Supported Housing: Benefit

Stephen Pound Excerpts

Wednesday 20th July 2016 Commons Chamber

[Grahame M. Morris]

I am grateful to the Minister—[Interruption.] I am sure it is just a matter of time. This is a terribly confusing time.

I am grateful to the hon. Gentleman. He is absolutely right that there is a plethora of housing providers. I have met and received evidence from Mencap, Golden Lane Housing, Rethink Mental Illness and Changing Lives, as well as various housing associations, such as North Star and the Durham Aged Mineworkers Homes Association, and the National Housing Federation itself, all of which have raised concerns about supported housing in particular sectors. I have not listed those supporting members of the forces, but there is a similar thread and strand bringing this all together.

[Stephen Pound (Ealing North) (Lab)]

Before my hon. Friend finishes his long list, which could possibly be even longer, may I remind him that the YMCA is desperately concerned about these proposals? We should place that concern on the record. I cannot believe anyone in this House wishes to destroy all the good work that the YMCA has undertaken.

[Grahame M. Morris]

I am grateful to my hon. Friend for pointing out what an important role the YMCA plays in providing supported accommodation for young people, particularly those leaving care and those in the younger age bracket.

It is important that we look at the evidence. I do not think that the sums add up. Ministers seem to be drawn to an evidence-free policy, but surely it should be obvious to them that a local discretionary scheme will not work. Ministers have previously said that discretionary schemes can assist in mitigation, but that does not alleviate the uncertainty. Providers of supported housing need certainty in the rental stream to fund the cost of managing these schemes and to service the loan charges incurred in developing them in the first place. Any reasonable person—let alone a Minister—will know that people cannot rely on a fluctuating income stream to service the cost of a loan. If Ministers persist with this ham-fisted plan—let me call it that—existing supported housing schemes will close, new supported housing schemes will be cancelled and some of the most vulnerable people will be left to fend for themselves.

The new Prime Minister once talked about the Conservative party as the “nasty party”. When she spoke on the steps of No. 10, she said she wanted

“a country that works for everyone”.

The Government have an opportunity today to prove that the Prime Minister meant what she said just seven days ago, but if the newly appointed Ministers refuse to listen to reason and proceed with these callous cuts, they will be demonstrating that the Conservatives have not really changed and truly deserve their label as the “nasty party”. I commend the motion to the House.

--- Later in debate ---

[Damian Green]

My hon. Friend makes a profound point, not just about this specific issue but about, in essence, a huge amount of the work of my Department. Enabling people who are not in work to get back to work in some form is not only the best thing for the public purse but—absolutely and most importantly—almost always the best thing for them as well. For many of the people in the vulnerable groups we are talking about it will be especially valuable. Making sure that we come to a solution that contributes to that is absolutely vital.

[Stephen Pound]

I add my voice to the chorus of welcome to the right hon. Gentleman. He mentioned consultation with Cardiff and Edinburgh. Northern Ireland tends to get forgotten from time to time. Does this proposal have any relevance for Northern Ireland, and if so what consultation is taking place? I can speak slowly if he wishes to consult his colleague.

[Damian Green]

My understanding is that the matter is completely devolved to Northern Ireland, but if I have misled the House and so the hon. Gentleman I will write to him to correct myself. It is also conceivable that when the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Romsey and Southampton North (Caroline Nokes), winds up the debate she may be wiser and better informed than me on that issue. It has been known for junior Ministers at the end of debates to be much better informed than their Secretary of State was at the start—we have all been there.

As has been said, my Department has commissioned an evidence review to look at the shape, scale and cost of the sector. Reform of the funding model was already being considered as worth doing in its own right, on its own merits, long before the LHA cap policy was announced in the last autumn statement. The point has been well made by several hon. Members that this is the first full review of the provision for 20 years, so getting it right is quite important. As I have said, the review is in its final stages, and has already provided some valuable insights that I look forward to sharing with the House once the findings have been confirmed and tested.

The evidence review, discussions with the sector and the policy review undertaken by Government have all made it clear to me that, to fulfil our obligations to those people who rely on such accommodation and support, we must ensure four things. First, there must be appropriate funding to continue to support vulnerable people and sustain this vital sector. Secondly, the accommodation must deliver value for money for both the taxpayer and the individual being supported. Thirdly, those living in supported housing must receive high-quality outcomes and focused care and support. Fourthly, costs must be controlled. We cannot let the welfare bill get out of control. It is important that only those individuals who truly require the provision are able to access it, and that that provision matches genuine local need.

It is clear from the work undertaken so far that although the sector is delivering exemplary services and support in many places, the current system does not deliver on all those objectives. There are genuine problems that need to be addressed. The reformed model that we will produce later this year needs to do more to ensure that value for money is sought by service commissioners and demonstrated by providers. Vitally, I want more focus on the quality of provision and individual outcomes for those who obtain the provision. That is an important next step for the sector.