Homelessness Reduction Bill

Steve Baker Excerpts

2nd reading: House of Commons
Friday 28th October 2016 Commons Chamber

[Bob Blackman]

I will come on to the situation in Wales in a moment.

The anticipated savings will include direct savings to local authority homelessness teams. Drawing on the lessons from Wales, which the hon. Lady rightly raises, academics commissioned by Crisis estimate that a projected 20% increase in prevention and relief activity could produce an additional cost of £43.9 million, but that that would be offset by a £46.8 million reduction in spending on people who are already homeless. That is partly due to reductions in the use of temporary accommodation and a greater focus on preventing homelessness. Over time, this should reduce the number of people who lose their home in the first place. This would require more intensive support through either a relief duty or an offer of settled accommodation under the main duty of homelessness.

The Bill should also make savings for other public bodies. Research by Crisis into the cost savings of prevention and relief duties in England suggest that in just six months we could save £2.88 million for the criminal justice system and £1.2 million to £3.8 million for the national health service, including over £500,000 of savings for accident and emergency departments alone. What we know is that people who are sleeping rough are far more likely to suffer from respiratory diseases and they have to use the NHS repeatedly.

In Wales, the Housing (Wales) Act 2014 came into force on 27 April 2015—a great day, the one after my birthday. The experience gained from that legislation has helped to inform measures in the Bill in certain areas. Wales has seen a 69% reduction in the number of households owed the main homelessness duty, with only 1,563 households owed the main homelessness duty in the first year of the new prevention and relief duties. In the first year, 7,128 households were provided with prevention assistance, of which 4,599, or 65%, had a successful outcome. Temporary accommodation has fallen by 16% in Wales since the introduction of the new duties, saving £697,980. In London, which accounts for 72% of temporary accommodation, even half that reduction would save some £37 million.

[Mr Steve Baker (Wycombe) (Con)]

I am here to support my hon. Friend and his excellent Bill. I just observe, however, that when London boroughs seek temporary accommodation it disrupts the housing market in Wycombe for my constituents. Does he agree that we need many more affordable homes, to both buy and rent, everywhere, but especially in London?

[Bob Blackman]

The Bill does not deal with supply, but that is an important issue. It is clear that we need to increase the supply of affordable homes right across the country, but particularly in London.