Local Housing Allowance: Homeless Young People

Stephanie Peacock Excerpts

Tuesday 4th February 2020 Westminster Hall

[The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)]

It is a pleasure to serve under your chairmanship, Mr Hollobone, and I thank the hon. Member for Brighton, Pavilion (Caroline Lucas) for securing this important debate. Since my election in 2015, I have been passionate about tackling homelessness. Before my appointment as a Minister, I served as co-chair of the all-party parliamentary group on ending homelessness, where I engaged and built relationships with many brilliant charities, a number of which the hon. Lady mentioned, to work with them to end homelessness and rough sleeping.

Since my appointment as Minister, I have worked and continue to work closely with a number of those charities and other organisations to help to inform my work and that of my Department, to ensure that the Department for Work and Pensions does all we can to support those who are at risk of homelessness and that we are getting housing benefit right to provide the support that people need. As a Department we support the wider Government aims and ambitions to end rough sleeping and tackle wider homelessness.

My role as the Minister for welfare delivery has enabled me to go to all parts of the country, and subject to reappointment I look forward to continuing to do so. I have visited a number of charities and organisations around our great country that support those who have experience of homelessness and rough sleeping. That has enabled me to get a better understanding of those issues. I include among those organisations a number of arm’s length management organisations and housing associations that have a role to play.

The hon. Lady will no doubt recognise that this is not an issue that the Department for Work and Pensions can tackle alone. I am working with my counterparts in several Government Departments as part of cross-Government efforts to tackle this issue. Sadly, these debates are always far too short; I have no doubt that the hon. Lady and I could discuss this and associated issues at great length. We could probably spend most of the day talking about the issues she raised: rough sleeping and the broad rental market area in Brighton, local housing allowance, Centrepoint’s analysis and young people under 25 with experience of homelessness, as well, of course, as care leavers, not to mention the point she makes about social housing. I would very much welcome her at the Department to chat through some of those issues at greater length with officials, as appropriate.

I will try to cover as many of the issues as I can in the time left. First, we have to address the elephant in the room, which is the root cause of this issue: in parts of our country, we have massive supply and demand issues. The hon. Lady’s constituency is an example of that; my own constituency is another. As a result, although there are parts of the country where the ambition was to have the local housing allowance rates set at the 30th percentile, there are many parts of the country where the local housing allowance is sub-5%. That represents an issue. The root cause of that—my officials will not like me for saying it—is that successive Governments have failed to build enough houses, in particular affordable housing and homes for social rent. That is something we need to look at.

[Stephanie Peacock (Barnsley East) (Lab)]

I congratulate the hon. Member for Brighton, Pavilion (Caroline Lucas) on securing this important debate. On affordable housing, does the Minister share my concern about the research by the charity Crisis, which showed that cuts to housing benefit mean that in 94% of areas across the country, only one in five private-rented properties are affordable to young single people? Obviously, we need to do much more to tackle that.

[Will Quince]

The hon. Lady is partly right; the solution is not just about local housing allowance. We can continue to pump money into housing benefit, which unfortunately in many parts of the country lines the pockets of private rented sector landlords. But if we are to tackle this in the long term, it is about affordable housing and a mixture of tenure between ownership, affordable housing, which is up to 80% of market rent, and homes for social rent, which is significantly lower. It is about addressing the supply issue as well as the demand issue, to ensure that we tackle the problem for the medium to long term. That is why the Department and I are working closely with the Ministry of Housing, Communities and Local Government, not to mention the other Government Departments involved. Between us, we hold the key—we hold the housing benefit bill, but they have a lot of the levers to address the supply side.