Housing Benefit and Supported Housing

Steve McCabe Excerpts

Wednesday 27th January 2016 Commons Chamber

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

I beg to move,

That this House believes that the Government’s planned cuts to housing benefit support for vulnerable people in specialist housing, including the elderly and people who are homeless, disabled or fleeing domestic violence, risk leading to the widespread closure of this accommodation; notes the concern from charities, housing associations, councils and others across the country about the severe effect of these cuts; further notes that supported housing has already suffered as a result of Government spending cuts and policy decisions; notes that the planned changes will apply to all new tenancies from April 2016; notes the clear evidence that the Government’s proposal to mitigate these cuts with discretionary housing payments will not work; and calls on the Government to urgently exempt supported housing from these housing benefit cuts and to consult fully with supported housing providers to safeguard this essential accommodation.

We have called the debate to give voice to hundreds of thousands of elderly and vulnerable people whose homes have been put at risk by the Government. It is very encouraging to know that 19 Members from both sides of the House wish to express their concern and to make a contribution to this debate.

We have also called the debate to expose the decision to challenge; and to expose it to compassion and to care. We want to expose it, too, to common sense. In his November spending review, the Chancellor announced that

“housing benefit in the social sector will be capped at the relevant local housing allowance.”—[Official Report, 25 November 2015; Vol. 602, c. 1360.]

With one short, sweeping sentence, he put at risk almost all supported and sheltered housing for the frail elderly, the homeless, young adults leaving care, those suffering with dementia, people with mental illness or learning disabilities, veterans and women fleeing domestic violence. According to those who provide that type of housing, he condemns nearly half of all such housing schemes to closure. He has already caused the cancellation of building work on nearly 2,500 new homes for people in those groups. The shadow Work and Pensions Secretary—my hon. Friend the Member for Pontypridd (Owen Smith)—and I therefore joined forces to use the motion and the debate to draw attention to how the Chancellor’s crude housing benefit cut could hit the lives of hundreds of thousands of people who totally depend on such specialist housing, many of whom are the most vulnerable people with nowhere else to turn.

The National Housing Federation says that 156,000 homes—at least that number of people will be affected—are set to close. A survey by Inside Housing found that one in four supported housing providers are set to close everything, while 19 out of 20 say that they will close some of their supported accommodation.

Since the spending review, as you might expect, Mr Speaker, I have been asking Ministers for evidence regarding the decision. I asked the Minister for Housing and Planning how many elderly people will be affected by the Chancellor’s cut, but he told me that the Government do not know. I asked how many women fleeing from domestic violence will be affected—don’t know; how many people with mental health problems—don’t know; how many young people leaving care—don’t know. The Government do not even know how many people in supported housing receive the housing benefit that they plan to cut.

The Minister did tell me, however, that the Government have commissioned an evidence review. It started in December 2014 and should have been completed by November 2015, but was not. Why not? In response to a parliamentary question, the Minister told me that the delay was due to

“the emerging complexity in the design and delivery of the review”

and “General Election Purdah restrictions”. The Minister therefore did not know what he was doing when he commissioned the review, and he must have been alone in the House and the country in not knowing that there was a general election in May last year. He says that the review will be ready later this year, so he does not even know when he will know what, at the moment, he does not know. What a shambles! What a serious dereliction of duty from a Government who should be making policy on the basis of evidence, especially when that policy affects the lives of so many very vulnerable people.

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

Does my right hon. Friend agree that one helpful thing that the Minister could do during the debate would be to make it clear that the cap applies to housing benefit, not to the service charge applied to so many in supported accommodation?

[John Healey]

I do not often disagree with my hon. Friend, but I do not agree that that is the solution. It is absolutely clear, as the motion says, that the Government need to act immediately and confirm that they will exempt in full supported housing from these housing benefit cuts. They then need to work with housing providers to ensure that such housing can be developed and secured for the future. I hope that my hon. Friend accepts that argument and will back us in the Lobby today.

--- Later in debate ---

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

I have listened and I am afraid that the hon. Member for North Dorset (Simon Hoare) exemplifies the brand “Same Old Tories”.

Let me make it clear from the start that I am a big fan of welfare reform. I believe that as we move to the second half of this decade, we need an active welfare system. However, the difficulty I have with measures such as the bedroom tax, the local housing allowance and caps on housing benefit is that I am not convinced that they are genuine welfare reforms. They ignore the supply problems in housing, rapacious landlords and the lack of specialist supportive accommodation. We treat all tenants as if their circumstances are the same. In fact, we simply passport cuts from the Department for Work and Pensions to the Department for Communities and Local Government without any regard to the consequences.

[Mr Jim Cunningham (Coventry South) (Lab)]

This particular measure smacks of what in the 1960s we used to call “Rachmanism”. A lot of families will find themselves destitute on this route because they will not be able to pay those rents. It is a private landlord’s charter to make money.

[Steve McCabe]

Almost everyone now realises that we cannot have action on housing benefit without having action on rents. That is self-evident.

We are having this debate because those who are the targets of this change are not the workshy and the feckless. Too many of them are vulnerable people—the very people that many of us, including many Conservative Members, came into politics wanting to help, such as elderly people no longer fit to wholly look after themselves, veterans, youngsters leaving care and those fleeing domestic violence. The National Housing Federation claims the Chancellor’s changes could cost some people up to £60 a week, enough to force them to leave their accommodation and in some cases add to the growing number of casualties sleeping on our streets as a homelessness crisis sweeps our country like a plague.

The NHF also speculates that the changes may lead to the closure of thousands of homes. The kind of places we are talking about are retirement homes, active elderly establishments designed to improve the quality of life, supported accommodation and temporary accommodation. Is that really the kind of reform that Conservative Members want? There is already a 16,000 shortfall in meeting demand for supportive accommodation, and estimates say that is likely to double by the end of this Parliament.

[Simon Danczuk (Rochdale) (Ind)]

I recently had the privilege of officially opening the Hare Hill extra care scheme, which has predicted that if the cap goes ahead, residents there will have to pay an extra £50 a week. That is completely unsustainable.

[Steve McCabe]

We have heard from some Government Members that they have the same fears. A lot now rides on this review.

Without exemption, we are about to witness a housing disaster for those with a clear learning disability who live in supported accommodation. After years of talking about rights and independence, are we seriously going to banish them to institutions and substandard care homes? Seven out of 10 people with a learning disability would prefer to live by themselves or with friends rather than in a registered care home or with their parents. Are they not entitled to aspire to that? Are they not entitled to that degree of independence? Cannot this society, whatever cuts we want to make, afford to show just a bit of generosity to such people? How will the Government ever succeed in closing places like Winterbourne View and delivering on NHS England’s 2015 strategy “Building the Right Support” without a supported housing plan for those with learning disabilities?

What about young people leaving care? How are they going to make the first step on the ladder to independence? Vulnerable young people, especially care leavers, should be excluded from the under-35 shared accommodation rule. We should hear that announced today. Is the Minister now in a position to tell us when the housing benefit regulations for those aged between 18 and 21 will be published? How, too, have we got to a situation where the cap applies to any tenancy signed after 1 April—only 62 days away—and where housing associations are still not clear about the plans?

The Minister has offered no details of his review, and his party has form on promising things during debates on which it subsequently backtracks. In fact, everyone knows there is a dangerous air of hubris about Government Ministers these days. I believe they might find a degree of support if these measures were intended for working-age adults in general-needs housing only, instead of being such a sweeping threat to the vulnerable.

Allowing for the comment of my right hon. Friend the Member for Wentworth and Dearne (John Healey) when I intervened on him earlier, I believe that the Minister would ease the situation a little if he could say today that service charges will not be included in the cap. It is obvious that sheltered accommodation, support of housing schemes and extra care measures command higher rents than service charges since they are more expensive to build and manage, yet they bring huge savings to the NHS and other services. Some housing associations, including Midland Heart, as we heard earlier, fear that these proposals could cost a huge shortfall of over £1 million, and in some cases discretionary housing payments will not deal with the problem.

Before this debate concludes, the Minister needs to tell us that he has plans to protect vulnerable people. He needs to give some clue as to what they are, and he needs to demonstrate that he has listened to the plight of those in supportive accommodation. We want to hear that he will definitely exclude them from these measures.