Supported Housing

Melanie Onn Excerpts

Thursday 18th January 2018 Westminster Hall

[Melanie Onn (Great Grimsby) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Graham. I join others in the House in welcoming the Minister to her place. I look forward to working with her in the future. I also add my congratulations to my right hon. Friend the Member for Birkenhead (Frank Field), who is not in his place, and my hon. Friend the Member for Sheffield South East (Mr Betts) on securing the debate on the excellent joint Select Committee report. I am sure it will be referenced for some time to come.

I suspect that it will not come as a surprise to some in the room to hear that I think the report is excellent, given that I was a member of the Communities and Local Government Committee. In that vein, I extend my thanks to my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes) and the hon. Member for Gloucester (Richard Graham), who is no longer in his place, who steered that Committee through some intensive evidence gathering sessions with their excellent chairing skills. They made possible a thorough report that enabled those different organisations and Members of Parliament to challenge this policy and have some great effect.

I also remember the work of the hon. Member for Waveney (Peter Aldous) in this area. It became apparent towards the end of last year, when he held a very short debate in the House, just how much concern about and affection for supported accommodation there is across the House. There was barely a seat available for people to listen to his eloquent words. It was profound, and it certainly made clear to Ministers the strength of feeling across the House on this matter.

The joint Committee report, alongside the repeated calls from the Opposition in Opposition day debates and the resolution of the House, resulted in a welcome acknowledgment by the Government that including supported housing in the LHA rate cap was wrong and in a climbdown by the Prime Minister. However, the resulting review of the funding model has left things less than straightforward—that is quite a generous description of the situation.

It has been striking to hear the similarities between the issues raised by hon. Members and the collective approach taken by providers of supported accommodation. They have been determined to speak with one voice and ensure that they are heard collectively, so that the Minister understands that some very clear flaws need addressing. Doing so will hopefully reduce her considerable burden of additional responsibilities.

My hon. Friend the Member for Ipswich (Sandy Martin) was right to highlight all the other services that are available within supported accommodation. This is not about a roof over people’s heads. It is about the accommodation, but it is also about the support. We should remember that in every decision we make.

The Government plan to split their supported housing funding into three models, based on sheltered, short-term and long-term needs, and move the responsibility for funding of short-term supported housing from the main welfare system to local authorities. The Government have said that that is about providing long-term sustainable funding mechanisms that ensure quality. However, I do not think that the Government’s response goes anywhere near achieving those aims. In fact, as it stands, the proposal will lead to more insecurity for many around the country, as my hon. Friend the Member for Blaydon (Liz Twist) explained clearly.

Despite repeated attempts, before the hon. Member for South Derbyshire (Mrs Wheeler) took her place as Minister, to entice Housing Ministers into confirming the details of future funding, there has been no movement beyond the 2020-21 commitment, but we know that the Treasury has set aside around £500 million for 2021-22. Perhaps the Minister will be rather less coy than her predecessors and end this cloaked performance, so that we can give clarity not only to the sector that provides these vital supported services but to the people who use them.

It has to be recognised that living in supported housing is not a choice. People go into supported housing out of necessity, because they have no other options available to them. I urge the Minister to be clear today and tell those people that there will be no cut in funding in the second year and no cut in funding in subsequent years. To fail again to provide certainty to this sector will only add to the delays in investment that the joint Committee report has shown are already happening.

The long-term impact of the delays will most likely be that the standards of accommodation will be lower, as the costs outstrip the benefits of ever-increasing and more demanding maintenance, and that fewer places will be available because new, more suitable accommodation will not be built. The Minister will be well aware from the contributions today that significant concerns remain about the moving of funding away from the welfare system to local authorities, meaning that funding will no longer be needs-led and no longer based on the right to help with housing costs for individuals. Nobody wants to see further financial risk burdens given to local authorities, which are already hard-pressed.

As has been mentioned—particularly by my hon. Friend the Member for Nottingham North (Alex Norris), who has been a champion of this issue—charities such as Women’s Aid have raised concerns that these reforms are incompatible with the way the national network of refuges operates around the country. As many Members have said, two thirds of women travel outside their local authority boundaries to seek refuge care. Indeed, on my last visit to my local refuge just before Christmas—it is run by the excellent Denise Farman, who works tirelessly for the women who seek her assistance there—I met women from right across the Yorkshire and Humber region. I know that previously they have come from much further afield as well. Funding based on local need simply does not make sense. The Government must commit to work with refuge providers to redesign a funding model that represents the reality of refuges.

The definition of short-term accommodation as being for up to two years, which my right hon. Friend the Member for Knowsley (Mr Howarth) mentioned before he had to leave, causes serious problems for the sector. The charity Rethink Mental Illness has said that these new funding levels will make mental health supported housing more insecure and result in fewer new supported housing services and more scale-backs or closures of current supported housing. Many of the cases that it deals with will now be classed as short term. Indeed, 50% of its supported housing services will now be classed as short term and subject to the new funding model.

We have to remember that the people in this accommodation have a range of conditions, with differences in severity and longevity and therefore very different timelines for moving out of supported housing. Does the Minister recognise the additional anxiety and stress that will be caused by adding this new ticking clock if those people are placed in what the Government term short-term accommodation? The Government must give serious thought to the views of groups such as Rethink Mental Illness and cutting the length of time that is considered short term. Let us accept that “short-term” is genuinely short. There seems to be a consensus across the House and throughout the supported accommodation sector that it takes 12 weeks to deal with emergency supported housing need, as well as universal credit and access to housing benefit.

Part of the logic in making these changes is the incompatibility of universal credit with extremely short-term supported housing. Surely if the aim of universal credit is to encourage claimants to be independent by allowing them to manage their own housing costs, this proposal for short-term supported housing goes against the very principle of universal credit. My hon. Friend the Member for Sheffield South East made that point far more clearly than I just managed to.

Groups such as Riverside, the YMCA, St Mungo’s and the Salvation Army—the Salvation Army rarely comes out against any Government to suggest that things are not going well—have all said that managing housing costs in a supportive environment is a vital step in the transition to independent living for those in short-term supported housing, so removing this independence could lead to longer stays in supported housing. Rather than creating a new, complicated and crudely structured system, surely the Government should look at how the universal credit system could be improved for those in short-term supported housing.

My hon. Friend the Member for Nottingham South (Lilian Greenwood) mentioned the lack of move-on accommodation for people who wish to leave short-term supported accommodation. She is absolutely right about that. I was interested to learn about the additional £50 million allocated for homelessness outside of London. It is obvious to everybody that there is an increase in visible homelessness and rough sleeping outside of London. Where is the funding that was earmarked for that? When will it be allocated?

I thank my hon. Friend the Member for Weaver Vale (Mike Amesbury) for raising the issue of tenancy security. If people are not to be treated as individuals or have any of the tenants’ rights that they may well have relied on previously, with the money going to the organisation instead, we add the pressure of a lack of housing security. That is not something we should be encouraging within the supported accommodation sector.

I have a few more questions, which are in line with some of the questions posed by my hon. Friend the Member for Sheffield South East. What happens if a service does not receive a grant? My hon. Friend the Member for Dulwich and West Norwood referred to what might be considered less desirable accommodation—for ex-offenders, for example—which local authorities might not always be desperate to see more of in their area. Can the residents receive housing benefit? If a service has a grant for some but not all residents, can some still receive housing benefit? What will the Minister do to ensure that organisations that do not currently deal with local authorities and do not receive, for example, Supporting People funding do not fall through the gaps in the new system?

In a statement to the House in December, the then Housing Minister, the hon. Member for Nuneaton (Mr Jones), said that he was

“confident that by working with the sector we can get this right.”—[Official Report, 21 December 2017; Vol. 633, c. 1317.]

But here we are, with significant representations from across the sector saying that this is not right. I urge the Government to recognise that the proposal is simply not working and quickly to develop a fit-for-purpose model that represents the reality of supported housing. The conclusion next week of the consultation gives the new Minister a perfect opportunity to take those necessary steps.

--- Later in debate ---

[Mrs Wheeler]

I am afraid that the hon. Lady misunderstands me, because the long term will be ring-fenced with local authorities. The whole point about this is that we want to grow the supply of sheltered and supported housing accommodation, because the Government consider it very important in looking after the most vulnerable people in society in future. In the same vein, I reassure hon. Members that the amount of grant funding for this part of the sector to 2020 will continue to take account of the costs of provision, and growth of future provision.

Better oversight and value for money are an important part of our reforms. The Joint Committee was keen that there should be a set of national standards. We are consulting on a national statement of expectation, which will set out what we want good supported housing to look like.

We will work with local government on how it plans future provision in England as it assesses current and future need. Before implementation, we will issue more detailed guidance, to support local authorities in monitoring this provision in their area. We are carrying out a full new burdens assessment to identify how much additional administrative budget local authorities will need to deliver the new funding approach. We are working closely with local authorities and the Local Government Association to do that.

Under the short-term model, all funded provision will be commissioned by the local authority. This means providers will need to meet local authority quality standards. Furthermore, under the new model for sheltered and extra care, the social housing regulator will monitor compliance with this new system. We are empowering tenants by obliging providers to publish breakdowns of their service charges. Where tenants feel that these are unreasonable, they can take action. We also continue to work with the sector to identify ways to drive up standards, improve outcomes and share best practice.

I have mentioned a number of areas where our conclusions coincide with those of the Committee, but one recommendation on which we are not aligned is that on the creation of a bespoke model for refuges. We recognise how important that is, but we believe that a local approach will ensure the best outcome for domestic abuse services. This is because local authorities are best placed to understand their residents’ needs.

[Melanie Onn]

Does the Minister not accept the statistic, provided by Women’s Aid, that two thirds of women come from outside their local authority area?

[Mrs Wheeler]

From my experience, I know that many people move around and prefer to go to a refuge that is not next door. There is then a knock-on effect: that local authority takes on local housing, unless they later find somewhere else that the person in the refuge wants to go to. The effect of this is that all the way around the country, local authorities take their fair share, and they know that and work on that basis.