SPAC Nation

Debate between Steve Reed and Marsha De Cordova

Wednesday 8th January 2020 Commons Chamber

[Mr Reed]

I am very grateful to my hon. Friend for raising yet another alarming case of what appears to be a form of fraud and deception perpetrated on a family who had just lost their mother. It seems to have been deliberately intended to disinherit her children.

There are many ways in which the leaders of this organisation appear to be perpetrating fraud in order to enrich themselves. I have spoken to young people who, sickeningly, were taken to private clinics to sell their blood, with a so-called pastor pretending to be their parent in order to sign consent forms. I have spoken to young people who were coached to commit benefit fraud. I have met students—I have also spoken to their parents—who were coerced into handing over their entire student loans before being taken to banks to raise further money through personal loans, so they lost their ability to continue in education and ended up in serious debt.

Tragically, where criminal exploitation is taking place, there is often also sexual exploitation. One young woman told me that she was just 16 when she moved into a trap house and, in her words,

“everyone was having sex with everyone else, it was disgusting”.

I asked her to clarify whether she meant older pastors having sex with younger girls, and she said yes.

When that young woman complained to her pastor, she was taken to the organisation’s leader, who told her that if she complained to the police, it would rebound on her, because he was powerful and had friends in high places. He made that claim look real to these vulnerable young people by inviting politicians and senior police officers to his church services. He even met the Prime Minister in No. 10 Downing Street. I believe all those people thought they were engaging with a church that helped vulnerable young people, but in reality they were being used to intimidate young victims and prevent them from speaking out.

SPAC Nation is not an organisation that is getting young people out of crime, as it claims; it is an organisation that is criminalising young people for its own ends. It operates right across London and has already expanded into other cities, including Birmingham and Leicester.

[Marsha De Cordova (Battersea) (Lab)]

I thank my hon. Friend for securing this debate and raising what is clearly an important issue. Does he agree that what he has described is criminal activity and preying on the most vulnerable, and it is essential that the Government intervene and take action?

[Mr Reed]

I am grateful to my hon. Friend for making that important point. I look forward to hearing what Ministers have to say about how we can work constructively and collectively to tackle many of the problems and horrors that are associated with this organisation.

As I was saying, SPAC Nation started in London. It seems to have spread right across the city, and it is expanding into other cities including Birmingham and Leicester. It has no fixed location—it does not have a home church—which makes it much harder for the authorities to track it. There is no home police unit keeping track of what it is doing. There is no local safeguarding board keeping track of the risks to young people. It holds its services in vast venues in many different boroughs and cities.

I have reported to the police and safeguarding authorities every single allegation that has been made to me, but I am deeply worried that more has not been done to stop this organisation from exploiting vulnerable young people. SPAC Nation claims to have up to 1,000 young people involved right now, and every one of those young people is at risk. It appears to have up to 15 trap houses scattered across London, and every young person inside those properties is at very serious risk. A teacher in north London told me that SPAC Nation had been recruiting schoolgirls outside the school gates. A youth worker in Croydon told me that it had been recruiting outside the youth centre. SPAC Nation is targeting young people so that it can exploit them, and it is imperative that the organisation is stopped.

I have some questions that I would like the Minister to answer this evening, if possible. Allegations about this organisation have been circulating widely in the black community and on social media for up to four years, so why has police intelligence failed to pick anything up? I was able to find out most of this information over a couple of days by speaking to people and googling on social media. If I can do that without the resources of the police, why has police intelligence failed to recognise what is happening to potentially thousands of vulnerable young kids across this city? What action can be taken immediately to stop this organisation recruiting any more vulnerable young people for abuse and exploitation in my constituency and beyond? Given what we have heard, and given what victims have told us, we surely cannot allow this organisation to continue targeting other young people for abuse and exploitation when we can take action to protect them.

What help can be given to young people involved in SPAC Nation now? That includes those living in trap houses who urgently need to get out before they are further criminalised, their family relationships destroyed and their future lives ruined. And why has no help been offered to potentially thousands of young people who have managed to get away from SPAC Nation but who are left burdened with huge debts and who have been criminalised, many of them homeless and many suffering trauma and mental ill health? We cannot simply leave these young people to suffer the consequences of abuse by an exploitative organisation.

Fire Safety and Cladding

Debate between Steve Reed and Marsha De Cordova

Wednesday 23rd January 2019 Commons Chamber

[Mr Reed]

I completely agree and am grateful for that intervention. Everybody who uses self-storage facilities needs to know that their possessions are safe when they put them in storage. We need to know that Shurgard and other providers of such services abide by the regulations, and that the regulations are sufficiently robust to provide the reassurances that customers deserve and need.

When I spoke to the group of customers, I found that the single biggest reason for storing possessions at the facility was being between homes. People were not just putting some spare goods into self-storage; they had left the place where they were living and had not yet moved into their new home, so everything they owned was stored at the facility. As a result, everything was lost; everything was destroyed in the fire. As one of them said to me, “It’s bad enough to lose a sofa, a bed or a sideboard, but at least you can replace those things. What about your keepsakes from loved ones who have passed away?” The company advertised its facility as a safe space to leave keepsakes for those who had suffered a bereavement. What about someone who has lost a lifetime of family photographs—all their memories of their family experiences and of the people they most love? A price cannot be put on that. It cannot be insured. If it is gone in a fire, it is gone forever and it is irreplaceable. The devastation, pain and stress of losing such things can be incalculable.

I met one family—a husband, his wife and their three children—who, because of benefit-system failings, had been evicted from the home that they rented just before Christmas. They had put everything they had into this Shurgard self-storage facility. They were penniless because of the problems with universal credit so they could not afford insurance. They have now lost absolutely everything that they owned. They have been left absolutely devastated, without any possessions at all, and they are living in bed-and-breakfast accommodation. That family need help, and they need it urgently, because they are facing critical hardship as a result of what happened.

[Marsha De Cordova (Battersea) (Lab)]

I thank my hon. Friend for securing this debate. He has picked up on a crucial point—that the storage centre claimed that it was safe, and so on. Does he agree that when the Minister responds he should refer to the specific case of those individuals, who have lost everything because of the social system and are now living in a bed and breakfast? These must be considered special cases, in which the Government need to step in and act.

[Mr Reed]

I am grateful for my hon. Friend’s intervention and completely agree with her. I hope that when the time comes the Minister is able to respond to that point. People who have been left in severe hardship as a result of what happened have had nowhere to go for the help that they deserve.

--- Later in debate ---

[Mr Reed]

I am sure that many people who keep their possessions in such self-storage centres will be astonished to learn that the multinational companies, where they are multinational, operate safer and more secure facilities abroad than they operate in the United Kingdom. That seems to me entirely wrong. I hope the Minister, when he responds, will explain to the House what he intends to do about conducting a review of the levels of fire safety in these facilities, and whether he believes there is a case for tightening those regulations.

Many, many people use these facilities. They are very common all over London, and we all know about them and have them in our constituencies. The customers include people who are between homes—moving from one place to another—either as buyers or as renters. Many newly built flats are very small and are built without adequate storage, so people use self-storage centres instead. If people have suffered a bereavement and have lost a relative, they need somewhere to store their possessions; we do not all have the space in our home to store these things. All those people need to know that their possessions are safe, and if the regulations are not allowing that to happen right now, the regulations need to change.

My concern is that the fact that the regulations are inadequate has created a race to the bottom in fire safety standards, as self-storage companies compete with one another on price. The way in which they reduce price is to reduce staffing in the facility and reduce the level of security and fire safety measures. They do so to minimise their costs, so that they may offer as low a price as possible. The only thing that will maintain minimum standards—and people need know what they are—is to ensure that there are adequate fire safety regulations for self-storage facilities. I am afraid that we do not have those at the moment.

Finally on this particular issue, does the Minister see the case, or the need for, providing specific help to people facing severe financial hardship—whether it be from the relevant public authorities, the Government, or even perhaps the company itself, which must bear some responsibility towards their customers for what has happened to them?

I will turn now, if I may, from the subject of self-storage towards wider issues of fire safety in residential blocks. The issue of cladding in particular has become very significant and of great concern throughout the House ever since the tragic fire at Grenfell Tower 19 months ago.

In today’s Prime Minister’s questions, my hon. Friend the Member for Croydon Central (Sarah Jones) reminded us that, days after Grenfell went up, the Prime Minister promised to do everything in her power to keep people safe. Since that time—19 months have passed—the Government seem to have done precious little in concrete terms to reassure people that they are safer now than they were then.

[Marsha De Cordova]

I thank my hon. Friend, who is being generous with his time, for giving way once again. He rightly points out that, 19 months on, we still have many blocks covered in this cladding. Residents in my own constituency are living in an unsafe block, and they might have to pay tens of thousands of pounds for fire safety remedial work. Does he agree that it should not be the leaseholders who foot the bill, and that the Government need to intervene to ensure that freeholders or the Government themselves can implement it? They must take the pressure and the burden off leaseholders.

[Mr Reed]

I am grateful to my hon. Friend for her intervention. I completely agree: the leaseholders seem to be the innocent party in all this. They certainly should not be forced to bear the cost, the stress or the worry of having flammable cladding on the place in which they live.

Fire Safety Remedial Work: Leaseholder Liability

Debate between Steve Reed and Marsha De Cordova

Thursday 19th April 2018 Commons Chamber

[Marsha De Cordova (Battersea) (Lab)]

I am pleased to have secured this important debate. The issue of liability for fire safety remedial work is of great concern to many Battersea residents, as it is to people in many parts of the country, and for good reason. The horror of the Grenfell fire made it clear, if greater clarity were needed, that there should be no complacency on fire safety.

While we await the final publication of the Hackitt review, which is investigating the fire safety regulatory system and identifying who is responsible for failures and what system is needed, the interim report stated that the regulatory system, at present, is “not fit for purpose.” I fear that is the result of successive Governments not treating fire safety with the appropriate importance.

Of the 158 social housing blocks with unsafe cladding, just seven have had the cladding fully replaced. One of the blocks waiting for work to begin is Castlemaine Tower in my Battersea constituency. Its residents have known for 10 months that their building, like Grenfell, has unsafe cladding. No data is available on the progress on privately owned blocks, and Wandsworth Council has not published the number of blocks that have the aluminium composite material cladding that has been deemed unsafe. Given the number of blocks in Battersea, it is imperative the council publish that information. I have requested the information from the Secretary of State for Housing, Communities and Local Government.

The Government must get their act together and ensure that fire safety work is carried out, but to do that they need to resolve, as a matter of urgency, questions on what work needs to be done, who needs to do it and who should pay for it. It is the Government’s responsibility to resolve those questions and, so long as they do not do so, the risk of another tragedy is prolonged.

Here we arrive at the crucial question of leaseholder liability. I welcome members of the Sesame Apartments residents association to the Public Gallery. They have come to Westminster desperate to hear reassurance from the Government. They are leaseholders of an apartment block in Battersea that was completed just four years ago and that last year was found not to meet fire safety standards after a fire in the block damaged multiple apartments, revealing that compartmentalisation had failed.

Worryingly, the fire occurred while a “stay put” policy was in place. Subsequent testing found that the cladding was defective and in need of replacement. In the light of the fire safety failures, the “stay put” policy was changed to immediate evacuation, and a waking watch system was put in place as a temporary solution.

As we know, such fire safety failures need proper rectification, and that work needs to be paid for. The waking watch and fire alarm system are anticipated to cost approximately £700,000, which is more than £8,500 per flat. Replacing the cladding is expected to cost around £2 million, which is £25,000 per flat. In total, the cost per flat is estimated at between £30,000 and £40,000.

After a tribunal ruled last month that leaseholders of Cityscape in Croydon would be held liable for replacing defective cladding, the residents of Sesame Apartments fear the entirety of those eye-watering costs will fall on their shoulders, which cannot be right. They cannot be held liable for these costs. These are hard-working people who scrimped and saved to buy their flats.

[Mr Steve Reed (Croydon North) (Lab/Co-op)]

I congratulate my hon. Friend on securing this debate. She mentions Cityscape in Croydon North where the leaseholders have a similar problem to the residents she represents. When the issue has previously been raised in the Chamber, the Government have pointed the finger and said that the insurers of the builders, freeholders and managing agents should be bearing the cost of removing and replacing that cladding, but no legal obligation has ever been found on any of them.

The Government are leaving leaseholders hanging with unaffordable debt and living in homes that have become unsellable—homes that they fear are not safe to live in. Does my hon. Friend agree that the Government should act now to get the cladding removed from every building where it exists? They can sort out the legalities afterwards. The only body in a position to act now to keep people safe is the Government. Why do they keep refusing to do it?

[Marsha De Cordova]

I thank for my hon. Friend for making that valid point, which I will certainly be addressing. He is spot on in saying that the Government are the only people who can respond to this issue and deal with the problems that our leaseholders face.

So many of these people are first-time buyers, and many are living in shared ownership properties. They do not have tens of thousands of pounds to pay for the work that needs to be done, and they have done nothing wrong. They bought their flats in good faith and they are in no way responsible for the fire safety failures. To date, the Government have seemingly agreed, saying that, morally, leaseholders should not be held liable for these costs. But my constituents need those words to be backed up by action. For as long as that does not happen, the leaseholders will be beset by fear. After all, how would we feel if we were told that our home did not meet fire safety standards, that we might be asked to pay £40,000 to rectify that and that our largest financial asset, our home, was now a huge liability? That is the situation that residents of Sesame Apartments find themselves in.

I have heard from a teacher who lives in the block and who had hoped to move in order to start a family, but is now weighed down by this liability, unable to sell and trapped in her home. I have heard from a resident, who spoke to me about the heartbreak of the money they had saved for IVF—in vitro fertilisation—treatment now needing to be set aside for fire safety work. I have heard from another whose pride in getting a foot on the housing ladder was crushed when they were told that, just by owning 25% of a shared ownership property, they are now potentially liable for 100% of the costs. Every resident I have spoken to tells me of the stress and fear caused by this liability hanging over their head.

The same is true of leaseholders across the country. Why are leaseholders being put through this ordeal? The Hackitt review is identifying who was responsible for fire safety failures, but this is causing anguish. The review might conclude that the Government are responsible, because fire safety regulations are not fit for purpose. It might conclude that the building inspection regime is responsible, because some local authorities have privatised inspections, leading to a serious decline in standards. Or it might conclude that developers are responsible, because they have been cutting costs to maximise their profits. It might conclude any of or indeed all those things, but what it will categorically not conclude is that leaseholders are responsible—of course it won’t.

These are working people who have had no say over the regulations, or over the design or the building of the property, yet it seems that, legally, they are going to be held responsible for these life-shattering costs. As anyone would, they are attempting to contest that, but they tell me how powerless they feel in that process.

We are talking about a small community of hard-working people, but they are confronted by a web of opaque freeholders, management companies, insurers and unresponsive developers, none of whom wants to take responsibility. The residents do not have armies of lawyers at their disposal. It is a David and Goliath situation, and the law is not working for these people. But it not just about that, as for the corporations involved their profit lines are at stake, whereas for the residents it is their homes and their lives. There is a real concern that if this is allowed to run its course and the Government do not intervene, the working people will be paying for failures that are not of their own making—that is unacceptable.

The Government seem to recognise that, because they have already said on multiple occasions that they acknowledge that it is morally wrong for leaseholders to be held liable for these costs, but those must not be empty words. The Government have the power to intervene and make this right, and it is their responsibility to make this right. They need to do more than just encouraging freeholders not to pass on these costs. They need to do more than support the Leasehold Advisory Service. They need to step up to the plate and intervene on behalf of leaseholders.

There are actions that the Government could take. They could, and should, properly look to see whether the developers or the freeholders that profited from cost-cutting and lax regulations are liable for the costs, or they could cover the costs themselves, which is what the residents I have spoken to believe should happen.

If the Government refuse to do that, the least they could do, as suggested by one of the Sesame Apartments residents, is provide loans to cover the costs, thereby allowing fire safety remedial work to begin immediately. The loans could be attached to the freehold and stretched over the 100-year duration of the leasehold, with repayment instalments reflecting that. That would ensure that if leaseholders were held liable, the additional yearly service charge would be close to negligible. It would achieve the key requirements of any intervention: first, it would allow remedial work to begin as soon as possible, thereby minimising the risk and fear of fire; and, secondly, it would allow leaseholders to get on with their lives and not be weighed down by an unaffordable debt. I urge the Government to take action to achieve those goals.

I conclude with two straightforward questions for the Minister. First, it might become clear from the courts that leaseholders are legally liable for the costs. If that happened, does she think it would be acceptable? Put otherwise, does she think that residents should be held legally responsible for the costs of fire safety work, even though she knows that residents are in no way at fault?

Secondly, if leaseholders are found to be liable, what do the Government propose to do for those leaseholders who cannot afford the remedial work? I am asking, in essence, whose side the Government are on—David’s or Goliath’s. I thank the Sesame Apartments residents for coming today. I know that they will be listening with interest to what the Minister has to say.