Supported Housing

Rupa Huq Excerpts

Tuesday 12th April 2016 Westminster Hall

[Mr Nicholas Brown (Newcastle upon Tyne East) (Lab)]

I beg to move,

That this House has considered the future funding of supported housing.

It is a pleasure to serve under your chairmanship, Mr Hollobone. The House was told by the new Secretary of State for Work and Pensions on 21 March 2016 that the Government

“have no further plans to make welfare savings beyond the very substantial savings legislated for by Parliament two weeks ago, which we will now focus on implementing.”—[Official Report, 21 March 2016; Vol. 607, c. 1268.]

That assurance to the whole House was repeated the following day by the Chancellor of the Exchequer.

The purpose of this debate is to remind the Government of the consequences of imposing the local housing allowance on supported housing. The proposals will definitely be a further cut in welfare provision. The local housing allowance was introduced in order to cap the housing benefit given to private landlords. The cap is locally set, and it limits the amount of housing benefit to a figure based on the lowest 30% of the rental market in each local authority. In Newcastle upon Tyne, the city that I have the honour and privilege of representing in this place, it would mean a cap of £90 a week on housing benefit for a one-bedroom flat or £60 a week for a room in shared accommodation—£60 a week is the benefit offered to anyone under 35 years old who is single and has no dependants. It is a quirk of the system that supported housing in more prosperous boroughs is less badly hit by the measure because private sector rental levels, on which the calculation is based, are higher.

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

My right hon. Friend mentions prosperous boroughs, and the London Borough of Ealing would, on paper, count as one of them. Does he agree that it is a scandal that, even in my constituency, groups such as YMCA West London are being hit? One of my very early engagements as an MP was with my hon. Friend the Member for Ealing North (Stephen Pound). We went to look at YMCA West London’s refurbished hostel in south Ealing. After the summer Budget and the 1% cut in social rents, YMCA West London wrote to me and said that, because it had used all its cash reserves to refurbish the hostel on a business plan that assumed future rental levels, it was looking at staff cuts, service reductions or possible closure. Is that not a scandal?

[Mr Brown]

I agree wholeheartedly with my hon. Friend. Perhaps I should have said “relatively prosperous.” The distinction will be clear to people in the north-east of England, but perhaps less so to her constituents. She raises another important point, which is the uncertainty hanging over the arrangements, and I will have more to say about that later.

Returning to the Government’s intention, the changes introduced in the autumn statement extended the cap into the social sector, in line with the provisions that already pertained in the private rented sector, which means that the rate paid to private renters on housing benefit will apply to the social sector, too. The measure will apply to new tenancy agreements signed after 1 April 2016, with the rate changing on 1 April 2018.