Homelessness

Tom Brake Excerpts

Wednesday 14th December 2016 Commons Chamber

[John Healey]

I would say two things. First, a large part of that is underspends from the previous period, simply rolled over. Secondly, this year the Government are spending in total about £1 billion on building the new homes that we need in this country. In the last year of the last Labour Government, when I was the Housing Minister and in the hon. Gentleman’s place, it was £3 billion.

I said earlier that the rapidly rising homelessness shames us all. It does, but it should shame Ministers most of all. The hard truth for Tory Ministers is that it is their decisions since 2010 that have caused the homelessness crisis. There are record low levels of affordable rented housing—last year the lowest since 1991. There is a lack of action to help private renters, while eviction or default from a private tenancy is now the biggest single cause of homelessness. There have been deep cuts to housing benefit and charity funding that helps the most vulnerable people, including the homeless.

The amendment mentions the private Member’s Bill tabled by the hon. Member for Harrow East (Bob Blackman). I am disappointed that he is not in the Chamber. We back this cross-party Bill, but we set two tests for the Government on which we will hold Ministers hard to account: first, fund the costs of the new legal duties in full; and secondly, tackle the causes of the growing homelessness crisis in this country. I welcome the Bill because it draws on similar legislation that the Labour-led Government in Wales introduced in 2014. It is early days, but it seems successfully to have prevented two thirds of all households assessed as at risk of being homeless from losing their home. That is what good councils are doing, day in, day out, across the country, despite the toughest funding cuts and the toughest service pressures.

Exeter Council has cut the number of rough sleepers, against the national trend, with a new street needs audit and a firm approach to street outreach to make sure people cannot opt out of help. Manchester Council has brought together charities, faith groups, businesses, universities and residents’ groups in a new partnership to end homelessness in the city. Enfield Council has set up a council-owned company to purchase 500 properties over five years to house homeless Enfield residents and, of course, to act as a model landlord.

[Tom Brake (Carshalton and Wallington) (LD)]

In the right hon. Gentleman’s contacts with those councils, have they highlighted what they think the impact might be of withdrawing housing benefit from under-21s?

--- Later in debate ---

[Gavin Barwell]

I shall make progress, and then I will happily take an intervention from the hon. Member for Ashfield.

I want to set out now the measures that the Government are taking to address this issue. First, we want to broaden the safety net and have more focus on prevention rather than cure. Current homelessness legislation gives local authorities responsibilities in relation to families, to people who are pregnant and to single people who are vulnerable. Other people fall through the gaps. The legislation also encourages councils to intervene at the point of crisis, not upstream when problems are first apparent. I am not sure whether my hon. Friend the Member for Harrow East (Bob Blackman) is in the Chamber, but I think we would all give him great credit for the legislation that he is bringing forward, and the Government are very proud, in the 50th anniversary year of “Cathy Come Home”, to support that fundamental and important change to our legislation.

[Tom Brake]

rose—

[Wendy Morton (Aldridge-Brownhills) (Con)]

Will my hon. Friend give way?

--- Later in debate ---

[Gavin Barwell]

The Bill that my hon. Friend the Member for Harrow East has introduced does two fundamental things. First, it broadens the safety net and ensures that single people do not fall through the gaps. Secondly, as my hon. Friend the Member for Solihull (Julian Knight) says, it encourages councils to intervene upstream to try to prevent homelessness.

[Tom Brake]

rose—

[Joan Ryan]

rose—

[Gavin Barwell]

If hon. Members are happy for me to do so, I will make a bit of progress before taking further interventions. I will come next to my neighbour, the right hon. Member for Carshalton and Wallington (Tom Brake).

I have set out the first thing that the Government are doing. Secondly, as the right hon. Member for Wentworth and Dearne acknowledged, we have protected homelessness prevention funding for local authorities—nearly £390 million in this Parliament. Thirdly, we have increased central Government programmes. The Chancellor of the Exchequer announced an extra £10 million in the autumn statement, bringing the total to £150 million over this Parliament. Fourthly, in relation to welfare reform, we have increased discretionary housing payments to £870 million over this Parliament; that is a 55% increase. I was surprised to see when I was briefed for this debate that 60% of local authorities are not currently spending their full allocation.

Fifthly, we are looking at the way in which Government fund local authorities in relation to temporary accommodation. We are looking at replacing the DWP temporary accommodation management fee with a grant from the Department, which will be more than an equivalent amount of funding but will introduce much greater flexibility. Some hon. Members may have received a briefing from the Mayor of London today welcoming that change.

Since the Secretary of State was appointed, we have taken a fresh approach to supported housing, ensuring that the local housing allowance cap will not apply and moving to a new model of funding that is based on current LHA levels but, crucially, topped up by a ring-fenced grant. I think we would all acknowledge the fundamental role that supported housing plays for some of the most vulnerable people in our constituencies. It is absolutely crucial that we get the detail of the new funding regime right, and the ministerial team are determined to ensure that we do so. I encourage all hon. Members to take part in the consultation.

The right hon. Member for Wentworth and Dearne talked about a pledge that he had made. To a degree, it developed an announcement made by the former Chancellor at Budget ’16 of a £100 million fund to create 2,000 places in low-cost rented accommodation for rough sleepers in hostels and, crucially, for domestic abuse victims in refuges, so that we can move people on from short-term accommodation into permanent solutions. At this point, I happily give way to the right hon. Member for Carshalton and Wallington.

[Tom Brake]

I thank my neighbour for giving way, and I appreciate what he has just said about supporting vulnerable people. He will know, because I made it earlier, that this intervention is about the question of housing benefit for under-21s. I do not quite understand how that fits into the Government’s homelessness prevention programme. Does he recognise that, as charities have suggested, if just 140 extra young people are made homeless as a result of the change, it will cost more than the Government will save?

[Gavin Barwell]

My right hon. Friend—I can call the right hon. Gentleman that—will be aware, because he served with us in coalition for five years, that what the Government are trying to do is to switch from the high-tax, high-welfare, low-wage economy that we inherited in 2010 to one in which people are paid more and keep a much greater proportion of what they earn.