Exempt Supported Accommodation

Preet Kaur Gill Excerpts

Tuesday 10th September 2024 Westminster Hall

[Preet Kaur Gill (Birmingham Edgbaston) (Lab/Co-op)]

I beg to move,

That this House has considered exempt supported accommodation.

It is a pleasure to serve under your chairmanship, Sir Mark. I am pleased to have secured this debate on exempt supported accommodation. I start with thanks to a number of people with whom I have worked during the course of this campaign: Jane Haynes at Birmingham Live, Birmingham City Council, the Local Government Association, the HMO Action Group in Birmingham, my local police, and the many residents I have worked with over the years, including my constituents on Carisbrooke Road and Fountain Road.

Since my election in 2017, issues with exempt supported accommodation has been a long-running problem in parts of my Birmingham Edgbaston constituency. I have called this debate because, after years of inaction and stalled progress under the previous Government, I am keen now to see fit-for-purpose regulations introduced to finally deal with this issue. Ministers have been left with no shortage of housing challenges by the previous Administration, whether it is the failure to build enough houses, homelessness, cladding removal or years of inaction on renters’ rights. Exempt accommodation reform should have pride of place among the new Government’s packed agenda, because there is a great deal on the line for vulnerable residents in communities such as mine.

As I am sure the Minister knows, Birmingham has the most units of non-commissioned exempt accommodation in the country, with nearly 28,000 exempt claims across more than 9,000 properties. Exempt accommodation is a type of supported accommodation often used for people with very few housing options, such as prison leavers, rough sleepers, those experiencing substance misuse issues, and so on. It is exempt from the local housing allowance cap because an element of care, support and supervision is supposed to be provided to claimants—although often it is not. As a result, organisations that provide this type of accommodation can charge very high rates, and that has unfortunately led to unscrupulous providers coming into the market. It has had the unintended consequence of distorting the local housing market in Birmingham, given the buying up of family homes to be converted into exempt provision. Quality concerns are rife among the properties, and in recent years several of the city’s largest providers have been issued regulatory notices by the Regulator of Social Housing.

Over the past few years, I have worked closely with providers, residents, the police and community groups with on-the-ground experience to get to the bottom of why the sector has almost trebled in our city since 2018, and why so much of the accommodation is substandard and poorly managed. The causes are multifaceted and complex, but it is the view of me and my constituents that the new regulations to be introduced by the Supported Housing (Regulatory Oversight) Act 2023 are well overdue.

My closest experience of the sector was in 2021, working with the council, police and community to shut down Saif Lodge in my constituency, which had become infamous in the area as an epicentre of crime. It was the first case in the country of an exempt property being shut down, after residents and I presented extensive evidence of incidents of prostitution, drug dealing, aggression and other antisocial behaviour. We found vulnerable residents with substance abuse and mental health issues being let down by filthy, cramped, poor-quality accommodation, and a dire lack of support.

I had been aware of some of the issues of Saif Lodge since I was elected, but after my constituents alerted me to the shocking rise in crime surrounding the property I carried out a spot check with the police to see for myself what was actually happening. I was shocked by what I found: housed there were 25 men and women, including ex-offenders, with several issues ranging from addiction and substance misuse to mental health problems. There was just one solitary support worker on duty, who told me that the hostel was manned only on weekdays, with residents otherwise left to their own devices. The conditions were utterly substandard: cold, filthy and cramped. The downstairs toilet was broken, flooded and left unfixed; the smell was hair-raising. Access to the property was via a code that was regularly shared with strangers who were always in and out. The communal spaces were in a state. It is no wonder that residents were frequently found spilling out and loitering outside. It was not a place where any of us could happily live, let alone get a life back on track following a crisis.

As part of the campaign, I set up an exempt campaign group with residents, and conducted a number of spot checks of such properties in my constituency. Through that work, and working with the council, MPs, providers and community groups across Birmingham, I got to see up close how poor much of the provision can be across my constituency and Birmingham city. In the case of Saif Lodge, we were successful in securing an order for it to be shut down. Good, we might think—but substantial time and resources went into the campaign. It took more than a year to see it through, and it is only one example among many across Birmingham that have been letting people down. That is why councils and the police need powers to address the ongoing concerns in the exempt sector. Saif Lodge was a symptom—a feature of the system, not a bug.

It is telling that since Saif Lodge was boarded up it has been found to have been turned into a cannabis farm housing marijuana with a street value stretching into the hundreds of millions of pounds. The owners even applied to change the use of the property to provide support for women and children. Clearly, they should never be allowed to provide any supported accommodation. I have always contended that organised crime has been attracted to the sector, and this situation has reinforced my suspicions that some people are targeting it for all the wrong reasons. With the regulations Parliament agreed to last year, that must change.

In the previous Parliament I campaigned strongly for a new regulatory regime to be introduced to clamp down on poor-quality exempt provision. That regime should include the introduction of minimum standards of support; changes to housing benefit regulations to include a definition of the minimum standards of care, support and supervision; and new powers for local authorities to manage their local supported housing market better and ensure that rogue landlords cannot exploit the system.

I was pleased to see many of my recommendations in the Levelling Up, Housing and Communities Committee’s excellent report on this issue. Some were subsequently translated into law in the Support Housing (Regulatory Oversight) Act 2023, which requires local authorities to review and develop strategies to deal with exempt accommodation in their areas. It also gives the Secretary of State power to introduce national support standards and consider a new planning use class for exempt provision, and give councils powers to create local licensing schemes. It is an important piece of legislation to clamp down on those private providers that have opened large buildings that purport to provide support for people but are at best accommodation, and at worst dangerous places to live for the vulnerable people placed there.

A year since the Act was passed with cross-party support, we still do not have the operating regulations or even the consultation promised by the previous Government. A consultation on the regulations was first promised in early 2024; it was delayed to March, and then delayed again by the general election. I would therefore be grateful to the Minister if she would set out the new timelines for when she intends to begin consultation and lay the new regulations.

After the previous Government’s failure to get on with this matter, I know that councils will be listening closely to this debate, seeking more clarity on what to expect over the coming year. The delays have left councils with few means to challenge poor providers other than through housing benefit claims, which are of course problematic for residents. They have also left councils that are in receipt of funding through the supported housing improvement programme facing a cliff edge in support. With funding due to end in March 2025, a gap in funding between SHIP funding and new burdens funding for the Act could mean that many councils have to let go of skilled staff members, which I am sure the Minister would agree would be completely unsatisfactory.

Birmingham city council used its funding for a programme of inspections of exempt accommodation in the city, and what it found is genuinely shocking. It discovered more than 10,000 category 1 and 2 health and safety hazards in exempt properties since 2020, 97% of which have now been removed. In that time, thousands of support plan reviews have been completed and overpaid housing benefit of more than £7.23 million has been reclaimed. I am sure the Minister will agree that the SHIP funding has been a valuable investment, and I seek her reassurance that it will continue while we await the new regulations.

What is most revealing is what the inspections programme has revealed about the state of the sector and why regulation is sorely needed. Through its work, the council has seen an increase in social issues around community safety and poor-quality support. It decommissioned 73 properties and reviewed over 2,000 support plans for adult social care. Some 88 adult safeguarding reviews were initiated, and more than 2,600 claims were cancelled due to the care, support or supervision failing to meet the council’s more-than-minimal threshold. That really is saying something considering how weakly it is defined through the so-called more-than-minimal test.

I remember that when I visited Saif Lodge I talked to the security guard and asked whether they were the support worker. They were not, but if a resident asked them for support, they said they would simply make a phone call to refer the resident or signpost them to a service. That was their version of care, support and supervision. That is what the uncapped housing benefit was paying for while the property’s owners raked in the profit. In addition, the council states that, from inspections, it has logged thousands of community safety incidents connected to such properties. There have been more than 1,700 investigations, leading to 544 evictions and 48 arrests.

A key concern of mine is how people are referred to and placed in the properties. Members can imagine the chaos when it comes to assessing compatible residents and placing them together. Indeed, many residents are not properly assessed at all. I have heard cases of vulnerable women being put with men who have serious issues, and alarming cases of women being assaulted in the properties. That is why the regulations are so important: clear operating guidelines are needed for councils now.

Despite the good work done through the supported housing improvement programme, for which I give the previous Government credit, until we have regulations councils will remain unequipped to enforce the minimum standards of care, support and supervision that vulnerable residents need and deserve. In turn, I have no doubt that regulation will improve the levels of antisocial behaviour and other forms of crime that have sprung up around some of the exempt provision in my constituency and caused considerable grief for the residents of Fountain Road, Gillott Road and other roads leading off Hagley Road. I think everyone in the supported housing sector, councils and my constituents will welcome clarity from the Minister.

Let me move on to some specific questions. I remember a meeting in 2022 at which Government officials remarked that they were too light on data to get on with reform at that point. I found that a startling admission, and I sincerely hope it is not the case now. The Government previously committed to improving the data that they collect on the sector; will the Minister provide an update on that work? Will she also update us on the progress she has made on developing national support standards, including in respect of what constitutes a minimal level of care, support and supervision? It is vital that such regulations are put on the statute book.

I am sure the Minister is aware that, in the absence of the promised regulations due to the aforementioned delayed, some councils are pre-emptively setting their own standards. From their point of view, they will prepare the sector for the introduction of new standards, but from the supported sector’s perspective, they risk creating policy inconsistency that may have negative consequences for smaller providers that are otherwise doing a very good job. Does the Minister agree that the repeated delays to the consultation on and development of the regulations promised by the previous Government have created a lot of uncertainty, which is ultimately unhelpful to the good providers of supported housing in the sector and the residents they protect?

It is welcome that Birmingham city council has its own quality standards scheme, but without regulations it can only be voluntary, and thus only 45% of providers currently engage with it. That is a huge challenge to all of us who want to drive up standards in the sector and do not want a continuation of the race to the bottom that we have seen over the past 14 years.

I seek the Minister’s view on creating a new planning use class for exempt accommodation, to help councils to identify exempt provision at an earlier stage and therefore better manage it in parts of the city where exempt accommodation is already saturated. That is part of the problem with crime hotspots in my patch, which have an incredibly negative impact on my constituents who live in them. I am sure the Minister agrees that the Government’s commitment to restore community policing will help in that respect. My constituents know keenly the value of a local officer who knows the community. We need to see more of our officers on our streets.

New regulations to tackle poor provision in the exempt accommodation sector are desperately overdue. Birmingham now has an excess of 28,000 exempt units, and the number continues to grow. Since reforms to the supported housing system were shelved in 2018, the exempt accommodation sector has ballooned. A freedom of information request from Crisis revealed a 62% increased from 2016 to 2021, so the longer we delay, the greater the challenge when new regulation inevitably comes.

Over the past decade, too many bad landlords have been getting into the sector for precisely the wrong reasons. They have exploited under-regulation, a Conservative housing crisis and an epidemic of unmet need after years of council cuts. There are fantastic providers that also operate in Birmingham that try to do the right thing, but they are being undermined by those seeking to profiteer and short-change vulnerable people in their care. That is bad for the supported housing sector as a whole.

My one ask of the Minister today is for her to make sure that the new Government get on with the urgent task of reform after the previous Government dithered and delayed, and to ask whether she can set out a refreshed timeline today. Survivors of domestic violence, prison leavers, care leavers and people with mental health and substance abuse issues deserve a supported housing system that supports their transition to happier, more independent lives; our communities in Birmingham deserve neighbourhoods that are peaceful and safe, not epicentres of antisocial behaviour; and the taxpayer deserves to know that their money is going to support people who need it and is not lining the pockets of rogue landlords. I thank the Minister in advance for her response to the debate.

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[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rushanara Ali)]

It is a pleasure to serve under your chairmanship, Sir Mark. I congratulate my hon. Friend the Member for Birmingham Edgbaston (Preet Kaur Gill) on securing this important debate and thank her for the work she has already done to tackle the poor quality of supported accommodation schemes in her constituency.

Housing is a priority for this Government. We are already committed to building 1.5 million new homes, and that will include good-quality supported housing to ensure that residents have the right home to meet their needs. But as we have heard, we need to make sure that the supported housing that already exists is delivering good outcomes for its residents. As the Minister responsible for supported housing, I am determined to tackle the problems discussed in today’s debate. I know how important it is to get this agenda right, because my constituents suffer just like those of my hon. Friend and a number of other Members who have been very active in campaigning to improve the quality of supported housing.

My hon. Friend highlighted the many serious issues—as did the shadow Minister, the hon. Member for Ruislip, Northwood and Pinner (David Simmonds), and the Liberal Democrat spokesperson, the hon. Member for North Shropshire (Helen Morgan)—and the suffering caused by poor-quality supported housing where residents receive little or no support and landlords charge huge rents paid for by the taxpayer, with local authorities lacking the powers to challenge that.

Of course, as my hon. Friend pointed out, we are not speaking about all providers. The majority do a fantastic job supporting their residents to live fulfilling and independent lives, and I commend them for the work they do. We want to see more of those kinds of providers and to help them continue to give their residents the best support they can.

However, in the worst examples I know of, there are harrowing stories of residents being left with no support at all, of criminal gangs taking advantage of vulnerable residents and of women who are fleeing domestic violence and domestic abuse being housed with sex offenders. As my hon. Friend mentioned, there are also examples of lack of support, criminality and dangerous situations for residents, who are put into accommodation by landlords who simply do not care about them. That situation cannot be allowed to continue. As my hon. Friend highlighted, that is a serious and growing problem in Birmingham, but it is not unique to the city and is an issue in other parts of the country.

The Government will take firm action to stop rogues who continue to exploit vulnerable residents and rip off taxpayers by charging excessive rents, which are met by housing benefit. Those abuses have gone on for far too long, and this Government will act to put a stop to them. I look forward to working with colleagues in the different parties, building on the consensus from the previous Parliament.

Poor-quality, expensive and ineffective supported housing was first highlighted in Birmingham in 2018 by the Housing and Communities Research Group, working with the Birmingham Safeguarding Adults Board. The then Government tested ways to increase the oversight of supported housing in a number of areas, including Birmingham, through the supported housing oversight pilot, followed by the expanded supported housing improvement programme, known as SHIP. I agree with my hon. Friend, who was quoted at the time as saying that the schemes were welcome but fell far short of the action needed.

I am pleased to say that the 26 local authorities involved have been reporting good progress against their delivery plans since the start of the initiative. Over 2,400 properties have been inspected, over 8,000 reviews have been undertaken of the support provided to tenants and over 9,400 benefit reassessments have been carried out. My hon. Friend asked about the decision on further funding for SHIP, which is, as she will be aware, a matter for the spending review.

I commend the hon. Member for Harrow East (Bob Blackman) and other colleagues on the work they did in getting the Supported Housing (Regulatory Oversight) Act 2023 on to the statute books. As we have heard, implementing the Act will equip local authorities to go further and to finally put an end to this appalling problem. The Government are determined to get these measures implemented as soon as possible.

My hon. Friend the Member for Birmingham Edgbaston highlighted the lack of data under the previous Government. I am pleased to say that the data position is improving, and an initial research phase looking at supported housing in Great Britain—covering the number of units, the cost, and estimates of need and future demand—has been undertaken on behalf of the Government. A report setting out the findings will be published soon.

I want briefly to set out how the Government intend to address these important issues. As I have mentioned, the Supported Housing (Regulatory Oversight) Act, introduced by the hon. Member for Harrow East, is central to our plans. To be clear, the Government will implement the measures in the Act as soon as possible. These problems have been going on for far too long and action is long overdue. As required by the Act, I will shortly issue a statement to the House about progress on implementing the measures in it, but I am grateful for the opportunity to inform Members of the way forward today.

Work will shortly resume on appointing the supported housing advisory panel. I am grateful for the applications the Department received prior to the general election, and I hope to be able to inform applicants shortly on the next steps.

The Government are finalising a consultation on national standards and plans for a licensing regime for supported housing schemes in England, as well as on the new planning use class that was called for during the Act’s progress through Parliament. We will publish the consultation as soon as possible.

Local supported housing strategies are another vital part of the Act and will ensure that the needs of vulnerable people can be met in the future. Work on them is progressing, and the Government will work closely with local authorities and other stakeholders to develop the comprehensive guidance needed.

The 2023 Act proposes a licensing regime that will give local authorities proper control over who delivers supported housing in their district, and greater powers to intervene when things are not right. We will shortly consult on a locally led national licensing regime that will enforce a set of national support standards in England, and will add further conditions to ensure that rogue providers cannot continue to operate. Conditions will include a fit and proper test for licensees, conditions relating to the condition and use of the accommodation, and a condition requiring all residents to have had their needs assessed. Those conditions will ensure that only good-quality supported housing is licensed and allowed to continue to operate. Providing unlicensed supported housing will be an offence. The Government want to implement these changes carefully to avoid any unintended impacts on the much-needed supply of good supported housing, so it is critical that we consult both the statutory consultees, as set out in the Act, and wider stakeholders and residents.

My hon. Friend the Member for Birmingham Edgbaston asked about progress on developing the national standards. As she and others will be aware, the Act enables the Deputy Prime Minister to set standards for supported housing. While some regulation applies to supported housing, it is not specifically aimed at the support services provided to residents, and applies either to the provider or the physical condition of the property.

It is clear from the problems in supported housing that the current regulations are not enough and that there needs to be specific regulation for this type of housing. That is why the Government will be setting standards that, combined with supported housing licensing, close the gap in regulation and clearly set out what good support services look like and how they must be delivered.

[Preet Kaur Gill]

I thank the Minister for saying that, because I was going to ask her to touch on the national minimum standards. Can she give us a timeline? My worry is that the funding is ending in March 2025 and councils do not have the operating guidelines they need. There are also all the issues she raised in terms of making sure that councils understand how many units they have—let us not forget that Birmingham has the most units in the whole country, which is why I was encouraged that the previous Government included it in the pilot. I think the pilot has produced an evidence base showing why this issue is important: we will save money in the long run, whereas at the moment the taxpayer is almost paying twice. Unless the council intervenes and closes some of these properties, where support is not being provided, it will continue to be extracted from wider council services, which these providers are not paying into. Local government is no doubt listening to this debate, so I urge the Minister to give us a clear indication of what the timeline looks like.

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[Preet Kaur Gill]

I thank the Opposition spokespersons —the hon. Members for North Shropshire (Helen Morgan) and for Ruislip, Northwood and Pinner (David Simmonds) —for their very thoughtful contributions in this debate. It is really good to see consensus on the introduction of these regulations and I hope we can work together to get this right. There was a lot of cross-party consensus and joining-up previously in understanding both the issue within the exempt provision and what is really required. Fundamentally, it is about how this can be implemented in practice by councils—that is where the difference is going to be felt. I am really encouraged by the Minister’s response and I hope that we can keep in close contact following this debate on the progress that the new Government are making on this issue. I really look forward to her statement in the House on the timeline and the commitments.

The hon. Member for Harrow East (Bob Blackman) rightly included a number of recommendations in the Bill he brought to the House, and I am sure that local government will want to voice other things they are finding more widely. I thought that Birmingham’s response was quite telling on both the SHIP funding and being able to have a team that can go out and do the inspections—I know the Minister has talked about that more broadly. The findings are concerning—the very fact that the council has been able to recoup £7.23 million in housing benefit overpayments makes it clear that much more joining-up is needed between the DWP and housing. We must be good at how we do that, how we have the advisory board there to support some of the thinking and how we implement that practically.

There are councils that do this better, but I think simply the size of Birmingham is the challenge. It is sad and shocking that a lot of people who cannot be placed elsewhere are being placed in Birmingham. They are vulnerable people and, even more worryingly, they do not have local links, which makes a difference to the level of exploitation—someone’s level of vulnerability increases as a result. We have to think about where we place people, especially if they already have good links in areas that they know and with services that they know. Otherwise, we are just shifting the problem from one place to another, exacerbating the issue of resources and services in Birmingham more broadly.

The Minister is welcome to visit Birmingham city council and our city to see some of the exempt accommodation at first hand. I think that that would help her to get a sense of what the new regulations will need to look like. She could meet the organisations. As she has mentioned, there are lots of good providers and good provision. It is important to get the balance right. Equally, lots of providers are exploiting the situation. The very fact that the Regulator of Social Housing has had to intervene tells us the state of the situation.

This is about protecting the small providers. No one wants to see endless bureaucracy; however, regulations are important. We already have HMO licensing schemes, for example, and we are able to manage and ensure that certain areas do not become saturated, which can simply blight them. Residential accommodation in residential streets should be exactly that—somewhere people feel safe and secure, and not wondering who lives next door, worried about the level of antisocial behaviour or crime, which does spill out on to the streets.

That is exactly what my constituents had to deal with. It should not have taken more than a year and a half of my resource, and the residents, the council and the police working together to build the case and the evidence to take the cases to court. A lot of the providers can pay for good legal advice and representation, and councils just do not have the capacity to be challenged constantly when they are trying to put in place necessary measures. Only through reform can we create a system that is better for housing benefit claimants, residents and our communities alike. That is what we want to see change.

Question put and agreed to.

Resolved,

That this House has considered exempt supported accommodation.