Access to Migraine Treatment

Debate between Matthew Pennycook and Dehenna Davison

Wednesday 20th March 2024 Westminster Hall

[Dehenna Davison]

I am grateful to my hon. Friend for passing on Lisa’s remarks. She is one of millions in the country living with this condition and experiencing the debilitating effects. I hope that, following today’s debate, we will see improved access to treatment. I ask my hon. Friend please to pass that on to Lisa.

As I said, there are 10,000 people in every constituency but no debates in Parliament since the 1960s. I make special mention of Lord Londesborough for raising a question on migraine in the other place in October last year, rightly arguing that this invisible disability deserves much greater priority and resourcing across the NHS.

It is 60 years since the last parliamentary debate. Those suffering the crippling effects of migraine alone might feel that, even now after all that time, little progress has been made, but I am here to be optimistic. New treatments, such as CGRP blockers, are proving highly effective for many migraine patients, helping to reduce the severity, longevity and frequency of migraine attacks. For many taking CGRP blockers, they are often called a lifeline. One patient responded to our survey, saying that CGRP injections have “virtually eradicated my migraines”.

Although new effective treatments are being developed, they are not easy to access through the NHS. Across today’s debate, I will outline the key difficulties being faced by patients at each stage of the migraine journey, and will outline possible solutions to improving access to treatments and, ultimately, the lives of migraine patients. That is something that I think we can all agree is very much beyond politics.

Let us start with the basics and discuss what it is like to live with migraine. We had an example from Lisa, the constituent of my hon. Friend the Member for Kettering (Mr Hollobone). When experiencing a migraine attack, common symptoms can include a severe headache; nausea and/or vomiting; visual disturbance, such as blurry vision, spots of light or zig-zag lines; sensitivity to light and sound; an inability to concentrate and brain fog; difficulties forming words, which is not helpful in this place; and fatigue.

Interestingly, I had experienced migraine for years before I recognised some of the symptoms linked to it. I recall sitting at home reading “Managing Your Migraine” by Dr Katy Munro last autumn, with a coloured pen in hand, underlining all the symptoms that I experience when I get a migraine attack; and there were eight different symptoms. A severe attack can leave sufferers bed-bound in agony, with curtains closed, cowering in the darkness, unable to eat, unable to think clearly, and utterly miserable. Attacks can be completely debilitating, and I have experienced my fair share of them.

I am not the only hon. Member who lives with migraine. The hon. Member for Caerphilly (Wayne David) is unable to attend today but asked me to read his testimony in his absence. He said:

“I have suffered from migraine since I was a young man. It used to be extremely debilitating, but in recent years I have been able to minimise significantly the severity and frequency of attacks. There are so many different causes and triggers of migraine. For me, it is stress related. Manage my stress and I can usually manage my migraine.”

The hon. Member for Banff and Buchan (David Duguid) said:

“I first experienced migraine in my early teenage years, when I regularly had to be excused from school. I remember being particularly distressed at the disorientation and confusion, as well as the extreme headache and nausea, of course. Migraines have become no less debilitating as I have grown into adulthood but they have become less frequent, and I generally know what to expect when symptoms start, and what medication to take. Like my father before me, I now watch my 12-year-old son experiencing his first migraines and the confusion it brings. As much as I can empathise with my son, I am only too aware of how little I can do to relieve his distress.”

The frequency of migraine attacks can vary. Some people will experience a small number of attacks over a lifetime, some one or two a month, but for others migraine can become chronic, meaning that headache is present more than 15 days a month, with at least eight of those having other migraine symptoms. That is the condition that I live with, as do around a million other people in the UK. For me, that means that I have a headache all day, every single day. Although they vary in severity, they are none the less draining, particularly on the many days when they are coupled with other migraine symptoms.

Recently, I spoke to Mollie Campbell, a brilliant young woman who like me lives with chronic migraine. Her journey helps to outline some of the difficulties that patients face in accessing treatment. In her own words, she remembers her first attack vividly:

“on a normal day, I woke up in agonising pain in my eye, eyebrow, and head. When I say ‘pain’, I mean torturous and excruciating pain, the kind that makes you roll around on the floor sobbing in agony.”

Mollie sought help from her GP, but it took months, several misdiagnoses, a number of unsuitable drugs being prescribed and, eventually, her paying to access a scan privately before she was eventually diagnosed with chronic migraine. Unfortunately, Mollie’s story is not uncommon. It can take patients months, if not years, to get a diagnosis.

A commonly expressed sentiment is that GPs do not always take the condition of migraine seriously. One patient who responded to our survey explained that they waited

“five and a half years from first presenting to a doctor taking them seriously and investigating”.

Another said that

“it took 19 years to be diagnosed with migraines”,

and another:

“Doctors just don’t seem to know or understand enough about it and I have been fobbed off a lot.”

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

I was contacted by a constituent who wishes to remain anonymous and who suffers from debilitating hormonal migraines. She is frustrated by the lack of general awareness among medical professionals, GPs in particular, about the specific treatment and medication that those who suffer from that type of migraine need. Does the hon. Lady agree that to make progress in addressing the condition, we need to ensure greater knowledge among medical professionals about the specific treatments needed by those who suffer perimenopausal and menopausal migraines?

[Dehenna Davison]

I completely agree with the hon. Gentleman. He will be interested in a paragraph that I will be reading out shortly, which addresses his very point.

Another testimony said:

“I have suffered migraines for approximately four to seven years but never went to the doctors until recently through fear of being dismissed.”

Some believe that is because GPs across the board just do not know enough about migraines. One GP said to the Migraine Trust:

“In medical school, neurology is a small part. Unless you have specifically chosen to do neurology, you will not have any formal training.”

GP training on migraine and headache disorder is patchy at best, and often relies on local champions spearheading that, rather than a more formalised structured. Our clear ask to the Minister, therefore, is to ensure improved training on headache and migraine as part of the medical training for GPs, to ensure that early diagnosis is possible.

For those who get a diagnosis, seeing a neurologist or headache specialist is a crucial step in helping with ongoing management, not least because specialist treatments cannot be accessed through primary care—I will return to that point shortly. On waiting lists to see specialists, experiences vary, but the broader picture is not as positive as it could be. Two patients outlined how, after many years of waiting for a diagnosis, it took a further four years from that point until they saw a neurologist. One said:

“I waited five months to receive an appointment letter then another five months until the actual appointment date”,

and the other said that they:

“waited 15 months to see a neurologist who then referred me to a specialist. I have been waiting for seven months for that, with no appointment yet.”

Even when eventually under the care of a specialist, some outlined that the continuity of care was not there. One patient said:

“I was prescribed a treatment to try, and was discharged, and then I had to be re-referred to try and alternative when the first option didn’t work.”

Recent analysis from the Migraine Trust found that, on average, it takes 29 weeks to access a neurologist or headache specialist, which has doubled from 15 weeks in 2021. Even then, neurologists may specialise in other conditions such as stroke and Parkinson’s rather than headache and migraine. Part of the issue is a lack of neurologists and headache specialists around the country. The UK has around 1.1 full-time equivalent neurologists per 100,000 people, versus four per 100,000 in France and Germany. Regional variations mean a postcode lottery, with major disparities between waiting lists from trust to trust. Here, our key plea to the Minister is to ensure that more specialists are trained to plug the gaps in neurology and headache specialists and, ultimately, to speed up access to treatment.

Once a diagnosis is in place, the obvious next step is treatment. Often, GPs will prescribe acute medications such as triptans to help manage attacks when they occur. For those suffering more frequent migraine attacks, preventive medications can be prescribed, but many of those were not designed specifically for migraine, such as topiramate, an epilepsy drug, amitriptyline, an anti- depressant, or candesartan, for the treatment of high blood pressure. Some people do report an improvement in the severity and frequency of their migraine attacks, many do not, and can in fact experience negative side effects from such medications. Nevertheless, there are now treatments designed specifically for migraine, such as CGRP blockers, as already referenced, and there are many different kinds, such as wafers that dissolve on the tongue, injections or infusions.

However, National Institute for Health and Care Excellence guidelines are, for many, getting in the way of early treatment. Take, for example, the CGRP blocker erenumab—I always pronounce that wrong. A 2021 study in the Journal of Clinical Medicine by Maraia, Ricci and others found that, as a treatment for the prevention of migraine, erenumab successfully reduced the mean number of monthly migraine days and the acute medication used per month in 96% of cases—a real success story. However, NICE recommendations state that the drug

“is recommended as an option for preventing migraine in adults, only if…they have 4 or more migraine days a month”

and

“at least 3 preventive drug treatments have failed”.

Let us take a second to understand that. If someone is struggling with migraine, they must try three drugs that are not designed for migraine, usually for at least three months each, and if those are unsuccessful, they may be able to access a drug that is specifically designed to prevent migraine attacks. That makes little sense, and it can delay patients’ access to successful treatments for months, if not years. One survey respondent said:

“Getting treatment has been difficult. To access the latest treatments, you have to fail so many preventatives.”

The American Headache Society and migraine expert Professor Peter Goadsby suggest that CGRP blockers should be available as a first-line therapy, not as a last resort. We support that call, so I ask that the Minister requests that the NICE guidelines are updated to allow specialised treatments such as CGRP blockers to be accessible first, which would provide earlier, much-needed relief for migraine patients.

Similarly, despite NICE approval for many CGRP blockers, whether individual NHS trusts even allow access to them is a postcode lottery. One respondent said:

“Once help is found, though, it can be difficult to access as it depends on which area you live in.”

Another said that

“my NHS trust only allows the trial of one of the anti-CGRP drugs and if it doesn’t work you are not allowed to try another as it’s not funded.”

A Migraine Trust freedom of information request, which I found shocking, found that only 29% of trusts in England allow access to CGRP medications. Here we make yet another ask of the Minister: the postcode lottery in access to CGRP medications should be addressed and fixed, perhaps through fresh NICE guidance and a dedicated push from the Department of Health and Social Care for trusts to allow more access to these life-changing medications.

Another key change that could help those living with migraine to access positive treatment sooner would be allowing treatments such as CGRP medications to be prescribed by primary care practitioners. I have spoken of the success of some CGRP blockers, yet they can be prescribed only by specialists, such as neurologists, who can have extensive waiting lists, as we have discussed. Even if someone sees a specialist, they need to demonstrate that other treatments have been ineffective. If specialist drugs could be prescribed in primary care as a first resort, we could reduce dramatically the impact of chronic migraine on patients. Pilot work in Scotland has seen community pharmacy playing a greater role in prescribing drugs to prevent and manage migraine. A further ask for the Minister, if he will forgive me, is a review of CGRP blockers and other new treatment options, so that they can be prescribed in primary care.

Social Housing (Regulation) Bill [Lords]

Debate between Matthew Pennycook and Dehenna Davison

Consideration of Lords message
Monday 17th July 2023 Commons Chamber

[Dehenna Davison]

The hon. Gentleman is, as ever, a fantastic champion for Northern Ireland and its people. We will, of course, continue to have conversations with the relevant bodies in Northern Ireland, because it is important that social housing, wherever it is provided within the United Kingdom, is up to the appropriate standard. I know he will continue to champion that cause.

In closing, I would just like to put on record one final time my and my Department’s heartfelt thanks to Grenfell United and all other stakeholders for their strong constructive engagement on this critical legislation. I hope that, following today, we will see it on the statute book incredibly soon.

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

I intend to be brief, because the sole amendment we are considering is entirely uncontentious.

As you will no doubt recall, Madam Deputy Speaker, the Opposition welcomed the concession the Government made in the other place last year with regard to professional training and qualifications, and the resulting addition of clause 21 to the Bill. Having pressed in Committee for that clause to be strengthened, we also welcomed the Government’s amendment to it, which was tabled on Report earlier this year on the basis that it largely assuaged our concerns. We support Lords amendment 13B in lieu of Commons amendment 13, as do the relevant trade bodies and tenant groups including Grenfell United and Shelter, whom we once again commend for the role they played in convincing the Government to incorporate qualification requirements in the Bill.

Lords amendment 13B is a technical amendment that has three main effects. First, it will ensure that the qualification requirements in clause 21 capture relevant managers working for organisations which deliver housing management services on behalf of a registered provider. Secondly, it will ensure that contractual agreements between registered providers and delegated services providers and relevant sub-agreements contain terms stipulating that their relevant managers should have, or be working towards, a specified qualification in housing management, thus enabling registered providers to take action against delegated services providers that are not compliant. Thirdly, the amendment expands on definitions of services providers and specific roles, and provides for consultation before setting a standard and before giving a direction to set a standard.

We agree with their lordships that the changes are necessary if we are to ensure that the sector as a whole delivers high-quality professional services of the kind social tenants deserve and rightly expect. I want to put on record our thanks to my noble Friend, Lady Hayman of Ullock for bringing the need for this amendment to the Government’s attention and for her efforts more generally to improve the Bill in the other place.

It is our sincere hope that once the House has agreed this minor but necessary change today, this important and urgently needed piece of legislation can quickly receive Royal Assent so that we can overhaul the regulation of social housing and better protect the health, safety and wellbeing of social tenants across the country.

Question put and agreed to.

Draft Higher-Risk Buildings (Key Building Information etc.) (England) Regulations 2023

Debate between Matthew Pennycook and Dehenna Davison

Wednesday 22nd February 2023 General Committees

[Dehenna Davison]

I am grateful to all Members for their contributions, and to the hon. Member for Greenwich and Woolwich for indicating that we have cross-party consensus and support for these important regulations. I will do my utmost to cover all the questions and points raised; if I miss anything, I will follow up in writing.

On the points raised by the right hon. Member for Leeds Central, registration is separate from applying for a building assessment certificate. Registration is required first, and then the regulator will ask for a building assessment certificate to follow. Other duties in part 4 of the Building Safety Act will ensure the production of a safety case and that building safety risks are properly managed by the appropriate person, and we will be bringing forward regulations later in the year on those points.

On the very relevant questions about what will happen when people do not register in time or do not register at all, from April this year it will be a requirement on the principal accountable person to register, and from October 2023 it will be a criminal offence, with either a fine or imprisonment as a sanction, not to register or come forward to register. We will lay regulations on that shortly, and the House will have full scrutiny of them.

[Matthew Pennycook]

The Minister is more than welcome to follow up in writing, but she has just clarified, in response to the question from my right hon. Friend the Member for Leeds Central, that there is a difference between registration and certification. Will she address the specific point—in writing if need be—about what happens if a duty holder comes forward to register but does not provide the necessary mandatory information in time?

[Dehenna Davison]

I will follow up on that point in writing after the Committee rises, because I have a few other points to cover.

The hon. Member for Greenwich and Woolwich asked whether fire doors, for example, are included in the fire and smoke equipment referred to in regulation 18. They are included. I hope that provides him with some reassurance.

We have set out a 28-day period for providing the key building information. It is important that that information is provided quickly so that the regulator can prioritise the call-in of building assessment certificates. For many existing buildings, accountable persons may not know whether there has been significant building work, so the Government are enabling accountable persons to say that they do not know on that point. For the fire standard, it was decided that the build date would provide enough information.

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

Debate between Matthew Pennycook and Dehenna Davison

Tuesday 29th November 2022 Public Bill Committees

[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 ---

[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.

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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.

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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 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.

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[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.

[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)

Debate between Matthew Pennycook and Dehenna Davison

Committee stage
Tuesday 29th November 2022 Public Bill Committees

[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.

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[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 ---

[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

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[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.

[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.

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[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.

--- Later in debate ---

[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.

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[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 ---

[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.

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[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.

Social Housing and Regulation Bill (First sitting)

Debate between Matthew Pennycook and Dehenna Davison

Committee stage
Tuesday 29th November 2022 Public Bill Committees

[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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[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.

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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.

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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 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.

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[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.

[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 (Regulation) Bill [ Lords ] (First sitting)

Debate between Matthew Pennycook and Dehenna Davison

Tuesday 29th November 2022 Public Bill Committees

[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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[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.

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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.

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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 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.

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[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.

[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 (Regulation) Bill [ LORDS ] (Second sitting)

Debate between Matthew Pennycook and Dehenna Davison

Tuesday 29th November 2022 Public Bill Committees

[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.

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[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

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[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

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[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.

[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.

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[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.

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[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.

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[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 ---

[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.

--- Later in debate ---

[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.

Levelling-up and Regeneration Bill (Twenty Fourth sitting)

Debate between Matthew Pennycook and Dehenna Davison

Committee stage
Tuesday 18th October 2022 Public Bill Committees

[Dehenna Davison]

That is why I made the point about the consultation we are running. We want to make sure that we get this right, which is why we sought views on this issue in a public consultation that closed in May. Analysis of those responses is ongoing and will form the backbone of our response to any new legislation. The measure is a placeholder until we can bring something forward. I recognise that it is not an ideal situation, but that is where we are.

[Matthew Pennycook]

I want to challenge the Minister on that point. If I heard her correctly, I think she said that the intention behind the clause is not to recriminalise homelessness.

[Dehenna Davison]

Absolutely.

[Matthew Pennycook]

Can she explain why subsection (2) allows regulations to include provision to create criminal offences, in similar ways to sections 3 and 4 of the Vagrancy Act 1824, which the House voted to repeal? It effectively will allow for the recriminalisation of homelessness. I think she is wrong on that point, but if she could provide further clarification, I would appreciate it.

[Dehenna Davison]

As I outlined, this is a placeholder, and we are analysing the consultation responses. The commitment I have given is that no criminalisation will result from the fact that someone is homeless. I want to put that point on the record incredibly strongly.

I cannot pre-empt the outcome of the consultation, but I have spoken to the Minister with responsibility for rough sleeping, who has committed to writing to Committee members to outline the next steps. As I say, this issue does not usually sit within my brief, but we are limited by the number of Ministers we can have in Committee today. Hopefully, that Minister will be able to provide additional reassurance.

Levelling-up and Regeneration Bill (Twenty Third sitting)

Debate between Matthew Pennycook and Dehenna Davison

Committee stage
Thursday 13th October 2022 Public Bill Committees

[Dehenna Davison]

Part 9 of the Bill will greatly enhance our understanding of who owns or controls land and property. To assist the economy to grow, the Government need to break down any barriers and find key tools that ensure our property market is fair, open, competitive and resilient. One big barrier at the moment is information asymmetries. The land market in England and Wales currently lacks full transparency, particularly when land control arrangements are used—opaque arrangements short of ownerships such as options and conditional contracts.

The Government are determined, for the benefit of us all, to shine a light on complex arrangements used to control land and property. Clause 178 allows the Secretary of State to expand the collection of information about legal and beneficial ownership of land and property in England and Wales. We intend to use the power to dig deep into opaque ownership, and to control structures into narrow use cases.

First, the power will ensure that landlords responsible for the cost of remediating unsafe buildings under the Building Safety Act 2022 do not avoid their liabilities. Some are seeking to avoid their remediation responsibilities and frustrate the Act through the use of obscure structures. A targeted power will help to cut through that, and will allow us to ensure that works are carried out swiftly, so that we avoid continued costs for leaseholders and calls on the Government’s legal budget. Secondly, the power will allow the intelligence and security agencies to identify opportunities for hostile actors to misuse properties in the vicinity of sensitive sites and put national security at risk.

Clause 179 further expands the Secretary of State’s power to collect information on certain specified types of arrangements used to control land. The powers will allow us, for the first time, to collect information on arrangements used by developers and others to control land. I would like to share some facts and statistics about the extent of land control arrangements, and the impacts that the practice has on the housing market, but I cannot, because Ministers and the public are blindfolded on that point. We have no accurate data on the area of land that is subject to such controls, although we suspect that it is substantial. That means that it is hard for local authorities, communities and businesses to identify who controls developable sites. In many areas, that hampers good place-making and slows down development of new areas for people to live in and thrive in.

Collecting and publishing information about land control arrangements will give communities and local authorities a better understanding of who controls land in their area, and addresses those barriers. It will also provide Government with additional information that will allow them to understand who exercises control over land and property, even where that person is not the legal owner. It will provide the basis for assessing that hidden market and producing evidence-based policy.

To implement these powers effectively, we must retain the flexibility to respond swiftly to attempts to avoid or evade this legislation, and ensure that we have all the information we need to unpick the complex and opaque structures used by some to hide their ownership or control. Clause 180 specifies the key information that must be set out in statutory instruments before the powers under the previous two clauses can be used. Parliament will have the opportunity to debate and approve all regulations made under this part of the Bill before they come into force, and all draft instruments will be laid before the House under the affirmative procedure.

Clause 181 allows for the retention, sharing within Government and publication of information collected under clauses 178 and 179. In her Second Reading speech, the shadow Secretary of State, the hon. Member for Wigan (Lisa Nandy), expressed concerns that we were seeking to withhold information on arrangements used by developers to control land. I am pleased to reassure her, and members of the Committee, that we will publish such data as machine-readable open data, in line with our commitments, set out in the 2017 housing White Paper, to improve the transparency of those arrangements and—our key motivations behind the measure—to make the land market more transparent and competitive.

Bearing in mind privacy and security considerations, it is the Government’s intention that other types of information collected—but not published—will be shared with and used by Government bodies to carry out their functions; for example, they could be used for the enhancement of national security and the implementation of the Building Safety Act 2022.

Clause 181 allows for the payment of fees to cover the costs of collecting that information. As our proposals are designed to work with the grain of existing processes, we expect that any fees, if charged at all, would be modest. To be clear, regulations creating any such fee must be made under the affirmative procedure, so Parliament would have to approve them first.

Clause 182 allows the creation of criminal offences by regulation, so that penalties could be imposed on those who failed to comply with requirements to provide information, or who provided false or misleading information. In the overwhelming majority of cases, we expect that people will comply, but the steps that we are taking through this legislation to increase transparency about the ownership and control of property will be disruptive to dishonest actors, or those seeking to conceal their ownership or control of land and property. The stringent transparency measures are, in part, designed to deter nefarious activity or the avoidance of other initiatives aimed at increasing transparency. It would be naive to assume that there are not those who will try very hard to avoid their obligations. That is why that power is so important. The final clause in this part, clause 183, is a technical clause that sets out key definitions. I hope that is non-contentious.

In summary, together, these clauses will provide crucial tools to ensure that our property market is fair, transparent, competitive and resilient. I commend them to the Committee.

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

Part 9 is one of the less remarked-on parts of the Bill, but it contains important measures. As the Minister outlined, it provides for enabling powers that require the disclosure of information relating to the ownership and control of land in England and Wales, including transactional information.

Labour fully supports the goal of increasing transparency and accountability in respect of the ownership and control of land that could be used for development, as well as transactional information relating to instruments, contracts and other arrangements. We agree with the Government that reform in this area has the potential to help expose anti-competitive behaviour by developers, tackle strategic land banking, aid smaller-sized enterprises to acquire land for development, facilitate more effective land assembly by local authorities and others, and help communities to better understand the likely path of development in their area. As the Minister rightly said, reform will also help to ensure that where buildings are defective in terms of building safety and require remediation, those works are undertaken as swiftly as possible.

Levelling-up and Regeneration Bill (Twenty Second sitting)

Debate between Matthew Pennycook and Dehenna Davison

Committee stage
Thursday 13th October 2022 Public Bill Committees

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

Thank you, Mrs Murray. It is a pleasure to serve under your chairmanship, particularly for my first outing as a Minister. I would appreciate your going slightly easy on me on procedural matters—I will do my best.

As we know, the Government are committed to empowering local areas to drive forward growth and renewal without the need to establish a body accountable to central Government. Development corporations are powerful tools that can deliver large-scale development, and they have been successfully used to deliver more than 20 post-war new towns across England, such as Telford and Milton Keynes. They have also been instrumental in regenerating brownfield sites, such as Canary Wharf and the London Olympic site. However, the enabling legislation was designed for a different time and in response to very different circumstances, so there are now multiple types of development corporation, which have varying powers and remits that inhibit their use. Given the scale of the challenge to level up the country, provide the necessary infrastructure and deliver the growth and housing that current and future generations need, we want to ensure that development corporations are accessible right across England.

In October 2019, we consulted on the legislative framework for development corporations to ensure that they have the powers they need to deliver. The results of that consultation showed that there is a gap in the existing models. Outside of mayoral areas, there is no model available for local authorities to regenerate their areas, which is what the clause is intended to address. The clause introduces a new locally led urban development corporation model, which will be overseen by a local authority covering the area, rather than by central Government. It will also allow local authorities, rather than central Government, to put forward proposals to the Secretary of State to designate and create a locally led urban development corporation.

Subsection (4) sets out what authorities will need to do before submitting a proposal to the Secretary of State for designation. That includes what a proposal must contain, who is able to put forward a proposal and who can become an oversight authority. Local authorities will not be able to unilaterally decide to ask the Secretary of State to designate a locally led urban development corporation. Instead, the clause includes a statutory requirement for the proposing authorities to consult local residents, businesses, MPs and other local authorities before making a proposal to the Secretary of State. When the proposal is received by the Secretary of State, they will look carefully at the robustness of the plans, including community involvement and the views expressed, before making a decision. That is why new clause 53 is an unnecessary addition to the consultation requirements and would slow down the designation of development corporation areas.

The purpose of designating an area is to determine the area in which the locally led development corporation will operate and deliver a programme of urban regeneration, and there will be other opportunities for the local community to have their say on the planning proposals for the area through the planning system. Respondents to the consultation noted the considerable amount of up-front resource required to make the case for a locally led development corporation, expressing apprehension about the level of evidence that may be required.

The clause introduces a different test for locally led urban development corporations. Before they are established, the Secretary of State must assess whether it is expedient in the local interest, rather than in the national interest, to designate the development area, which means that local authorities will no longer need to prove that their proposal is in the national interest. A similar provision is introduced for locally led new town development corporations under clause 132. We will provide further guidance to ensure that the evidence required to meet the test is proportionate and provides the certainty that local authorities desire.

We also want to ensure that the proposals are implemented as planned. Subsection (7) requires the Secretary of State to give effect to the proposal, subject to its meeting the statutory test that it is expedient in the local interest. That will include the order providing for the name of the development corporation, the number of board members, who the oversight authority will be, and arrangements for the performance of functions by oversight authorities consisting of more than one local authority. The order must also provide for any other functions that the proposal sets out as planning powers.

Orders designating locally led development corporations will, as for mayoral development corporations, be subject to the negative procedure. That reflects the fact that local democratic scrutiny will have occurred prior to the proposal being permitted to be made. The clause will equalise mayoral and non-mayoral areas with locally led development corporations by standardising the parliamentary process, with democratic oversight at the local level.

We intend to use the powers in the clause as we did the locally led New Towns Act 1981 (Local Authority Oversight) Regulations 2018, which will be subject to the affirmative procedure. That includes setting out which functions will be transferred to the oversight authority. We will consult on regulations in due course to ensure that they are informed by both communities and stakeholders. In the light of that explanation, I ask the hon. Member for Greenwich and Woolwich not to press new clause 53.

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

It is a pleasure to reconvene under your chairmanship, Mrs Murray. I welcome the two new Ministers to their places. I want to speak to new clause 53, not least because I am not entirely convinced by the reassurances just given by the Minister. As she said, and as the policy paper accompanying the Bill sets out, this part of the Bill makes provision for a new type of locally led urban development corporation accountable to local authorities rather than the Secretary of State. It amends the process for establishing locally led new town development corporations and updates the planning powers available to both centrally and locally led development corporations, bringing them into line with the mayoral development corporation model in terms of enabling them to become local planning authorities for the purposes of local plan making, neighbourhood planning and development management.

In the view of the Opposition, part 6 of the Bill is largely uncontroversial, and we are broadly supportive of the measures contained within it. The development corporation model established by the New Towns Act 1946 was a key part of the post-war planning settlement and, as the Minister referenced, it proved remarkably effective in addressing the housing emergency faced in those years. The 32 new towns built under the post-war UK new towns programme today house over 2.5 million people. Funded by 40-year Government loans, they ultimately not only paid the Treasury back, but returned a surplus. The legacy of urban development corporations is more mixed, but their potential for large-scale regeneration is undeniable and their capacity to successfully deliver major projects, such as the London Olympics, is testament to their utility.

In a real sense, development corporations remain an answer to one of the core weaknesses of the planning system, which is that local planning authorities have the power to develop and set a strategy in a local area, but few powers and little capacity to ensure the necessary development to realise it is delivered. On the other hand, development corporations combine strategic planning capability with powerful delivery mechanisms that help ensure that the development objectives they set are realised. They can, for example, commission private sector companies, or establish their own, to deliver homes and infrastructure, and they can compulsory purchase the land they need to deliver a plan and then control consent to bring forward development. For all those reasons and more, we therefore welcome the fact that the Bill includes provision to amend and enhance the development corporation model. However, we need to ensure that the new types of development corporation provided for by part 6 of the Bill realise their potential and have legitimacy in the eyes of the public—the latter being directly related to the former.

When it comes to their likely efficacy as a means of regenerating areas, the decision to provide for locally led development corporations risks proving a double-edged sword. The advantage is, of course, that a local authority, or authorities, seeking to designate an urban development area and create an urban development corporation, as provided for by clause 131, or to oversee the creation of a new town in an area within their administrative boundaries, as provided for by clause 132, can determine their own priorities rather than having them determined for them by the Department. In that sense, the measures provided for in this part are in keeping with the spirit of the original New Towns Act 1946. The disadvantage is that, in practice, there is likely to be little incentive for a local authority, or authorities, to take the financial and political risk of designating a given area and establishing the necessary development corporation to regenerate it. The recent experience of four north Essex authorities, which attempted unsuccessfully to designate and oversee the development of three garden communities, is a stark illustration of the need for central Government to be far more active in supporting locally led initiatives if they are to succeed.

The success of the post-war UK new towns programme lay, in part, in the fact that each development corporation operated within the context of strong national policy and enjoyed the active and direct support of the Government of the day and their Ministers. It is telling that this part of the Bill places no duty on the Secretary of State to support—financially or otherwise—the locally led development corporations it enables to be established. As things stand, we have no sense of what the Government ultimately wish to achieve by means of the provisions in this part, not least how they believe such locally led development corporations will assist in levelling up, given the likelihood that most will come forward in the south and, I would wager, the south-east of the country. Our new clause 53 is not designed to address the potential challenges involved in ensuring that locally led corporations realise their full potential in that sense, as vehicles for regeneration and levelling up, but I hope the Government will carefully consider the points I have made in that respect.

When it comes to community consultation, I am afraid that I am not satisfied that the proposed measures are sufficient. In terms of the perceived legitimacy of these development corporations, it is essential that they provide for an element of public participation in any proposal to designate and establish such a corporation. At present, the process provided for by clause 131 entails no public inquiry before designation and no right for members of the public to be heard prior to a decision being made.

The same is the case for locally led new town development corporations, as provided for by clause 132. That means the Bill will allow land to be designated as an urban development area, and powerful new bodies to be established to oversee development on such land, without any rights for the local communities affected to have their say and at least test the evidence as part of that process. We believe that is an error, and new clause 53 simply seeks to ensure that proposals to designate land as an urban development area and to establish a locally led urban development corporation would be subject to independent examination, at which the public would have a right to be heard. As you will know, Mrs Murray, that is part of our ongoing efforts throughout the passage of the Bill to overhaul it to ensure that there is an ongoing role for the public in the planning process at these stages, with the obvious benefits that that entails for trust and confidence in the planning system. I look forward to any further thoughts the Minister might have having heard my argument.

[Dehenna Davison]

I thank the shadow Minister for not only expressing his concerns but indicating his broad support for part 6 of the Bill and the enhancements it will make overall to the development corporation model.

The point about trust and confidence in planning and the development corporation system is vital. On the point about consultation, I refer the hon. Member back to the comments I just made: there would be no unilateral ability for local authorities to go straight to the Secretary of State to request that a locally led urban development corporation be set up. There is a statutory requirement for authorities to consult local residents, businesses, MPs and other local authorities before making those representations to the Secretary of State.

On the resources for establishing a development corporation, we recognise that this can be a significant undertaking, but the Government have a range of programmes available to help support local authorities in their growth aspirations. We would encourage local authorities that are interested to approach the Department and see how we can work with them to provide that resource and confidence. On that basis, I once again ask the hon. Member not to press new clause 53, and I commend the clause to the Committee.

Question put and agreed to.

Clause 131 accordingly ordered to stand part of the Bill.

Clause 132

Development corporations for locally-led new towns

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

--- Later in debate ---

[Matthew Pennycook]

I will speak to new clause 54, but I shall be extremely brief. As the Minister will know, the new clause seeks to achieve precisely the same outcome as new clause 53, in relation to locally led urban development corporations, but in relation to the locally led new town development corporations, as provided for by clause 132.

For the record, I reiterate that we are not reassured by the Minister’s comments about public consultation being intrinsic to the proposed measures. If I have understood her correctly in terms of that public consultation, we are talking about the ability for communities to comment after the areas of land in question have been designated and established. I suggest that the process of designating land to be developed in this manner and of establishing a corporation is a matter that local communities will want to have a say on, as is rightly the case, before they get a say on other elements of the process to follow.

We believe it is a mistake to establish a process for creating these corporations in which the public have no input into the designation and no right to be heard at the point that the land in question is delineated and the corporation established. I appreciate that the Minister will give me exactly the same answer she did in response to new clause 53, but I hope that the Government will at least reflect on what it will mean for trust and confidence in the planning system, which we know is extremely low, if local communities are cut out of this stage of the process entirely.

[Dehenna Davison]

Once again, I completely share the hon. Gentleman’s sentiments around trust in the planning system. It is absolutely paramount to the planning system operating and getting that local buy-in—it is really crucial. That is why it is a statutory requirement for a public consultation to be undertaken before the proposal is submitted to the Secretary of State, on the grounds that I outlined in the previous clause. I hope that that provides at least some reassurance that local residents will absolutely be consulted before these processes move forward.

Question put and agreed to.

Clause 132 accordingly ordered to stand part of the Bill.

Clause 133 ordered to stand part of the Bill.

Schedule 12 agreed to.

Clauses 134 to 137 ordered to stand part of the Bill.

Schedule 13 agreed to.

Clause 138

Removal of restrictions on membership of urban development corporations and new town development corporations

[Matthew Pennycook]

I beg to move amendment 183, in clause 138, page 157, line 26, at end insert—

“(4) In the case of a locally-led urban development corporation, the board must include no less than three community members who represent a local qualifying body.

(5) In this section, ‘local qualifying body’ means a parish or town council, or an organisation or body designated as a neighbourhood forum, authorised for the purposes of a neighbourhood development plan or such other bodies that reflect the cultural, social or environmental priorities of the locality to be designated as a locally-led urban development area.”

This amendment would ensure that local communities within the locality to be designated as a locally-led urban development area are represented on the board of a locally-led urban development corporation.

--- Later in debate ---

[Dehenna Davison]

I thank the shadow Minister and the hon. Member for Westmorland and Lonsdale for their contributions, and hope that I can provide a little bit of reassurance.

We feel that, while incredibly well intentioned, the amendments are unnecessary. The appointment of board membership for locally led new town development corporations is already addressed in the New Towns Act 1981 (Local Authority Oversight) Regulations 2018. Those regulations provide that

“the oversight authority must have regard to the desirability of appointing one or more persons resident in or having special knowledge of the locality in which the new town will be situated.”

That could include members from parish councils or local community groups, or organisations that reflect the cultural, social or environmental priorities of the locality.

We intend to replicate that approach for locally led urban development corporations. We intend to set out further details on the composition of board membership in regulations, which will be subject to parliamentary debate. As we did with the New Towns Act 1981 (Local Authority Oversight) Regulations 2018, the Department will consult on draft regulations to ensure that they are appropriate and permit local communities and businesses to have a say.

In appointing independent members, we expect oversight authorities to ensure that the board has the relevant skills and experience needed. That includes those with an understanding of the local area. In accordance with the principles of local authority appointments, the appointments of the chair, deputy chair and independent board members should be through an open, transparent and publicly advertised procedure, which I hope will provide some reassurance to the hon. Member for Westmorland and Lonsdale. I appreciated the examples from his own constituency.

Regarding the suggested minimum of three appointments, it is the Government’s view that it should be up to the oversight authority to determine the appropriate board composition and numbers, based on local circumstances. I hope, therefore, that the hon. Member for Greenwich and Woolwich will agree not to press his amendments.

[Matthew Pennycook]

I thank the Minister for that response and am partly reassured by it. As I hope I made clear, we are trying to drive at what I think is a very limited form of public participation on the boards. I accept what the Minister says, both on what is expected by the Government from oversight authorities in putting the boards together, and the further details, although what “a say” means is yet to be defined. We look forward to seeing in the regulations what those further details entail.

I hope the Minister has taken away our very firm view that there must be an appropriate level of community participation on the membership of the boards so that local communities have trust and confidence in what they are doing. However, I do not intend to press the amendment to a Division at this time. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 138 ordered to stand part of the Bill.

Clause 139 ordered to stand part of the Bill.

Clause 140

Acquisition by local authorities for purposes of regeneration

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

--- Later in debate ---

[Dehenna Davison]

I will now explain clauses 140 to 144 and schedule 14. The Government want to see local authorities empowered to use compulsory purchase to regenerate their areas, so that places and regions can drive improvements in economic growth and pride in place. The levelling-up White Paper made it clear that we want local communities to be empowered to take the lead, and we want to ensure they have the tools they need to succeed. Key to that is ensuring that local authorities have the right compulsory purchase enabling powers and processes, and the confidence to use them. This is the intent behind the clauses, which focus on modernising and streamlining the compulsory purchase process to make it faster and more effective.

With clause 140, we are making it crystal clear in the Bill that local authorities in England have the power to use compulsory purchase for regeneration purposes and to bridge the gap the urban centre recovery taskforce identified last year, which we are keen to address. Currently, local authorities in England are able to use their compulsory purchase powers for development, redevelopment and improvement purposes.

Clause 140 will ensure that local authorities have the certainty to acquire land compulsorily for regeneration schemes too. That will align them with other public authorities such as Homes England and the Greater London Authority. That could, among other things, improve the social wellbeing of a local authority’s area, while not actually involving the construction or reconstruction of a building. For instance, this regeneration compulsory purchase order power could be used to transform a vacant commercial building into a community hub. Alongside this change, we will bring forward updated guidance to provide more clarity on the use of compulsory purchase for long-term strategic land assembly by local authorities.

On clause 141, we need to ensure that the CPO process is efficient yet accessible and fair for all involved in it. The clause retains the current requirements for the physical deposit of documents and service of notice. It remains the case that sufficient proof of delivery through electronic communications is difficult. Given the nature of compulsory purchase, it is crucial that affected parties receive—and can prove that they have received—the necessary communications. The clause also requires acquiring authorities to make CPO documents and notices available online, and it creates the flexibility for Ministers to direct, in extreme circumstances where the physical deposit of documents is impractical, that online provision is sufficient. Further provisions in clause 148 provide for the application of common standards to compulsory purchase data. As I have described, these amendments begin the modernisation of the CPO process, and I commend clause 141 to the Committee.

Clause 142 will create a faster, more effective confirmation process. At present, a single affected landowner can demand an expensive and lengthy public inquiry for any CPO. This can be used as a delaying tactic, slowing down the decision-making process and increasing the costs for the acquiring authority and others involved. As we know, cost for the authority means cost for the taxpayer. In turn, this can make acquiring authorities, such as local authorities, less inclined to use CPO powers. We believe that the confirmation procedure should reflect the complexity of the order. Many CPOs involve one or a very small number of properties, with little impact outside the boundaries of those properties. Confirmation proceedings for orders like these do not generally need a public inquiry.

We also believe that it is right to give the discretion to the confirming authority to determine the appropriate procedure based on the circumstances, while protecting the right for affected parties to have an oral hearing if they wish. In keeping with those ambitions, clause 142 enables confirming authorities to decide to hold a public local inquiry, or to follow the new representations procedure, which will include an oral hearing if objectors request one. We will engage with stakeholders in shaping the representations procedure to ensure it works practically and produces a faster and more efficient process.

On clause 143, we want to ensure that authorities have the confidence to achieve positive outcomes in making CPOs. Too often when there is a decision to confirm a CPO, the CPO is rejected because of a specific impediment at the point of decision, and that often results in significant delay or even the complete collapse of the scheme. We want authorities to know that where a specific impediment, such as funding uncertainty, remains outstanding at the point of decision, a condition can be imposed for that to be dealt with and discharged at a later point.

Clause 143 achieves that end by introducing the concept of conditional confirmation, which will allow decision makers to confirm CPOs subject to the conditions being met before the compulsory purchase powers may be used. That may assist progress-stalled developments, as conditions could be imposed to force a landowner to follow through on commitments to undertake developments, and if they fail to do that, that will allow a CPO to become operative.

We also want authorities to make their CPOs earlier in the delivery process of a scheme. That will encourage authorities to make their CPOs concurrently with seeking other consents, rather than sequentially after obtaining other consents. Introducing conditional confirmation will support that aim.

To reassure hon. Members, that does not mean that insufficiently prepared CPOs or CPOs without sufficient justification will be conditionally confirmed. The test of there being a compelling case in the public interest to confirm the CPO will absolutely remain. We expect only very specific conditions to be imposed in most cases—one or possibly two to a CPO that otherwise shows a compelling case in the public interest. Guidance will be updated to provide clarity on the imposition of conditions. Initial confirmations will be a significant lever to provide authorities with more confidence in using CPOs and to deliver schemes more quickly.

Clause 144 gives effect to schedule 14, which makes provision in relation to compulsory purchases by Ministers, corresponding to clauses 141 to 143. Given that Ministers may use compulsory purchase in a number of circumstances —for example, to deliver major highway or rail schemes—it is only right that those provisions benefit from improvements to the process. I hope I can get the support of all hon. Members for the clauses.

[Matthew Pennycook]

The Minister referred to at least two further sets of guidance that are to follow. Can she give the Committee any sense of the timeline for that?

[Dehenna Davison]

I cannot today, but I will endeavour to write to the hon. Gentleman within the next 48 hours to provide that clarity.

Question put and agreed to.

Clause 140 accordingly ordered to stand part of the Bill.

Clauses 141 to 144 ordered to stand part of the Bill.

Schedule 14 agreed to.

Clause 145

Consequential amendments relating to date of operation

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

[Dehenna Davison]

I sincerely hope that we can get agreement for these clauses. New clause 62 goes further to deliver the Government’s priority to ensure that the compulsory purchase system is fit for purpose. It will build on other measures to ensure a fair balance between landowners and acquiring authorities in the public interest when it comes to the payment of compensation.

The Land Compensation Act 1961 contains the principal rules for assessing compensation relating to compulsory purchase. Under the current rules, when assessing the open market value of the land to be acquired, there are statutory assumptions that must be taken into account. They include the discounting effects of the compulsory purchase scheme, known as the no scheme principle, and considering the planning prospects of the land being acquired. The latter gives rise to landowners being able to claim hope value as part of their compensation—an issue that has attracted significant attention in recent years, including from the Levelling Up, Housing and Communities Committee.

One method of assessing the prospect of planning consent is to establish appropriate alternative development, namely development that would have received planning permission if the scheme underpinning the compulsory purchase were cancelled. Where appropriate alternative development is established, it may be assumed for valuation purposes that planning permission is in force on the relevant valuation date. That is known as planning certainty. Assuming the value of the appropriate alternative development is greater than the existing use value creates an uplift in the value of the land.

The 1961 Act allows parties concerned with a compulsory purchase to apply to a local planning authority for a certificate to determine whether there is development that, in its opinion, would constitute appropriate alternative development. Certificates of appropriate alternative development, CAADs, are used as a tool to establish whether there is appropriate alternative development on a site, and thus planning certainty for valuation purposes.

Under the current rules, there is no requirement for a CAAD to be applied to establish planning certainty and secure any resulting uplift in the value of land. In addition, when issuing a certificate, local planning authorities are required to identify all developments that they think are appropriate developments, not just developments that match the description of the development being applied for. That can increase the administrative burden on a local planning authority’s resources and the risk of a legal challenge, which results in further costs to the authority and the taxpayer. Expenses incurred by applicants submitting their CAAD applications must be paid for by acquiring authorities.

My Department has been working closely with stakeholders to develop a package of measures to reform the CAAD process and ensure that the assessment of the prospect of planning permission is aligned with normal market conditions. It is important that a balance is struck between landowners and acquiring authorities. We are therefore seeking to introduce Government new clause 62 to ensure that the compulsory purchase compensation regime does not deliver elevated levels of compensation for prospective planning permissions, which would result in more than fair value being paid. That will be achieved by ensuring that compensation attributed to alternative development is claimable only via the issuing of a CAAD and, further, that value attributable to potential alternative development in the future cannot be claimed. Although the prospect of planning permission will still be claimable, our new clause will bring the assessment of value attributable to prospective planning permission in line with the position in a normal market transaction. It will also ensure that valuations of hope value are not disproportionate.

We are very clear that those affected by compulsory purchase are entitled to a fair value for their land, but we want to ensure that the compulsory purchase compensation regime does not lead to elevated compensation, including costs being paid for prospective planning permission, which would result in more than fair value being paid by local authorities, and thus by the taxpayer. I hope that the whole Committee will support Government new clause 62.

[Matthew Pennycook]

I thank the Minister for that very detailed exposition of the purpose of the new clause. She will be pleased to learn that, in general terms, we are supportive of the provisions in part 7 of the Bill, which concerns compulsory purchase. They are sensible and proportionate measures that will give local authorities clearer, more efficient and more effective powers; greater confidence that they can acquire land by compulsion to support regeneration schemes; and greater certainty that land can be assembled and schemes delivered quickly through compulsory purchase.

We also support the Government new clause, which concerns compensation in relation to hope value. The cost of land is a major barrier—only one of many—to development across the country, and to increasing investment in infrastructure and affordable housing. As the Minister made clear, land values are frequently inflated well above agricultural or industrial values because of hope value—that is, the value attributed to the expectation that land could be awarded planning permission for new housing.

Hope value often makes social housebuilding and the provision of infrastructure unviable for local authorities and developers, and the fact that it is based on the assumption that each plot of land will maximise short-term profitability disincentivises long-term value generation. A landowner with a plot of land that might be ideal for specialist or affordable housing, or other essential uses that the market has no incentive whatsoever to deliver, can under the current regime always choose to refrain from developing it, in the expectation that they will receive a far better price in the future for a standard scheme dominated by market-sale homes at current prices.

The 2020 White Paper, “Planning for the Future”, rightly recognised that less than half of the uplift in land values created by the granting of planning permission is being captured by communities to help to pay for infrastructure and affordable housing. Given the demands on captured value when it comes to infrastructure and affordable housing, we agree with the Government that it is right to seek to reform the system, in order to ensure that assessment of value attributable to the likelihood of alternative development is more akin to what it would be in normal market conditions, and to rebalance the position with regard to costs and compensation between landowner and acquiring authority to make it fairer. To that end, we believe that the Government new clause, which proposes implementing a range of changes to section 14 and other sections of the Land Compensation Act 1961, as set out in the first part of the Government’s compulsory purchase compensation reforms consultation, published in June, is good. We are pleased that the Government felt able to bring it forward.