Summer Adjournment

Meg Hillier Excerpts

Tuesday 22nd July 2014 Commons Chamber

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

It is a pleasure to speak in this debate and to follow a number of other hon. Members who have spoken about housing, which is one of the issues that I want to raise. However, unlike the Members for the valleys—the hon. Members for Ribble Valley (Mr Evans) and for Colne Valley (Jason McCartney)—who are against houses being built in their areas, and especially in greenfield areas, I would like to see more houses in my borough of Hackney and in London as a whole.

There were 671 new starts in Hackney South and Shoreditch in 2013, which compares with a constituency average in the UK of 185. Clearly, the average is a curious figure because it includes areas where development is more challenging for all sorts of reasons, but it shows that in one small London borough, where there is a will, more homes can be built.

I declare an interest in that I am a landlady. There are a large number of private renters in my constituency. We need housing across the board because London and Hackney continue to grow. The price rises are incredible because of the great shortage. More people rent privately than own housing in my constituency, and the number of people who rent social housing in my borough is greater than the number of people who own and rent privately combined. Hackney is one of the top two councils nationally for building new council homes. Even though that is good for Hackney, it is not enough to keep up with demand.

I have spoken about house prices and rent levels in my constituency before, but I want to remind the House about them. According to Land Registry figures, between March 2013 and March 2014, the percentage increase in house prices was 19%, meaning that an average home now costs £525,000—just over half a million pounds— which is up from £441,000 a year ago. The figures that I have are the median rent levels, but many homes are much more expensive. For a typical three-bedroom home, the rent is just shy of £2,000. For a one-bedroom home, it is £1,235.

We need more housing in Hackney, in London, and probably in other parts of the country too, and we must challenge the Government’s target of setting social rents at 80% of local private rents for new social housing—something that happily Hackney council continues to resist. Those rent levels would be unaffordable for many hard-working people in my constituency, and it would hoover up and scoop out loads of people living in inner-London, and change the nature not just of a borough but of a city where people live cheek by jowl, with incomes mattering less than their contribution to the community.

Part of the solution must be new longer-term tenancies in the private sector. Labour Front Benchers have called for three-year tenancies in the private sector, which I back. For tenants who want such tenancies that is great and should be offered, but it is not enough for families who need far more stability than a three-year tenancy. We must look seriously and cross-party—this will take time to implement—at some sort of financial incentive for private landlords who want to be long-term landlords and not just in it for the money to provide longer-term tenancies for families. It may be that they need a tax incentive or some other economic device to encourage them to provide longer-term tenancies with rent guarantees, as part of the mix of social housing more generally. That certainly needs to be part of the solution in London, to help boost the intermediate sector and make private renting a longer-term choice for those who wish to or have to take that option.

Finally on housing, we need to abolish the bedroom tax. This is a failed policy. It is easy to say, “Oh, it’s fair because people have an extra bedroom”, but when someone has lived in a home for 30 years, or was born there, or has adult children who come and go, to suddenly be charged £14 for that extra bedroom is not fair or reasonable. Often, people’s household circumstances change periodically. I have many constituents who have fallen out of work through no fault of their own and are looking for work, but in that period they have to pay the extra out of their benefits. They do not want to leave because they are optimistic that they will get a job again. One woman who came to see me had moved from a three-bedroom property to a two-bedroom property because her eldest child had left home, and she has—temporarily, she hopes—fallen out of work. She was encouraged to move to a two-bedroom social rented property, but the rent she pays for that is higher than the rent she was paying on the three-bedroom property. Now when she looks for work, she has to look for a job that pays even more to ensure she can cover the rent. That makes her search for work even more challenging.

Another example comes from Wenlock Barn estate in Hoxton in my constituency where more than 70 families on one estate are affected by the bedroom tax. They are not moving anywhere because those are their homes, and there are not many options that they can move down to. I challenge the Deputy Leader of the House to make clear in his response his party’s position as a party of government about the future of the bedroom tax.

I also want to mention GP services in east London and particularly Hackney. The Government have withdrawn the minimum practice income guarantee, or MPIG, but that unsexy sounding acronym is a serious issue for my constituents. I represent one of the most deprived areas of the country—although there are huge issues around the price of housing—and many people are living in great poverty and need health care support.

Yesterday I met Dr Sarah Williams who leads the campaign across east London to ensure we protect our GP services. Earlier this year I raised with Ministers during Health questions my concerns about how the withdrawal of the MPIG would affect the services that my constituents receive from their GPs, and I was told forcefully by the Minister that NHS England had the matter in hand. I happened to have a meeting in the next few days with NHS England and another London MP, and NHS England was clear that it was speaking with local GPs to try to find solutions to the issue. What I hear from local GPs, however, is not what I am hearing from those sources, and local GPs were unaware of the discussions that NHS England says it is having with them. Dr Williams told me, in her words, that the MPIG was introduced in 2004 “in perpetuity”, whereas Ministers have said on the record in the House that it was always supposed to be a temporary measure.

I am therefore asking for the minimum practice income guarantee withdrawal to be frozen. One seventh has been withdrawn because it will be withdrawn over a seven-year period, but perhaps the Deputy Leader of the House could pass this question on to Department of Health Ministers: how much overall will be drawn from the most deprived areas when the minimum practice income guarantee is withdrawn? Some GPs are very much in favour of the withdrawal. If we take away money from some practices and distribute it evenly across the whole, some practices will be net gainers. Many of my constituents have arrived from other parts of the country, and many have had poorer upbringings. All the data show that poor early upbringings have a long-term impact on health. We need GP services to be tuned in to that and ensure that we have the extra provision so that we have properly funded practices. I do not see why my constituents should lose those services in order to fund services in constituencies such as, to pick random examples, Carshalton and Wallington or Surrey Heath, where the needs are markedly less great.

In the short time I have left, I want to talk about child care, an issue I have raised many times. I represent one of the youngest constituencies in the country. More than a fifth of residents are under 16. Therefore, a lot of parents of young children are struggling to make ends meet because of the cost of housing if they are living in the private rented sector or trying to buy, and because of the lottery of child care. We have good child care in Hackney, but finding the right child care when they need it is a challenge for all parents up and down the country.

Often, we think we are lucky when we get good child care, but it should be there anyway. I am perhaps bolder than those on the Opposition Front Bench. I believe we should have universal free provision of child care. That would have to be funded over time, but the revenue from taxpaying parents would soon cover it. Very few parents I know can afford to work full time because the cost of full-time child care is so great. They would contribute far more to the tax regime if they could.

We should see child care as a cross-party issue. The Government are trying things, but they tinker at the edges. They are fiddling around with the tax regime and making it even more complicated for parents when we already have systems in place. Introducing a new system does not solve the problem of supply, which is the serious issue.

As I said to the Prime Minister in the past month, broadband is a national embarrassment. I have often spoken about that but it is a national concern. We are too wedded as a country to one technology. Broadband is too expensive, particularly for small businesses, which need it when they are growing but do not have the money to spend. Business grants of £3,000 have been added in, but that is like a sticking plaster—it is a bit like worrying about the scratch on the patient’s finger when they have a broken leg. We need a comprehensive review of broadband, and plans for infrastructure and roll-out, and for a competitive framework that delivers.

My final point is a reminder to the House that it is 100 days today since the abduction of the Chibok schoolgirls in north-eastern Nigeria. There is a demonstration today at the Nigerian embassy to ensure that we do not lose sight not just of those schoolgirls, but of the other abductions and atrocities that have taken place in Nigeria as a result of the activities of Boko Haram. As chair of the all-party group on Nigeria, I challenge the Nigerian authorities to ensure that their policing is done on human rights terms, and that there are no abuses from the security services. Not doing so would weaken the support that the international community gives to Nigeria. The state provision should be done properly and we should tackle the terrorists in the right way.