Homelessness Reduction Bill (Seventh sitting)

Michelle Donelan Excerpts

Committee Debate: 7th sitting: House of Commons
Wednesday 18th January 2017 Public Bill Committees

[Mr Jones]

I would be delighted if my hon. Friend sent me that information. As we have discussed, advisers will be going around the country and speaking to local housing departments to explain how this legislation works and help them with any challenges. There is some really good best practice—I mentioned Sevenoaks—including help with the general life skills that sometimes even the most able people struggle with when they experience a difficult event such as a relationship breakdown, as my hon. Friend the Member for Colchester said.

Clause 1 helps to tackle the bad practice whereby some local authorities advise tenants to remain in properties until the bailiffs arrive. It also includes some flexibility to allow local housing authorities to talk to landlords and work with tenants before they have to leave the property, to see if solutions can be found. We all know that our biggest challenge when it comes to priority need homelessness acceptances by local authorities is the ending of an assured shorthold tenancy. We firmly believe that if we can get in there and help people to maintain a tenancy before it is too late, we will not only do a very good job for those potentially losing their tenancy, but help the local authority, which will have time freed up to support people who are more difficult and challenging to deal with because of their circumstances.

[Michelle Donelan (Chippenham) (Con)]

Will the Minister acknowledge that this is already happening in Wales? They opened up the period in which someone could be classified as being threatened by homelessness. That backs up this clause and proves that it will work to prevent homelessness.

[Mr Jones]

My hon. Friend makes a good point. It has been said outside this Committee many times and in the discussions I have had, particularly on the amendments we are looking to make to clause 7, that the housing market in England and particularly in London is very different from that in Wales. We can certainly draw many parallels with the Welsh legislation and have confidence that, in many ways, this legislation will have a very positive effect. On whether it will have the significant effect it has had in Wales, I make two points. First, local authorities in England were already better, in general, at preventing homelessness than those in Wales before the legislation was introduced; we need to take that point on board. Secondly, our assumptions—particularly on cost, which I will come to later—have been based very much on an acknowledgment that the housing market is very different in England, and particularly London and the south of the country.

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I hope that the Minister can give me a little comfort on a point of concern: I preferred clause 1 as originally drafted; I wholly understand that advice has been given, and that soundings were taken from the LGA, landlord groups and others, but an element of flexibility is important. I am quick to chastise any local authority that dishes out, willy-nilly, the advice to stay in the property until the bailiffs arrive, for all the reasons I just gave; I have mentioned children, but there is also the point that if someone gets into further rent arrears and the landlord has to take court proceedings, and a county court order is issued in the tenant’s name—guess what? Local authorities do not have an abundance of social housing stock, and the result, ultimately, is that they rely more and more on putting people back into the private rented sector. What private landlord will take someone with a county court judgment against their name when there are other options? The answer is: very few will.

[Michelle Donelan]

Does my hon. Friend accept that failing to act early not only hinders our ability to combat homelessness but allows complex needs and problems to escalate over time? Many charities in my constituency have echoed the message to me that the quicker we act and the earlier we get in, the less those needs will escalate and develop. That will save the NHS, local authorities and other sectors money in the long run.

[Will Quince]

My hon. Friend is right to suggest that prevention is always better than cure, but there is also the question of rewarding the right kind of behaviour. We want to encourage people to come to us at the earliest possible opportunity, when they are not in crisis but can foresee a risk of homelessness. Then we can take the most appropriate action. She is right to say that at that early opportunity people have options, but when they reach a crisis they have few, and they are expensive.

To return to the point about which I am concerned, I hope that the Minister can give me comfort on the Government amendment, because this is important. As I have said, I am the first to chastise local authorities or housing authorities that routinely advise tenants to stay in the property, for all the reasons I gave—I recently met representatives of my local housing authority, and I have been a critic of it—but on occasion, that can be the right advice. A hypothetical example might be a local authority that has no option but to rehouse a family out of area that week; it might work with the landlord, and say, “I understand why you have done what you have, that you would like them to leave, and that you have served the section 21 notice, but we are happy to cover the rent, if you are happy for the tenants to stay there for three more weeks, when we know there will be a more suitable property locally.” My concern—this is why I like the original wording—is that we should include conditions in which it could be considered reasonable to stay until the expiry of the possession order.

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[Bob Blackman (Harrow East) (Con)]

Thank you for the comfort break, Mr Chope. I think Members on both sides of the Committee were ready for it.

As has been said, the Minister’s amendments have been the subject of something of a rollercoaster ride during the deliberations on the draft Bill and the Bill itself. Clause 1 in the original draft Bill was very different from the clause in the draft Bill that was eventually presented to the Select Committee. It was then changed substantially after discussion with the Minister and officials, and we ended up with the Bill that was passed on Second Reading. At that point, many concerns were raised by a large number of groups about clause 1 in particular. I thank all those who came along to see me, particularly towards the end of last year, to discuss the clause. They expressed their concerns and were willing to engage constructively, which enabled us to reach a solution that is acceptable to everyone. They include the National Landlords Association, the Residential Landlords Association, the local government sector—the LGA, London Councils and other local authorities—and homelessness charities including Crisis, Shelter and St Mungo’s.

The process has not been easy. The hon. Member for Hammersmith alluded to that in attempting to gain advice about how to propose amendments that achieve his aims. Given the various different organisations’ requirements, ensuring that we got something that works for everyone has been like squaring a circle.

At times, some of those groups’ interests appeared to me—and, it is fair to say, to the Minister and officials—to be almost irreconcilable. Local authorities said that they want clarity regarding their flexibility to try to save tenancies at risk and to facilitate moves into alternative settled accommodation directly from tenancies that are ending. That is essential if we are going to ensure that they prevent homelessness in as many cases as possible. Landlords and charities were concerned that applicants must receive proactive help so landlords and tenants do not face unnecessary costs and tenants avoid the distressing experience of eviction. It is the custom and practice of many local authorities up and down the country—particularly in London—when they are approached by individuals or families who are threatened with homelessness through a section 21 notice to say, “Go home, wait until the bailiffs arrive and then come to see us. Then we will try to resolve your problem.” As has been alluded to by my hon. Friend the Member for Colchester, one of the key concerns in such cases is that landlords incur court and bailiff costs, and the tenants incur costs and end up with county court judgments against them. In many cases, that also overloads—unnecessarily—the justice sector. We therefore have a real dilemma.

The concern expressed right from the start was that in many ways clause 1, without amendment, enshrines many of those bad practices. That was never the intention—it certainly was not my intention as promoter of the Bill. In this process we have therefore tried to ensure that we keep at the centre of our consideration the needs of those who the Bill will affect most: the people who are at risk of losing their home or those who have lost their home.

We have had the wide-ranging involvement of various groups affected by the Bill, in-depth discussions and consideration of potential impacts in order to determine a way forward. It is fair to say that we have looked at all sorts of ways to amend the clause to make it work in the Bill, and we have concluded that that is not the most practical way forward. The amendments tabled by the Minister offer a practical and achievable solution that I hope we can all support and which will be welcomed right across the sector.

Crisis made two points in its briefing that I will refer to. It supports the decision to remove clause 1(2) entirely, to preserve the status quo, which means that local authorities should follow the existing code of guidance that clearly states that households should be considered homeless if they approach the local authority with an expired section 21 notice. Under amendment 17, a household that approaches the local authority with an eviction notice that has yet to expire will automatically be considered to be threatened with homelessness. That will require local authorities to accept a duty to prevent the household from becoming homeless in the first place.

That is a vital aspect of the Bill. The intention in extending the timeframe in which a family or individuals can apply to their local authority for assistance is to ensure that the local authority and the applicants use that time as effectively as possible to prevent a family or individuals from becoming homeless. The risk we have with clause 1 without amendment is that some local authorities—I will not single any out—notwithstanding the fact that they could intervene, would not do so until such time as the family or individuals became homeless.

[Michelle Donelan]

Does my hon. Friend acknowledge that the amendment will simplify the Bill? The initial feedback was that the Bill was far too complicated, and we are now working towards a more simplified Bill that will be easier to roll out.

[Bob Blackman]

Simplifying Bills is always good news. One of the things we originally set out to do was provide detail where required but simplify processes wherever possible. It is fair to say—I ask the Minister when he responds to the debate to make this clear—that we will look at operation in practice. If local authorities are not following both the letter and the spirit of the law, in any code of practice we introduce we will ensure that there are appropriate measures to enforce that, to ensure that local authorities do honour their duties on the concerns rightly raised throughout the Committee.

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[Bob Blackman]

I noted during my hon. Friend’s excellent contribution earlier his very detailed knowledge of the technical issues of housing law.

In the various meetings, we considered the different aspects of section 21 and section 8 and whether we could reach a compromise that would satisfy all parties. The drawback, if we set out all the procedures—almost a flow chart—in the Bill, is that unfortunately we cannot address every single reason why someone becomes homeless; we cannot set out every position in relation to section 8 or section 21 notices. Obviously, what we want to do is to make it clear that the position will be that on receipt of a valid section 21 notice or, indeed, section 8 notice, the local authority will treat that as a means of starting the process of combating the threat of homelessness. That is the clear message that I want to impart as promoter of the Bill. We do not want landlords to have to go off and wait and go through a lengthy legal process, which is of no benefit to them or the tenants and, in the long run, costs the local authority substantial amounts of money when it has to put a homeless family who are in priority need into temporary accommodation. This is one of the issues that we looked at in considerable detail. I will not go on too much about this issue and the various discussions that we had. What I can say to my hon. Friend is that we looked at this in detail and concluded that the way to reach a compromise was to accept the Minister’s amendments.

A planned amendment to clause 4 will also ensure greater continuity of help between the prevention and relief duties for households during the eviction process, if such a process follows. I hope that we never get to families being evicted but recognise that we cannot solve all those problems in one go.

I welcome the commitment to provide stronger encouragement for people to engage early through the forms used in the section 21 process and the “How to Rent” guide that the Department has published.

The intention is to recognise that prevention is vital to tackling homelessness. The earlier someone gets help, the less likely they are to end up in crisis. The clause works with the rest of the Bill, which should be seen as an entire package, and with current legislation in placing more emphasis on prevention, encouraging people to seek help at an early stage.

[Michelle Donelan]

While we continue to discuss the clause, I want to stress that it is not only large charities and organisation that have called for and welcomed the extension to 56 days. Charities in my constituency, such as Doorway, which does a great deal of work on homelessness in the Chippenham area, are delighted and have stressed how vital it is to deal with homelessness at the root and try to prevent it in future.

[Bob Blackman]

I acknowledge that local charities are doing brilliant work to combat homelessness. During my discussions on the Bill I have dealt mainly with national charities and some local ones which I visited. All hon. Members will be aware of the local charities that do excellent work, which is why I believe these measures are universally welcomed.

It is not logical that someone in a private sector tenancy who receives a section 21 notice or encounters the threat of homelessness should have to wait until the final 28 days before they will be on the streets. Ensuring that the clause extends that period, with a duty owed by the local authority, must be sensible to help prevent them from becoming homeless.

I trust that the provision will help increase the number of successful preventions carried out by local housing authorities. In the long term that reduces costs for them and, most importantly, the trauma experienced by vulnerable people and households.

There may be instances where the 56-day prevention duty does not work and ends, though the household is not technically homeless, as the local authority finds it reasonable for the household to continue to occupy the property. That could mean that the relief duty does not begin, potentially leaving the household without support. We clearly want to get to the position covered by clause 4 so that, in those circumstances, the prevention duty will run on until the time the relief duty begins. I was delighted that my hon. Friend the Minister mentioned that in his opening remarks.

Mr Chope, you directed that we should look at costs in this part of our consideration. I welcome the Government’s announcement of £48 million and their commitment, under the new burdens doctrine, to fund all the new costs that will result from the Bill. We have already mentioned that there will be amendments to clause 7 on Report. We have already had a debate about that; I will not reopen it. There will be a further amendment to clause 4 and, after further discussions, we might consider amendments to clause 12 as well.

The hon. Member for Dulwich and West Norwood was critical, not unfairly, of the timing of the release of the money. The Government have considered our detailed discussions of the Bill and its amendments because there are cost implications. It is not fair if we end up with a running budget in Committee. We have made substantial changes and it is fair to say that the proposed changes to clause 7 would lead to additional costs for local authorities. However, I hope that if there are additional costs, the Minister will commit to their being picked up as originally envisaged under the new burdens doctrine.

The LGA and London Councils have welcomed the money that will be available. I note the concerns of the hon. Members for Hammersmith and for Dulwich and West Norwood about whether the money will be enough. Clearly, none of us is in a positon to say without fear or favour that the money will be sufficient. We will have to see how the new legislation operates. It is part of a package.

I have been clear from the word go that the Bill, if enacted, will not produce one more property or one more home. I look forward to the publication of the White Paper—hopefully very soon—which will set out the Government’s method for ensuring we develop more housing. One way to ensure people are not homeless is to provide more housing in the first place. There is a shortage of accommodation in almost every part of the country, and London has particular pressures, as those of us who are London MPs know. Clearly, that will have to be addressed.

Equally, how the funding is provided needs to be considered: £35.4 million in the first year, £12.1 million in the second year and zero in the third year. I have concerns about that. Will we have solved the homelessness problem in this country after three years? As an eternal optimist, I hope we will have done. I did not mention this too much when we talked about the title of the Bill, but the original title was the homelessness prevention Bill. However, I was warned by our Clerk’s predecessor that that would mean it would be illegal for an individual to be homeless, so we should be careful what we attempt to achieve.

As the hon. Member for Hammersmith said, some £633 million in 2014-15 was spent by London councils on temporary accommodation. If we can reduce that burden by a relatively small amount, that will pay for the prevention duty. I am minded of the fact that London authorities in particular have embarked on large amounts of efforts to combat homelessness through prevention duties, and that is welcome. However, there is clearly going to be a need to review the funding and review how this works.