminent serious health and safety risk. Otherwise, how could the regulator order the necessary survey of a given premises? It may be that that is not the case, and it will be for the ombudsman to refer an individual complaint to the regulator to allow them to make use of the provisions in clause 31; if that is the case, it is not clear from the Bill.

Secondly, following revisions to the housing ombudsman scheme enacted in September 2020, the ombudsman has a responsibility to publish a complaint handling code, enjoys a new power to issue complaint handling failure orders that can relate to a landlord’s overall complaint-handling policy and, crucially, has the ability to investigate beyond an initial complaint to establish whether evidence might indicate a systemic failing by a registered provider. It may be that the ombudsman can address such systemic failings on the part of registered providers on the basis of suggested changes to their policies only with the regulator responsible for exploring whether changes to their systems are necessary, but again that is not immediately clear in the Bill.

[Eddie Hughes]

I understand the point that the hon. Gentleman is making, but it is based on the premise that these bodies operate in a completely siloed fashion. The relationship between them is a fluid one; they speak regularly and consider complaints and points that have been raised, which come to them from either direction. They work in a collaborative fashion and are then able to identify who should best proceed with a particular case. Obviously, it is governed by a memorandum of understanding, but it is a much more fluid and collaborative arrangement than that.

[Matthew Pennycook]

I thank the hon. Gentleman, and I fully understand his point. I met with senior staff from the housing ombudsman yesterday, and we were talking precisely about the ways in which the respective roles operate and how they could be clarified. What these examples seek to illustrate is that there is still an obvious risk of overlap and duplication of roles in respect of these two bodies. One could argue, as the hon. Gentleman just has, that those issues can be resolved by means of updating the non-statutory memorandum of understanding that already sets out the functions of both organisations and how they work together, but that throws up two distinct issues in and of itself.

First, is it appropriate for us to leave these matters to the two bodies themselves to resolve, rather than clarifying on the face of the Bill the precise role of each body in the new regulatory regime, so as to avoid the duplication of functions and potential gaps in coverage—even if only in the short term, before they update that memorandum of understanding to reflect the new regulatory system of proactive consumer regulation?

Secondly, I am sure that hon. Members have been contacted by tenants who are aware that the Bill is progressing through the House. The expectations around the Bill are such that, after it receives Royal Assent, tenants who feel that they have not secured appropriate redress by means of a standard complaint to their landlord and believe that their grievance might be systemic in nature will understandably be uncertain about whether they should approach the ombudsman or the regulator with their complaint. I appreciate that the Department is alive to the risk, has produced guidance in the form of a fact sheet and is apparently delivering a communications campaign to tenants so that they know where to go and are well informed but, without greater clarity prior to Royal Assent about the precise roles of each body in the regime established by the Bill, I fear that neither will be sufficient to prevent a large degree of confusion. When debating this matter in the other place, Baroness Scott of Bybrook conceded that fears about confusion of the kind that I alluded to are legitimate, and that greater clarity is required as a result; yet, despite her promise to take the matter back to the Department, the Government are not amending the Bill to provide greater clarity or committing to take any further concrete steps—that I am aware of, at least—to ensure that confusion will be avoided.

As Shelter and others have argued, it is essential that the roles of the regulator and the housing ombudsman are clearly defined, that tenants and tenant groups understand the appropriate way to make complaints and that any complaints process or system is easy to use, accessible and effective. I would be grateful if the Minister provided greater clarity today and, if not today, in writing. I hope that, in general terms, she will assure me that the issues that I have highlighted will be both considered and acted on by the Department before the Bill receives Royal Assent.

[Dehenna Davison]

I am grateful to the shadow Minister for raising his concerns and giving me the opportunity to provide some clarity. We will take it from the experience of one particular tenant, if we may. If a tenant has a complaint, they should first go to their landlord but, if that complaint cannot be resolved between tenants and the landlord, it can be escalated to the housing ombudsman to investigate individual complaints from tenants. If the ombudsman’s investigation finds instances of maladministration on the part of the landlord, the ombudsman can issue orders to that landlord to put things right for the complainant. That can include requiring the landlord to pay compensation to the complainant or to undertake repairs.

If an investigation raises a potential breach of a regulatory standard or there is evidence of systemic failure by the landlord, the ombudsman can refer the matter to the regulator. In situations where the regulator has concerns that the provider is failing to maintain the premises in accordance with the regulatory standards, it can conduct a survey and, following the implementation of this Bill, arrange for emergency repairs to remediate the issue in cases where there is a risk of serious harm to tenants that is not being addressed by the landlord.

[Matthew Pennycook]

That is useful clarification. If I have correctly understood what the Minister is saying, emergency remedial action under clause 31 of the Bill stems, in the first instance, from a referral from the ombudsman. Let us think about that process in detail. To get to the ombudsman, a tenant would have to exhaust all stages of their resident provider’s internal complaints process, which is three stages in most cases. It takes about a year to get through it. They would then have to go to the ombudsman, who has a huge backlog. Clause 31 is about emergency remedial action that poses an imminent threat to health and safety. I urge the Government to think again about how, in particular, clause 31 operates because tenants will need to give notice to the regulator about specific clause 31 failures far quicker than the process she has just described.

[Siobhain McDonagh]

The situation gets even more complicated when a tenant exasperatedly says, “I want to go to a lawyer” and then the whole thing closes down.

[Matthew Pennycook]

We are testing the patience of Sir Edward and the rules, but the point my hon. Friend highlights is a genuine one about the complication of legal matters and whether tenants abandon complaints at whatever point, which I hope adds to the weight of the point that I have just made. It is not immediately clear, and we have to be clear with, most importantly, tenants once this Bill is in force about where they go and how they can seek redress under the provisions of the Bill as quickly as they need to. As I said, in the case of clause 31, the process the Minister has described does not seem like it is fast enough to ensure that emergency remedial action of the kind provided for by clause 31 will happen. I hope the Government will take this and those other points away.

[Dehenna Davison]

Again, I am grateful to the shadow Minister and to the hon. Member for Mitcham and Morden. On the shadow Minister’s point about communications ensuring that tenants know where to go and how this process works, we have been working with organisations that represent landlords, social housing residents and the housing ombudsman service. We delivered communications and marketing campaigns in 2021 and this year to ensure that social housing residents were aware of how to make a complaint and how to seek redress where appropriate. We are putting in the work through communications to ensure that tenants understand the process, but I have heard his points on timeliness and I will endeavour to take that away.

Question put and agreed to.

Clause 5 accordingly ordered to stand part of the Bill.

Clauses 6 to 9 ordered to stand part of the Bill.

Clause 10

Appointment of health and safety lead by registered provider

Question proposed, That the clause stand part of the Bill.

[Matthew Pennycook]

Clause 10 is not contentious, and we broadly welcome it, but I would appreciate some clarification from the Minister on a specific issue arising from it. At present, proposed new section 126B ensures that

“The functions of the health and safety lead”

are to

“monitor the provider’s compliance with health and safety requirements”

and to notify the provider’s responsible body of any material risk to or failures of compliance, and to advise on steps to ensure the provider addresses them.

As Ministers may be aware, the Local Government Association, among others, has inquired what—if any—channels of communication or reporting mechanisms will exist between the health and safety leads of registered providers and the regulator itself. The LGA also highlighted the obvious need for sufficient new burdens funding in the case of local authority landlords. Will the Minister provide answers today or in writing to the following questions? First, did the Government intend to establish any direct permanent relationship between the regulator and RP health and safety leads? Secondly, what is the rationale for not requiring health and safety leads to report any material risks or failures of compliance directly to the regulator, as well as the responsible body, as a matter of course? Thirdly, can the Minister guarantee that the Government will make sufficient new burdens funding available to local authorities to fully implement the provisions in the clause?

[Dehenna Davison]

I will follow up in writing with a bit more clarity and specific detail on the questions the shadow Minister has raised.

Question put and agreed to.

Clause 10 accordingly ordered to stand part of the Bill.

Clause 11

Electrical safety standards

Question proposed, That the clause stand part of the Bill.

[Matthew Pennycook]

We welcome the Government’s decision, in response to concerns raised during the passage of the Building Safety Act 2022, to carry out a consultation on the introduction of mandatory checks on electrical installations for social housing at least once every five years and to include measures within this Bill to partially implement such checks—only partially, because the section of the Housing and Planning Act 2016 that this clause seeks to amend is concerned with properties let by landlords, not owner-occupier leaseholders. That is an important distinction, for reasons I will explain.

As we know, there is currently no legal requirement in England for social landlords or leaseholders to undertake electrical safety checks of their dwellings. The situation is distinct from that in the private rented sector, where the Housing and Planning Act introduced mandatory safety checks on electrical installations at least once every five years.

We know that fires in numerous tower blocks, including Grenfell, Shepherd’s Court, and Lakanal House, were caused by electricity. Home Office fire data shows a consistently high level of accidental electrical fires in high-rise buildings with 10 or more flats. Campaign groups such as Electrical Safety First have been at pains to stress that those buildings were mixed-tenure buildings containing an assortment of owner-occupier leasehold and social rented units and that there is therefore a case, given that the fire safety of a building depends on the safety of all the units within it, for ensuring parity in electrical safety standards across all tenures in high-rise residential blocks.

The Government’s own consultation on this issue noted that the National Federation of ALMOs supported introducing electrical safety requirements for owner-occupiers in mixed-tenure blocks and highlighted that properties being considered by authorities for London’s right to buy-back programme often have electrical installations that are

“in a state of significant disrepair.”

Given that we know that many high-rise social housing blocks contain owner-occupied flats owned on a leasehold basis, it surely cannot be right that a leaseholder living next door to a social renter will not have their electrical installations mandated to be checked every five years. To put it another way, what good is having the electrical installations of two thirds of a building checked every five years if the other third is not? The risk of a potentially life-threatening fire obviously does not discriminate by tenure.

[Bob Blackman]

This is a very significant point, particularly with what happened at Grenfell. We should reflect on that carefully. Who does the hon. Gentleman suggest should carry out the inspections and how would they be enforced? One of the problems that is clearly still relevant is people buying second-hand white goods that are not safety checked, which could then be faulty and cause electrical fires. In his research, has the hon. Member come up with any proposals as to how this measure could be implemented and work could be undertaken?

[Matthew Pennycook]

I thank the hon. Gentleman for that point—it is a point well made. I do not have a comprehensive answer to hand. There are provisions in this clause that apply to mandatory electrical safety checks for social rented properties. There are similar requirements in place for the private rented sector. My instinct is that it would seem obvious that those could be applied to the owner-occupier sector in a way that the provisions in the clause perhaps could not be. Whatever way we cut it, what we want to see are mandatory checks on all electrical installations in all units in high-rise buildings, because, as I said, fire does not discriminate between tenure. I hope the Minister will take the points away for further consideration.

[Dehenna Davison]

The shadow Minister is right to highlight the consultation, which concluded in August. It included a call for evidence seeking views on whether leasehold properties in mixed tenure social housing blocks should have mandatory five-year checks. My hon. Friend the Member for Harrow East was right to say that we need to get this mechanism right to ensure that people living in mixed-use blocks are protected. I am grateful to the shadow Minister for his pragmatism on this point. We are still assessing the responses to the consultation, so it is a bit too early to say what the outcome will be and we do not wish to pre-empt it. However, we will announce further details as the work progresses, and I will endeavour to keep the shadow Minister informed.

Question put and agreed to.

Clause 11 accordingly ordered to stand part of the Bill.

Clauses 12 and 13 ordered to stand part of the Bill.

Schedule 1 agreed to.

Clause 14 ordered to stand part of the Bill.

Schedule 2 agreed to.

Clauses 15 to 20 ordered to stand part of the Bill.

Ordered, That further consideration be now adjourned.—(Julie Marson.)

Social Housing and Regulation Bill [ LORDS ] (Second sitting)

Matthew Pennycook Excerpts

Committee stage
Tuesday 29th November 2022 Public Bill Committees

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

We welcome the concession made by the Government in the other place on professional training and qualifications, and the resulting inclusion of the clause in the Bill. However, if we are to be certain that this legislation will expedite the professionalisation of the sector, we are absolutely convinced that the Government need to go still further.

As the Minister said, the clause amends section 194 of the Housing and Regeneration Act 2008 by adding a proposed new section allowing the regulator to set regulatory standards on the competence and conduct of social housing managers, and making it clear that such standards may require providers to comply with specified rules relating to knowledge, skills and experience. However, the clause as drafted includes no requirement for those involved in the management of social housing to meet objective professional standards. We therefore agree with, among others, Grenfell United and Shelter, that it therefore risks introducing an insufficiently high bar for registered providers in respect of the professional training that they implement.

New clause 4 seeks to strengthen the Bill in relation to professionalisation by amending section 217 of the 2008 Act, concerning accreditation, to require managers of social housing to have appropriate objective qualifications and expertise.

[Sally-Ann Hart (Hastings and Rye) (Con)]

On professional qualifications, I completely understand that we need to have properly qualified people overseeing those in social housing and giving them support, but most professions—whether lawyers, accountants, firemen or police—have a professional body. What professional body does the hon. Gentleman propose should be behind social housing, because I do not think that there is one, is there?

[Matthew Pennycook]

I will touch on that. The Chartered Institute of Housing does a considerable amount of work in this area. For reasons I will come on to, however, the review that it is undertaking perhaps does not go as far as we need in the ways in which we think this legislation must be amended to drive professionalisation along the lines that many groups are calling for.

As I was saying, we think it is vital that those requirements should be put on the face of the Bill. As a result of the progressive residualisation of social housing over the past 40 years, it is now overwhelmingly let to those most in need. According to the latest English housing survey data, half of social renters are in the lowest income quintile, compared with 22% of private renters and 12% of owners; more than half of all households in such tenure have one or more members with a long-term illness or disability; and more than a quarter are 65 or over. We also know—this is certainly the case from my own post bag—that many social tenants find themselves facing intimidation by criminal gangs, domestic abuse and racial harassment, and that a minority are in desperate need of urgent moves to escape serious youth violence. We will return to that point when we debate new clause 1 in the name of my hon. Friend the Member for Dulwich and West Norwood.

As a result of frequently having little voice or power, and because there is a chronic shortage of social housing, tenants have few if any options to move if they receive an unprofessional service from their landlord. They face significant barriers when it comes to challenging poor conditions. We therefore must do more to ensure that those managing the homes of social tenants are properly qualified to do so and that they have undergone the necessary training, for example in anti-discriminatory and anti-oppressive practice, to ensure that they are treating tenants fairly and providing them with the necessary support. We rightly expect those working in other frontline services, such as education and social care, to have the professional qualifications and training necessary to carry out their work effectively, and to undergo continuous professional development. We should expect no less for those managing social homes.

--- Later in debate ---

[Matthew Pennycook]

I do not want to engage the hon. Member in a prolonged discussion about “may” and “must”—we had enough of that with his private Member’s Bill. We are open to a discussion about how to proceed, but what we need at this stage is a commitment from the Minister that the Government are going to move on objective professional qualifications and training, rather than leaving the Bill as is. If that requires regulations to be moved in due course, we would be open to that, but let us see what the Government bring back on Report.

We will press our new clause to a vote at the appropriate moment to underscore how strongly we feel that this is one of the areas on which the Government must move by Report stage, to ensure that the legislation is as robust as it can possibly be.

[Dehenna Davison]

I will keep this brief. I am grateful to the shadow Minister for outlining his concerns, which were mentioned on Second Reading. The commitment I can give is that we are seriously looking at the issue and seeing how far we can go without that risk of reclassification. I appreciate his reasoning behind wanting to push the new clause to a vote; I hope in the meantime that he will be inclined to change his mind before we get to that point.

Question put and agreed to.

Clause 21 accordingly ordered to stand part of the Bill.

Clause 22

Standards relating to information and transparency

Question proposed, That the clause stand part of the Bill.

[Dehenna Davison]

It is essential that social housing tenants should be able to access relevant information about their landlords and their homes. Greater transparency will empower tenants and drive providers to improve service delivery. Clause 22 extends the standard-setting powers of the Regulator of Social Housing to cover information and transparency. The clause will enable the regulator to deliver key social housing White Paper commitments, including setting standards relating to the new access to information scheme. We also expect information and transparency standards to include requirements for registered providers to share information on how landlords spend their income, executive pay and breaches of the standards.

When a provider is failing to meet these standards, the clause ensures that the regulator can take strong enforcement steps, including penalties, compensation and requiring changes in the management of the provider. Extending the regulator’s power to set regulatory standards to include standards on information and transparency will empower tenants to hold their landlord to account and strengthen overall consumer regulation.

New clause 9 seeks to require the Secretary of State to extend the Freedom of Information Act 2000 to registered providers of social housing, via statutory instrument, within six months of Royal Assent. I do not believe the amendment is necessary or advisable. The Government have worked closely with stakeholders to agree plans to deliver the access to information scheme for tenants of housing associations and other private registered providers, as promised in the social housing White Paper.

The new scheme will enable tenants of private registered providers and their representatives to request information from their landlords in a way similar to that available under the 2000 Act. It will also impose similar obligations on private registered providers. Tenants of private registered providers will be able to request information from their landlord on anything relating to the management of their homes. The new scheme will be integrated into the regulatory environment, tailored to the needs of tenants, and enforced as part of the regulator’s consumer standards.

If a tenant is unhappy with how a landlord has dealt with their request for information, they will be able to take their complaint to the housing ombudsman. The process will be the same as for other complaints, ensuring ease of use and accessibility for tenants. The ombudsman also has a strong understanding of the social tenant and landlord relationship, and an established relationship with the Regulator of Social Housing. Additionally, local authority providers, which would fall under the new clause, are already subject to the Freedom of Information Act 2000 as public bodies.

Finally, extending freedom of information to registered providers would increase the level of Government control exercised over the sector. We are back to the potential argument around reclassification, which we are keen to avoid. The access to information scheme that we have laid out does not carry the same reclassification risk. On that basis, although I commend the excellent clause, I ask the hon. Member for Greenwich and Woolwich to consider not pressing his new clause to a vote.

[Matthew Pennycook]

At the outset, I should thank the Greater Manchester Law Centre for its support in drafting the new clause, the purpose of which is to probe the Government’s rationale for not using the Bill to bring registered providers of social housing within the scope of the Freedom of Information Act—other than local authorities, which, as the Minister rightly said, are already subject to it—and to press the Government to reconsider.

As the Minister is no doubt aware, this matter has been a perennial cause of concern. In 2011, the coalition Government announced that they would consult housing associations on bringing them within the scope of the Act; however, no further action was taken—almost certainly as a result of housing associations objecting. The issue resurfaced in the wake of the Grenfell Tower fire as a result of the Information Commissioner’s Office reporting to Parliament that it had experienced difficulties in accessing information relating to social housing and to the Kensington and Chelsea Tenant Management Organisation because the information was not covered by the Freedom of Information Act. The Information Commissioner at the time, Elizabeth Denham, made it clear that

“housing Associations are currently not subject to Freedom of Information Act because the Act does not designate them as public bodies. It is clear to me that this is a significant gap in the public’s right to know”.

We believe that she was right to highlight that gap, which remains to this day.

It is not simply that the public do not enjoy rights that they have never had; in the cases of housing associations that have had local authority stock transferred to their management, tenants and the public have lost freedom of information rights that they previously enjoyed when those homes were under local authority control. As I expected, the Minister has made the case that the issues are addressed by the provisions in clause 22 relating to information and transparency; however, those provisions are limited both in scope and specificity in terms of who may request the disclosure of information—it would appear that only tenants themselves have access to it, while journalists and others would not—and how the scheme will operate in practice.

[Eddie Hughes]

Perhaps the Minister can clarify this, but I understood that it was not just tenants, but people who were acting on their behalf. Can we confirm that? [Interruption.]

--- Later in debate ---

On resuming—

[Matthew Pennycook]

Before we suspended, the hon. Member for Walsall North pressed me on what he felt was an inaccuracy in my statement that journalists were not covered by the provisions. The Division has given me a chance to look at both the Bill and the explanatory notes. Unless he can find one, I see no mention of tenants or their representatives in the Bill. The provision in question, on page 18 of the Bill, merely states:

“the provision of information to their tenants of social housing”.

If it is the case that tenant representatives, including a broad definition of what that entails—including journalists—can access the information in question, that would be welcome.

However, not only is clause 22 limited to tenants themselves, but it provides no guarantees that an information and transparency scheme will be established. All it specifies is that the regulator “may set standards” for RPs in relation to those matters.

Although we can debate the efficacy of clause 22 in terms of whether the regulator’s ability to set standards relating to the provision of information and transparency will significantly increase RP accountability, it is clear that the clause does not provide for anything akin to that facilitated by the freedom of information regime. As the Information Commissioner’s Office put it, on welcoming the commitment to provide some information to tenants, the scope of the proposed access to information scheme

“appears narrower than FOI in a number of significant ways”.

The arguments against bringing housing associations within the Bill’s scope have been that it would inevitably result in reclassification by the Office for National Statistics and that RPs would be overwhelmed with FOI requests. However, the Scottish Government’s decision to extend coverage of Scotland’s freedom of information legislation to registered social landlords there, following a 2017 consultation—despite opposition from a majority of the housing associations affected—appears to undermine both those counter-arguments. A 2021 report by the Scottish Information Commissioner following the changes made there found that social landlords had responded well to being covered by the legislation, with a significant majority of organisations surveyed making it clear that they were responding effectively, were publishing more information as a result of FOI and were not overwhelmed with requests, with 57% reporting a small impact on staff workload. Importantly, despite being subject to the Freedom of Information Act, Scottish providers remain classified as private non-financial corporations by the ONS.

There are numerous examples from across the country of RPs either ignoring or refusing outright to respond to reasonable requests from tenants for information on a range of issues, including fire safety and health hazards, on the basis that they are not covered by the Freedom of Information Act. I note what the Minister said about tenants’ ability to take such concerns to the housing ombudsman, but we have already discussed what a lengthy and time-consuming process that is. Given that local authority RPs are already covered by FOI, we cannot understand why non-local authority RPs are not brought within the scope of that Act. Given that one of the central aims of the White Paper and the Bill is to engender a culture of transparency and accountability among RPs and that clause 22 is far narrower in scope than FOI, we believe it would be beneficial to the public if housing associations that are not publicly owned are brought within the scope of the 2000 Act. The UK Information Commissioner’s Office agrees, stating as recently as January 2022:

“The ICO believes that housing associations that provide social housing should be covered by the Freedom of Information Act 2000 in the same way as housing provided by local authorities. We believe access to information laws should remain relevant and appropriate to how public services are delivered.”

I hope that the Minister has listened carefully to the arguments about the new clause, in particular the Scottish experience, and I look forward to her response. I will not press the new clause to a Division at this stage. Depending on her reply, we may return to it on Report.

[Dehenna Davison]

I am grateful to the shadow Minister for outlining his case so coherently. I go back to points that I made earlier. On the point about tenant representatives, it is certainly the intent that they will be able to make those requests on behalf of tenants. In some cases, that could include journalists—the hon. Member specifically commented on them. I hope that provides some assurance about intent. I am grateful to the hon. Member for not pressing the new clause to a Division for now.

Question put and agreed to.

Clause 22 accordingly ordered to stand part of the Bill.

Clause 23 ordered to stand part of the Bill.

Clause 24

Standards relating to energy demand

--- Later in debate ---

Question proposed, That the clause stand part of the Bill.

[Matthew Pennycook]

The proposed tenant satisfaction measures scheme, as outlined in the social housing White Paper and underpinned by the provisions in the clause, has the potential to be an extremely useful tool for tenants, both in gaining a better understanding of their landlords’ performance and in providing feedback that can assist in driving up standards. We support it.

Given the diversity of providers across the social housing sector, however, a sufficient degree of standardisation of the collecting, processing and presenting of the information relating to the new tenant satisfaction measures is crucial. If steps are not taken to ensure a prescribed collection method for obtaining the information in question so that, when published, it allows for rigorous like-for-like comparison, the obvious risk is that the TSM scheme will struggle to facilitate an accurate and fair comparison of performance between RPs, and its use as a means of informing regulation will be compromised. The regulator itself has acknowledged the potential limitations of the scheme, owing to the variation in methods of data collection and sampling across different organisations.

The question, therefore, is what might be done to address those potential pitfalls to ensure that the TSM scheme works as effectively as it can. I will be grateful if the Minister could give us a sense of how the Government believe that a degree of standardisation might be imposed upon the TSM process to facilitate an accurate and fair comparison of performance between providers. Also, she might ask her officials to consider whether it would be appropriate for the Government to commit to asking the regulator to review the method of collecting, processing and presenting the information in question within a certain timeframe, following any directions issued under proposed new section 198C coming into effect.

[Dehenna Davison]

I will write to the shadow Minister following our sitting to give him further clarity about the clause.

Question put and agreed to.

Clause 27 accordingly ordered to stand part of the Bill.

Clause 28

Surveys

--- Later in debate ---

[Dehenna Davison]

The regulator has an existing power to arrange for a survey of a premises where it suspects that a landlord may be failing to maintain the premises in accordance with its standards. The clause takes steps to ensure that those important surveys can take place more promptly by reducing the notice period required from 28 days for landlords and seven days for tenants to 48 hours for both parties. These are minimum requirements, and in the majority of cases the regulator would seek to give more than the minimum notice period, but the changes ensure that the regulator can act quickly in the most serious cases.

The clause also includes a power for the regulator to seek a warrant for entry when necessary, meaning that surveys can take place when required to ensure that the regulator can identify problems and take appropriate action. In the most serious cases, following a survey the regulator will be able to arrange for emergency remedial action to take place, as set out under clause 31, to address an imminent risk to the health and safety of tenants if the provider fails to take action required by the regulator.

Committee members may be aware that we have stipulated in the Bill that equipment or materials can be left on the premises only if it is necessary for the survey or emergency remedial action to go ahead, or otherwise if that does not significantly impair an occupier when using the premises.

Government amendments 4 to 11 are common-sense amendments designed to ensure that regulatory activities do not unnecessarily obstruct or inconvenience residents of social housing. Our changes are slight and intend to strengthen the Bill’s provisions to the benefit of tenants. They require that even if it is necessary to leave equipment or materials on the premises for surveys or emergency remedial action, they must not be left in a way that causes significant inconvenience to occupiers if they can be left in another place where this inconvenience does not occur. This means that thought must be given to minimising the impact of a survey or works on occupiers, including the impact on a tenant’s use of the common parts.

Those small, technical changes are intended to ensure that a survey or emergency remedial action can be conducted, but in such a way that is mindful of the impact on tenants and courteous to them. I commend the amendments to the Committee.

Amendment 4 agreed to.

Amendments made: 5, in clause 28, page 22, line 8, at end insert—

“(9) Where the premises include common parts of a building, references in subsection (8) to the ability of an occupier to use the premises include the ability of an occupier of a dwelling that has use of the common parts to use those parts or the dwelling.

(10) In this section, “common parts”, in relation to a building, includes the structure and exterior of that building and any common facilities provided (whether or not in the building) for persons who occupy the building.”

Where a survey is carried out on premises which include common parts of a building this amendment requires the effect on the ability of occupiers to use their dwellings and the common parts to be considered in determining whether equipment or materials can be left on the premises while the survey is carried out.

Amendment 6, in clause 28, page 22, leave out lines 31 to 36 and insert—

“(5) Equipment or materials taken onto premises by virtue of subsection (4) may be left in a place on the premises until the survey has been carried out provided that—

(a) leaving the equipment or the materials in that place does not significantly impair the ability of an occupier to use the premises, or

(b) leaving the equipment or the materials on the premises is necessary for the purposes of carrying out the survey and it is not possible to leave it or them in a place that does not significantly impair the ability of an occupier to use the premises.”

This adjusts the power to leave equipment etc on premises so that it can only be left in a place that significantly impairs the ability of occupiers to use the premises if there is no other place on the premises it can be left which doesn’t impair such use.

Amendment 7, in clause 28, page 22, line 36, at end insert—

“(5A) Where the premises include common parts of a building (as defined in section 199A), references in subsection (5) to the ability of an occupier to use the premises include the ability of an occupier of a dwelling that has use of the common parts to use those parts or the dwelling.”—(Dehenna Davison.)

Where a survey is carried out on premises which include common parts of a building this amendment requires the effect on the ability of occupiers to use their dwellings and the common parts to be considered in determining whether equipment or materials can be left on the premises while the survey is carried out.

Clause 28, as amended, ordered to stand part of the Bill.

Clause 29

Inspection plan

[Matthew Pennycook]

I beg to move amendment 16, in clause 29, page 23, line 36, leave out lines 36 to 39 and insert—

“(a) the inspection of every registered provider within four years of the commencement of this Act,

(b) the inspection of every registered provider at intervals of no longer than four years thereafter, and”.

This amendment would ensure that the regulator is required to carry out regular inspections of every registered provider.

[The Chair]

With this it will be convenient to discuss clause stand part.

[Matthew Pennycook]

We strongly support the introduction of routine inspections of social landlords. We therefore welcome clause 29. I would like to take the opportunity once again to commend the efforts of Lord Best in the other place and the perseverance of Grenfell United, which ensured that the Bill was strengthened.

Routine inspections of social housing landlords must be central to the new consumer regulatory regime introduced by the Bill if tenants are to have confidence that landlords will be monitored appropriately and deterred from risking breaches that could undermine health and wellbeing. The welcome removal of the serious detriment test in its entirety through the provisions in clause 26 legally allows the regulator to adopt a proactive approach to monitoring and enforcing consumer standards.

In our view, such an approach should be premised on inspections that are at short notice, rigorous, thorough and that include direct engagement with tenants who can highlight issues of concern, thereby helping the regulator determine whether a given provider is meeting the enhanced consumer standards introduced by the Bill.

Clause 29 amends section 201 of the Housing and Regeneration Act 2008, adding a new section 201A to require the regulator to make, and take appropriate steps to implement, a plan for carrying out inspections. The plan must be published, kept under review, and revised or replaced where appropriate. However, the nature of the plan and issues such as the types of RPs that should be subject to regular inspections, the frequency of those inspections, and the circumstances in which RPs should be subject to ad hoc inspections are not prescribed on the face of the Bill, instead being left to the regulator to determine in due course.

While we recognise the need for the regulator to have a significant degree of discretion when it comes to formulating the inspections plan, we believe that the Bill should be more prescriptive in two important respects. First, we believe it is essential that the Bill make clear that all RPs, large or small, will be subject to inspections by the regulator. Secondly, we believe it is essential that the Bill ensures that each RP will be subject to routine inspections.

Amendment 16 seeks to achieve both those objectives by specifying which landlords will be inspected and the maximum duration of time between each inspection they are subject to. It does so by replacing proposed new section 201A(1)(a) and (b) of the Housing and Regeneration Act 2008, as inserted by clause 29—for those following in the Bill, that is lines 36 to 39 on page 23—with a requirement that every RP must be inspected within four years of the commencement of the Act and then inspected at intervals of no longer than four years thereafter.

We believe it is entirely reasonable to detail in the Bill the minimum expectations for the regulator’s inspections plan. The policy paper published alongside the Bill in June made clear that it would enable Ofsted-style inspections of social housing providers by the regulator. The Education Act 2005 that introduced those inspections specified that every school in England would be subject to them and that they would be inspected on a routine basis at least once every three years. Amendment 16 takes that arrangement and applies it to RPs, subject to the enhanced consumer standards introduced by the Bill.

The amendment deliberately does not specify the precise frequency of inspections, merely requiring that they take place at least once every four years—the timeframe proposed by the Government in their 2020 White Paper in relation to the largest landlords. In doing so, the amendment would allow the regulator to determine the precise frequency and nature of individual inspections based on the size of the landlord and its risk profile as determined by means of desktop review.

We believe amendment 16 would preserve the regulator’s operational independence and flexibility when it comes to formulating and implementing the inspections plan now required by clause 29, while strengthening the clause to ensure that key minimum expectations are specified and that tenants can have real confidence in the new inspections regime as a result. I hope the Minister will consider accepting it.

[Dehenna Davison]

Clause 29 commits the regulator to the delivery of regular inspections by providing it with a duty to publish, and take reasonable steps to implement, a plan for regular inspections. The clause will reinforce the regulator’s commitment to deliver the policy objective set by the social housing White Paper, while ensuring the regulator has the freedom to design the inspections regime following engagement with the sector.

As members of the Committee know, a key part of our efforts to drive consumer standards is the introduction of routine inspections by the regulator for the largest landlords. Inspections will help the regulator to hold landlords to account and intervene where necessary, ultimately driving up the quality of homes and services provided to tenants. That measure is integral to the success of the proactive consumer regime facilitated by the Bill.

However, I cannot accept amendment 16, which seeks to introduce a specific duty for the regulator to conduct inspections of all RPs every four years. As I have said, clause 29 puts the Government and the regulator’s shared commitment to inspections into legislation, through requiring the regulator to publish and take reasonable steps to implement an inspections plan. The clause also ensures that the regulator maintains a level of operational flexibility to allow it to respond on a risk basis to significant developments in the sector.

The regulator is committed to developing a robust approach to inspections, and continues to develop the details of how it will manage consumer inspections via a process of targeted engagement with the sector and social housing tenants. I do not feel that we should bind the regulator’s hands by putting into legislation detailed requirements about inspections that would pre-empt the work it is currently undertaking.

The system of inspections will be based on a risk profile to ensure that those landlords at greatest risk of failing, or where failure might have the greatest impact on tenants, are subject to greater oversight. As part of that provision, the regulator will aim to inspect landlords with more than 1,000 homes every four years. We will, of course, hold the regulator to account to deliver and implement its inspections plan, and the regulator continues to be accountable to Parliament for the delivery of its statutory objectives.

--- Later in debate ---

[Matthew Pennycook]

I have to say that I am slightly disappointed with the Minister’s speech. I am not convinced by her arguments. There is clearly a debate here about how prescriptive we should be in the Bill as to the regulator’s functions. I am convinced that we need to be slightly more prescriptive. I say that for a couple of reasons.

First, my hon. Friend the Member for Mitcham and Morden made a good point on the size of providers. It has certainly been my experience that some of the smaller providers are the most egregious when it comes to standards, partly because they do not face the reputational risk, or the extent of investigations by Members of Parliament or others into their activities, that some of the larger providers do. I do not think the size of providers should play a part in who is inspected.

We think it is important that all providers are inspected within the four-year period. I absolutely agree with my hon. Friend: it is not enough to base a reactive inspections regime, to the extent that that is a part of the process provided by the clause, on surveys or desktop studies alone. We do not leave schools out of the Ofsted inspections process because we are not getting complaints about them. We inspected all schools routinely within a certain period.

Secondly, to the extent that the amendment is prescriptive, I do not think that it is particularly onerous on the regulator. All we are asking for is an inspection within four years of the Bill receiving Royal Assent and every four years thereafter. That four-year timeframe was proposed by the Government in their White Paper; we did not pluck it out of thin air. I think it is entirely reasonable to ask for an inspections regime to take place on that basis. If the regulator needs the resources to carry out those inspections, let us ensure that it has them. However, I struggle to understand why the Government do not feel they can add an element of prescription to the inspections plan in the way that amendment 16 proposes. We will therefore press the amendment to a Division.

Question put, That the amendment be made.

--- Later in debate ---

[Matthew Pennycook]

We welcome the introduction of performance improvement plans as a sensible measure to drive up standards where registered providers are falling short. I would, however, like to raise a few issues in relation to how these plans will work in practice.

We note that the tenant is provided with a copy of the performance improvement plan, which is drawn up where a registered provider has failed to reach a statutory standard for properties under their responsibility, only if the tenant makes a written request for one. Given the strong case for ensuring that all affected tenants know how their landlord is performing and what decisions they are making, we question whether that is sufficient. We note that this matter was also explored during Committee stage in the other place.

In the material it supplied in relation to consideration of the Bill, the Chartered Institute of Housing argued:

“Consideration should be given as to how tenants will be alerted should any poor performance lead to the regulator requiring a performance improvement plan”.

The Local Government Association has also put on record its desire to see the publication of guidance on the regulator’s requirements and timescales for preparing and implementing performance improvement plans.

In the light of these points, I hope the Minister could clarify, either today or in writing—I am happy to take another letter from her—the operation of the provisions in this clause in relation to the following. First, how will tenants be notified if the poor performance of their registered provider leads to the regulator initiating the process of preparing an improvement plan? Will tenants, for example, have the chance to input their views about the problems identified and the measures specified for improvement in these plans?

Secondly, what is the rationale for specifying that tenants can only request a copy of the plan if they require one, rather than being provided with the plan as a matter of course along with any information about what it is, why it came about and what changes they can expect to see as a result—an arrangement that strikes us as more in keeping with the aims outlined in the Government White Paper? Thirdly, is the Minister able to tell us when the guidance on the regulator’s requirements and timescales for preparing and implementing performance improvement plans will be published? Lastly, does the Minister expect that performance improvement plans will be used as a first resort to give underperforming landlords the chance to improve before the regulator considers more punitive measures?

[Dehenna Davison]

I am grateful to the shadow Minister for his questions. I will follow up in writing and provide some more clarity. Where there is a performance improvement plan in place, the provider is required to publish that, so it will be freely available to tenants and, indeed, to members of the public.

Question put and agreed to.

Clause 30 accordingly ordered to stand part of the Bill.

Clause 31

Emergency remedial action

[Matthew Pennycook]

I beg to move amendment 17, in clause 31, page 27, line 28, leave out “may” and insert “must”.

This amendment would ensure that emergency remedial action takes place on every occasion where the conditions in subsections (2) to (4) of section 225B inserted by clause 31, are met rather than being discretionary.

[The Chair]

With this it will be convenient to discuss clause stand part.

[Matthew Pennycook]

Amendment 17, in my name and that of my hon. Friend the Member for Luton North, is extremely straightforward, and I will therefore be very brief in speaking to it.

Clause 31 relates to emergency remedial action. It amends section 225 of the Housing and Regeneration Act 2008, adding new sections 225A to 225H, which enable the regulator to arrange for an authorised person to take emergency remedial action in instances where a tenant faces an imminent health and safety risk. We strongly support it. The purpose of amendment 17 is simply to ensure that emergency repairs of the kind proposed must take place, rather than may take place—with apologies to the hon. Member for Harrow East, we return to the “may” and “must” distinction—on every occasion where the relevant conditions have been met.

It is worth briefly touching on what those conditions—as set out in proposed new section 225B(2) to (4)—are, because they are stringent, which is why we think that the regulator should be required to act in all instances. For the premises of a social housing provider to be considered appropriate for possible emergency remedial action under clause 31, a survey of its condition must have been completed; the premises must have been found to be improperly maintained; its condition has to have been found to cause an imminent risk of serious harm to the health or safety of the tenants who reside in it or neighbouring residents; and the provider has to have failed to comply with an enforcement notice requiring it to take action to bring the premises up to standard.

Our contention is that any premises managed by any provider found to have satisfied all those tests should automatically receive emergency repairs, rather than merely be considered for them. As such, we think the replacement of the offending “may” with a “must” is vital. I hope the Minister will give the issue considered thought.

[Dehenna Davison]

It is the responsibility of every registered provider of social housing to ensure that they provide safe and decent housing to their tenants. That means maintaining properties in accordance with the Regulator of Social Housing’s standards and addressing problems issues quickly where problems are identified.

Where a provider cannot or will not address issues that risk the health and safety of tenants, it is essential that the regulator can act. The clause therefore allows the regulator to authorise persons to enter a property and conduct emergency remedial works in cases where failings risk causing serious harm to tenants. For the regulator to do so, it must first conduct a survey of the premises, be satisfied that the provider has failed to maintain the premises in accordance with relevant standards and that the failure poses a serious health and safety risk, and give an enforcement notice requiring those failures to be addressed. If those grounds are met, the regulator may step in and take emergency remedial action. The amendment moved by the shadow Minister would mean that the regulator must take emergency remedial action when the relevant grounds are met.

I have made it clear several times that nothing is more important to the Government than keeping people safe in their homes. Sadly, however, I cannot accept the amendment, because we feel it is essential that the regulator retains the independence and flexibility to determine where it is appropriate to use the power set out in the clause. That reflects regulatory best practice, whereby the regulator has the operational independence to regulate the sector effectively by deciding which of its enforcement powers to use in any given case.

[Matthew Pennycook]

If a provider has failed all the tests in the clause, what other powers might the regulator use if it did not feel that emergency remedial action was necessary? What other things might it do to address a series of failings that triggered its ability to act along the lines we have discussed?

[Dehenna Davison]

We have talked, for example, about enforcement notices and possible fines, which are clearly measures available to the regulator. One of the things that we are concerned about at this stage—this has been drawn out at various points today—is binding the hands of the regulator. We do not want to commit it to one course of action.

[Dehenna Davison]

My hon. Friend makes the point extremely well and much more strongly than I did. She is absolutely right. We are setting out the framework of what the regulator can use and will have access to. It will have a full suite of powers available to ensure that it is looking out for tenants and that they are in the best possible housing.

To summarise, we do not wish to bind the hands of the regulator too stringently. We want to give it a suite of powers and the operational independence to choose which powers to use. On that basis, I ask the hon. Member for Greenwich and Woolwich to consider withdrawing his amendment.

[Matthew Pennycook]

I appreciate the Minister’s concern about binding the regulator too rigidly. I push back slightly against the point made by the hon. Member for Erewash: I think it is wrong to say—the experience of recent years shows this—that just because we give a regulator a power, it necessarily uses it, and certainly not in a proactive way. At this stage, however, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Amendments made: 8, in clause 31, page 29, line 41, leave out from beginning to end of line 6 on page 30 and insert—

“(5) Equipment or materials taken onto premises by virtue of subsection (4)(b) may be left in a place on the premises until the emergency remedial action has been taken provided that—

(a) leaving the equipment or the materials in that place does not significantly impair the ability of an occupier to use the premises, or

(b) leaving the equipment or the materials on the premises is necessary for the purposes of taking the emergency remedial action and it is not possible to leave it or them in a place that does not significantly impair the ability of an occupier to use the premises.”

This adjusts the power to leave equipment etc on premises so that it can only be left in a place that significantly impairs the ability of occupiers to use the premises if there is no other place on the premises it can be left which doesn’t impair such use.

Amendment 9, in clause 31, page 30, line 6, at end insert—

“(6) Where the premises include common parts of a building (as defined in section 225C), references in subsection (5) to the ability of an occupier to use the premises include the ability of an occupier of a dwelling that has use of the common parts to use those parts or the dwelling.”

Where emergency remedial action is taken on premises which include common parts of a building this amendment requires the effect on the ability of occupiers to use their dwellings and the common parts to be considered in determining whether equipment or materials can be left on the premises while the work is carried out.

Amendment 10, in clause 31, page 30, leave out lines 29 to 36 and insert—

“(5) Equipment or materials taken onto premises by virtue of subsection (4) may be left in a place on the premises until the emergency remedial action has been taken provided that—

(a) leaving the equipment or the materials in that place does not significantly impair the ability of an occupier to use the premises, or

(b) leaving the equipment or the materials on the premises is necessary for the purposes of taking the emergency remedial action and it is not possible to leave it or them in a place that does not significantly impair the ability of an occupier to use the premises.”

This adjusts the power to leave equipment etc on premises so that it can only be left in a place that significantly impairs the ability of occupiers to use the premises if there is no other place on the premises it can be left which doesn’t impair such use.

Amendment 11, in clause 31, page 30, line 36, at end insert—

“(5A) Where the premises include common parts of a building (as defined in section 225C), references in subsection (5) to the ability of an occupier to use the premises include the ability of an occupier of a dwelling that has use of the common parts to use those parts or the dwelling.”—(Dehenna Davison.)

Where emergency remedial action is taken on premises which include common parts of a building this amendment requires the effect on the ability of occupiers to use their dwellings and the common parts to be considered in determining whether equipment or materials can be left on the premises while the work is carried out.

Clause 31, as amended, ordered to stand part of the Bill.

Clauses 32 to 35 ordered to stand part of the Bill.

Schedule 3 agreed to.

Clauses 36 to 38 ordered to stand part of the Bill.

Schedule 4 agreed to.

Clauses 39 and 40 ordered to stand part of the Bill.

Schedule 5 agreed to.

Clauses 41 to 43 ordered to stand part of the Bill.

Clause 44

Short title

Amendment made: 12, in clause 44, page 37, line 10, leave out subsection (2).—(Dehenna Davison.)

This amendment removes the privilege amendment inserted by the Lords.

Clause 44, as amended, ordered to stand part of the Bill.

New Clause 1

Regulator duty to ensure continuity of secure tenancy in cases of threat to safety

“(1) The Housing and Regeneration Act 2008 is amended as follows.

(2) After section 92K insert—

‘92KA Duty to ensure continuity of secure tenancy in cases of threat to safety

(1) This section applies where—

(a) a registered provider of social housing has granted a secure tenancy of a dwelling-house in England to a person (whether as the sole tenant or a joint tenant), and

(b) the registered provider is satisfied that there is a threat to the personal safety of that person or of a member of that person’s household which means there is a risk to their personal safety unless they move.

(2) When subsection (1) applies, the regulator must ensure that the registered provider grants the tenant a new secure tenancy which is–

(a) on terms at least equivalent to the existing tenancy; and

(b) in a dwelling where the threat to the tenant’s personal safety does not apply.

(3) In this section, a “threat to personal safety” means any threat of violence, including in circumstances of—

(a) domestic abuse where the perpetrator does not live at the same address as the victim;

(b) an escalating neighbour dispute;

(c) a threat of targeted youth or gang violence.

(4) In assessing the threat under subsection (1)(b), the registered provider must act in accordance with any relevant police advice provided to–

(a) the registered provider,

(b) the tenant, or

(c) any member of the tenant’s household.

(5) In the event that a registered provider is unable to ensure the provision of an appropriate new secure tenancy pursuant to subsection (2), the regulator must ensure that the registered provider concerned co-operates with other registered providers to ensure an appropriate new secure tenancy is provided in a timely manner.’”—(Helen Hayes.)

This new clause would require the regulator to ensure that tenants whose safety is threatened are granted alternative accommodation by their housing provider on equivalent terms to their existing tenancy. It also requires the regulator to ensure that a provider which is unable to provide appropriate alternative accommodation co-operates with other providers to do so.

Brought up, and read the First time.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

I beg to move, That the clause be read a Second time.

It is a pleasure to serve under your chairmanship, Sir Edward. The new clause proposes a small but significant amendment to housing law to give additional security to social housing tenants who suffer the consequences of a threat of serious violence. The clause arises from my experience of representing my constituent Georgia, an NHS worker whose teenage son was threatened by gang members. Georgia was a housing association tenant who had lived in her home for nine years. She and her children were happy in their home, which she had recently redecorated—then her neighbours told her that one afternoon, while she was at work, they had heard loud banging on her door. Georgia eventually coaxed out of her son the information that he had witnessed something that local gang members had not wanted him to see, and they had come to her home looking for him. Georgia contacted the police, who told her that she had to move immediately for her family’s safety. She got in touch with her housing association, which told her that it was the council’s responsibility to provide emergency housing. The council placed Georgia and her children in temporary accommodation, which was in another borough, of poor quality and expensive. Georgia’s children did not have enough space, the flat was damp and dirty, it was hard for her children to do their homework and Georgia started to suffer from panic attacks that affected her work.

By the time that Georgia’s friend got in touch with me because she was worried about Georgia’s health and the wellbeing of her children, they had been in the temporary accommodation for six months, and her housing association had started the process of ending her tenancy because she was no longer living in her flat. The consequence of this, in the context of the UK’s housing crisis, would have been Georgia and her children being added to the statistics of homeless households, in temporary accommodation—potentially indefinitely—and at the bottom of the housing waiting list. No one should become homeless because their child is threatened.

In one London borough, 47 housing association tenants—at the time that I did this research, earlier this year—have required homelessness assistance from the council as a result of a threat of violence since 2019. Across the country, that means that thousands of families have had to leave their home each year, with their secure tenancies potentially at risk, on top of having to rebuild their lives in a new area. Homelessness is fundamentally destabilising, involving the loss of a sanctuary and a place in one’s community. It is deeply traumatising to have to make an emergency move because of a threat of violence and start again somewhere else. Our housing system should do everything possible to help families in such circumstances to make the transition to a new, permanent home as soon as possible to limit the harm caused by that threat.

I am delighted that the new clause has the support of both Shelter and the National Housing Federation. Shelter has also highlighted the case of Corey Junior Davis, or CJ, whose mum had asked her housing association for an urgent move after her son had been threatened and told her that he feared for his life. CJ’s mum had done everything possible to keep her son safe, including sending him to stay with relatives in a different area, but six months after her initial request, while they were still waiting for a move, CJ was shot and killed. I have also met several constituents who have sent their children away to keep them safe, because they know what the consequences of an emergency move to temporary accommodation would mean and they fear those consequences. That is not a choice that any parent should have to make.

The new clause would have the effect of requiring social landlords to protect the tenancy rights of secure tenants who have had to move due to a threat of serious violence, and would place a duty on social landlords to co-operate in a situation in which the tenant’s current landlord does not hold stock in an area that is considered safe for the tenant to move to. The threshold for these new duties to be triggered is that the police consider an emergency move to be necessary. Georgia was troubled by what had happened to her son, but it had not occurred to her that she would have to move out of the home that she loved until the police said that that was necessary to safeguard her child’s life. The group of people who would be protected by the new clause are not net additional demand on the social housing system; they are already secure social tenants, and the current social home that they are vacating would of course be returned to the landlord to be let to a new tenant.

There are many reasons why people become homeless due to no fault on their part. The clause will not protect all of them, but I am tabling this new clause for two reasons. The first is that the loss of a secure social tenancy, and effectively going to the bottom of an impossibly long housing waiting list, is far too high a price to pay for being the victim of a threat of violence. Georgia and her children suffered a grave detriment, simply because some violent gang members decided to threaten her son. The second is that serious violence is a scourge on the lives of all those that it affects. Far too many young people are living with the deep trauma of things that they have witnessed or friends that they have lost to knife or gun crime. We have a duty to do everything possible to stop the cycle of violence and the trauma that it causes in our communities. Supporting the victims of threats of violence to regain stability and move on with their lives is one way in which we can do that. Plunging victims into the unstable, often appalling, world of temporary accommodation has the opposite effect. We have the opportunity to change that.

--- Later in debate ---

[Helen Hayes]

I thank the hon. Member for that intervention. The new clause would impose a duty of co-operation on registered social landlords, which is designed to deal exactly with such a circumstance, where accommodation cannot be found that is safe for the tenant within the area in which the current landlord holds property. These are of course very challenging cases. I have certainly come across constituency cases in which the tenant simply cannot bring themselves to move from their home because the consequences are so dire for them, even when an offer has been made in an area that is considered by the police to be safe for them.

The new clause will not resolve every single circumstance, but in Georgia’s case, when I phoned a senior director in her large registered housing provider she was provided with a new tenancy in a safe borough, and signed that tenancy within a week. With greater will on the part of registered providers, and I believe that placing a duty would prompt that greater will, much more can be done to stop the cycle of violence in our communities.

[Matthew Pennycook]

I rise briefly to support my hon. Friend’s new clause, Georgia’s law. She made an extremely powerful case for it. I believe that it is sensible and proportionate, and will have a significant impact. I am sure that many hon. Members present have dealt with the kind of cases that she outlined—I certainly have. We are talking about a small but significant minority of tenants in England, but they find themselves, as the hon. Member for Harrow East said, in the exceptional circumstances of a police referral. All the new clause asks for is the protection of their tenancy rights, which should not be lost when they are forced to move, and greater co-operation between registered providers.

It is no surprise that the new clause is supported by organisations such as the NHF and Shelter. I think this is a very strong new clause, and I very much hope that the Government are minded to act on this issue, if not today then on Report. It is a crucial provision and will benefit the lives of many of our constituents.

[Dehenna Davison]

I am grateful to the hon. Member for Dulwich and West Norwood for tabling the new clause and for her engagement on the issue some weeks ago when we met to discuss it. I am grateful to her for raising the case of Georgia and her boys, and that of CJ. They are both horrendous cases, which give us all food for thought. I thank her for her words on the need to reduce violence more widely. That is something I am incredibly passionate about on a personal level too.

Before I begin, I want to clarify some technicalities. The new clause would provide protection where registered providers have granted their tenants secure tenancies. Secure tenancies are only granted by local authorities, so we will talk to the intention of the new clause, which is I believe around assured tenancies, as well as those in secure tenancies given by local authorities that are registered with the regulator.

We do not expect anyone who is threatened with violence to feel like they cannot move to safety for fear of losing their security of tenure. There are already a number of policies in place that seek to protect people at risk of violence who are in need of urgent rehousing. If a local authority grants a victim of domestic abuse, for example, a new tenancy for reasons connected with the abuse, it is required to give them a secure lifetime tenancy, rather than a tenancy with a fixed term.

Local authorities are also required to give people who need to move for their safety reasonable preference for social housing under section 166A(3) of the Housing Act 1996. Chapter 4 of the statutory guidance encourages local authorities to give additional preference or high priority to those fleeing violence, including intimidated witnesses, those escaping serious antisocial behaviour and people fleeing domestic violence.

By extension, those protections can be applied to private registered providers through duties to co-operate with their local authority in housing people with priority. Most private registered providers let 50% to 100% of their tenancies via nominations from their local authority. The current approach, which considers applicants for social housing on a case-by-case basis, and retains some flexibility, is the most appropriate means of determining whether a household should be granted a new tenancy.

The new clause would have the effect of requiring registered providers to relocate tenants and provide them with a new tenancy agreement. As we know, there are sadly many people with urgent housing needs who need to move immediately—for example, families who are living in conditions that pose a serious risk to their health. Going further than the existing protections by requiring registered providers to prioritise people fleeing violence above others would undermine some of the flexibilities given to housing providers to respond to the specific requirements of those in urgent need of social housing locally.

It is a fundamental right of the landlord to determine who they grant a tenancy to and who lives in their property. Retaining that right is key to registered providers being able to achieve their goal of creating safe and stable communities. It is therefore important to retain some flexibility for social landlords to decide their policy on allocations and who to house. That is integral to the effective functioning of the wider system.

Finally, as I am sure the hon. Member for Dulwich and West Norwood will be aware, we are taking steps to reform tenancy law to protect the security of tenure for social tenants. After section 21 is removed, all tenancies given by private registered providers will have greater security of tenure.

On that basis, I ask the hon. Lady to withdraw the new clause. I am very willing to work with her to see what more can be done in this area to prevent any more cases like that of Georgia and her boys emerging.

--- Later in debate ---

[Matthew Pennycook]

I beg to move, That the clause be read a Second time.

This is, quite consciously, a probing amendment. As a result of the Regulation of Social Housing (Influence of Local Authorities) (England) Regulations 2017, the amount of local authority influence over private registered providers was reduced through the loss of local authority voting rights and restrictions on the percentage of officers a local authority may nominate as board members. The rationale for that reduction of influence was that it was necessary for the Government to relinquish sufficient control to allow the Office for National Statistics to reverse its 2015 classification of housing associations into the public sector following the Cameron Government’s decision to force registered providers to cut social sector rents by 1% a year for four years, with all that that entailed for the ability of social landlords to fund essential services, spend on repairs and maintenance, carry out retrofit work and build new social homes. If you recall, Sir Edward, it was done as a means of slashing the housing benefit bill.

--- Later in debate ---

[Dehenna Davison]

I thank my hon. Friend for setting out his own experience. It is an area the Government are very concerned about, and it comes back to the Committee’s debate today about how prescriptive we should be in the Bill.

Some housing providers already have tenants on boards, and they have been effective in championing residents’ voices, but this is not the case for everyone. Tenant board members are required to put their legal duties as a board member before their role as the representative for residents, which can cause confusion and conflict. Other structures can be just as successful and involve a more diverse range of tenants in decision making. That can range from formal consultations, focus groups and local events to appointed board observers and membership of panels focused on scrutiny, procurement or complaints that feed in at all stages of the decision-making process. We want to retain a flexible approach that promotes tenant empowerment and engagement for all tenants without forcing the statutory duties of a board member on a single individual.

The Regulator of Social Housing already sets standards for the outcomes that landlords must achieve in respect of tenant engagement. It will review, consult and update them as part of the new consumer regulation regime. The regulator will also ask landlords to demonstrate how they engage with tenants and require them to report on tenant satisfaction measures, as part of their assessment and inspection of landlords in the new regime. That is important because for the first time it makes tenants’ experiences a measure by which housing providers will be judged and held to account by the regulator.

There will also be improved transparency measures for tenants to be able hold their landlord to account. They need to know how it is performing and what decisions it is making. That information needs to be easily available. Earlier today we touched on the access to information scheme that we will introduce. That will enable tenants of private registered providers to request information from their landlords.

In addition, we have made funding available for a residents’ opportunities and empowerment programme, which will provide training to residents across the country on how to engage effectively and hold landlords to account. I hope that I have provided enough reassurance for the shadow Minister to withdraw his new clause.

[Matthew Pennycook]

I thank the Minister for that useful response and the hon. Member for Walsall North for his contribution. The Minister touched on an interesting issue when exploring the details of the Bill before today. There is not only potential for confusion but potential conflict about the role of a board member, particularly in the case of an elected councillor.

I was interested to read when looking into the death of Awaab Ishak that two councillors were removed by the board of Rochdale Boroughwide Housing for drawing attention to their concerns about buildings being pulled down—I am not saying that was anything specifically related to his death, but it related to concerns they had about a particular decision by the provider that was in conflict with their role.

In general terms, I understand the concern about being too prescriptive. This area should perhaps be kept under review. Whether it is best practice by some registered providers, guidance or whatever it might be, it is important to keep under review how to ensure that we can get the most representative and effective board of registered providers. As I said, this is a probing new clause. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 6

Standards relating to consumer matters

‘(1) Section 193 of the Housing and Regeneration Act 2008 is amended as follows.

(2) In subsection (2)—

(a) after paragraph (d) insert—

“(da) major repair or improvement works,

(db) estate regeneration,

(dc) service charges,”

(b) after paragraph (ga) insert—

“(gb) advice and assistance in relation to the prevention of homelessness,”

(c) after paragraph (h) insert—

“(ha) provision for urgent transfer of tenancies in relation to tenants affected by domestic abuse or other violence”’.—(Matthew Pennycook.)

This new clause would allow the regulator to set standards in relation to major repair or improvement works, estate regeneration, service charges, homelessness prevention, and urgent moves for residents at risk of violence.

Brought up, and read the First time.

[Matthew Pennycook]

I beg to move, That the clause be read a Second time.

In rising to speak to the final new clause, I thank hon. Members for their indulgence. They have listened to me a lot today.

[Eddie Hughes]

Quality stuff!

[Matthew Pennycook]

Absolutely right.

We finish with an important new clause. It relates to what comes under the rubric of consumer standards as defined by the Bill. Since its initial publication in June, the Bill has been improved in several important respects. Today we have urged the Government to go further in relation to some areas and we will continue to do so, but we welcome the introduction of the consumer standards in relation to safety, transparency, competence and conduct.

However, there are other matters of real importance to social tenants that the Bill, as drafted, does not extend new consumer standards to. They include major repairs or improvement works, estate regeneration, service charges, advice and assistance in relation to the prevention of homelessness and urgent moves resulting from the risk of domestic abuse or serious violence.

New clause 6 simply seeks to ensure that the regulator has the freedom to set standards for registered providers in respect of each of those areas of housing management by amending section 193 of the Housing and Regeneration Act 2008 to include them within the scope of what is considered a consumer matter.

There is arguably a need for the regulator to carry out a thorough consultation about consumer standards to better understand what housing management issues currently matter most to tenants. However, we know both from organisations providing housing support, guidance and expert advice services and, I would argue, from our own postbags, that the issues covered by new clause 6 are important to tenants. There is an arguable case for placing them in the Bill to at least allow the regulator, which has probably consulted and developed them, to set consumer standards in relation to some of these issues at a later date. I look forward to the Minister’s response.

[Dehenna Davison]

As the shadow Minister outlined, the new clause seeks to amend the Regulator of Social Housing’s powers to set consumer standards in a number of ways. All the issues that he raised are important. Although I cannot accept the amendment, I will seek to address the issues raised in turn.

On major repairs and improvements, all social housing landlords should be delivering decent social housing and prioritising repairs and improvements that need to be made to ensure that housing is up to standard. The regulator is already able to set standards relating to the nature, extent and quality of accommodation, and the facilities and services, provided. That can include specified rules about maintenance, which would cover major repairs.

The regulator’s current homes standard already requires registered providers to provide a repairs and maintenance service that meets the needs of tenants, with the objective of getting repairs and improvements right the first time. The regulator will consult on and revise the standards following the passage of legislation and the issuance of Government directions.

On estate regeneration, let me be clear that I agree that landlords should be adequately planning for major regeneration projects and delivering planned maintenance. However, including that area as part of the regulator’s standard-setting remit is not necessary. As I have noted before, the regulator already has the powers required to set standards required relating to maintenance and repairs. Those standards apply to all homes, regardless of whether they are part of a regeneration project.

Existing legislation also enables the regulator to set standards relating to the contribution of landlords to the environmental, social and economic wellbeing of the areas in which their property is situated, which relates closely to the intended outcomes of regeneration projects. The regulator already sets expectations about neighbourhood management in its consumer standards and will be consulting on revised expectations under the proposed new standards, once the Bill has been passed.

It remains the responsibility of landlords to effectively manage their stock and deliver decent housing for their residents. We believe that a specific standard-setting power for regeneration is unnecessary. Effective asset management is already a focus of the in-depth assessments that the regulator conducts, which mean that landlords have to demonstrate to the regulator that they are able to maintain adequate levels of investment in the homes that they are responsible for.

I turn to service charges. The Government’s policy statement on rents for social housing encourages registered providers of social housing to keep any service charge increases within the consumer prices index plus 1% per year—the current limit on annual increases in social housing rents—in order to help ensure that charges stay affordable. Following our recent consultation on social housing rent increases, the Chancellor announced as part of his autumn statement that the Government will cap the increase in social rents at a maximum of 7% in 2023-24. In line with the proposal set out in our consultation, we will amend the policy statement to encourage providers to apply the 7% limit to any service charge increases in 2023-24.

Our policy statement also states that tenants should be supplied with clear information on how service charges are set; in the case of social rent properties, providers are expected to identify service charges separately from the rent charge. The new clause is not necessary to facilitate the regulator’s requiring that transparency from providers.

Furthermore, service charges are already governed by legislation in the Landlord and Tenant Act 1985, which states that service charges can be charged only to the extent that they are reasonably incurred and that enforcement of that is via the courts. Consequently, it is not appropriate or necessary to add to the Bill a specific standard-setting power relating to service charges.

I move on to the issue of homelessness. Let me be crystal clear: the Government are committed to preventing homelessness, and I commend my hon. Friend the Member for Walsall North on the incredible work he did on that as a Minister. Since the introduction of the Homelessness Reduction Act 2017, more than half a million households have been supported into secure accommodation. We are investing £2 billion over the next three years into addressing homelessness and rough sleeping, and in September we published our bold new strategy “Ending rough sleeping for good”. We have also provided £316 million this year for the homelessness prevention grant, which local authorities can use flexibly to meet their homelessness objectives—including to work with providers to prevent evictions.

I am not in a position to accept the new clause, as I believe the existing legislation is sufficient to achieve the outcome that the hon. Member for Greenwich and Woolwich is seeking. The regulator’s existing tenancy standard already requires social landlords to develop and provide services that will support tenants to maintain their tenancy and prevent unnecessary evictions. The regulator’s standards will be consulted on and updated following the passage of legislation and the issuance of Government directions. Consequently, homelessness prevention is already a priority for providers; the regulator plays a vital role in support.

I move on to the urgent transfer of tenancies in cases of domestic abuse and violence. Again, to be absolutely clear we do not expect anyone who is threatened with violence to feel that they cannot move to safety for fear of losing their security of tenure. A range of measures are therefore already in place to protect people at risk of violence and in need of urgent rehousing, some of which I have already outlined that in earlier contributions.

Chapter 4 of the statutory guidance encourages additional preference to be given to those fleeing violence, including people fleeing domestic violence, and private registered providers have a role in housing such people through their duties to co-operate, as I outlined earlier.

I will not rehash any more of the arguments that I made in response to the hon. Member for Dulwich and West Norwood and her new clause 1. However, I should add that in schedule 5 to the Bill, we are already amending the regulator’s standard-setting powers to include policies and procedures in connection with behaviour that amounts to domestic abuse within the meaning of the Domestic Abuse Act 2021.

For all the reasons I stated, I do not believe that the amendments to the regulator’s standard-setting powers are necessary. I ask the hon. Member for Greenwich and Woolwich to withdraw his new clause.

[Matthew Pennycook]

I thank the Minister for that response. I am somewhat reassured by it, to the extent that she has laid out—in considerable detail, in some cases—the ways in which some of the issues of concern flagged in the new clause are appropriately covered by the standards, guidance, policies and procedures. My reservation is about whether those existing processes have the effect that would be achieved by allowing the regulator itself to set standards and consumer standards.

Given how complex an issue this is, I will take away the Minister’s response and look at it in more detail, but I reserve the right to come back to the issue on Report. We think it is important that some of these real issues of concern to tenants be given due consideration when it comes to whether they are brought within the new regulatory regime to be established by the Bill. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

Question proposed, That the Chair do report the Bill, as amended, to the House.

[Dehenna Davison]

I have my Oscars-style speech of thanks to give before we finish today. First, a huge thank you to you, Sir Edward, for chairing the Committee so successfully and professionally, and for keeping us all in check. We are MPs; we always need someone to keep a good gaze over us to ensure that we are behaving.

I thank all members of the Committee for a constructive debate. One of the most reassuring things has been that there is such cross-party consensus in recognising that the Bill is absolutely needed and that we can all very much get behind its aims.

I thank the Clerks for their stellar work and my officials, who have been brilliant at speedily giving me all the information that I need. I thank the fabulous Whip, my hon. Friend the Member for Hertford and Stortford, again for keeping us in check on the Government Benches.

I also say a huge thank you to Grenfell United, Shelter and others for their engagement on this important legislation. As the Minister, I feel grateful to have had the opportunity to take the Bill through Committee. I look forward to its coming back on Report; as I said, I will engage with Members before that point.

In my final breath, I say a massive good luck to both teams tonight. I am sure most people know which one I am supporting.

[Matthew Pennycook]

Briefly, Sir Edward, I thank you for your chairmanship of the Committee and the Clerks for all their work to prepare us. I thank the Minister for the constructive tone in which she approached the debate, and all hon. Members for the considerable amount of expertise and insight put forward in our debates. I, too, thank all the organisations, not least Grenfell United, that sent us their views and engaged with us on what they see as important in how the Bill could be strengthened.

As I said at the start, the Bill is uncontroversial and we welcome the vast majority of measures. We want to see it strengthened and we have made the case for that today. We will continue to make the case on Report for those areas of the Bill where we want to see further improvement, but I am glad that it can make swift progress to its next stage.

[The Chair]

I thank you for being so expeditious. My fellow Chair, who is a Scot Nat, has had an easy ride.

Question put and agreed to.

Bill, as amended, accordingly to be reported.

Social Housing and Regulation Bill [ Lords ] (First sitting)

Matthew Pennycook Excerpts

Tuesday 29th November 2022 Public Bill Committees

[The Chair]

Copies of written evidence that the Committee receives will be made available in the Committee Room and circulated to Members by email.

We will now begin line-by-line consideration of the Bill. A selection and grouping list for today’s sittings is available in the room. It shows how the clauses and selected amendments have been grouped for debate. Amendments grouped together are generally on the same or similar issues. Please note that decisions on amendments do not take place in the order they are debated, but in the order that they appear on the amendment paper. The selection and grouping list shows the order of debates. Decisions on each amendment and on whether each clause should stand part of the Bill are taken when we come to the relevant clause.

A Member who has put their name to the lead amendment in a group is called first. Other Members are then free to catch my eye to speak on all or any of the amendments in that group. A Member may speak more than once in a single debate. At the end of the debate on a group of amendments, I shall call the Member who moved the lead amendment again. Before they sit down, they will need to indicate whether they wish to withdraw the amendment or to seek a decision on it. If any Member wishes to press another amendment in the group to a vote, they will need to let me know in advance.

Clause 1

Fundamental objectives

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

I beg to move amendment 13, in clause 1, page 1, line 5, at end insert—

‘(aa) after paragraph (a) insert—

“(aa) to ensure the provision of care and support services in supported exempt accommodation and in temporary accommodation are adequate, well-managed, safe, and of appropriate quality,”’.

This amendment would ensure that support services provided to residents of supported exempt accommodation and temporary accommodation for those properties that already fall within consumer regulation are adequate and of an acceptable quality.

[The Chair]

With this it will be convenient to discuss new clause 8—Standards relating to supported and temporary accommodation—

‘(1) The Housing and Regeneration Act 2008 is amended as follows.

(2) In section 192 (Overview)—

(a) in paragraph (a), after “social housing” insert “, supported exempt accommodation and temporary accommodation”

(3) In section 193 (Standards relating to consumer matters)—

(a) in subsection (1), after “social housing” insert “or accommodation to which subsections (1A) to (1D) applies”

(b) after subsection (1) insert—

“(1A) The Secretary of State, after consultation with the regulator, may by order bring into consumer regulation accommodation managed or in the control of a registered provider that falls within subsection (1C) or subsection (1D).

(1B) An order under subsection (1A) may apply to either subsection (1C) or (1D) only or to both and orders commencing either can be made separately at different times and for any part of England.

(1C) The accommodation to which this subsection applies is supported exempt accommodation as defined by regulations under subsection (1E).

(1D) The accommodation to which this subsection applies is temporary accommodation as defined by regulations under subsection (1E).

(1E) The Secretary of State may by regulations set out the classes of accommodation that fall within subsection (1C) or subsection (1D) and may define each class by reference to the Housing Benefit Regulations 2006 or the Universal Credit Regulations 2013.”

(c) in subsection (2), after paragraph (2)(d) insert—

“(da) standards relating to supported exempt accommodation or temporary accommodation,”’.

This new clause would ensure that providers of supported exempt accommodation and temporary accommodation who are registered with the regulator and charge market rents covered by housing benefit are brought within the scope of the new consumer regulatory regime.

[Matthew Pennycook]

It is a pleasure to begin our line-by-line consideration of the Bill with you in the Chair, Sir Edward, and in a Committee with a considerable amount of housing expertise, which I hope will put us in good stead for further improving the Bill. The Opposition have consistently maintained that the Bill is uncontroversial legislation, and we welcome it and the measures it contains.

We desperately need to build more social homes, but we also need to ensure that our existing stock is of good quality and well managed. Almost half a million social homes fail to meet the Government’s decent homes standard and, as that standard is not a requirement, it is almost impossible to enforce.

The Regulator of Social Housing can and does react to systemic failings among registered providers—for example, the request for evidence issued in relation to damp and mould following the coroner’s report into the death of two-year-old Awaab Ishak in 2020—but at present it has no proactive way of regulating consumer standards. The spotlight of media attention, tenant campaigning or intervention by individual hon. Members should not be required to trigger the appropriate response to substandard conditions in social housing, yet that is all too often the case.

To ensure that tenants are properly protected by a robust, effective system of regulation, major reform is needed. Indeed, it is long overdue, and the Secretary of State was right to concede, in the wake of Awaab’s untimely death, that the Government have been too slow to toughen regulation in this area.

Despite its limited number of clauses, the Bill is therefore of real significance for millions of social housing tenants across the country. That is why the Opposition regret how long it took the Government to bring it forward, and it is why we want to see it on the statute book as soon as possible. To that end, we want to see the Committee to sit no longer than is absolutely necessary. However, we are determined to see the Bill strengthened in a number of areas, so that standards in social housing markedly and rapidly improve, tenants are able in practice to pursue and secure effective redress, the collective voice of tenants is heard more audibly and they have a greater role in shaping national policy, and we are better able to respond to pressing issues affecting some of those living in social housing, such as serious violence.

We owe it to the bereaved and the survivors of Grenfell, Awaab’s family and all those social tenants currently living in appalling conditions to pass the most robust legislation that the House can possibly deliver. To that end, we have tabled a limited number of amendments in key areas, the intention of which is to persuade the Government to reflect sincerely on how the Bill might be improved still further. Although we intend to work constructively with Ministers to secure the Bill’s speedy passage out of Committee, we expect the Government to give serious consideration to the arguments that we make in respect of those amendments.

Amendment 13 and new clause 8 relate to supported exempt accommodation and temporary accommodation. The new clause would provide the Secretary of State with the power to bring properties let at market rents by non-profit making providers of supported exempt or temporary accommodation registered with the regulator into the scope of consumer regulation. It would allow Ministers to do so at a time of their choosing and on an area-by-area basis as required. The amendment would extend the regulator’s fundamental objectives to the care and support services provided by supported exempt and temporary accommodation in relation to properties that already fall within the scope of consumer regulation.

I want to be clear at the outset that these proposals do not seek to extend the scope of the regulatory framework provided for by the Bill to all non-registered supported exempt and temporary accommodation providers in a way that could place unreasonable burdens on the regulator. Rather, they would apply only to those landlords who are registered, or entitled to register, with the regulator as non-profit making providers because they let some properties at below market rents—that is, social housing.

The purpose of these two related proposals is to address an existing loophole that, unless addressed, will remain a problematic gap in the consumer regulatory regime after the Bill has come into force. It is that non-profit making providers of supported exempt or temporary accommodation can let properties at market rents that are eligible for housing benefit support on the basis that “more than minimal” care, support or supervision is being provided, without those properties coming within the scope of consumer regulation.

We know that the regulatory gap is currently being exploited by unscrupulous providers. The three biggest registered providers of non-commissioned exempt accommodation in Birmingham last year, Reliance Social Housing CIC, Ash-Shahada Housing Association Ltd and Concept Housing Association CIC, received £159 million in housing benefit payments for 16,370 market rent properties that fell outside consumer regulation. They were able to operate those properties free from the fear of intervention on consumer standards grounds, because they collectively operate 310 properties—in Reliance’s case, it is just six—at below market rents.

As a result of the regulator being unable to enforce against poor performance by providers in relation to market rent properties that they operate on the basis of consumer standards, the regulator can enforce against bad practice in such cases only on grounds of economic viability. It has done so—for example, it found the large, Birmingham-based Reliance to be non-compliant with the governance and financial viability standard in October last year. However, Opposition Members struggle to understand why the Government have not enabled the regulator to take action against supported exempt and temporary accommodation providers letting units at market rents who fail to meet expected standards, using the tools provided for by the new proactive consumer regulatory regime introduced by the Bill, given that permitting it to do so would simply provide an additional weapon in the regulator’s arsenal when it comes to clamping down on unscrupulous providers.

It is true that clause 8(d) tightens the definition of what constitutes a non-profit making provider. That should help to ensure that some of the most flagrant abuses, such as out-of-balance portfolios, can be clamped down on. However, it will not end all instances of rogue providers gaming the system by letting some properties at below market rents, registering as non-profit making providers on that basis, and then operating far larger numbers of substandard market rent properties outside the scope of consumer regulation. For example, those with more balanced portfolios—presumably even if that were achieved on the basis of a split of 51% of properties let non-profit and 49% for profit—will escape the provisions of clause 8 that I just referred to.

We recognise that the Government support, as we do, the Supported Housing (Regulatory Oversight) Bill introduced by the hon. Member for Harrow East. I am pleased that the hon. Gentleman is on the Committee with us. His Bill will enhance local authority oversight of supported housing and thereby enable local authorities to drive up standards in their areas. However, it does not contain provisions to close the particular loophole that is the focus of amendment 13 and new clause 8. As such, if the Government do not accept our amendments or bring forward their own to tackle the loophole in question, enforcement action on the part of the regulator in these cases will be confined to matters of economic regulation.

One element of our concern about the gap in the proposed consumer regulatory regime that the amendments seek to address is that, once the hon. Gentleman’s Bill has received Royal Assent, rogue providers of supported exempt accommodation will be incentivised to exploit this loophole further, as it will be one of the last remaining loopholes because their operations will be hampered by the range of measures in the hon. Gentleman’s Bill. Using the Bill before us to address the issue of supported exempt and temporary accommodation landlords who are already partially regulated would also close down the loophole more quickly than would be possible by doing so through the Supported Housing (Regulatory Oversight) Bill, because it will be some time before that Bill is in Committee, and the detailed regulations required to give it full effect will take some time to be passed.

If the Government were persuaded of the merits of the argument underpinning amendment 13 and new clause 8, they could determine to deal with supported exempt accommodation and temporary accommodation separately. We ultimately decided that the amendments should cover both, because there is good evidence to suggest that the loophole is being increasingly exploited by private temporary accommodation providers, in particular those providing nightly paid temporary accommodation, who often describe themselves as social landlords but who are exempt from consumer regulation in relation to substandard properties they let at market rents at great cost to the taxpayer.

Dealing with supported exempt accommodation and temporary accommodation together is also an attempt to pre-emptively address the scenario in which the Government accept that properties let at market rents by registered non-profit making providers of supported exempt accommodation should be covered by consumer regulation and legislate to that end, but, by setting aside market rent temporary accommodation let by registered non-profit providers, ensure that that becomes an obvious target for rogue providers seeking to escape consumer regulation standards.

I appreciate fully—I expect that the Minister will respond along these lines—that the Government will be reluctant to re-open at this stage of the Bill’s proceedings what and who falls within the ambit of the new consumer regulatory regime, but surely they cannot believe that the Bill as drafted ensures that support services beyond general management that are provided to residents of supported exempt and temporary accommodation will be of acceptable quality, or that non-profit making registered providers can simply ignore consumer standards when it comes to those properties let at market rents eligible for housing benefit support.

The issues that are the subject of these two amendments will need to be addressed if the Government are serious about clamping down on rogue providers who take public money while failing vulnerable people. I hope that the Minister can signal that the Government are minded to act either by accepting the amendments or by bringing forward their own in due course.

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Dehenna Davison)]

It is a pleasure to serve under your chairmanship today, Sir Edward. I am incredibly grateful to the shadow Minister, the hon. Member for Greenwich and Woolwich, for the constructive way he has embraced this debate, for the Opposition’s broad support for the Bill, and for his commitment to ensuring that the regulator is as robust as it can be. On that point, we have certainly found some early agreement.

As the hon. Member outlined, amendment 13 would extend the remit of the regulator to the care and support provided to residents in supported exempt accommodation and temporary accommodation, while new clause 8 would extend the remit to those types of accommodation when they are not social housing but are held by a registered provider.

Temporary accommodation and supported housing that meets the definition of social housing is already regulated under the regulator’s standards, and the Care Quality Commission already regulates the provision of personal care in supported housing. The support needs of people in supported housing are wide, varied and often complex compared with those living in general needs accommodation. That is why we are supporting targeted measures in the Supported Housing (Regulatory Oversight) Bill, introduced by my hon. Friend the Member for Harrow East, to tackle the issues we are seeing in supported housing. I echo the shadow Minister’s comments; I am very grateful that my hon. Friend is bringing his incredible expertise to the Committee.

While there are many excellent supported housing providers, the Government recognise that there are some rogue supported housing landlords. Let me be completely clear for the record: any abuse of the supported housing system will not be tolerated. The Supported Housing (Regulatory Oversight) Bill will introduce national standards to be applied to supported housing and to give local authorities new powers to introduce licensing schemes and other enforcement powers.

Temporary accommodation is a key safety net for homeless households in this country. The homelessness code of guidance is clear that, at a minimum, temporary accommodation must be free from all category 1 health hazards, as assessed by the housing health and safety rating system, and it must be suitable for all members of the household. Households have the right to request that the council reviews the suitability of their accommodation.

--- Later in debate ---

[Maggie Throup (Erewash) (Con)]

It is a pleasure to serve under your chairmanship, Sir Edward. I think this is an important Bill. Amendment 13 and new clause 8 relate to supported exempt accommodation and temporary accommodation when provided by providers that are the subject of other parts of the Bill. The hon. Member for Greenwich and Woolwich made a very good case.

The hon. Member for Mitcham and Morden made a passionate speech, and I think we can all relate to what she was saying, because we all have examples in our constituency of providers who sound very legitimate and credible, but after they are looked into, it turns out that they are not. They are fly-by-nights who are just taking the opportunity provided by the loophole in regulations. We can all cite examples of HMOs that have been passed by councils because the councils do not have the powers to stop them. The impact on neighbourhoods is quite dire, and it really does destroy local communities.

While I appreciate the intentions behind the Opposition’s amendments, I think the better place to close the gaps in regulation would be in the Bill from my hon. Friend the Member for Harrow East. This measure is obviously needed, but I think this Bill is the wrong place for it. I hope to speak later about some of the specific issues in my constituency and the importance of regulating the providers and ensuring the provisions of the Bill are met, because they are so needed.

[Matthew Pennycook]

That was an incredibly informed and helpful debate. I just want to say at the outset that we fully appreciate how complex an area of law and regulation this is. I have done enough of these Committees to know that the Minister is not going to simply stand up and accept the amendments we have cobbled together just on the basis of my speech, however good it might have been.

I will try to respond to the points made, which I take in the constructive spirit they were offered in. I do not think many of the points made get to the heart of what the amendments are driving at. I agree with the hon. Member for Harrow East: there is a plethora of regulators in housing and planning generally, and I am concerned that we are creating overlap and confusion in various ways. I will come to how that might be true in relation to the ombudsman and the regulator when we discuss clause 5, but that is absolutely a point.

The Minister made the point well: the private Member’s Bill of the hon. Member for Harrow East, the Supported Housing (Regulatory Oversight) Bill, includes a range of targeted measures to address the scandal—we all agree it is a scandal—of rogue providers of exempt accommodation and temporary accommodation in many cases. However, as I made clear, that Bill does not address this gap. The hon. Member for Erewash said that if it is not covered by these amendments, it can be done via the Supported Housing (Regulatory Oversight) Bill, but it is not in that Bill. Perhaps it will end up in that Bill after Committee stage, in which case we will be entirely happy with that being a vehicle for it rather than this Bill, but it needs to be addressed.

--- Later in debate ---

[Dehenna Davison]

Absolutely, we will take this away. I would be grateful for the expertise of all on the Committee, including the hon. Member for Mitcham and Morden, who made an incredibly passionate case. Let us have a roundtable discussion about how best we can take this forward following Committee.

[Matthew Pennycook]

I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Question proposed, That the clause stand part of the Bill.

[The Chair]

With this it will be convenient to discuss the following:

New clause 2—Regulator duty to report on safety defects—

‘(1) In fulfilling its consumer regulation objective under section 92K of the Housing and Regeneration Act 2008, the regulator must report to the Secretary of State on actions taken by registered providers to remediate unsafe external wall systems and other historic fire safety defects in social housing.

(2) A report produced under this section may make recommendations to the Secretary of State on further action required to sufficiently address identified issues.’

This new clause would ensure that in meeting its fundamental objective to support the provision of social housing that is well-managed and of appropriate quality, the regulator would be required to report to the government on the progress of building safety remediation.

New clause 3—Regulator duty to support provision of social housing—

‘(1) In fulfilling its economic regulation objective under section 92K of the Housing and Regeneration Act 2008, the regulator must–

(a) within six months of this Act receiving Royal Assent, and

(b) at intervals of no more than three years thereafter

provide a report to the Secretary of State on whether the supply of social housing in England and Wales is sufficient to meet reasonable demands.

(2) A report produced under this section may make recommendations relating to how to ensure that the provision of social housing in England and Wales is sufficient to meet reasonable demands.’

This new clause would ensure that in meeting its fundamental objective to support the provision of social housing sufficient to meet reasonable demands the regulator would be required to report to the government on adequacy of social housing supply.

[Dehenna Davison]

Clause 1 relates to the fundamental objectives of the Regulator of Social Housing and adds safety and energy efficiency of tenants’ accommodation and transparency. New clauses 2 and 3 seek to take that further and expand the role of the regulator into new areas.

New clause 2 relates to monitoring the remediation of unsafe cladding and other fire safety defects in the social housing sector. I want to make clear from the outset that nothing is more important to this Government than making sure people are safe in their homes. The tragic, horrendous case of Awaab Ishak, which we are all unfortunately now familiar with, has highlighted the crucial role of registered providers of social housing in making sure that happens.

The Bill sits alongside other key reforms that we have introduced in response to the Grenfell Tower fire, including the Building Safety Act 2022 and the Fire Safety Act 2021. New clause 2 is incredibly well intentioned, given what it seeks to achieve, but the Bill is not the correct vehicle for it. A duty should be placed on the Regulator of Social Housing to undertake such monitoring. The regulator is not a specialist fire or building safety body. The proposed new clause would be a significant expansion of the regulator’s remit. Currently, the regulator does not have the expertise to fulfil that function effectively.

The question of who should undertake that kind of role is, however, an important one for Government. The Department is evaluating options on how best to monitor and report on the progress made in remediating unsafe cladding and other fire-safety defects. It is important that the work is done at pace, but thoroughly. I understand that hon. Members will be keen to study its outcomes and implications for future policy, but I must reiterate that it would be improper to pre-empt it while it is ongoing by allocating responsibility for that highly important function without the benefit of fully understanding the options. We need to ensure that that work is undertaken by those with the correct skills, expertise and capacity. My concern with new clause 2, therefore, is that it would make for a hasty decision that might mean we do not achieve the desired outcomes in the optimal way.

I turn to new clause 3. The hon. Member for Greenwich and Woolwich is right to draw attention to the importance of increasing the supply of social housing. In the levelling-up White Paper, we made it clear that we want to

“increase the amount of social housing available over time to provide the most affordable housing to those who need it.”

Our £11.5 billion affordable homes programme will play an important role in achieving that aim, as will the measures we have taken to support increased council house building.

For its part, the regulator has an objective to support the provision of sufficient social housing. It discharges that role through its work to ensure that private registered providers are financially viable, efficient and well governed. In turn, that helps providers to obtain funding to enable them to deliver more social housing. However, I do not agree that we should make the regulator responsible for assessing the adequacy of social housing provision in England or, indeed, in Wales. I am concerned that such an additional role could divert resources away from the activities that should be the focus for the regulator, which is setting standards for social housing so that landlords are clear about expectations on them to deliver quality of housing, to monitor compliance with those standards and, where necessary, to undertake relevant enforcement action.

Organisations outside Government often publish their own analysis of the level of need for social housing. There are a number of different approaches to assess that, and not necessarily a single right answer. I am therefore not convinced that the regulator stepping in to provide its own assessment is the right approach. It should focus on the task at hand and on standards, quality and enforcement. On that basis we would not want to accept new clauses 2 and 3.

[Matthew Pennycook]

I thank the Minister for her explanation of the clause and for the response to the two new clauses tabled by the Opposition. As the Minister has made clear, with a view to providing for a stronger and more proactive consumer regulatory regime, the clause expands the regulator’s fundamental objectives as set out in the Housing and Regeneration Act 2008 to include those of safety, transparency and—following the well-deserved success of Baroness Hayman’s amendment in the other place on standards relating to energy demand—energy efficiency.

My response to the case that the Minister made against new clauses 2 and 3 has, thankfully, pre-empted a number of the points she has just made. New clause 2 seeks to ensure that in meeting its fundamental objective to support the provision of social housing that is well managed and of appropriate quality, under proposed new subsection (3)(a) of the amended 2008 Act the regulator would also be required to report to the Government on the progress of building safety remediation in the social housing sector.

According to the Department’s own figures, every one of the 160 social sector buildings identified as having unsafe aluminium composite material—ACM—cladding, similar to that which covered Grenfell Tower, have been remediated through the social sector ACM cladding remediation fund. When it comes to buildings in the social sector with unsafe non-ACM cladding systems, we know that, as of 31 October, 251 have applied for Government funding for remediation. Alarmingly, as things stand, not a single one of those 251 buildings has been remediated.

Perhaps more worryingly, we have no estimate of the total number of social sector buildings with unsafe non-ACM cladding systems, because social landlords can apply for Government funding only if the costs of remediation are unaffordable or if there is a threat to their financial viability. We have no idea whatsoever how many social sector buildings have other non-cladding building safety defects.

There is a wider debate to be had outside this Committee about social landlords’ restricted access to funding for non-ACM remediation work, given the impact that has on social tenants, whose rent payments are contributing to the costs of the works required, and on providers in terms of upgrade and maintenance works, services provided such as welfare advice and the supply of new social homes.

However, all new clause 2 seeks to achieve is to make the regulator—which, as a result of the Bill will now have to perform its functions with a view to supporting the provision of social housing that is safe—report to the Secretary of State on the progress of remediating unsafe external wall systems and other historical fire safety defects in social housing, and provides it with the opportunity to make recommendations to the Secretary of State on further action required.

Speaking for the Government in the other place in response to a similar amendment in the name of Baroness Pinnock, Baroness Scott of Bybrook argued, as the Minister just has, that the type of monitoring sought by new clause 2 would not be “appropriate” for the regulator to undertake because

“it is not a specialist health and safety body.”—[Official Report, House of Lords, 6 September 2022; Vol. 824, c. 114.]

I am afraid that we find that argument wholly unconvincing.

New clause 2 does not seek to impose a duty on the regulator to carry out inspections of social sector buildings that are either potentially unsafe or identified as unsafe and in need of remediation or to physically monitor the progress of remediation works. As such, it does not require the regulator to possess the relevant professional skills, expertise and capacity necessary for assessments of that nature. All it would require is that the regulator be responsible for reporting to the Government on the progress of remediation in respect of social sector buildings—on the overall number of such buildings identified as having defects and the progress of whether they have started and completed remediation.

Given that the regulator already collects data from registered providers to inform its regulation of standards, and that the Bill ensures that one of the regulator’s new fundamental objectives will be the safety of buildings, we believe it is entirely reasonable and appropriate to task it with reporting to the Government along these lines.

As the Minister made clear, the Government have been at pains over recent months to stress they are examining options for monitoring and reporting remediation progress in future. Yet, as we consider the Bill today, neither the Department nor the new Building Safety Regulator is providing accurate data with regard to the scale of the building safety challenge in the social housing sector, or progress toward meeting it; no firm proposals have been brought forward by the Government to address that gap; and we have no guarantees that appropriate measures will be forthcoming any time soon, although I take at face value what the Minister has just said.

The Bill rightly ensures that the provision of safe, high-quality social housing will be integral to the function of the regulator’s role. There can be no more important task in respect of social housing—I think we are agreed on this point—than to ensure that buildings that are either covered in combustible material or riddled with other non-cladding safety defects are made safe. New clause 2 would ensure the regulator monitors progress to that end and reports to Government. I urge the Minister to rethink. If the Government are not minded to amend the Bill as new clause 2 seeks, I urge them to bring forward other proposals for monitoring this important element of the remediation drive in the near future.

I turn to new clause 3. In a similar way to how new clause 2 seeks to place additional requirements on the regulator in relation to its fundamental objective to support the provision of social housing that is well-managed and of appropriate quality, new clause 3 seeks to ensure that, in meeting its fundamental objective under the 2008 Act to support the provision of social housing that is sufficient to meet reasonable demands, the regulator would also be required to report to the Government on the adequacy of social housing supply.

The problem to which this new clause relates is well known. While more people than ever are struggling to afford a secure place to live, nowhere near enough social homes are being built. Almost 1.2 million households in England are now languishing on a housing waiting list. The Green Paper that foreshadowed the Bill stated:

“Social housing remains central to our supply ambitions.”

Despite that, the Government are doing nowhere near enough to deliver the volume of social homes our country needs.

Not only are the Government failing to build the volume of social homes that we need, but by means of reduced grant funding, the introduction of the so-called affordable rent tenure, increased right-to-buy discounts and numerous other policy interventions, we would argue that they have actively engineered the decline of social housing over the past 12 years. The result is that not only were fewer than 6,000 social homes constructed last year but over 21,000 were sold or demolished—a net loss of 15,000 desperately needed genuinely affordable homes.

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[Dehenna Davison]

I will be brief and just say that I recognise the arguments made by the shadow Minister, but I hope he recognises the arguments that I made in my opening statement. I have made a commitment to my hon. Friend the Member for Harrow East that before Report we will sit down to discuss the issues further and make sure the regulator has the teeth it really needs.

Question put and agreed to.

Clause 1 accordingly ordered to stand part of the Bill.

Clause 2

Advisory panel

[Matthew Pennycook]

I beg to move amendment 14, in clause 2, page 1, line 18, at end insert—

“(2A) The Panel may provide information and advice to the Secretary of State about, or on matters connected with, the regulator’s functions and wider issues affecting the regulation of social housing (whether or not it is requested to do so by either the regulator or the Secretary of State).”

This amendment would enable the Panel to provide information and advice and to proactively raise issues affecting social housing regulation more generally directly to the Secretary of State.

[The Chair]

With this it will be convenient to discuss amendment 15, in clause 2, page 2, line 17, at end insert—

“(8) The Panel must be chaired by a tenant of social housing.

(9) The Chair is responsible for setting Panel meeting agendas.

(10) The majority of persons appointed to the panel must be tenants of social housing.”

This amendment would ensure that tenant representation on the advisory panel is mandatory and that tenants are able to influence effectively what information and advice is presented to the regulator in respect of issues affecting social housing regulation.

[Matthew Pennycook]

For all its technical complexity, the Bill is ultimately about those who live in social housing and overhauling regulation to ensure that they are treated fairly by landlords who are well run, responsive, transparent and accountable. In considering the detail of the Bill, we must never forget that the impetus for it was the deaths of 72 men, women and children in the early hours of 14 June 2017. Those 72 human lives were ended in an inferno fuelled by the highly combustible cladding system installed on the outside of the tower block in which they lived, despite the fact that tenants had repeatedly sounded the alarm about the building’s safety defects and the fact that warnings were going unheeded.

I have met and spoken to Grenfell United, as I assume the Minister and many other Members have. I once again pay tribute to them and the wider Grenfell community. I know that what the survivors and the bereaved are determined to achieve is not only justice, but lasting change in how social housing is regulated and the power that tenants themselves can exercise. We firmly believe that the empowerment of tenants must be at the heart of the Bill, and we believe that a key test of its robustness is whether it establishes mechanisms that will enable tenants to influence in practice the regulator’s approach to regulating standards; to shape any future changes to regulatory standards and codes of practice; and to proactively raise wider issues affecting social housing regulation and policy, not just with the regulator but with Ministers.

The Government ostensibly agree that tenants are at the heart of the Bill, and Ministers have repeatedly assured us that one of its primary objectives is to give social housing tenants a voice and ensure that it is listened to. Yet when it comes to providing ways in which tenant representatives can exert a measure of control over the work of the regulator, shape the future direction of the regulatory arrangements that the Bill establishes and proactively influence national regulation and policy so as to shape the services that tenants receive from their landlords, we feel that the Bill is somewhat lacking in ambition.

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[Dehenna Davison]

I am grateful to the shadow Minister for making his case for amendments 14 and 15. Amendment 14 seeks to enable the advisory panel to provide information and advice and to raise issues affecting social housing regulation directly with the Secretary of State. The social housing White Paper made it clear that the purpose of the advisory panel was to provide independent and unbiased advice specific to the regulator on matters connected to regulation. Clearly, the views of tenants are central to that objective.

As the hon. Gentleman outlined, in parallel we also established the social housing quality resident panel, which will provide an opportunity for us to hear from tenants. The aim of the resident panel is to enable tenants to share their views directly with Government and Ministers on their approach to improving the quality of social housing, and on whether the Government’s interventions will deliver the changes that they want to see.

The resident panel is made up of 250 social housing residents from across the country and from diverse backgrounds. They met for the first time last week on 26 November, and will meet approximately monthly over the coming year, with opportunities for the agenda to be shaped by panel members. At that meeting, residents told the Secretary of State for Levelling Up, Housing and Communities, my right hon. Friend the Member for Surrey Heath (Michael Gove), that the most important issues to them were how repairs are dealt with, how landlords are held to account and how complaints are handled by their landlords and the housing ombudsman. The Department’s resident panel and the regulated advisory panel have a specific role and remit to ensure that tenants’ views are properly represented to both Ministers and the regulator.

Amendment 15 seeks to require a social housing tenant to chair the advisory panel and have responsibility for setting the agenda that the panel considers. It also seeks to ensure that social housing tenants comprise the majority of panel members. We share the notion that it is vital that tenants’ voices are heard, but it is important that the advisory panel considers the full range of regulatory issues that the regulator has to tackle. That means that we need to allow a diverse collection of voices to share their knowledge and opinions with the regulator.

Consumer matters are rightly at the forefront of the Bill but, equally, working to resolve some of the economic issues should not be diminished. Legislating for a tenant to chair and set the agenda and requiring the majority of the panel members to be tenants would not support what we are trying to achieve with the advisory panel. I am concerned that being too prescriptive in legislation about how the advisory panel must operate may prevent the panel from having the flexibility to decide how it best operates. In practice, I expect that all members of the advisory panel, along with the regulator, will shape how it works and what it considers.

We are committed to ensuring that tenants can effectively engage with the Department and the regulator, and that tenant voices are at the heart of social housing regulation and policy, but we do not feel that amendments 14 and 15 are necessary to achieve that so I ask the shadow Minister to withdraw them.

[Matthew Pennycook]

I thank the Minister for that helpful response, and I take on board the concerns she raised about the amendments.

I am slightly concerned about the lack of what we would consider to be true tenant empowerment. The quality resident panel is important, but it only lasts a year, so how will we get ongoing tenant engagement with the work of the regulator to inform how it operates, to shape future regulation, which is part of its remit, and to raise future issues of concern to tenants nationally, in terms of social housing regulation and policy? We do not think the Bill allows for that, and in all honesty I cannot understand the Government’s objection to allowing the advisory panel to notify Ministers directly, rather than the regulator, in certain rare circumstances. As the Minister said, the panel is at present constituted by the regulator, which appoints its membership, and it can only provide views directly to the regulator. We think there are some circumstances in which it may need to do otherwise. I hope the Minister takes away those points.

[Eddie Hughes]

Although there might be some deliberation about this mechanism, there are several mechanisms through which resident organisations are able to engage with Ministers and the regulator. I am delighted to see representatives of Grenfell United in the Public Gallery. There is a regular opportunity to meet Ministers, although it is not prescriptive and perhaps not as frequent as many would like, but the Government are certainly determined to build on it.

[Matthew Pennycook]

We recognise that Ministers meet tenants and tenant representatives frequently. My concern is that if tenants on the advisory panel have an issue that they feel is sufficiently serious that they need to bring it to the attention of Ministers, rather than the regulator, they should not have to rely on attempting to get a meeting with Ministers. There should be a mechanism through which they can put serious issues on the desk of the Secretary of State or the Minister if they feel that they, as well as the regulator, need to know about them. That is the point we are trying to address with amendment 14.

On amendment 15, I understand the Minister’s concerns about being too prescriptive, but I urge the Government to go away and think again about the membership of the advisory panel. I appreciate fully the need to have a diverse panel, but as I read clause 2(4), there is nothing on the face of the Bill to prevent the Government from putting one tenant or tenant representative on the panel and leaving it at that. There is no minimum quota for tenants, and we want tenant voices to be properly represented.

[Bob Blackman]

The shadow Minister is making a good point. We want to empower tenants, but his proposal could have an unintended consequence. Supposing tenant representatives on the board cannot agree among themselves who will be the chair, the panel could meet, but obviously that would be a difficult situation. There may potentially be social tenants from various parts of the country, representing different organisations. It is therefore not appropriate to prescribe a chair on the face of the Bill; that would defeat the objective. It might well be that we could find some suitable wording about the number of representatives, but I do not think we should force the panel to have a particular individual or representative as the chair.

[Matthew Pennycook]

The point about obvious issues around tenant representation and selection is well made, although those issues exist for the quality residents panel and the 250 members it selects. They have existed every time we have tried to create a body that gives voice to residents, so I do not think they are insurmountable. I welcome the fact that the hon. Gentleman thinks a minimum level of tenant representation on the panel is a good thing, and I urge the Government to think again about that.

We ultimately want to achieve tenant empowerment on the advisory panel so that tenants can be confident that, when the advisory panel gives information and advice to the regulator about the new system of regulatory standards, its voice is properly heard and it can bring issues to the attention of Ministers if required. I hope the Government will take away the points we have made about the amendments. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

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[Dehenna Davison]

Clause 4 and Government amendments 1 and 2 deal with the regulator’s fee-charging powers. As we heard from a number of hon. Members on Second Reading, the Regulator of Social Housing must be provided with the necessary funding to enable it to deliver the outcomes the Bill is designed to achieve.

Once the new consumer regime is implemented, the regulator will see substantial growth in its regulatory activity, which means its costs will increase significantly. It is Government policy to maximise the recovery of costs of arm’s length bodies, so clause 4 will refine the existing fee-charging power to allow for the cost of some additional functions to be recovered, and to charge fees that cover costs of activities that may not be connected to the specific fee payer, such as the cost of investigation and enforcement. Any significant changes to the design of the regime will be consulted upon and require ministerial approval.

Government amendments 1 and 2 also address the regulator’s fee-charging powers. The amendments remove specific provision allowing the regulator to charge following the completion of inspections, if authorised by the Secretary of State by order. The existence of that special provision relating to fees for inspections is no longer necessary given the changes we are making to the regulator’s general power to charge fees. That power will now allow it to cover the cost of inspections in its fees for initial and continued registration.

Leaving the provision in legislation erroneously risks causing confusion and casting doubt on the regulator’s ability to set fees to cover inspections as part of its general fee-setting power. As such, the change serves to ensure that there is greater clarity and consistency in this legislation.

Clause 4 establishes the parameters to the regulator’s fee-charging powers and makes clear that it can charge the sector for costs that may be unconnected to the specific fee payer. Government amendments 1 and 2 support clause 4 by delivering a technical change that will ensure there is no confusion over the powers available to the regulator to deliver maximum cost recovery. On that basis, I commend the clause to the Committee and beg to move the amendments.

[Matthew Pennycook]

I thank the Minister for that explanation of Government amendments 1 and 2. As she makes clear, clause 4 amends section 117 of the Housing and Regeneration Act 2008 to clarify the extent of the regulator’s fee-charging powers. New subsection (4A) adds to the 2008 Act and makes it clear that the regulator has the power to recover the cost of activities it does not currently charge social housing providers for.

If I understood the Minister correctly, Government amendment 2 revises section 202 of the 2008 Act because the powers in new subsection (4A) are sufficiently broad to cover charging providers fees for inspections. In short, as I hope she agrees, this is just a tidying-up exercise, the rationale for which is that the power is being omitted from section 202, concerning inspections only, because it more properly fits within section 117, concerning fees generally, to ensure that references to fee charging are all in one place in the 2008 Act. If that is the case, and amendment 2 in no way prevents the regulator from charging fees for inspections, we take no issue with it, because it is important that the regulator is able to charge fees to cover the significant costs involved in overseeing the comprehensive and rigorous Ofsted-style inspections regime that the Bill introduces.

The amendment raises wider issues relating to the resourcing of the regulator. Since the Bill’s publication, we have consistently expressed concern about the very real risk that the regulator will struggle to discharge its new functions and that it will not be adequately resourced to perform its enhanced role, in particular in relation to inspections. Prior to the Bill’s publication there were already concerns, expressed by the Select Committee and others, as to whether the regulator had the resourcing, skills and capacity to continue to regulate economic standards adequately, given the complex financial and corporate structures proliferating in the sector.

The new consumer regulatory regime will impose significant burdens on the regulator. The Minister stated on Second Reading that the Government are

“firmly committed to ensuring that the regulator has the resources that it needs not only to deliver the new consumer regulation regime but to ensure that it continues to regulate its economic objectives effectively.”—[Official Report, 7 November 2022; Vol. 722, c. 83.]

She also suggested that the Government were potentially minded to introduce changes to the fee regime to ensure that the regulator is funded appropriately. We accept that the Government have made limited additional funding available this financial year to support the new regime, but we are concerned that there may still be a resourcing challenge for the regulator. I would welcome any further assurances from the Minister that the regulator will have all the resources it needs to discharge the enhanced functions that the Bill requires of it.

[Dehenna Davison]

I am grateful to the shadow Minister for raising the question of resourcing. We touched on this on Second Reading, as he highlighted. He is right that in this financial year we are providing £4.8 million to aid the regulator in its vital work, but this is why it is so important that we get the fee charging regime right—to ensure that the regulator is properly resourced. As we have discussed today, on Second Reading and in the other place, the regulator needs the teeth to be able to do its job, and a huge part of that is resourcing. He is right that, effectively, we are tidying the legislation up to make it a bit neater and ensure further clarity, so I hope he will support these amendments.

Amendment 1 agreed to.

Amendment made: 2, in clause 4, page 4, line 16, at end insert—

‘(7) In section 202 of the Housing and Regeneration Act 2008 (inspections: supplemental) omit subsections (4) to (7).’—(Dehenna Davison.)

This amendment repeals the provisions of the Housing and Regeneration Act 2008 which provide specific powers to enable the regulator to charge registered providers of social housing fees for inspections.

Clause 4, as amended, ordered to stand part of the Bill.

Clause 5

Relationship between regulator and housing ombudsman

Question proposed, That the clause stand part of the Bill.

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[Matthew Pennycook]

I will be brief, but there is an issue that we want to highlight in relation to clause 5, which is about the relationship between the regulator and housing ombudsman. Clause 5 amends the Housing and Regeneration Act 2008 and the Housing Act 1996 to add measures on the relationship between the two bodies, so that they can exchange information quickly and effectively to provide better protection for tenants, all of which is entirely to the good and uncontroversial. However, consideration of the clause provides me with an opportunity to seek clarification from the Minister about the precise role of each body in the reformed regulatory regime that the Bill establishes.

Taken at face value, the role of each body is clearly delineated: the regulator regulates registered providers in England, while the housing ombudsman seeks to resolve complaints from individual residents about their registered provider. The regulator operates on a top-down basis, and the housing ombudsman operates on a bottom-up basis. However, when one considers how the reformed regulatory regime will operate in practice, things start to appear somewhat more complicated.

First, if my reading of the Bill is correct, the regulator appears to be able to intervene in individual complaints. Clause 31, for example, enables the regulator to arrange for an authorised person to take emergency remedial action in respect of individual premises following completion of a survey. Presumably, it is therefore necessary for the regulator to receive a complaint from a tenant who fears they are at risk of an imminent serious health and safety risk. Otherwise, how could the regulator order the necessary survey of a given premises? It may be that that is not the case, and it will be for the ombudsman to refer an individual complaint to the regulator to allow them to make use of the provisions in clause 31; if that is the case, it is not clear from the Bill.

Secondly, following revisions to the housing ombudsman scheme enacted in September 2020, the ombudsman has a responsibility to publish a complaint handling code, enjoys a new power to issue complaint handling failure orders that can relate to a landlord’s overall complaint-handling policy and, crucially, has the ability to investigate beyond an initial complaint to establish whether evidence might indicate a systemic failing by a registered provider. It may be that the ombudsman can address such systemic failings on the part of registered providers on the basis of suggested changes to their policies only with the regulator responsible for exploring whether changes to their systems are necessary, but again that is not immediately clear in the Bill.

[Eddie Hughes]

I understand the point that the hon. Gentleman is making, but it is based on the premise that these bodies operate in a completely siloed fashion. The relationship between them is a fluid one; they speak regularly and consider complaints and points that have been raised, which come to them from either direction. They work in a collaborative fashion and are then able to identify who should best proceed with a particular case. Obviously, it is governed by a memorandum of understanding, but it is a much more fluid and collaborative arrangement than that.

[Matthew Pennycook]

I thank the hon. Gentleman, and I fully understand his point. I met with senior staff from the housing ombudsman yesterday, and we were talking precisely about the ways in which the respective roles operate and how they could be clarified. What these examples seek to illustrate is that there is still an obvious risk of overlap and duplication of roles in respect of these two bodies. One could argue, as the hon. Gentleman just has, that those issues can be resolved by means of updating the non-statutory memorandum of understanding that already sets out the functions of both organisations and how they work together, but that throws up two distinct issues in and of itself.

First, is it appropriate for us to leave these matters to the two bodies themselves to resolve, rather than clarifying on the face of the Bill the precise role of each body in the new regulatory regime, so as to avoid the duplication of functions and potential gaps in coverage—even if only in the short term, before they update that memorandum of understanding to reflect the new regulatory system of proactive consumer regulation?

Secondly, I am sure that hon. Members have been contacted by tenants who are aware that the Bill is progressing through the House. The expectations around the Bill are such that, after it receives Royal Assent, tenants who feel that they have not secured appropriate redress by means of a standard complaint to their landlord and believe that their grievance might be systemic in nature will understandably be uncertain about whether they should approach the ombudsman or the regulator with their complaint. I appreciate that the Department is alive to the risk, has produced guidance in the form of a fact sheet and is apparently delivering a communications campaign to tenants so that they know where to go and are well informed but, without greater clarity prior to Royal Assent about the precise roles of each body in the regime established by the Bill, I fear that neither will be sufficient to prevent a large degree of confusion. When debating this matter in the other place, Baroness Scott of Bybrook conceded that fears about confusion of the kind that I alluded to are legitimate, and that greater clarity is required as a result; yet, despite her promise to take the matter back to the Department, the Government are not amending the Bill to provide greater clarity or committing to take any further concrete steps—that I am aware of, at least—to ensure that confusion will be avoided.

As Shelter and others have argued, it is essential that the roles of the regulator and the housing ombudsman are clearly defined, that tenants and tenant groups understand the appropriate way to make complaints and that any complaints process or system is easy to use, accessible and effective. I would be grateful if the Minister provided greater clarity today and, if not today, in writing. I hope that, in general terms, she will assure me that the issues that I have highlighted will be both considered and acted on by the Department before the Bill receives Royal Assent.

[Dehenna Davison]

I am grateful to the shadow Minister for raising his concerns and giving me the opportunity to provide some clarity. We will take it from the experience of one particular tenant, if we may. If a tenant has a complaint, they should first go to their landlord but, if that complaint cannot be resolved between tenants and the landlord, it can be escalated to the housing ombudsman to investigate individual complaints from tenants. If the ombudsman’s investigation finds instances of maladministration on the part of the landlord, the ombudsman can issue orders to that landlord to put things right for the complainant. That can include requiring the landlord to pay compensation to the complainant or to undertake repairs.

If an investigation raises a potential breach of a regulatory standard or there is evidence of systemic failure by the landlord, the ombudsman can refer the matter to the regulator. In situations where the regulator has concerns that the provider is failing to maintain the premises in accordance with the regulatory standards, it can conduct a survey and, following the implementation of this Bill, arrange for emergency repairs to remediate the issue in cases where there is a risk of serious harm to tenants that is not being addressed by the landlord.

[Matthew Pennycook]

That is useful clarification. If I have correctly understood what the Minister is saying, emergency remedial action under clause 31 of the Bill stems, in the first instance, from a referral from the ombudsman. Let us think about that process in detail. To get to the ombudsman, a tenant would have to exhaust all stages of their resident provider’s internal complaints process, which is three stages in most cases. It takes about a year to get through it. They would then have to go to the ombudsman, who has a huge backlog. Clause 31 is about emergency remedial action that poses an imminent threat to health and safety. I urge the Government to think again about how, in particular, clause 31 operates because tenants will need to give notice to the regulator about specific clause 31 failures far quicker than the process she has just described.

[Siobhain McDonagh]

The situation gets even more complicated when a tenant exasperatedly says, “I want to go to a lawyer” and then the whole thing closes down.

[Matthew Pennycook]

We are testing the patience of Sir Edward and the rules, but the point my hon. Friend highlights is a genuine one about the complication of legal matters and whether tenants abandon complaints at whatever point, which I hope adds to the weight of the point that I have just made. It is not immediately clear, and we have to be clear with, most importantly, tenants once this Bill is in force about where they go and how they can seek redress under the provisions of the Bill as quickly as they need to. As I said, in the case of clause 31, the process the Minister has described does not seem like it is fast enough to ensure that emergency remedial action of the kind provided for by clause 31 will happen. I hope the Government will take this and those other points away.

[Dehenna Davison]

Again, I am grateful to the shadow Minister and to the hon. Member for Mitcham and Morden. On the shadow Minister’s point about communications ensuring that tenants know where to go and how this process works, we have been working with organisations that represent landlords, social housing residents and the housing ombudsman service. We delivered communications and marketing campaigns in 2021 and this year to ensure that social housing residents were aware of how to make a complaint and how to seek redress where appropriate. We are putting in the work through communications to ensure that tenants understand the process, but I have heard his points on timeliness and I will endeavour to take that away.

Question put and agreed to.

Clause 5 accordingly ordered to stand part of the Bill.

Clauses 6 to 9 ordered to stand part of the Bill.

Clause 10

Appointment of health and safety lead by registered provider

Question proposed, That the clause stand part of the Bill.

[Matthew Pennycook]

Clause 10 is not contentious, and we broadly welcome it, but I would appreciate some clarification from the Minister on a specific issue arising from it. At present, proposed new section 126B ensures that

“The functions of the health and safety lead”

are to

“monitor the provider’s compliance with health and safety requirements”

and to notify the provider’s responsible body of any material risk to or failures of compliance, and to advise on steps to ensure the provider addresses them.

As Ministers may be aware, the Local Government Association, among others, has inquired what—if any—channels of communication or reporting mechanisms will exist between the health and safety leads of registered providers and the regulator itself. The LGA also highlighted the obvious need for sufficient new burdens funding in the case of local authority landlords. Will the Minister provide answers today or in writing to the following questions? First, did the Government intend to establish any direct permanent relationship between the regulator and RP health and safety leads? Secondly, what is the rationale for not requiring health and safety leads to report any material risks or failures of compliance directly to the regulator, as well as the responsible body, as a matter of course? Thirdly, can the Minister guarantee that the Government will make sufficient new burdens funding available to local authorities to fully implement the provisions in the clause?

[Dehenna Davison]

I will follow up in writing with a bit more clarity and specific detail on the questions the shadow Minister has raised.

Question put and agreed to.

Clause 10 accordingly ordered to stand part of the Bill.

Clause 11

Electrical safety standards

Question proposed, That the clause stand part of the Bill.

[Matthew Pennycook]

We welcome the Government’s decision, in response to concerns raised during the passage of the Building Safety Act 2022, to carry out a consultation on the introduction of mandatory checks on electrical installations for social housing at least once every five years and to include measures within this Bill to partially implement such checks—only partially, because the section of the Housing and Planning Act 2016 that this clause seeks to amend is concerned with properties let by landlords, not owner-occupier leaseholders. That is an important distinction, for reasons I will explain.

As we know, there is currently no legal requirement in England for social landlords or leaseholders to undertake electrical safety checks of their dwellings. The situation is distinct from that in the private rented sector, where the Housing and Planning Act introduced mandatory safety checks on electrical installations at least once every five years.

We know that fires in numerous tower blocks, including Grenfell, Shepherd’s Court, and Lakanal House, were caused by electricity. Home Office fire data shows a consistently high level of accidental electrical fires in high-rise buildings with 10 or more flats. Campaign groups such as Electrical Safety First have been at pains to stress that those buildings were mixed-tenure buildings containing an assortment of owner-occupier leasehold and social rented units and that there is therefore a case, given that the fire safety of a building depends on the safety of all the units within it, for ensuring parity in electrical safety standards across all tenures in high-rise residential blocks.

The Government’s own consultation on this issue noted that the National Federation of ALMOs supported introducing electrical safety requirements for owner-occupiers in mixed-tenure blocks and highlighted that properties being considered by authorities for London’s right to buy-back programme often have electrical installations that are

“in a state of significant disrepair.”

Given that we know that many high-rise social housing blocks contain owner-occupied flats owned on a leasehold basis, it surely cannot be right that a leaseholder living next door to a social renter will not have their electrical installations mandated to be checked every five years. To put it another way, what good is having the electrical installations of two thirds of a building checked every five years if the other third is not? The risk of a potentially life-threatening fire obviously does not discriminate by tenure.

[Bob Blackman]

This is a very significant point, particularly with what happened at Grenfell. We should reflect on that carefully. Who does the hon. Gentleman suggest should carry out the inspections and how would they be enforced? One of the problems that is clearly still relevant is people buying second-hand white goods that are not safety checked, which could then be faulty and cause electrical fires. In his research, has the hon. Member come up with any proposals as to how this measure could be implemented and work could be undertaken?

[Matthew Pennycook]

I thank the hon. Gentleman for that point—it is a point well made. I do not have a comprehensive answer to hand. There are provisions in this clause that apply to mandatory electrical safety checks for social rented properties. There are similar requirements in place for the private rented sector. My instinct is that it would seem obvious that those could be applied to the owner-occupier sector in a way that the provisions in the clause perhaps could not be. Whatever way we cut it, what we want to see are mandatory checks on all electrical installations in all units in high-rise buildings, because, as I said, fire does not discriminate between tenure. I hope the Minister will take the points away for further consideration.

[Dehenna Davison]

The shadow Minister is right to highlight the consultation, which concluded in August. It included a call for evidence seeking views on whether leasehold properties in mixed tenure social housing blocks should have mandatory five-year checks. My hon. Friend the Member for Harrow East was right to say that we need to get this mechanism right to ensure that people living in mixed-use blocks are protected. I am grateful to the shadow Minister for his pragmatism on this point. We are still assessing the responses to the consultation, so it is a bit too early to say what the outcome will be and we do not wish to pre-empt it. However, we will announce further details as the work progresses, and I will endeavour to keep the shadow Minister informed.

Question put and agreed to.

Clause 11 accordingly ordered to stand part of the Bill.

Clauses 12 and 13 ordered to stand part of the Bill.

Schedule 1 agreed to.

Clause 14 ordered to stand part of the Bill.

Schedule 2 agreed to.

Clauses 15 to 20 ordered to stand part of the Bill.

Ordered, That further consideration be now adjourned.—(Julie Marson.)

Oral Answers to Questions

Matthew Pennycook Excerpts

Monday 21st November 2022 Commons Chamber

[Mr Speaker]

I call the shadow Minister, Matthew Pennycook.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

It is almost five and a half years since the horror of Grenfell, yet the building safety crisis remains unresolved for the vast majority of affected leaseholders. Will the Secretary of State tell the House when the overdue developer remediation contract will be published? When will Ministers finally resolve the problems relating to mortgages and buildings insurance, and when will those leaseholders who are currently excluded from protections learn whether their Government intend to help or abandon them?

[Michael Gove]

Across the House there is a determination to ensure that the terrible tragedy of Grenfell is met with appropriate steps, both legislatively and in regulatory terms, and also that those who are trapped in buildings through no fault of their own are given the opportunity to move on with their lives. We will shortly be publishing the details of those contracts. We are meeting lenders to discuss moving away from the situation in which so many people have found themselves, and we are also talking to the insurance industry about the steps we need to take.

Supported Housing (Regulatory Oversight) Bill

Matthew Pennycook Excerpts

Friday 18th November 2022 Commons Chamber

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

It is a pleasure to participate in this debate and to follow the hon. Member for South West Hertfordshire (Mr Mohindra).

I start by congratulating the hon. Member for Harrow East (Bob Blackman) on bringing forward the Bill, and I commend his efforts in recent months to ensure that what we have before us is a robust piece of legislation. I thank all those who had a hand in developing and drafting the Bill: Justin Bates, Joe Thomas, Sam Lister, the team at Crisis and the hon. Member for Walsall North (Eddie Hughes) who we, on this side of the House, fully acknowledge did much to get us to this point.

I also thank my hon. Friend the Member for Birmingham, Ladywood (Shabana Mahmood) for her earlier contribution. A handful of Members have doggedly pursued this issue over several years due to its impact in their constituencies, and she stands out among that small cohort for her persistence and determination in bringing this scandal to an end. She deserves full credit for doing so.

This is, without question, an important and impactful piece of legislation, yet it is also one that is long overdue. We have known for a considerable amount of time that far too many vulnerable people across the country find themselves living in unsafe, poor quality shared housing without the support they require and that those people have been exploited by unscrupulous providers who, by taking advantage of gaps in the existing regulatory regime, use them to extract significant amounts of public money through the exempt provisions relating to housing benefit. That there exist many good supported exempt providers is not in dispute, nor is the need to act with care to ensure that any measures introduced do not unduly impact on them, but that was never a convincing argument against acting at pace to address this scandal.

The harm that sharp practice in this sector is causing, both to vulnerable individuals left without adequate support and to communities struggling to cope with the impact of concentrated numbers of badly run exempt accommodation properties, is precisely why the Opposition tabled a motion in February this year calling on the Government to implement a package of emergency measures to end the exploitation and profiteering that is taking place as a result of rogue providers gaming the system. So, while I do not in any way wish to detract from the hon. Gentleman’s achievement in securing a place in the ballot and selecting this issue for his Bill, we on the Labour Benches do regret that the Government did not act sooner to bring this scandal swiftly and decisively to an end and that we are instead having to rely on a private Member’s Bill to make progress on this matter.

That criticism aside, we very much welcome the measures contained in the Bill, which will enhance local authority oversight of supported housing and thereby enable local authorities to drive up standards within their areas. In particular, we welcome the provisions in the Bill that will enable the Secretary of State to prepare and publish national supported housing standards for England and those that will provide powers to make licensing regulations. As we have long argued, introducing a robust framework of national standards for the sector is essential given the vague present criteria that exists for determining what qualifies as the “more-than-minimal” care, support, or supervision to be provided by an exempt accommodation landlord. There is an overwhelming case for better regulating the eligibility for, and therefore access to, exempt benefit claims at a local level, to ensure that high-quality supported housing providers are the norm.

That said, there are ways in which we believe the Bill might be strengthened. Let me take an example that has been mentioned several times this morning. While we appreciate both the complexities involved in designing a workable system and the understandable concerns that exist about what such powers could mean for overall levels of supported housing provision, on balance we feel that the measures relating to planning set out in clause 8 are too limited, requiring only that within three years of Royal Assent the Secretary of State must carry out a review of the effect of the first licensing regulations introduced and then to consider on the basis of its findings whether to exercise powers in the Town and Country Planning Act 1990 to designate a new use class.

We believe that there is a robust case for considering again whether new planning powers that would allow local authorities to better proactively manage their local supported housing market should be incorporated into the Bill. I am aware, as the hon. Member for Harrow East will be, that many local authorities on the frontline of this problem are calling for precisely that to happen.

Other areas for improvement that we would suggest include: enhancing provisions for national monitoring and oversight; adding social security offences, such as dishonesty in claiming housing benefit, to the list of new banning order offences alongside the failure to comply with the licensing regime; and establishing evaluation and improvement notice procedures that mirror part 1 of the Housing Act 2004, so that local authorities with limited resources or only one or two problematic supported exempt providers have other options to drive up standards short of implementing a full licensing regime.

We hope that these and other constructive suggestions, as well as more general issues, such as whether local authorities will get the resources they need to implement the provisions in the Bill, can be debated constructively in Committee. What is important for today is that this Bill passes its Second Reading. For that reason, as well as to give the House sufficient time to do justice to the important Bill that my hon. Friend the Member for Stockton North (Alex Cunningham) will introduce next, I do not intend to detain the House for any longer, other than to state the following. The Bill is not a panacea. It does not address, in any way, the reasons that we have become overly reliant on non-commissioned exempt accommodation, including: a chronic shortage of genuinely affordable housing; reductions in funding for housing-related support; and new barriers to access for single adults requiring social rented or mainstream privately rented housing. But the Bill will help to put rogue exempt accommodation operators out of business and better enable local authorities to drive up supported housing standards in their areas. In doing so, it will improve the lives of some of the most vulnerable people in our society—those fleeing domestic abuse, those with severe mental health needs, those who have served their time in prison and are trying to make a fresh start, those leaving care and those battling addiction and substance dependence.

For that reason, I urge the House to give the Bill its Second Reading. I look forward to the anticipated commitments from the Minister. I hope the Bill will be further improved in Committee, and I trust that we can work on a cross-party basis to ensure that it becomes law as quickly as possible.

Social Housing (Regulation) Bill [Lords]

Matthew Pennycook Excerpts

2nd reading
Monday 7th November 2022 Commons Chamber

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

It is a pleasure to close this debate for the Opposition. I thank all those who have contributed and echo the sentiments expressed at the outset by my hon. Friend the Member for Wigan (Lisa Nandy) about the other place. As they always do, their lordships brought a considerable amount of expertise to bear in scrutinising the Bill. As a result, it has already been improved in several important respects. I thank them, in particular our friend Baroness Hayman of Ullock, for their efforts and for the constructive, cross-party approach adopted throughout the proceedings.

It would be remiss of me if I did not also use this opportunity to pay tribute, on behalf of the Opposition, to the work of Grenfell United and the Grenfell Foundation, who have pushed at every turn for this legislation to come forward and to ensure it is made as robust as possible. Lastly, I commend the contribution of all those who have been a voice for social housing tenants over so many years, including campaigners such as Kwajo Tweneboa, ITV’s Daniel Hewitt and many hon. Members in the Chamber this evening.

There have been a number of excellent contributions in the debate. In total, I counted 10 speeches from Back Benchers, some of them incredibly powerful, and all of them in complete agreement that the Bill should proceed, and at pace. That such agreement exists across the House reflects a shared understanding that the lives of far too many social housing tenants are blighted by poor conditions, and far too many social landlords fail to treat their tenants with the dignity and respect that they deserve.

As the shadow Secretary of State, my hon. Friend the Member for Wigan, made clear, given the scale of the problem, the Opposition regret how long it took the Government to bring this legislation forward. It is now more than five years since the horror of Grenfell, more than four since the Green Paper was issued, and nearly two since the White Paper was published. Surely, time could have been found earlier to pass what is, after all, a short and uncontroversial Bill, but one of real significance for millions of social housing tenants across the country.

That criticism aside, the Opposition welcome the Bill and what it contains. We are determined to see it strengthened in a number of areas, so that standards in social housing markedly and rapidly improve, tenants are able to pursue effective redress and we can better respond to pressing issues such as the problems of serious violence highlighted by my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes). We will work with the Government to secure its passage today.

As we have heard, the Bill has three distinct aspects: first, it introduces a new consumer regulation regime; secondly, it overhauls the existing economic regulatory regime; and, thirdly, it provides the social housing regulator with new powers to enforce both. The second of those parts is entirely unproblematic, and as such I will only speak to the first and the third.

The provisions that relate to the new consumer regulatory regime comprise the bulk of the Bill, and they have understandably been the focus of many of the contributions in this debate. In general terms, we very much welcome the stronger and more proactive consumer regulations the Bill provides for. There are specific issues in relation to each that we intend to raise in Committee, but we welcome changes to the housing ombudsman powers, the introduction of new duties for social landlords relating to electrical safety checks, the requirement that registered providers nominate a designated person for health and safety issues, and the measures relating to the provision of information to both tenants and the regulator.

We support the expansion of the regulator’s current fundamental objectives to include those of safety, transparency and, following the well-deserved success of Baroness Hayman’s amendment on standards relating to energy demand, energy efficiency. There would, however, appear to be a difference of opinion between the Government and ourselves on whether it may be appropriate to add additional objectives, not least the monitoring of building safety remediation works, and we will seek to explore that matter in Committee.

We very much welcome the establishment of the advisory panel to provide independent and unbiased advice to the regulator and to proactively raise wider issues affecting social housing regulation. However, we are clear that the role of the panel should be enhanced, and we will press in Committee for its composition and functioning to be revised in order that it provides a more effective conduit for the voice of tenants and gives them a greater role in shaping national policy.

Lastly, we welcome the concession made by the Government in the other place in relation to professional training and qualifications, and the resulting inclusion of clause 21. However, and here I reference the very strong argument made by the right hon. Member for Maidenhead (Mrs May), we believe the Government need to go further if we are to be certain that the Bill will expedite the professionalisation of the sector, and we will be seeking in Committee to strengthen the Bill to that end.

The provisions that relate to the regulator’s enforcement powers and strengthening them are critical to ensuring both the consumer and the economic regulatory regimes function effectively. Again, while there are measures that we will press the Government to consider—for example, giving the regulator the power to order compensation to tenants—in general terms we very much welcome what is proposed in allowing for unlimited fines for non-compliance, the deregistration of social landlords, performance improvement plans, emergency repairs in instances where a tenant faces an imminent health and safety risk, and the removal of the serious detriment test.

We support the introduction of regular inspections, and I commend Lord Best on his work in the other place to strengthen the Bill in relation to them. However, the Bill still does not set out the scope of such inspections or how frequently they should take place. We are convinced it will need tightening in Committee if tenants are to have confidence that landlords will be monitored appropriately. We also remain concerned, and this is a point that several hon. Members made in the debate, about the very real risk that the regulator will struggle to discharge its new functions given the volume of individual tenant complaints it is likely to receive once its remit has been expanded. In particular, we are concerned it will not be adequately resourced to perform its new inspections role. That is why we are convinced that the Government must consider more carefully how they can help to ensure the regulator is not overburdened—for example, by doing more to enable tenants to enforce repairs themselves—and that it has the resources it will require to carry out its enhanced role, such as by allowing it to retain the proceeds of any fines levied to help fund its work.

Before I conclude, I want to touch very briefly on an issue rightly raised by the shadow Secretary of State in her remarks, and that is social housing supply. By means of reduced grant funding, the introduction of the so-called affordable rent tenure, increased right-to-buy discounts and numerous other policy interventions, the Government have engineered the decline of social housing over the past 12 years, presiding over an average net loss of 12,000 desperately needed, genuinely affordable homes each and every year throughout that period. We fully appreciate that this Bill is not the appropriate vehicle for reversing that decline, but we are also very clear that it cannot be silent on the issue. Provisions could be included in the Bill to help to identify the precise level of need that now exists across the country for social rented homes, and to make suggestions about how a Government serious about tackling the housing crisis can meet that need. We intend to explore that in Committee because, despite the fine words in the White Paper and the usual comforting but ultimately hollow rhetoric deployed by the Secretary of State, the Government are doing nowhere near enough to deliver the volume of social homes our country needs.

To conclude, the Bill is long overdue but wholly necessary and we are pleased it will progress today. Those currently living in poor-quality, badly managed social housing need a better deal. Just yesterday, I received an email from Nicola, a constituent living in Woolwich whose landlord is a member of the G15 group of London’s largest housing associations. She felt she had no other choice than to contact me as her MP because for nearly two weeks she has had water pouring down her walls and over her plug sockets, without any meaningful action on the part of her landlord. As we have heard in the debate, cases like Nicola’s are not a rarity, but an all too frequent occurrence. The Grenfell community know more than anyone that poorly managed and underregulated social housing can have fatal consequences. Only last week, as my hon. Friend the Member for Salford and Eccles (Rebecca Long Bailey) mentioned, details were published about the death of two-year-old Awaab Ishak following prolonged exposure to damp and mould in the social home his family rented in Rochdale. We must overhaul the regulation of social housing to protect the health, safety and wellbeing of tenants across the country because everyone has a basic right to a decent, safe, secure and affordable home.

We will work constructively with the Government on the Bill, but we will also do everything in our power to further strengthen it because tenants deserve the most robust piece of legislation that this House can possibly deliver. For today, we welcome its progress in the hope that it will mark a turning point in the protection, empowerment and de-stigmatisation of those living in England’s 4 million social homes.

Private Rented Sector White Paper

Matthew Pennycook Excerpts

Thursday 3rd November 2022 Commons Chamber

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

It is a pleasure to wind up this important debate on behalf of the Opposition. I congratulate my hon. Friend the Member for Brighton, Kemptown (Lloyd Russell-Moyle) and the hon. Member for Dover (Mrs Elphicke) on securing the debate, and I thank the Backbench Business Committee for allowing time for it.

I also thank my hon. Friends the Members for Stockport (Navendu Mishra), for Vauxhall (Florence Eshalomi), for York Central (Rachael Maskell), for Putney (Fleur Anderson) and for Westminster North (Ms Buck), and the hon. Members for Harrow East (Bob Blackman) and for North Devon (Selaine Saxby), for their excellent contributions and powerful case studies. Collectively, they highlighted both the particular challenges facing private renters and how these challenges vary across the country, and that, irrespective of geography, there is a need to overhaul the private rented sector and to better regulate both short-term holiday lets and excessive rates of second home ownership as a matter of urgency.

I put on record our thanks to all the organisations that have made the case for rental reform over so many years, including Generation Rent, Crisis, Citizens Advice, the Joseph Rowntree Foundation, Shelter, Z2K, the New Economics Foundation, the Law Centres Network and various renters unions, as well as all the private renters who bravely shared their experiences publicly and the journalists who provided them with space to tell their stories. Their collective efforts have been integral to ensuring this issue is kept firmly at the top of the political agenda.

Labour strongly supports fundamental reform of the private rented sector, and we have called for it for many years. Regardless of whether they are a homeowner, a leaseholder or a tenant, everyone has the basic right to a decent, safe, secure and affordable home. Yet as this afternoon’s debate has reminded the House, millions of people renting privately live day in, day out with the knowledge that they could be uprooted with little notice and minimal, if any, justification.

On an individual level, the lack of certainty and security that is now inherent to renting privately results not only in ever-present anxiety about the prospect of losing one’s home but, for those at the lower end of the private rental market who have little or no purchasing power and who are increasingly concentrated geographically, as my hon. Friend the Member for Westminster North said—there is an equalities dimension to this, too—a willingness to put up with often appalling conditions for fear that a complaint will lead to instant retaliatory eviction. That is why some of the worst housing standards are to be found in the private rented sector and why, despite the existence of many good landlords and a steady, if glacial, improvement in conditions overall, one in five private rented homes still does not meet the decent homes standard and one in 10 has a category 1 hazard posing a risk of serious harm.

For tenants forced to live in such substandard properties, whether they wake up every day to mould, vermin or dangerous hazards, what should be a place of refuge and comfort is instead a source of daily unease and, in many cases, torment and misery, which takes a huge toll on their physical and mental health.

Far too many tenants are evicted each year from a private tenancy without due cause, which is why so-called no-fault section 21 notices are a leading cause of homelessness in England. This broken system can no longer be tolerated, not least because the numbers affected have risen markedly over recent decades, as the hon. Member for Harrow East said.

This House last legislated to fundamentally alter the relationship between landlords and tenants in 1988, when I was just six years old—I suspect you were not that much older, Mr Deputy Speaker. The private rented sector has changed beyond recognition in the more than three decades since. Some 11 million people now rent from a private landlord. As well as the young and mobile, the sector now houses many older people and families with children, for whom greater security and certainty is essential for a flourishing life.

To ensure private renters get a fair deal, we need to transform how the sector is regulated and finally level the playing field between landlords and tenants. That is why, with important caveats, Labour welcomed the proposals in the White Paper when it was published in the summer. We unequivocally support the proposed ban on section 21 evictions. There is no justification for such notices, and they should have been scrapped long ago. We support the introduction of minimum standards in the private rented sector through the extension of the decent homes standards, although we have real concerns about how it might be enforced in practice given that it is not an enforceable standard in the social rented sector, where it already exists.

We recognise that landlords will need recourse to robust and effective grounds for possession in circumstances where there are good reasons for taking a property back, for example, because of antisocial or criminal behaviour. However, we want assurances that such grounds cannot be abused unfairly to evict tenants and that they will be tight enough to minimise fraudulent use of the kind we have seen in Scotland.

We welcome the proposed limit of rent increases to once per year, but we take issue with the inadequacy of the proposed measures in their ability to address unreasonable within-tenancy rent hikes of the kind that are likely to increase markedly once section 21 is scrapped and with the absence of any measures to tackle illegal evictions, a point that has been raised by my colleagues.

Labour would go further in several important respects, introducing a more comprehensive new renters’ charter, but we do want to see all 12 of the proposals set out in the White Paper translated into primary legislation as a matter of the utmost urgency. I cannot emphasise enough the need for that urgency, a point we have pressed time and again with successive Ministers, to no avail. There is a desperate need for the Government to act quickly, because the problems inherent in a sector that for far too many renters has always been characterised by insecurity, high rents and poor conditions, have become acute in recent months, as those renting privately struggle to cope with the impact of high inflation and rising prices.

As hon. Members will know, and as we have heard this afternoon, in many parts of the country rents in the private rented sector are surging and the costs involved with moving are soaring. With the Government having decided, once again, to shamefully freeze local housing allowance, millions of hard-pressed tenants are now being stretched to breaking point, with the risk of mass arrears and evictions that entails. What is so frustrating for Labour Members, and for those outside campaigning for renters’ reform and for private tenants themselves, is that instead of introducing legislation that we could have fast-tracked through this House to address this looming winter crisis, all we have, despite years of promises from successive Conservative Administrations that they would enact renters’ reform, is the White Paper and a vague promise, one that I had from the Minister’s predecessor just last week, to introduce a Bill at some point during the more than two years that remain of this Parliament.

[Florence Eshalomi]

On urgency, figures from the Local Government Association show that the ending of a private rented tenancy is the most common reason for homelessness, with this being responsible for 37% of homelessness between January and March this year alone —in those three months. Does my hon. Friend see that this urgent crisis needs solving now?

[Matthew Pennycook]

I absolutely agree with my hon. Friend on that, and I will come on to say why I think the situation is particularly urgent and what has happened in terms of the delay that has been caused. It is not good enough that the Government have taken so long to make progress on this issue. It is not as though they have not had ample time to legislate, even accounting for the impact of the pandemic. It is now well over three years since the Conservative Administration of the right hon. Member for Maidenhead (Mrs May) promised to abolish section 21 no-fault evictions. In that time, not only have hundreds of thousands of tenants been evicted through a section 21, but more than 45,000 households have been threatened with homelessness as a result of being served such notices. As my hon. Friend just mentioned, the figures released so far this year suggest that possession claims resulting from them are increasing markedly as the cost of living crisis intensifies.

Faced with a phenomenally difficult winter, private renters cannot wait until 2024 for the Government to act. I say to the new Under-Secretary of State for Levelling Up, Housing and Communities, the hon. Member for Kensington (Felicity Buchan), whom I welcome to her place, that every extra month the Government delay bringing forward the renters’ reform Bill they have promised means thousands more private renters suffering. The Government must act, and they must act now. If they introduced emergency legislation enacting the proposals set out in the White Paper, Labour would support it and work with the Government to ensure it made rapid progress. But it is the Government alone who control the business of this House and only they can ensure the necessary legislation is given the priority it deserves. As I have put to Ministers before and sadly suspect I will have to do so again, it is high time the Government stopped talking a good game about private rented sector reform and finally got on with delivering it, because private renters have waited long enough for the protections that they deserve and that they rightly expect.

--- Later in debate ---

[Felicity Buchan]

I hear my hon. and good Friend, and I will do everything I can to facilitate that.

I hope that all Members present today recognise that this Government are committed to reforming the private rented sector in a fair and balanced way, abolishing no-fault section 21 evictions and strengthening and clarifying landlords’ rights when seeking possession.

[Matthew Pennycook]

Will the Minister give way?

[Felicity Buchan]

I am sorry, but I have been told that I need to conclude.

The Government are committed to giving tenants the security and peace of mind they need to settle down with confidence and make their house a home. We are committed to empowering tenants so that they can make informed choices and raise concerns, and to supporting responsible landlords. As I said at the outset, we stand by our manifesto commitments to abolish no-fault evictions and to ensure that landlords have rights to repossess when that is required. We published the White Paper in June and we are discussing it with interested parties. The consultation on the decent home standard closed on 14 October, and we are reviewing the responses. We will publish the next steps in this extremely important sector in due course.

Section 21 Evictions

Matthew Pennycook Excerpts

Tuesday 25th October 2022 Westminster Hall

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

It is a pleasure, Ms Nokes, to serve with you in the Chair.

This has been an important and timely debate because, as we have heard in the many excellent contributions this afternoon, the problems inherent in a sector that for far too many renters has always been characterised by insecurity, high rents and poor conditions, have become far more acute over recent months, as those renting privately struggle to cope with the impact of high inflation and rising prices.

I start by congratulating my hon. Friend the Member for Liverpool, Walton (Dan Carden) on securing the debate and on the characteristically powerful way in which he opened it. He always speaks with strength and clarity on behalf of his constituents and he did so again today, making a powerful case that overhauling the private rented sector in Liverpool and across the country is a matter of the utmost urgency.

I also thank my hon. Friends the Members for West Ham (Ms Brown), for Wirral West (Margaret Greenwood), for York Central (Rachael Maskell) and for Hammersmith (Andy Slaughter), as well as the hon. Members for Strangford (Jim Shannon) and for Bath (Wera Hobhouse), for their excellent contributions. Although there are common problems and solutions, I am always mindful of the fact that there are different “geographies” of renting and challenges that are specific to certain parts of the country. The debate usefully highlighted that point.

Doubtless it was not the choice of my hon. Friend the Member for Liverpool, Walton, but when I read the title of this debate late last week it struck me as somewhat odd, given its implicit suggestion that the merits of ending section 21 evictions are still essentially being contested. While there are, of course, those who remain resolutely opposed to reform of any kind, the reality is that there is now a broad political consensus on the need to ban these so-called no-fault evictions. It is obvious why such a consensus exists. As things stand, and as we have heard again today, landlords can evict tenants, after giving as little as two months’ notice, at any point after their fixed-term tenancy has come to an end. They do not have to give a reason for doing so, or even have one.

As a result, large numbers of private renters live day to day in the knowledge that they could be uprooted with little notice and minimal justification, if any. With the threat of summary evictions hanging over them, a significant proportion of those people concentrated at the lower end of the private rental market, who have little or no purchasing power, have to put up with appalling conditions for fear that a complaint will lead to an instant retaliatory eviction. Far too many tenants are evicted each year using a section 21 notice, which is why it is a leading cause of homelessness in England. Abolishing section 21 no-fault evictions is therefore long overdue and will give private renters much-needed security in their homes.

The available evidence also suggests that scrapping section 21 is likely to provide private renters with greater certainty and control over their lives without any corresponding detrimental consequences—unintended or otherwise—or disruption. I draw the attention of the hon. Member for Thirsk and Malton (Kevin Hollinrake) to research carried out by Shelter into the impact of the effective abolition of no-fault evictions in Scotland, following the introduction of new private residential tenancy agreements there in 2017. It found that the measure had no discernible impact on either the size or functioning of the private rented sector there, or on increased levels of homelessness.

[Kevin Hollinrake]

I add my thanks to the hon. Member for Liverpool, Walton (Dan Carden) for bringing forward the debate. He raised some good points at the start of his speech, which we should consider.

The hon. Member for Greenwich and Woolwich (Matthew Pennycook) might be interested to know that, in the past year, UK rents have risen fastest in Scotland. If he was including me among the people who do not want any reform, then he should not: I absolutely do want to see reform. I would like to see property rental standards that landlords must adhere to, and reforms of the section 21 process, but just not the abolition we are talking about today.

[Matthew Pennycook]

I deliberately did not assign to the hon. Gentleman a blanket position of “no reform”, but I think that, on this point, he is fundamentally wrong. We need reform, on section 21 and more widely; I will come on to that point.

That research for Shelter is telling because the predictions made by landlord groups in Scotland prior to the introduction of PRT agreements, including that they would kill the sector entirely, have ultimately not come to pass. We should have that at the forefront of our minds when vested interests in the English sector warn of the dire consequences of renters reform.

We in the Opposition still appreciate that good landlords may still harbour concerns about how reform will impact them. We recognise that when section 21 evictions are finally abolished, landlords will need recourse to robust and effective grounds for possession in circumstances where there are good reasons for taking a property back—for example, anti-social or criminal behaviour. We also share the sector’s concern about how ongoing delays in court proceedings could impact on a landlord’s ability to make use of such grounds. However, it is a welcome sign that most landlords and landlord associations now appreciate that greater security and better rights and conditions for tenants are the future of the lettings sector.

When it comes to reforming the private rented sector, scrapping section 21 evictions is obviously not the end of the matter. Among a wide range of necessary measures, we need action on standards to address the shameful fact that one in five private rented homes does not meet the decent homes standard, and one in 10 has a category 1 hazard posing a risk of serious harm. We need changes to landlord-to-tenant notice periods and a national register of landlords. We must make it illegal for landlords and agents to refuse to let to renters claiming benefits, and we need effective measures to address unreasonable within-tenancy rises.

Those go alongside other reforms that are desperately needed. As my hon. Friend the Member for York Central will know, we have argued for many months in the Levelling-up and Regeneration Bill Committee that the Government must act with far more urgency on the growing short-term and holiday lets sector. That is why Labour has made clear that, in Government, we will introduce a new renters’ charter, a new statutory decent homes standard, and take action on short-term and holiday lets.

Thankfully, there is significant consensus across the Chamber on the need to reform the sector more fundamentally, and a number of the measures that I have just outlined were in the White Paper published by the Government earlier this year. The problem is that, as things stand, not only do we not have any firm parliamentary timeline for a renters reform Bill, but, given the disarray within Government, we do not even have the certainty that one will ultimately come forward in this Parliament or, if it eventually does, that it will contain all the proposals set out in the White Paper. As such, I would like to use the opportunity presented by this debate to ask the Minister two simple questions to which private renters following our proceedings will expect answers.

First—as many hon. Members have asked today, and as I have asked many times without receiving a satisfactory answer—when do the Government plan to finally introduce a renters reform Bill? It was in the Conservative party manifesto, so presumably the Government intend to have it secure Royal Assent before the end of this Parliament. However, the Minister must appreciate that private renters facing a difficult winter cannot wait until 2024 for the Government to act. If they introduced emergency legislation, we would support it, but private renters deserve at least some assurance today that the Government will make that a priority.

Secondly, can the Minister confirm that if and when it is finally published, the promised renters reform Bill will contain all 12 of the proposed reforms set out in the White Paper? The last piece of legislation that fundamentally altered the relationship between landlord and tenant in England was the Housing Act 1988, but, as my hon. Friend the Member for Hammersmith rightly made clear in incredible detail, the private rented sector has changed beyond recognition in the more than three decades since that legislation was put on the statute book. It is simply no longer possible to regard its role as primarily a residual tenure for those temporarily unable to access owner occupation or social housing.

Some 11 million people now rent from a private landlord. As well as the young and mobile, the sector now houses many older people and families with young children, for whom greater security and certainty is essential to a flourishing life. At the end of the day, that is what we need to be thinking about here—not the price of housing or the commodification elements involved in the sector. To ensure that private renters get a fair deal, we in this place need to transform how the private rented sector is regulated and level the playing field between landlords and tenants.

As hon. members have said, it is now well over three years since the Conservative Administration of the right hon. Member for Maidenhead (Mrs May) promised to abolish section 21 no-fault evictions. In that time, over 45,000 households have been threatened with homelessness as a result of section 21 evictions, and the figures released so far this year suggest that possession claims resulting from them are increasing markedly as the cost of living crisis intensifies. It is high time that the Government stopped talking a good game about renters reform and got on with legislating for it, and the Minister needs to make it clear this afternoon that they will do so.

--- Later in debate ---

[Andrew Stephenson]

We are in strong agreement that we need to act. It has not been mentioned too many times today—[Interruption.] Well, the hon. Gentleman will remember that the December 2019 manifesto was soon followed by a global pandemic, when the Government took swift and decisive action to protect tenants across the country, so we have taken action. However, we were unfortunately unable to pursue other legislative priorities included in the manifesto with as much speed and vigour as we wanted. We are making significant progress, though. As the hon. Gentleman will know, the White Paper was published in June and some of the consultations that came under it closed only earlier this month.

[Matthew Pennycook]

Just to clarify—I think it might be helpful. I think the Minister said it is the Government’s intention to introduce a renters reform Bill in this Parliament. Will he give us a firm commitment today that the Government intend to make the necessary parliamentary time available to get that Bill on to the statute book by the time this Parliament ends?

[Andrew Stephenson]

I thank the shadow Minister for that remark. It is very much the priority of the Government to introduce the Bill and provide parliamentary time for it to proceed. Obviously, the Government’s policies can change, but, in today’s speech, the new Prime Minister underlined his commitment and the new Government’s commitment to the Conservative party’s 2019 manifesto, which included commitments in this area. I am sure that, whether it is myself or another Minister in post, this will remain a priority for the Government and we will want to bring forward the legislation in good time so that it can go through all the stages before the next general election.

We know that landlords need certainty, too. If a tenant needs to leave a tenancy, we will increase the amount of notice they must give. This will ensure that landlords recoup the costs of finding a new tenant and avoid lengthy void periods. The new system will be simpler for tenants and landlords to understand, enabling them to exercise their rights and fulfil their obligations. We are striking the right balance between improving security for tenants and ensuring that landlords continue to feel confident to invest in the market.

Good landlords play a vital role in providing homes for millions of people across the country, and we want to reassure them that the new system will continue to be a stable market for landlords to invest and remain in. No one will win if our reforms do not support landlords as well as tenants.

It is only right that landlords should be able to get their properties back when their circumstances change or tenants break the rules. We will reform the grounds of possession so that they are comprehensive, fair and efficient. We will streamline the possession process, removing unnecessary restrictions on landlords seeking to recover their properties, introduce a new ground for landlords wishing to sell their property and allow landlords and their close family members to move into a rental property. This, alongside the existing grounds for moving in, will give landlords confidence that they can get their property back if their circumstances change.

The vast majority of tenants abide by the rules, but landlords have told us how difficult it is to act when they are unfortunate enough to have an antisocial tenant. Antisocial behaviour causes misery to a tenant’s neighbours and the wider community. Where a tenant’s behaviour cannot be addressed in the property, we will support landlords to end the tenancy. In cases of criminal or serious antisocial behaviour, we will reduce the notice period, with landlords being able to make a claim to the courts immediately. We will explore prioritising those cases in court so that communities do not have to suffer for longer than necessary. We are working across Government to develop guidance for landlords on identifying and addressing antisocial behaviour, and we welcome further input from hon. Members on what we can do to further support landlords with antisocial tenants. Alongside that, we will continue to listen to landlords who provide much-needed accommodation for the thousands of students across the UK every year, to ensure that the sector continues to work for those in higher education.

Hon. Members here will agree that going to court should be the last resort when all other avenues have been exhausted, but sometimes it is unavoidable. Court proceedings can be costly and time-consuming for landlords, which is why we are working with the Ministry of Justice and His Majesty’s Courts and Tribunals Service to streamline the process and ensure that the most serious cases are prioritised. Alongside that, we are reviewing the bailiff process. It is currently the biggest source of frustration and delays for landlords, and we want to make sure that it is as efficient as possible.

Removing section 21 will help millions of tenants, but we understand that many are facing real pressures with the cost of living now. That is why the Government have provided over £37 billion-worth of cost of living support this year to those who need it most. We have also announced unprecedented support to protect households and businesses from the high cost of energy. The energy price guarantee and the energy bill relief scheme are supporting millions of businesses with rising energy costs. That is in addition to the £400 discount already announced through the energy bill support scheme. We have boosted investment in the local housing allowance by nearly £1 billion since 2020, and we are maintaining housing allowance rates at that increased level this year. Those most at risk of homelessness are able to access discretionary housing payments, alongside £316 million-worth of financial support through the homelessness prevention grant.

Finally, several hon. Members have raised the issue of the poor quality of some private rented homes. Most landlords and agents treat their tenants fairly and provide good-quality, safe homes. However, that is not always the case. Too many of the 4.4 million households that rent privately still live in poor conditions, paying a large proportion of their income to do so. Poor-quality housing undermines renters’ health and wellbeing, and we are determined to act. More than one in 10 privately rented homes have serious health and safety hazards that we need to address, as mentioned by the shadow Minister. We have strengthened local authorities’ enforcement powers by introducing financial penalties of up to £30,000, extending rent repayment orders and introducing banning orders for the most serious and prolific offenders, but we intend to go much further.

I hope that all Members here recognise that the Government are committed to reforming the private rented sector in a fair and balanced way, abolishing no-fault section 21 evictions and providing more clarity for landlords when seeking repossession. We are committed to giving tenants more security, meaning that they can stay in their communities and put down roots. In that spirit, I thank the hon. Member for Liverpool, Walton for his thoughtful speech, and hon. Members across the Chamber for their contributions. Delivering a fair deal for renters through these reforms remains a priority for this Government, and I look forward to working with hon. Members to deliver on that agenda.

Levelling-up and Regeneration Bill (Twenty Sixth sitting)

Matthew Pennycook Excerpts

Committee stage
Thursday 20th October 2022 Public Bill Committees

Brought up, and read the First time.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

I beg to move, That the clause be read a Second time.

As we are approaching the end of this Committee’s life, I will take the opportunity to thank the Clerks, Doorkeepers, Hansard reporters and House staff for facilitating our work over what I must say has felt—I do not disparage the Committee in saying this—like a lot longer than four months. We are, thankfully, near the end. This is a simple, straightforward and, I hope, unproblematic new clause for the Government, so I do not need to detain the Committee long in speaking to it.

Despite the strong arguments made by the Opposition at the time—I recall them personally because I served on the Bill Committee—the Government were determined to include within the Housing and Planning Act 2016 provisions requiring local authorities to sell higher-value council homes as they fell vacant, and to remit the income generated from such sales to the Treasury to fund the extension of the right to buy to housing association tenants. The sections of that Act that required local authorities to make a payment in respect of their vacant higher-value council homes came into force on 12 May 2016, but the consequential determinations were never made.

Having, one assumes, finally appreciated the severe impracticalities of the measure, as well as, one hopes, the social consequences of further reducing England’s already depleted social housing stock, the Government announced in their 2018 social housing Green Paper that they would no longer require local authorities to make higher-value-asset payments. In the words of that Green Paper, the sale of high-value homes

“should be a decision to be made locally, not mandated through legislation”

as they had previously felt was necessary.

However, in addition to making it clear that the Government would not bring those provisions of the 2016 Act into effect, the 2018 Green Paper said that the Government would look to repeal the relevant legislation, “when parliamentary time allows”. Yet, with four years having passed, and all manner of legislation having been taken through the House during that time, the Government have still not repealed those provisions.

New clause 67 simply seeks to have the Government finally implement the decision that they made and outlined in the 2018 Green Paper, and thereby undo the mistake that they made six years ago.

Mr Hollobone, we both know that Ministers have been clearly told to resist all amendments to this Bill, however sensible they might be, but I hope that the Under-Secretary of State for Levelling Up, Housing and Communities, the hon. Member for North East Derbyshire, might see, on this occasion, the soundness of the new clause. I do not think that there is any credible or justifiable reason why this Bill cannot be the legislative vehicle to undo the provision, which the Government have decided should not have been in the 2016 Act. However, if he will not do that, will he please tell us when and how the Government intend to do what they committed, in 2018, to do?

[Lee Rowley]

As the hon. Gentleman anticipates, I will not be encouraging the Committee to accept this amendment, although I understand the points behind it, which the hon. Gentleman has already articulated. In the spirit of his brevity, I will seek to be so, too.

The Government have made a number of commitments previously and stand by those commitments. As the hon. Gentleman has indicated, the provisions laid out in chapter 2 of part 4 of the Housing and Planning Act 2016 have not been brought into effect, and there is no intention of doing so. The provisions lack a regulatory framework to underpin the policy, so there is no risk of local authorities being subject to them before we are able to legislate in the future.

The Government remain of the view that legislation will be brought forward, but do not believe that the Levelling-up and Regeneration Bill is the best vehicle for that, as it does not largely address social housing. We therefore wish to focus on the measures within this Bill, while recognising that there will be no change to the status quo—the reality for local authorities around the country—on this matter. We will bring forward further consideration of this point in due course.

--- Later in debate ---

[Matthew Pennycook]

I welcome that response from the Minister, and particularly his clarification that there will be no change to the status quo. However, I am slightly puzzled because I cannot think of a Bill better placed to deal with a housing and planning provision in a previous Act. The Minister says that such legislation is forthcoming. There is no sign of when that is, or what it might be. I think that we may return to this at a later stage, but I will not divide the Committee on it this morning. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 68

Review of Permitted Development Rights

“(1) The Secretary of State must establish a review of permitted development rights under Schedule 2 of the Town and Country Planning (General Permitted Development) (England) Order 2015 (as amended).

(2) The review should include an assessment of:

(a) the past effectiveness of permitted development rights in achieving housing targets;

(b) the quality of housing delivered under permitted development rights;

(c) the impacts of permitted development on heritage, conservation areas and setting;

(d) the estimated carbon impact of the use of permitted development rights since the expansion of permitted development to demolition;

(e) the relative cost to local planning authorities of processing permitted development compared to full planning consents;

(f) potential conflict between existing permitted development rights and the application of national development management policies;

(g) the impact of permitted development rights, or other policies in this Bill designed to deliver streamlined consent, on the efficacy of levelling-up missions.

(3) The Secretary of State must publish a report of the recommendations made by this review no later than twelve months after this Act comes into force.”—(Matthew Pennycook.)

This new clause would commit the government to carrying out a comprehensive review of permitted development rights within 12 months of the Bill securing Royal Assent.

Brought up, and read the First time.

Question put, That the clause be read a Second time.

--- Later in debate ---

Brought up, and read the First time.

[Matthew Pennycook]

I beg to move, That the clause be read a Second time.

The proceedings of this Committee over the many months of its existence clearly detail the unwillingness of Ministers to address the issue of inadequate funding, which is the root cause of many of the challenges local planning authorities face. However, the Government have conceded that those authorities have performance and service quality issues that need to be addressed, and they have committed to developing a planning skills strategy for local planning authorities as a result—an issue I will return to when we discuss new clause 71. With a view to making the planning system more effective at a local level, new clause 70 seeks to probe the Government on a proposal included in their 2020 “Planning for the future” White Paper, as well as older studies such as the Building Better, Building Beautiful Commission’s final report and the Barker review of land use planning—namely, making it a requirement that each local planning authority appoints a chief planning officer or place-maker.

In the immediate post-war decades, the corporate and strategic influence of planners in local government was institutionalised in the senior position of the chief planning officer. However, despite planning being a statutory function, a combination of factors over recent decades has led to a situation where only a minority of councils now employ a head of planning who is a member of the senior management team and reports directly to the chief executive. Analysis undertaken by the Royal Town Planning Institute suggests that one in 10 local authorities does not fund a head of planning role of any kind. That progressive downgrading of the status and prominence of planning officers within local planning authorities, entailing a loss of skills capacity and the dilution of planning as a strategic function, has had a detrimental impact on planning outcomes, including in terms of design standards and quality.

Placing a duty on local planning authorities to appoint a chief planning officer, as provided for by new clause 70, would help ensure not only that councils attract professionals with the necessary high-quality expertise on creating places, connecting communities and spatial planning but that the spatial implications of other local authority functions are properly considered when it comes to planning decisions and local plans, thereby making the system more effective and ensuring that all aspects of place-making are properly considered at a corporate level.

[Rachael Maskell]

This is a really important new clause. York no longer has a chief planner, which means that planning decisions are often delayed and that the challenge is not brought to developers that are trying to bring forward their plans for fear of litigation. That is a serious consideration for local authorities, which is why this is such an important new clause.

[Matthew Pennycook]

That example perfectly illustrates the pressures that planning departments are under. There is a general resourcing issue. We know that applications can be delayed by months, if not years, because of a lack of staff. When planning officers move on, applications and all the knowledge around them can be delayed.

There is a wider point, in addition to those general resource pressures, which is that employing chief planning officers with the necessary skills, who sit at an appropriately senior level within the local authority, would have a number of benefits and would help the Government implement the new measures and the burdens they are placing on those authorities through this Bill. As the Minister will know, the Scottish Government introduced legislation in 2019 that requires each planning authority in Scotland to have a chief planning officer, and new clause 17 would achieve the same outcome in relation to England. We believe inserting such a requirement into the Bill would not only assist local planning authorities in implementing the new planning and regeneration measures it contains but would help improve the overall functioning of the planning system, and on that basis, I hope the Minister will give it serious consideration.

[Lee Rowley]

I am grateful to the hon. Gentleman for this new clause, yet unsurprisingly we will be asking him to withdraw it, too. I understand the sentiments behind it. I think we would all agree that we want a planning system that works and is effective, efficient and expedited where possible, and that appropriate consideration should be given at local level to ensure that placemaking is at the heart of what it does, but this particular new clause is, in my view, too prescriptive. This almost takes me back to my pre-parliamentary days when we were doing organisational design within individual companies. The one thing that we had as a principle was that organisational design needed to be flexible between different organisations, depending on their needs and requirements at the time and the areas that they needed to focus on.

Of course planning should always be a focus, but it is another question whether we need to put formal lines between particular officers and the chief executive, if there even are chief executives in certain local authorities—there are not all the time—so there is a secondary level of conversation about whether it would be section 151 officers or would be dealt with elsewhere. But I do not want to get too lost in the weeds. Although I accept the sentiment of the hon. Gentleman, I do not think it is proportionate to mandate these kinds of elements. I absolutely agree with him that local councils should discharge their responsibilities adequately, carefully and expeditiously. I hope that they will do that. We will continue to consider, in the Department, what we can do to ensure that that happens. But on this occasion, I hope that the hon. Gentleman will consider withdrawing the new clause, given that I do not think it is necessary.

[Matthew Pennycook]

I thank the Minister for that response. I take on board and appreciate the point that he makes about proportionality and whether this new clause is too prescriptive in that regard. I hope that he at least sees the concern that we have tried to highlight with the new clause, which is not only, as I said, the general issue with skills capacity but the status of planning officers within local authorities as a whole and whether that has an impact on planning outcomes. I hope that, given what I have said, the Minister will go away and give the issue some further consideration, not least in terms of what we will come to shortly, which is the skills strategy that the Government are outlining, but I do not intend to press the new clause to a Division. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 71

Comprehensive resources and skills strategy for the planning sector

“(1) The Secretary of State must, within 12 months of this Bill securing Royal Assent, publish a comprehensive resources and skills strategy for the planning sector.

(2) The strategy published under subsection (1) must—

(a) include an assessment of the effectiveness of local planning authorities and statutory consultees in delivering upon their existing duties and functions,

(b) include an assessment of the additional resource required for local planning authorities and statutory consultees to carry out new responsibilities and duties established by this Act,

(c) set out a funding strategy for a minimum five-year period that meets the assessed resource need under paragraph (2)(b),

(d) include an assessment of the skills and capability of the planning sector and statutory consultees to carry out new responsibilities and duties established by the Act, and

(e) explain how the Secretary of State intends to address the skills and capability needs of the planning sector as set out under paragraph (2)(d).”—(Matthew Pennycook.)

This new clause would commit the Secretary of State to publishing a comprehensive resources and skills strategy for the planning sector within 12 months of the Bill securing Royal Assent and would specify what such a strategy should include.

Brought up, and read the First time.

[Matthew Pennycook]

I beg to move, That the clause be read a Second time.

Me again, Mr Hollobone. New clause 71 is in my name and those of my hon. Friends the Members for Nottingham North and for Coventry North East. As I made clear just now, the Government have promised to bring forward a planning skills strategy for local planning authorities, and the commitment to do so is set out in the policy paper that accompanies the Bill. We believe that a strategy to address the skills gap is essential to improving the planning system and we support the Government’s efforts in this area. Not only is there an existing problem—as we have just discussed—when it comes to skills shortages within local authority planning departments, but, as we have discussed in many previous sittings, the Bill will require the implementation of entirely new processes; an increase in planning staff with specific specialist skills such as design; and improved capabilities, not least in terms of a mastery of digital and geospatial data and technologies. Therefore, additional pressures are coming down the line as a result of this legislation.

However, the commitment included in the policy paper accompanying the Bill refers only to a planning skills strategy rather than the

“comprehensive resources and skills strategy”

proposed in the 2020 “Planning for the future” White Paper. We believe that that is problematic. As we have debated on numerous occasions during this Committee’s proceedings, there is a clear need for additional resources for local planning authorities—a need that the many new burdens and duties provided for by the Bill will only serve to render more acute. We therefore believe that the Government were right in the 2020 White Paper to commit to a more comprehensive strategy that encompassed both skills and resources. New clause 71 would place a duty on the Government to publish that more comprehensive strategy within 12 months of the Bill securing Royal Assent and would specify what such a strategy should contain. I look forward to hearing the Minister’s response.

[Lee Rowley]

This is an interesting new clause but one that I ask the hon. Gentleman to withdraw. I think we share the underlying objective, which is to ensure that our planning system is well resourced, well managed and well executed, but there is the general question of whether we need to legislate for these things, and my view is that we do not need to legislate in the depth that he suggests. I hope he will take some assurance from the fact that this has been discussed several times in my short period in post, including as recently as yesterday, when I spoke to the chief planner on this matter. We continue to consider it in what I hope the hon. Gentleman would think is the detail it deserves. However, I hope he will withdraw the new clause, because I am of the view that the issue does not require legislation in order for the discussion to continue.

[Matthew Pennycook]

I appreciate the Minister’s response. The new clause was probing, as he will have seen, and I therefore do not intend to press it to a vote. I am reassured that he has already discussed the issue—several times, I think he said—in his short time in post. I hope he will take away the points that I made. We think we need a skills strategy, and I urge him to think about how planning departments in local authorities might be better resourced to do what they need to do. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 72

Local consent for onshore wind projects in England

“(1) The Secretary of State shall within six months of this Bill securing Royal Assent remove from the National Planning Policy Framework the current restrictions on the circumstances in which proposed wind energy developments involving one or more turbines should be considered acceptable.”—(Matthew Pennycook.)

This new clause would commit the Secretary of State to revising the National Planning Policy Framework within 12 months of the Bill securing Royal Assent to remove the onerous restrictions it currently places on the development of onshore wind projects by deleting footnote 54.

Brought up, and read the First time.

[Matthew Pennycook]

I beg to move, That the clause be read a Second time.

[The Chair]

With this it will be convenient to discuss new clause 82—Onshore wind planning applications—

“(1) The Planning Act 2008 is amended in accordance with subsection (2).

(2) In section 15 (generating stations), leave out subsection (2)(aa).

(3) Before Chapter 2 of Part 3 of this Act comes into force, the Secretary of State must publish a statement of the Government’s plan to revise national planning guidance to support local planning authorities to grant onshore wind applications below 50MW.

(4) For the purposes of subsection (3), ‘national planning guidance’ includes—

(a) the National Planning Policy Framework and any subordinate, subsequent or successor guidance for local planning authorities;

(b) the Planning Practice Guidance on Renewable and Low Carbon Energy;

(c) the National Planning Policy Statement for Renewable Energy Infrastructure.

(5) No later than one month after this Act comes into force, the Secretary of State must publish a report setting out the Government’s plan to encourage and support community energy projects.

(6) The Secretary of State must lay a copy of the report in subsection (5) before both Houses of Parliament.”

[Matthew Pennycook]

I tabled new clause 72 some time ago, with a view to pressing the Government to remove the de facto moratorium imposed for many years on the development of onshore wind. The growth plan, published late last month, committed the Government to doing just that, by bringing onshore wind planning policy into line with planning for other forms of infrastructure. As hon. Members know, most of the measures set out in that growth plan have been junked as part of the humiliating mini-Budget U-turn, but having seen no evidence to the contrary—the Minister might disappoint me again in this regard—we assume that the decision to remove onshore wind planning restrictions is one of the few to have survived the cull. Even if that is the case, it remains unclear how the Government intend to deliver on that commitment, so that this cheap form of renewable energy generation can be deployed more easily across England. New clause 82 probes the Government on that point.

Three categories of onshore wind project are needed in large numbers: first, projects that are larger than the 50 MW threshold for nationally significant infrastructure projects; secondly, projects that are below that 50 MW threshold; and, thirdly, smaller community energy projects. Each is addressed specifically by new clause 82. Proposed new subsections (1) and (2) would unpick the 2016 regulations that removed onshore wind in England from the nationally significant infrastructure projects process set out in the Planning Act 2008, meaning that proposed onshore over 50 MW could secure consent through the development consent order system. Subsections (3) and (4) would require the Government to set out in a written ministerial statement how national planning guidance will be amended quickly to enable local authorities to determine applications for onshore wind projects below 50 MW. Finally, subsections (5) and (6) would require the Government to bring forward a plan clarifying how smaller community energy projects will be supported.

To meet our emissions reduction targets and the predicted increase in demand for electricity in coming decades, as the decarbonisation of our economy advances, there is a pressing need to increase our onshore wind capacity rapidly. The Climate Change Committee recommended the installation of between 22 GW and 29 GW by the end of this decade. As Labour Members will continue to argue, doing that at pace would have the added benefit of reducing bills, creating good jobs and bolstering our energy security.

I hope that the Minister will engage thoughtfully with the new clauses, and perhaps provide the Committee with some answers as to how the Government intend to implement the decision set out in the growth plan in respect of onshore wind.

[Lee Rowley]

The hon. Gentleman has received some assurances since he tabled new clause 72. The Government have looked at the issue again, and I am grateful for his acknowledgment of that. I am afraid that I will disappointment him. I completely understand and accept the importance of the issue, while acknowledging that it is a sensitive one in certain parts of the country. I accept that the Committee has been in existence for many months, debating many important things, but given the salience and importance of this policy issue to our broader national discourse, I suggest that it be considered more broadly than simply in this Committee. We will bring forward further information about our continuing commitments and intentions in this area in due course. However, that is not something I can do in Committee.

[Matthew Pennycook]

The Minister is determined to disappoint me in our exchanges, but I accept that he feels unable to opine on the Government’s intentions regarding the onshore wind that they have committed to allowing via the planning system and the various routes that I have mentioned. I hope that the situation will be clarified at a later stage. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 73

Duty with regard to climate change

“(1) The Secretary of State must have special regard to achieving the mitigation of and adaptation to climate change when preparing—

(a) national policy or advice relating to the development or use of land,

(b) a development management policy pursuant to section 38ZA of the PCPA 2004.

(2) The Secretary of State must aim to ensure consistency with achieving the mitigation of and adaptation to climate change when exercising a relevant function under a planning enactment.

(3) A relevant planning authority when—

(a) exercising a planning function must have special regard to, and aim to ensure consistency with, achieving the mitigation of and adaptation to climate change, and

(b) making a planning decision must aim to ensure the decision is consistent with achieving the mitigation of and adaptation to climate change.

(4) For the purposes of subsection (3), a relevant planning authority is as set out in section 81 (a) and (b) and (d) to (j).

(5) For the purposes of subsection (2) a relevant function is a function that relates to the development or use of land.

(6) For the purposes of subsection (3) a planning function is the preparation of—

(a) a spatial development strategy;

(b) a local plan;

(c) a minerals and waste plan;

(d) a supplementary plan; or

(e) any other policy or plan that will be used to inform a planning decision.

(7) For the purposes of subsections (3) and (6) a planning decision is a decision relating to—

(a) the development or use of land arising from an application for planning permission;

(b) the making of a development order; or

(c) an authorisation pursuant to a development order.

(8) In relation to neighbourhood planning, a qualifying body preparing a draft neighbourhood plan or development order must have special regard to achieving the mitigation of and adaptation to climate change.

(9) For the purposes of this section, achieving the mitigation of climate change shall include the achievement of—

(a) the target for 2050 set out in section 1 of the Climate Change Act 2008, and

(b) applicable carbon budgets made pursuant to section 4 of the Climate Change Act 2008.

(10) For the purposes of this section, achieving adaptation to climate change shall include the achievement of long-term resilience to climate-related risks, including—

(a) the mitigation of the risks identified in the latest climate change risk assessment conducted under section 56 of the Climate Change Act 2008, and

(b) the achievement of the objectives of the latest flood and coastal erosion risk management strategy made pursuant to section 7 of the Flood and Coastal Water Management Act 2010.”—(Matthew Pennycook.)

This new clause would place an overarching duty on the Secretary of State, local planning authorities and those involved in neighbourhood plan-making to achieve the mitigation and adaptation of climate change when preparing plans and policies or exercising their functions in planning decision-making.

Brought up, and read the First time.

[Matthew Pennycook]

I beg to move, That the clause be read a Second time.

It is fitting that new clause 73 is the last that I will move, because it deals with an issue that I care deeply about. I have been at pains, throughout our more than 20 sittings, to highlight that from our point of view, the Bill is a missed opportunity to fully align the planning system with our climate mitigation and adaptation goals.

The Committee has discussed climate change in debates on several amendments, but not in any great detail. Runaway global heating is by far the most significant challenge faced by the country and the world, so I return to the subject to try once again to convince Ministers to amend the Bill to improve how the planning system responds to the climate emergency.

As I have argued, although there are exemplary English development schemes, they are notable exceptions, and it is patently obvious that the planning system in general is not playing its full part in responding to climate change. Indeed, in numerous important respects, it is actively hindering our ability to mitigate and adapt to global heating. The Labour party’s strong view is that more must be done to ensure that the planning system contributes effectively to the delivery of our emissions reduction targets, and that new development produces resilient and climate-proofed places. That view is shared by the Climate Change Committee; its 2022 progress report recommends that

“Net Zero and climate resilience should be embedded within the planning reforms that are expected as part of the Levelling Up and Regeneration Bill.”

We take that view because it is clear that existing duties and requirements, which set out how the planning system should help to achieve net zero, are not producing the required results.

The national planning policy framework requires planning to

“shape places in ways that contribute to radical reductions in greenhouse gas emissions”.

In addition, local planning authorities have a statutory duty under the Planning and Compulsory Purchase Act 2004 to include in local plans policies to ensure that development and use of land mitigates and adapts to climate change. They also have powers, under the Planning and Energy Act 2008, to require new developments to source a proportion of their energy requirements from renewable and/or low-carbon and local sources, and, under the Neighbourhood Planning Act 2017, to prioritise measures to tackle climate change at a plan-led level as a strategic priority.

Despite that plethora of duties, requirements and powers, the planning system regularly throws up decisions that are seemingly incompatible with the need to make rapid progress toward net zero emissions by mid-century. To give the Committee a topical example, the Planning Inspectorate recently told West Oxfordshire District Council to remove from the area action plan for a new garden village at Salt Cross requirements to demonstrate net zero operational carbon on site through ultra-low energy fabric specification, low-carbon technologies and on-site renewable energy generation, on the basis that they were not justified or consistent with national policy.

It is clear not only that Ministers have never prioritised the issue of how the planning system can drive climate action, but that the duties and requirements in legislation are insufficiently robust and fail to consistently shape the decisions of local planning authorities, or of the planning inspectors examining plans or appeals. Similarly, the national planning policy framework does not ensure that national policy contributes fully to climate change mitigation and adaptation. Although the Government promised to review it with a view to strengthening guidance on net zero, there is still no sign of the NPPF prospectus that one of the previous Housing Ministers who served on the Committee—forgive me; I forget which one—promised us would materialise this summer. As we argued many sitting ago during the debate on amendment 101 on plan making, the Government should overhaul the Bill to ensure that both national policy and local planning align fully with the commitments in the Climate Change Act 2008, and with statutory frameworks that provide for resilience to climate impacts, such as flooding and heatwaves.

Although there are commendable examples of local authorities seeking to bring forward local plans that include quantified, strategic-level carbon reduction targets, they are few and far between. That is likely to remain the case until the Government produce clear and unambiguous national policy guidance and a purposeful statutory framework to align every aspect of the planning system with net zero. The former requires the production of a revised NPPF that fully supports the drive toward net zero, but the latter can be accomplished by the Government accepting new clause 73, which would place an overarching duty on the Secretary of State, local planning authorities and those involved in neighbourhood plan making to achieve the mitigation and adaptation of climate change when preparing plans and policies, or exercising their functions in planning decision making.

--- Later in debate ---

[Lee Rowley]

In the spirit of the brevity that you have requested, Mr Hollobone, let me say that I am grateful to the hon. Gentleman for the new clause, and I share his optimism about our ability to deal with climate change, but I also recognise that that it will take time, as we outlined in debate on previous clauses. Consequently, I will resist the new clause.

As the hon. Gentleman outlined in a number of ways that I will not repeat, there are already significant legal requirements on local authorities to consider climate change, as well as a national policy requiring local planning authorities to take a proactive approach to climate change. I cannot give any guarantees, but I will certainly consider his points, because that is an important part of the housing brief. On this occasion, however, the new clause is unnecessary, and I ask him to withdraw it.

[Matthew Pennycook]

The Minister will appreciate that I find that response disappointing; there is a clear difference of opinion. We think that the existing duties, requirements and guidance are not having the intended effect that he outlined, and we feel strongly that there is a case for amending primary legislation to ensure that the planning system aligns fully with the Climate Change Act and other statutory frameworks.

I know that we are on the clock, Mr Hollobone, so I will not labour those points, which have been made before, but to drive home how important we feel the issue is, I will press the new clause to a Division.