Homelessness and Temporary Accommodation

Siobhain McDonagh Excerpts

Wednesday 2nd December 2020 Westminster Hall

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

How temporary is temporary? Sir Edward, if you had a family in front of you at your advice surgery, how would you explain? I would explain that families who were housed in temporary accommodation two years ago have another six months to go. For a family in front of me today, I would say I could not predict, but probably the time would be about five or six years, as long as things do not get any worse. Temporary, in that vein, is taking the English language to its severe extreme. There are 100,000 families—127,240 children—of whom 27,650 families are forced to travel 16 times round the globe, or 400,000 miles, in order to access temporary accommodation. That was a figure found by Ross Kemp in his recent documentary on homelessness.

Where do we go and how do we deal with it? In the few minutes I have, I would like to point the Minister to a really interesting email that we received from the Association of Accounting Technicians, no less, only last Wednesday, which points out that the spending review confirmed that the Government would provide £254 million of additional resource funding to tackle homelessness in 2021-22, of which £103 million had already been announced. The AAT points to the issue of taxing overseas purchasers of properties in the UK.

In September 2018 the then Prime Minister, the right hon. Member for Maidenhead (Mrs May), announced that a stamp duty surcharge of up to 3% would be imposed on overseas residential property investors, and that all the money generated would be used to tackle homelessness. It was expected to raise £140 million. Six months later, that was watered down to 1%—effectively an £80 million loss for homelessness projects. Having campaigned for the rate to be restored to 3%, the AAT was delighted when the right hon. Member for Richmond (Yorks) (Rishi Sunak), as Chief Secretary to the Treasury, announced a return to that during the 2019 general election. During the 2020 Budget, however, that was changed to 2%, meaning a £40 million loss.

Since it was announced in 2018, the rate of surcharge has been 3%, 1%, 3% and now 2%, without ever coming into force. It is due to be implemented in April 2021. The only way to deal with homelessness is with more money. This small suggestion will not resolve homelessness, but making available another £40 million by going back to a 3% tax on overseas purchases will help an awful lot of people.

--- Later in debate ---

[Kelly Tolhurst]

I thank the hon. Lady for her intervention. We have spent an unprecedented amount of money, and we are continuing to invest in those pilots and schemes in order to tackle all parts of rough sleeping and homelessness. There is a distinction between what we have done with Everybody In and what we are doing with Housing First, with regard to our social housing pilots. We are talking about a vast landscape. We are committed to solving rough sleeping and dealing with homelessness. The funding from the Government is an incredibly important part of that, and so are the right interventions on the ground, delivered in the correct way. That is something that I have particularly focused on since I have been in this role.

The spending review demonstrates the Government’s commitment to build on the fantastic progress of Everyone In and to support rough sleepers and those at risk of homelessness during covid-19. Next year, we are going even further and will provide more than £750 million to tackle homelessness and rough sleeping. That includes the additional funding to support frontline services through the rough sleeping initiative and to enable local councils to fund their statutory duties to prevent homelessness. We are also providing capital funding to continue our landmark drive to bring forward thousands of homes for rough sleepers. That will support our commitment to end rough sleeping in this Parliament and fully enforce the Homelessness Reduction Act 2017.

On temporary accommodation, I am absolutely clear that we always want to see homeless individuals and families moved into settled accommodation as soon as possible and permanently. The action we are taking to increase the delivery of social housing will support that. I also recognise the important role that temporary accommodation can play in the meantime in ensuring that no family is ever without a roof over their head. Although the overall numbers of households in temporary accommodation have been rising, the number of households with children has remained relatively stable since the introduction of the Homelessness Reduction Act. However, I accept that we must go further. The increase in temporary accommodation numbers since the Act took effect has been almost entirely driven by single households receiving help that was previously unavailable to them. More recently, the increase has also been driven by our action to accommodate rough sleepers during the pandemic.

The Homelessness Reduction Act requires for the first time that local authorities, public services and the third sector work together actively to prevent and relieve homelessness for people at risk, irrespective of whether they are a family or a single person. That means that more single people are getting the help they need. They might otherwise have been on the streets. Since the introduction of the Act, 270,000 households have had their homelessness successfully prevented or relieved through securing accommodation for more than six months.

The hon. Member for Westminster North rightly raised the issue of the quality of temporary accommodation. In 2019, we gave £6.7 million to more than 180 local authorities to boost their enforcement in relation to quality on the ground.

[Siobhain McDonagh]

As the Minister will know, the code of guidance from her Department says that councils should not place families outside their borough boundaries, except in exceptional circumstances, but we know that 27,650 families were placed all over the country—most of them were from London, and some, I suspect, went to the Minister’s constituency—because of the problems. Will she consider introducing an Ofsted-style regulator to ensure that local authorities’ temporary housing practices are inspected?

[Kelly Tolhurst]

I thank the hon. Lady for that intervention, and she is absolutely right. I am talking about enforcement on the ground. I appreciate and accept the issues that she is talking about—I have frontline experience of them. I am not trying to make excuses, but I have been in post for only two months. There are many issues that I want to shine a spotlight on with regard to rough sleeping and homelessness. That issue is worth investigating and looking at further. It has an impact on authorities outside London, which may be being put under pressure. I am prepared to look at that.

We have heard stories from hon. Members—they are not stories, but people’s experiences—about the quality of accommodation that people live in. It is unacceptable that people are living in damp conditions, and that they are not having their concerns and issues, which are being raised directly with housing associations or landlords, dealt with. That is why we gave tougher powers to local authorities to use. They can fine landlords up to £30,000 in penalties, issue rent repayment orders and ban landlords.

The other thing—I have seen this personally since being in this role—is that we agreed to review the housing health and safety rating system in 2019, which is the operational tool that local authorities use to assess accommodation. We have completed the first part of that, which will cover things such as fire, damp and excess cold in properties. We are commissioning some more work early next year. It is a highly technical tool, and I do not know whether Members have come across in their work with their local authorities, but I am always willing to talk further with them about it.

Where temporary accommodation is required local authorities have a duty to ensure that it is suitable for the applicant and all the members of the household who would normally reside with and who might reasonably be expected to reside with them. Consideration of whether accommodation is suitable will require an assessment of all aspects, and the location of the accommodation will always be, and should be, a relevant factor. We are clear that local authorities should, as far as possible, avoid placing households out of their boroughs. However, in some areas where there is a limited supply of suitable accommodation, we are aware that that is happening on occasion, as Members described. That is often done to place households in temporary accommodation, but that should really be a last resort. Housing authorities have a continuing obligation to keep the suitability of accommodation under review and to respond to any relevant changes in circumstances that may affect suitability. On request, applicants may ask for review of the housing authority’s decision that the accommodation offered to them is suitable.

[Siobhain McDonagh]

On that point, can I raise a small example? Councils all over south London were using a converted warehouse in my constituency. When we approached Bexley council and said, “Do you know that you are placing your families in the middle of an industrial estate?” it said, “We wouldn’t do that. We just never checked it.” It is not that councils do not want to do these things; it is that they are overwhelmed. If councils have 5,000 families in temporary accommodation, they are not doing any checking of the temporary accommodation, because they simply cannot manage it. Unless councils have a regulator that inspects them and forces them to do this, it is not going to happen.

[Kelly Tolhurst]

If Members have particular concerns about local authorities, such as the concern the hon. Lady has mentioned, I am more than happy to meet them and to take those concerns up personally. However, it is true that local authorities have the powers I set out, and we must all work together so that they are used on the ground.

The Government have been clear that the long-term use of bed and breakfast accommodation for families with children is both inappropriate and unlawful, and we are determined to stop this practice. To help local authorities deliver their new duties under the Homelessness Reduction Act, the Government created a team of specialist advisers with expertise in the homelessness sector to support and challenge local authorities in tackling homelessness in their area, at the same time as supporting councils to deliver a transformation in their homelessness services. This team of specialists has also helped local authorities to deliver a 28% reduction in the number of families housed in bed and breakfast accommodation for longer than six weeks.

As many hon. Members have mentioned, a key part of achieving our ambition to reduce homelessness and end rough sleeping will be building the homes this country needs, closing the opportunity gap and helping millions of young people into home ownership. We have committed to delivering 300,000 new homes every year by the mid-2020s. We will deliver that by committing at least £44 billion of funding over five years to build more homes. We have extended the current £9 billion affordable homes programme to March 2023, to secure the delivery of homes that would otherwise have been lost due to covid-19. This programme will deliver around 250,000 affordable homes.