Housing and Social Security

Sajid Javid Excerpts

Thursday 22nd June 2017 Commons Chamber

[The Secretary of State for Communities and Local Government (Sajid Javid)]

Before I open today’s debate, I want to reflect briefly on the horror that unfolded at Grenfell Tower last week. My thoughts are still very much with the victims, their families and their friends. All hon. Members will have heard the Prime Minister’s statement earlier today and, having visited the site for myself and met some of the bereaved families, I want to echo her determination to get to the bottom of whatever went wrong. I will also write to hon. Members shortly with a detailed update on what we are doing to support the people who have been affected by this tragedy, the progress we are making in rehousing people and the steps we are taking to improve fire safety at similar tower blocks across the country.

In the longer term—this point is perhaps more pertinent to this debate—it is clear that any changes in the wake of this tragedy should not just be technical or legislative ones. What happened at Grenfell also showed us all that we need a change in attitude. We all need to rethink our approach to social housing, and we need to reflect on the way in which successive Governments have engaged with and responded to social tenants. We do not yet know for sure whether this disaster could have been avoided if the people who called Grenfell Tower their home had been listened to, but we do know that for far too long their voices fell on deaf ears. If nothing else, let the legacy of Grenfell be that such voices will never, ever be ignored again.

It is good to see the right hon. Member for Wentworth and Dearne (John Healey) in his place, to which I am delighted to welcome him back after the general election. I am even more delighted that we have not swapped places. I know that we have a great deal in common—perhaps we use the same barber—and it is always a pleasure to debate with him. I look forward to doing so regularly during the next five years. Like other hon. Members, I have heard the right hon. Gentleman talk about his party’s policies on the big issues facing the country, especially the issue of how we can build more homes, and we will no doubt hear him set out some of those policies.

[Ms Karen Buck (Westminster North) (Lab)]

On the point about building more homes in the context of what the Secretary of State has said about social housing, does he accept and will he now confirm that, since 2010, the Government’s record on building social homes has been deplorable, with, in fact, a 97% fall in social housing starts?

[Sajid Javid]

There was a deplorable record on building social homes, but that was the record of the previous Labour Government. As the hon. Lady will hear shortly, as I rightly talk about their record, during the 13 years that Labour was last in office we saw, for example, a decline in socially rented homes of 420,000 units.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

We of course have a Labour Government in Wales who are committed to building 20,000 new homes, and who are building new social and council housing in Cardiff as I speak. Does the Secretary of State agree that lessons also need to be learned from Wales about its different approach to fire safety, including the fact that we introduced measures requiring sprinkler systems to be fitted in new high-rise buildings and converted buildings? There are a lot of lessons to be learned from Welsh Labour. Will he listen to them?

[Sajid Javid]

When it comes to fire safety, I think we should learn lessons from wherever we can—whether Wales or elsewhere. The hon. Gentleman will know that, since 2007, there has been a requirement for new buildings to have sprinklers.

[Sir Peter Bottomley (Worthing West) (Con)]

I am intervening, at the suggestion earlier of the Leader of the House, having spent three and a half hours in the Chamber. This debate is largely about housing, but is it possible for my right hon. Friend the Secretary of State to hold a debate on leasehold? He could then look at whether the Government can intervene on the Mundy decision, which affects the extension of the leases of 2 million leaseholders, and carry on the work of his former deputy Gavin Barwell in reforming Lease, the Leasehold Advisory Service, so that leaseholders who, frankly, should be on commonhold can get a better service and avoid being abused, intentionally or unintentionally, by managing agents and freeholders.

[Sajid Javid]

I agree very much with my hon. Friend. It is important to continue the work on leasehold reform, and we will certainly take it forward. Let me take this opportunity to thank him for all the work he has done and the contribution he has made to the debate on that reform.

During the general election, we heard from the right hon. Member for Wentworth and Dearne and his colleagues about Labour’s housing policy, and no doubt we will hear more shortly. Let us be clear, however, that it was not just an attempt to wind back the ideological clock to the 1970s; it would have undone so much of the progress that we have made during the past seven years.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Since 2012-13, when the Government introduced the increased discount for right to buy, 51,352 homes have been sold, but for so-called one-for-one replacements over that period, there have been only 9,344 starts—starts, not completions—on site. Is that what the Secretary of State means by a new attitude to social housing?

[Sajid Javid]

If the hon. Gentleman will bear with me, he will very clearly hear the Government’s track record on social housing.

This is the progress that the Government have made since we first took office in 2010: we have a resilient, growing economy; the labour market is in its strongest position for years; and the claimant count is at its lowest level for 45 years, with millions more people in work compared with 2010. That is thanks in part to our wide-ranging process of welfare reform: 520,000 people are receiving universal credit, which is helping to transform lives and to make sure that people are always better off in work than on benefits. In the past year, the number of disabled people in work has increased by more than 170,000. The Department for Work and Pensions has launched tailored support for people with a disability or ill health through our personal support package. We of course remain committed to a strong, humane welfare safety net. Every year, we spend some £90 billion supporting families, people with disabilities, jobseekers and people on low incomes. By 2020, we will have given local authorities £1 billion in discretionary housing payments for residents who need extra help.

[Stephen Lloyd (Eastbourne) (LD)]

The Secretary of State mentioned extra money for people on disability benefits. Does he agree that changing the work-related component so that from April this year people in the work-related activity group have received £30 a week less is hardly the most intelligent way to persuade disabled people to get back into employment?

[Sajid Javid]

Where that happens, we will compensate people in other ways and make sure that the welfare policy remains fair to everyone.

In the last year, we spent £24 billion on housing benefit, helping people to cope with the ever-increasing cost of housing.

We are not just tackling the symptoms of our broken housing market; we are taking action to fix the causes. Our housing White Paper, which was published earlier this year, set out exactly how we will go about that: releasing more land where people want to live, building the homes that we need faster, getting more companies involved in the housing market, and supporting people who need help now. The Queen’s Speech, which promises proposals to

“help ensure more homes are built”,

marks a significant step in turning that blueprint into bricks and mortar.

[Mr Richard Bacon (South Norfolk) (Con)]

The Secretary of State mentioned the housing White Paper, which I thought was a terrific document, but in his little list he neglected one thing. Given that the Self-build and Custom Housebuilding Act 2015 is now on the statute book and was strengthened by the Government in the Housing and Planning Act 2016, does he think that serviced plots and land pooling may have an important role to play?

[Sajid Javid]

I agree very much with my hon. Friend about the importance of self-build and factory-built housing, and making sure there are enough plots for that. That was why a key part of the housing White Paper was about working on how we can diversify the market further. I thank him for the work he has done and continues to do in this sector. He has made a significant contribution.

We are investing more than £7 billion through the affordable homes programme, which will provide funding to housing associations, local authorities and other providers to deliver 225,000 affordable housing starts by March 2021. We are making the affordable homes programme more flexible so that it funds a range of affordable homes for rent, as well as home ownership. That will enable providers to build a range of homes to suit people’s needs.

My most urgent priority continues to be getting rough sleepers off our streets. We will establish a homelessness reduction taskforce, pilot Housing First and implement the Homelessness Reduction Act 2017 so that more people are helped earlier.

In the wake of the Grenfell Tower tragedy, it is more important than ever that we continue to support housing associations and local authorities with their plans to regenerate housing estates. We have paid out some £32 million in grants to support early phase work with local residents. We are providing practical support and guidance to ensure that tenants are at the heart of all new regeneration schemes, and that their rights are protected. We shall continue to assess bids to allocate £290 million of project finance.

But that is not all: we are determined to make all types of housing more affordable and secure for ordinary working people. That is why we will legislate to stop tenants being charged fees for renting a property. That will mean that tenants will be able to see at a glance exactly what an advertised property will cost them, with no hidden or upfront charges. It will also stop unscrupulous agents who rip off tenants with unjustifiable and opaque fees. The full details will be in a draft tenants’ fees Bill, which we expect to publish during the first Session of this Parliament.

Can we deliver all this? Yes we can. Just look at our track record. Since 2010, we have delivered 893,000 additional homes, including 333,000 affordable homes.

[Nick Thomas-Symonds (Torfaen) (Lab)]

To help the Secretary of State with delivery, I suggest he looks at the Housing (Wales) Act 2014, which was passed by the Welsh Labour Government. It sets out an additional duty on local authorities to prevent homelessness. Would it not be worth the Government following the lead of Welsh Labour on that?

[Sajid Javid]

The hon. Gentleman may be aware that the Homelessness Reduction Act was passed in the last Parliament, thanks to the hard work of Members across the Chamber, especially my hon. Friend the Member for Harrow East (Bob Blackman). Trying to prevent homelessness in the first place is precisely what that legislation does. I am sure that the hon. Member for Torfaen (Nick Thomas-Symonds) would welcome that measure.

[Amanda Milling (Cannock Chase)]

Will my right hon. Friend join me in welcoming the news that thousands of new homes are being built in Cannock Chase, with new homes built every week? Does he agree that sites such as the Rugeley B power station are ideal places for new homes?

--- Later in debate ---

[Sajid Javid]

I have visited home building sites and potential home building sites in Cannock Chase. I commend the record so far and the proactive attitude that is taken, certainly by the local Member of Parliament, to ensuring that local people have the homes that they need and deserve.

Since 2010, house building starts have increased by more than three quarters. More than 382,000 households have been helped to buy a property through schemes such as Help to Buy and the reinvigorated right to buy.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

The Secretary of State is telling us about his record. In these changed times, is it still Government policy that housing associations should be required to sell off homes faster than new homes can be built?

[Sajid Javid]

It is Government policy that people should have the right to buy their home, whether it is a council house or a housing association property. The hon. Gentleman will know that we are piloting how the housing association right to buy programme works. We will then work on how we can take it forward.

[Zac Goldsmith (Richmond Park) (Con)]

On that point, the housing associations in London have made it very clear collectively that they are willing and able to massively ramp up the number of homes they are building. The one thing they ask from the Government is to accelerate the release of publicly owned land so that they can do so. Is that still very much part of the agenda?

[Sajid Javid]

My hon. Friend touches on a very important point. The public sector land programme is designed to do just that. In the past seven years, it has released record amounts of land for hundreds of thousands of new homes. There is always more to do. That is why we set out plans in the housing White Paper to achieve even more from that programme.

I can tell Labour Members one more thing that has happened since 2010: more council housing has been built in the past seven years than was built in the previous 13 years. Going back to the question from my hon. Friend the Member for Richmond Park (Zac Goldsmith), enough public sector land has been released to deliver at least 130,000 new homes, which is equivalent to a city the size of Nottingham.

More than 300,000 new homes were granted planning permission in the year up to March, which was up 15% on the previous 12 months. New build dwelling starts rose by 15% compared with the previous period. Once people are in their homes, they are staying in them because mortgage repossessions are at their lowest level for 35 years. This Government can offer an ambitious, far-reaching plans for the future of house building, built on solid foundations of real success.

I want to contrast that with what is on offer from the Labour party. Let us look at what happened last time Labour was in charge of housing. When Labour came to power in 1997, the average house cost 3.5 times the average salary. When it left office 13 years later, the average house cost seven times the average salary—a massive collapse in affordability and the biggest the country has ever seen. That hit ordinary working people the hardest.

[John Healey (Wentworth and Dearne) (Lab)]

We are discussing this year’s Queen’s Speech, not 1997’s. Does the Secretary of State accept that the 13 years of the last Labour Government saw 2 million new homes built in this country, 1 million more people becoming homeowners and the largest investment in new affordable housing for a generation by the end of that period?

[Sajid Javid]

I will come to the right hon. Gentleman’s record in particular in just a moment, and then I will let him know what I will and will not accept. Let me remind the House that, on Labour’s watch, the number of social rented homes fell by 420,000. In fact, the only thing about social housing that actually grew under Labour was the waiting lists—by a massive 70%.

[Ms Buck]

I am looking at the live tables—published online yesterday, I believe—concerning the record of the Government that the Secretary of State represents. It shows that the number of social rent starts was 39,492 at the end of 2009-10 and had fallen to 944 by 2016-17. Can he explain that?

[Sajid Javid]

Over the past six years, 330,000 new affordable homes have been built, which is a record in a six-year period and is certainly higher than the last six years of the last Labour Government. For every 170 right to buy sales, Labour built just one new council house—a replacement rate of less than 0.6%.

In 2010, when house building completions hit their lowest peacetime level since the great depression, who was the Minister in charge of housing? I will let hon. Members know: it was the right hon. Member for Wentworth and Dearne himself. You will forgive me, Mr Deputy Speaker, for being a little bit sceptical when the right hon. Gentleman stands up and claims to have all the answers.

What is the great answer to housing shortfalls and rising unaffordability? What is Labour’s magic bullet to fix the broken housing market? It is a Ministry of Housing. Young people struggling to get on the housing ladder or people who cannot find a place big enough for their growing family should not worry if nothing in their area is affordable because Labour is going to create a new Government Department. It is the typical Labour prescription: there is no problem that cannot be fixed with a bit more bureaucracy.

That is the difference between Labour and the Conservatives in a nutshell. We want to build more homes for hard-working people; they want to build more offices for civil servants. Moving the furniture around Whitehall may create the illusion of action, but it does not get any homes built. Only this Government can deliver the housing and market reforms that this country needs. Only this Government can provide the economic strength we need for house builders to thrive in a post-Brexit world. Only this Queen’s Speech takes the first steps towards fixing our broken housing market. That is why I am delighted to commend it to the House.

--- Later in debate ---

[John Healey]

I am glad that the hon. Gentleman’s constituency of Bexhill has seen the benefit of some Government investment and support in recent years. The part of the Barnsley borough in my constituency certainly has not. The Government seem simply to overlook large parts of the country.

I now turn to housing, the theme of today’s debate, and to Grenfell Tower. The Prime Minister was right today to apologise, to admit that local government and national Government were too slow, and to take charge herself. However, in a set of important commitments, which we welcome, she set several hares running and failed to answer a number of important questions. Earlier, my hon. Friend the Member for Hammersmith (Andy Slaughter) made the point that the safety checks that are imperative for all 4,000 tower blocks around the country are about not just cladding but all aspects of fire prevention and fire safety. The Secretary of State needs to make it clear that the checks will be comprehensive and rapid and that if local authorities need support and resources to carry them out, the Government will make that available. He also needs to make it clear—the Prime Minister did not—that if remedial work is needed to make the blocks safe and funding is required for that, the Government will provide it to ensure that the buildings are safe for their residents.

[Sajid Javid]

The right hon. Gentleman is right: the checks need to be comprehensive. Everyone agrees about that and local authorities are carrying out those checks. Many have already done so. My Department contacted every single local authority and we have made it clear that we will make the testing facility available for free—we have said that we will pay for all the tests. We have also made it clear, as the Prime Minister did today from the Dispatch Box, that if a local authority needs support and help to implement any necessary changes, we will work with it to provide that.

[John Healey]

Support, help and funding if local authorities need it: is that what the Secretary of State is saying to the House, yes or no?

[Sajid Javid]

We have made clear exactly that if a local authority needs support, including funding support, we will work with it to provide that.

[John Healey]

I am grateful for that and I think that the House is, too. It has taken a dozen questions to the Secretary of State, the Prime Minister and the Leader of the House to get that statement, but it is of course welcome.

I paid tribute to the Prime Minister for her leadership, having acknowledged that the Government were slow to get a grip of the matter and appreciate the scale of the tragedy. I also pay tribute to the Mayor of London, who has given a strong voice to the concerns of local communities and residents and strong leadership to the emergency services that struggled to deal with the tragedy. I pay tribute, too, to my new hon. Friend the Member for Kensington (Emma Dent Coad). She has been simply magnificent in her first week in the job as a Member of Parliament. I thank my less new hon. Friends the Members for Westminster North (Ms Buck) and for Hammersmith, both of whom know the area well and, as neighbouring MPs, spent much of the past week with my hon. Friend the Member for Kensington.

I was with our Labour leader in Kensington the day after the fire. Firefighters with more than 30 years’ experience told us that they had never seen anything like it. The police commander was right when she said to me, “You have to be here to appreciate how truly apocalyptic this fire was.” It was not a natural disaster, but man made. It should never have happened and must never happen again. Hon. Members of all parties have a deep responsibility to ensure that it does not.

Some have said, “Don’t try to score political points from the tragedy,” but it is about politics: ideology and policy, which the House exists to debate and decide. The residents and communities affected by the terrible tragedy want us to tackle precisely the political and policy decisions that those in power took. The Prime Minister has talked about the lessons to learn and promised that all necessary action will be taken after the investigation. As the official Opposition, we will not rest until those who need help and a new home have it, until anyone culpable has been held fully to account and until every measure is in place to prevent such a thing from happening ever again.

Surely what has happened must shock the country and us into changing the policy, ideology and responsibility of government. When a country as decent and well off as ours fails to provide something as basic as a safe and decent home to all our citizens, things must change. When this happens in one of the richest parts of the country, it offends our sense of living together as one nation, with each and every person equally treated and valued by our society and our Government. Things must change.

For decades after the second world war, there was a cross-party consensus about the value of social housing. There was also a recognition that, in only one year since then did we build more than 200,000 new homes without councils doing at least a third. In 2015 we saw the first year since the second world war when central Government provided no new funding to build new social rented homes. Labour’s decent homes programme to overhaul and upgrade social housing has been stopped. Last year, Ministers ended secure long-term tenancies for new council tenants.

The Secretary of State talked about the Government’s track record on social housing. My hon. Friend the Member for Westminster North exposed it. Perhaps the Secretary of State could ask his officials for table 1012. My hon. Friend gave the figures for the number of starts; I will give the figure for social homes completed that people can live in. It was 37,000 when Labour left office. Last year, it was just over 1,000. That is the Government’s track record on social housing. It must change.

[Sajid Javid]

The right hon. Gentleman referred to the decent homes standard for social housing. The programme has not been ended. Since 2010, £1.7 billion has been provided. As a result of the Government’s work, the number of homes that fail to meet the decent homes standard is down by 41% from its peak in 2007.

[John Healey]

Will the Secretary of State confirm exactly how much is in the Homes and Communities Agency programme this year and last year for Government investment in the decent homes programme?

[Sajid Javid]

I shall be happy to write to the right hon. Gentleman and give him the exact number.

[John Healey]

Good. It is a small number, and it has a zero in it—and nothing else.

Let me return to the serious points that I wish to make. Secondly, let me say to the Secretary of State that all markets, organisations and consumers need regulation to guarantee safety, ensure fair practices, safeguard standards and stop abuse; yet that is not the mindset of current Conservative Ministers. Never again can a Minister who is challenged on fire safety measures say, “It is not the Government’s responsibility,” and justify it by citing the Government’s “one in, two out” rule on regulations. That must change.