Supported Housing

Paul Farrelly Excerpts

Wednesday 25th October 2017 Commons Chamber

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

This has been a comprehensive debate with many good contributions from all parts of the House, if probably more so from the Opposition. There has been a cautious welcome for the Prime Minister’s announcement that there will not be a cap in relation to supported housing and LHA—an issue of real concern.

Among the 25 speakers were my hon. Friend the Member for Sheffield South East (Mr Betts)—the Chair of the Select Committee on Communities and Local Government —and my hon. Friend the Member for City of Durham (Dr Blackman-Woods). A lot of people identified that it was completely inappropriate in the first place to propose that supported housing should be based on an LHA rate, given that it meets very different needs. Several key themes emerged. On the need for sustainability around the funding, my hon. Friend the Member for Oxford East (Anneliese Dodds) mentioned the importance of ring-fencing it, and the need for greater co-operation between Departments. The hon. Member for Waveney (Peter Aldous), who organised the Westminster Hall debate on this issue a few weeks ago, has probably contributed to the position that we are in now.

Many Members wanted to thank local providers and charities. My hon. Friend the Member for High Peak (Ruth George) said that what providers do is more of a vocation—that they do it out of love for it. However, we cannot take advantage of that, and we must recognise it in the support that we give them.

[Paul Farrelly (Newcastle-under-Lyme) (Lab)]

Welcome as the Government’s U-turn is, does my hon. Friend agree that their change of mind barely scratches the surface of the overall crisis in the provision of supported and affordable housing?

[Debbie Abrahams]

I will come on to that. Obviously, we look forward to seeing the detail next Tuesday, but yes, we must not underestimate what is happening.

My hon. Friend the Member for Birmingham, Yardley (Jess Phillips) always makes very pertinent points, but I would like to pick out her comments about Government policy contributing to potentially driving people into refuges because they have no financial support through the single householder.

It is so important that we have had this debate on supported housing after years of uncertainty from this Government hanging over the heads of some of our most vulnerable tenants. The Government’s announcement earlier today is therefore welcome. I want to reaffirm a point that others have made in the course of the debate. The term “supported housing” covers accommodation for a number of different groups in our society, but one thing that binds them all is the degree of vulnerability of these tenants. This form of housing supports older people in sheltered accommodation, disabled people and those with learning disabilities, people at high risk of homelessness, and survivors of domestic violence and their children, as well as armed service veterans, care leavers, and ex-offenders. The importance of what is provided through supported housing cannot therefore be overestimated.

The Government have asked those groups to wait for nearly two years to find out whether their accommodation is secure. Although, as I say, we welcome the Prime Minister’s announcement today indicating that LHA will not be extended to the social or supported housing sectors, my right hon. Friend the Member for Wentworth and Dearne (John Healey) was exactly right to say that the devil is in the detail. He cautioned that whatever comes out of next week’s statement, it must recognise not just that there has been a two-year hiatus for the supported housing sector, but that cuts of half a billion pounds are coming down the line in 2021. We need to have the detail about those proposals, which were in the Red Book and autumn statement last year.

We wait with bated breath, alongside the 700,000 people currently using housing support, to see the adequacy of the supported housing deal. The new deal must recognise that the uncertainty has had an impact on the sector’s capacity by undermining providers’ ability to build. Government inaction has resulted in an 85% reduction in supported housing development, at a time when there is already a shortfall of nearly 17,000 supported housing units. That means that those who one day might need such provision will not have it. I recently visited a refuge that looks after women and children fleeing domestic abuse. As my hon. Friend the Member for Birmingham, Yardley has said, people are being turned away. It is important that we recognise the inadequacy of current provision.

When the Government finally publish their statement on the new approach to supported housing next week, I hope that they will recognise the design flaws in universal credit, which make it totally incompatible with the needs of people who are reliant on supported housing. I am pleased that the Government are bringing to an end the uncertainty about supported housing. I hope that they will also think again about the many other universal credit issues and agree to pause it while we work to fix it.

Over a year ago, the Prime Minister stood on the steps of Downing Street and promised to help the worst-off among us, but there has not been a single achievement. In many cases, including this one, progress has stalled. We could point to the Government’s slashing of funding for affordable homes, the withdrawal of housing benefit from young people or the reductions in local housing allowance for private tenants, which are making sections of the country into places where low-income families simply cannot live. All those measures are short-term attempts to balance the books on the back of the most vulnerable. None of them addresses the root cause of the problem, which is the Government’s total failure to build enough affordable and social homes to meet people’s needs. That problem was recognised by the Secretary of State for Communities and Local Government, although seemingly not by his Chancellor.

I am pleased that today’s statement suggests that the Government are considering the recommendations made jointly by the Communities and Local Government Committee and the Work and Pensions Committee on the future of supported housing. I add my congratulations to my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes) and the hon. Member for Gloucester (Richard Graham) on their contribution to that work.

After all, the independent Committees’ report, which was drafted and agreed by Members from all parties, found that supported housing delivered excellent value for money and significant cost savings to the wider public sector, while maximising quality of life. They agreed with us that the Government must introduce a long-term and sustainable funding settlement, but raised concerns about previous proposals to extend the LHA. The Committees jointly suggested that the local housing allowance rate is not an appropriate place to start when determining the funding settlement. There is no correlation, as we have heard, between the cost of providing supported housing and local housing allowances.

Labour supports the Committees’ calls to introduce a new supported housing allowance set at a rate higher than the current cap. Alongside that, we need a separate funding system to safeguard short-term and emergency accommodation, including women’s refuges, and we must ensure that any new funding model does not threaten future supply of supported housing. We will hold the Government to account on their delivery of a new funding model. The next steps are laid out before the Government, and I hope that in their statement next week, they will commit to taking those steps. They should end this two-year impasse now, or stand aside and allow a Labour Government to get on with the job.

--- Later in debate ---

[Caroline Dinenage]

A lot of comments have been made about how long it has taken to get to this point, but that is because we have spoken extensively with valuable stakeholders such as the YMCA. My hon. Friend the Member for Walsall North (Eddie Hughes) told us about the incredible value of that organisation and others.

As has been said, the DWP, in conjunction with the DCLG, concluded a 12-week consultation on the supported housing sector earlier this year. As many Members have rightly suggested, it is absolutely vital that we listen to the concerns that the sector has raised, and that is precisely what we have been doing. We welcome the input that we have received in this consultation—the views of the sector, local government and other stakeholders—as well as the excellent joint report from the Work and Pensions Committee and the Communities and Local Government Committee. I add my congratulations to both Committees on their work. We have been carefully taking stock of these views, considering the recommendations and continuing our extensive conversation with the sector. We have done so to make sure that we get the detail right before making an announcement and that the services provided are as good as they can be.

This morning’s announcement by the Prime Minister has already been embraced by the sector, which has acknowledged that we are listening to their concerns. The chief executive of the National Housing Federation has said:

“Things are really starting to change and it is great to see social housing getting the right kind of attention it deserves.”

The chief executive of the Chartered Institute of Housing has also welcomed the announcement, suggesting that the Government have

“clearly listened to the concerns of housing professionals across the UK”.

Several Members have raised concerns about how confidence in future funding is having an impact on the supply of supported housing. As I believe has been made very clear during this debate, we are absolutely determined to achieve our goal of ensuring a long-term sustainable future for the whole supported housing sector. Indeed, the National Housing Federation has welcomed the Prime Minister’s recent announcements on housing, which demonstrate that social housing and house building are firmly at the top of the Government’s agenda.

We understand that the sector needs certainty to help it to continue to plan and deliver much-needed new supported housing, including sheltered housing for older people. We need to inject confidence into a sector that is in need of clarity about the future arrangements and to reignite the stalled supply as soon as possible. However, it was vital not to be too hasty or rushed in reaching this decision. We have taken time to get things right and to take into account voices from the sector to ensure that this is sustainable in the long term and protects those who are most vulnerable and who most need our support.

The Government have a good track record in safeguarding supported housing and boosting new supply. Since 2011, we have delivered 27,000 units of specialist and general housing for disabled, vulnerable and older people. We announced £400 million of funding in the spending review to deliver new specialist affordable homes for the vulnerable, elderly or those with disabilities. In addition, there will be more specialised homes funded by the Department of Health.

[Paul Farrelly]

In my area of Newcastle-under-Lyme, our local housing association, Aspire, is not building affordable or supported housing at all. It is developing in higher property price areas in Cheshire to recycle the money to support its existing estates because of the squeeze on its finances and income from Government policies. Is there not something fundamentally wrong when a local housing association cannot build affordable housing at all?

[Caroline Dinenage]

That flies in the face of what the National Housing Federation said; the Government are giving confidence to suppliers to build into the future.

As my hon. Friend the Member for St Ives (Derek Thomas) said, we recognise and celebrate the diversity of the supported housing sector and we are reflecting this in the design of the reformed funding model. We want to ensure that the model is flexible and responsive to meet the variety of needs and demands placed on it for such a diverse sector and client base. Across the Government, we have considered the needs of all supported housing groups, including those with learning difficulties, physical and sensory disabilities and mental health problems, older people and those experiencing homelessness and seeking refuge from domestic abuse. We are working hard to ensure that the funding model reflects the unique range of provision in the supported housing sector, and we are listening to the sector to make sure we get that right. I believe that that will be seen in our response to the consultation, and we have always been clear that we are committed to developing a separate model that will work for short-term accommodation.

I want to address some of the concerns raised today about short-term supported and emergency housing such as hostels and refuges, which play a vital role in providing consistent, high-quality support for many vulnerable people who have experienced or are experiencing a crisis, such as fleeing domestic abuse. That was mentioned by a number of Members from all parties. We have always been very clear that we are committed to developing a separate funding model that will work well for people requiring help from these types of accommodation. As a former Minister for Equalities, I carry on my passion for tackling domestic abuse, which is a key priority for this Government.

We fully support the valuable work carried out by women’s refuges and other supported accommodation providers, and we are fully committed to ensuring that victims of domestic abuse are not turned away from the support that they need. Since 2014, we have invested £33.5 million in services to support victims, and the number of beds for victims of domestic violence has gone up. I want to be unambiguous about this: everyone who uses short-term supported and emergency housing such as hostels and refuges and who is eligible to have their housing costs met by housing benefit under the current system will continue to have these costs met through any new funding model for short-term accommodation.

My hon. Friend the Member for Walsall North mentioned the YMCA setting, social enterprises and adopting to change. We welcomed his valuable and characteristically positive addition to the debate, and that is exactly the kind of innovative and flexible approach that the Government promote. It is absolutely right that we should do our best in government to listen to and support the sector, but we should also take the opportunity to recognise the tireless work and groundbreaking approaches, such as that which he identified today.

We have listened to the views of the sector on sheltered and extra care housing through its response to our consultation, through its participation in our task and finish groups and through its involvement in the joint work of the Communities and Local Government and Work and Pensions Committees. We have heard the concerns that it has raised, and it is clear that an alternative model is required to secure supply. The Government recognise that supported housing helps many vulnerable people to stand on their own feet and lead independent lives. We have done a lot of work to understand the needs of individuals who live in long-term supported housing. We are committed to protecting and boosting the provision of supported and older people’s sheltered housing and to ensuring we get the new model right to ensure that that housing is funded sustainably in the long term.

The Government are clear that everyone who would be eligible under the current system to have their supported housing costs met by housing benefit will continue to have their housing costs met under the new funding model. We are committed to protecting provision of supported and older people’s sheltered housing to ensure that we get the new model right and that funding for supported housing is sustainable.

The Government’s intention is to find the best means to deliver improvements in quality, oversight and value for money, while recognising the need to give appropriate consideration to the concerns raised by the sector through the consultation and the Select Committees. I can confirm that we will be able to announce the plans for supported housing next week and answer many more of the questions that hon. Members have raised. I am convinced that, when the announcement is made, it will be clear that we have listened and properly consulted and considered the concerns of all.

Question put and agreed to.

Resolved,

That this House calls on the Government to halt its current plans to cap, at the local housing allowance rate, help with housing costs for tenants of supported housing and to adopt instead a system which safeguards the long-term future and funding of supported housing, building on the recommendations of the First Joint Report of the Communities and Local Government and Work and Pensions Committees of Session 2016-17, Future of supported housing, HC 867.

Affordable Homes Bill

Paul Farrelly Excerpts

Friday 5th September 2014 Commons Chamber

[Chris Bryant (Rhondda) (Lab)]

I warmly congratulate the hon. Member for St Ives (Andrew George) on bringing forward the Bill and on managing to get the Government to disband their collective responsibility. I agree with virtually everything he said in his speech, and, indeed, in the e-mail he sent all of us last week, which I shall refer to later. I also agree with everything the hon. Member for Westmorland and Lonsdale (Tim Farron) said, not least about access to the housing market and there being a generation of young people for whom it is almost impossible to conceive of buying a house or having access to private rented properties, which are considerably more expensive than those in the social housing sector. Incidentally, I also agree with what he said about the right to buy. Many people forget that the first council to introduce that was a Labour council in Newport in south Wales, but the key difference was that Newport was determined to match every house that was sold with a new one that was built. To my mind the great destruction of social housing over the last 35 years, introduced by Mrs Thatcher, was that when she introduced the right to buy, she refused to allow local authorities to rebuild, and that is one of the central problems that, in the end, this generation of politicians is having to deal with and the generation of politicians a decade ago had to deal with, too.

[Paul Farrelly (Newcastle-under-Lyme) (Lab)]

This Bill is supported across the parties, including by the very honourable Member for Stafford (Jeremy Lefroy), a near constituency neighbour of mine. Does that not show that this is not a partisan debate, and that feeling runs across the political spectrum against this unfair and discriminatory tax?

[Chris Bryant]

I think that most of my speech is going to be fairly partisan, so I am not sure I can entirely agree with my hon. Friend on that.

Jobs and Work

Paul Farrelly Excerpts

Wednesday 11th June 2014 Commons Chamber

[Vince Cable]

That is attributing a slightly sinister train of argument to employers, which is not the case. There are many industries that have flexible working arrangements—and zero-hours contracts are only one form of flexible working—which the work force accept. The shadow Secretary of State talked proudly about his membership of Unite. I engage with the car trade unions, which accept that zero-hours contracts have quite an important part to play in the flexible working in the automobile industry.

[Paul Farrelly (Newcastle-under-Lyme) (Lab)]

In the Government’s response to the debate that we held on zero-hours contracts last October, the Minister of State, Department for Business, Innovation and Skills, the right hon. Member for Sevenoaks (Michael Fallon), said that it was perfectly reasonable for Opposition Members to ask whether the consultation would also address problems with short-time working and agency working. What conclusions did the consultation come to on those aspects of employment practice?

[Vince Cable]

I am not sure precisely what the hon. Gentleman is driving at. As he knows, there is an agency workers directive, which we have transposed into British law. It is not terribly popular with many parts of business, but it was agreed between employers and employees. I am not sure what else he is referring to.

--- Later in debate ---

[Paul Farrelly (Newcastle-under-Lyme) (Lab)]

Last week my right hon. Friend the Leader of the Opposition highlighted some of the most noticeable omissions from the coalition’s programme for this, the final year of its lifetime. He quite rightly mentioned what a missed opportunity the small business, enterprise and employment Bill represents to truly tackle low pay and insecurity. These are issues that result in so many hard-working people feeling left out, let down and left behind, and which resulted in what we saw, not for the first time, in May’s election: the disaffected’s vote for UKIP.

You will be glad to hear that I want to address my remarks to that Bill, Madam Deputy Speaker, but when it comes to the responsibilities of the Department for Business, Innovation and Skills, my right hon. Friend might have mentioned another huge omission: the lack of a higher education fair reform Bill. We have a tuition fees system that, by the admission of one of the coalition’s own advisers, is simply not working—not for universities, not for students and not for the country.

On the employment Bill, it is clearly welcome that exclusivity clauses in zero-hours contracts will henceforth be banned. There will be cross-party support for that. Clauses that prevent employees on contracts from working for another employer, keeping them constantly on call with no guaranteed hours, are in many cases simply legalised servitude. However, the Bill should and could have gone further. The Government did not have far to look: last October we had a thoughtful debate in the House on zero-hours contracts which highlighted some of the most iniquitous examples of the practice. At the time of that debate, the Business Secretary launched a consultation, but the outcome in the Bill is frankly just timid.

The Business Secretary should go much further. He should, at a minimum, give workers a right to ask for normal employment contracts if they regularly work the same hours and a right to have a contract that specifies a minimum number of hours, to give vulnerable people at least a modicum of certainty and security. He should also ensure that workers on zero-hours contracts cannot simply be summoned outside their contracted hours and that they are entitled to be paid if shifts are unexpectedly cancelled at short notice. Likewise, the Business Secretary should give such workers the security of employment rights that many of us take for granted: the right to be given notice, rights against unfair dismissal and the right to redundancy pay. A flexible work force should never equate to an exploited work force.

There are other, related issues that the Bill should also tackle. The rights of part-time workers who regularly work longer hours need to be addressed, along with the continued insecurity faced by many agency workers. It is now seven long years since I was lucky enough to be successful in the ballot and to present the Temporary and Agency Workers (Prevention of Less Favourable Treatment) Bill, to try to level the playing field. I did not do so simply because it was supported by the big unions, such as Unite, of which I am a member, or my local ceramics union, Unity; I did it because time after time, decent, ordinary working people, and not a few students, had complained to me about being exploited by agencies, along with employees complaining about facing substitution by agency workers if they complained, asked for a pay rise or insisted on their rights. There were complaints, too, about how many workers who would work for less were being proactively recruited from eastern Europe. That was the insecurity that many people faced then and that they still face now, which manifested itself in a vote for a right-wing party, UKIP, that will benefit ordinary working people not one iota.

The agency workers directive eventually went through, but it was an imperfect compromise, with a 12-week qualification period in the UK, which affords workers here less protection than on the continent. It is a compromise that needs unstitching. Big loopholes such as the Swedish derogation need a really good darning. If the employment Bill does not go there, I hope the next Labour Government will do the necessary needlework.

One of the great strengths of my right hon. Friend the Member for Doncaster North (Edward Miliband) is that he has had the guts to admit where the Labour leadership got it wrong. We cannot have growth on the cheap without social and political consequences. We cannot have a recovery that leaves decent, ordinary people behind, insecure and struggling to make ends meet, while working all hours. This he has said many times since becoming leader. He said it to the voters in Thurrock last week; he also said it in the House last week in response to the Queen’s Speech. At the last election I was able to tell people what I was trying to do not only to level the playing field, but to raise the bar, and I support what my right hon. Friend has said about our aspirations for the minimum wage. The employment Bill should go much further to help ordinary working people to be treated more decently. I hope that during its passage we can improve it.