Homelessness Reduction Bill (Seventh sitting)

Will Quince Excerpts

Committee Debate: 7th sitting: House of Commons
Wednesday 18th January 2017 Public Bill Committees

[Mr Jones]

The Government have tabled amendments 16 and 17, which remove all of clause 1 apart from the extension of the prevention duty from 28 to 56 days and clarify that an applicant is threatened with homelessness if they have a valid section 21 notice that expires in 56 days or less. I am sure that most Committee members will be aware that this clause has been the subject of extensive discussion with and concern from the many external stakeholders who will be affected by the Bill, including landlords, local authorities and the charities working with those in need of housing support.

Prevention is vital to tackling homelessness. Getting in early and working with applicants before a crisis hits is key. The clause works in conjunction with the rest of the Bill and with current legislation to shift the focus towards prevention and to encourage those at risk of homelessness to seek help early. In the best local authorities in the country, that ability to seek help early is the guiding principle. I had a very good visit to Sevenoaks in Kent, where the council is absolutely following that principle. It is effectively putting the message out to local people that if for any reason they have a challenge in maintaining their housing, they should get in touch with the local authority at the first opportunity and go in to discuss those concerns. When concerns such as relationship breakdown, challenges with budgeting and redundancy are brought to the council, it has officers who have experience in those areas and are able to guide and support people with, for example, budget planning.

[Will Quince (Colchester) (Con)]

Does the Minister agree that often when people experience life-changing events, be it a marital or relationship breakdown or the ending of a tenancy, they are not at that point in crisis? They often just need some really good, clear advice, which they can then reflect on, long before they reach crisis point. That is why this particular duty is so important.

[Mr Jones]

I completely agree. Too often, under the current legislation, people who get into those sorts of difficulties or experience those sorts of events do not know who to turn to—the local authority, the citizens advice bureau, a friend or even the local MP. I hope that this will lead to more clarity, and to people being quicker to approach the local housing authority, which might be working with the CAB or charities, to deal with challenges that are often not about housing, but that lead to people having a problem with their housing or, indeed, to homelessness.

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Mr Chope, you indicated that there may be an opportunity—there certainly should be—to consider yesterday’s written ministerial statement on funding, which, as we have said before, is a vital part of the Bill. I do not want to test the Committee’s patience, but I simply want to say that we have reservations about that statement and the methodology applied. The statement itself appeared late in the day and was rather short. It was less trumpeted than some things that come out of the Minister’s Department, which normally means that the Department is a little uncertain and not terribly proud of what it is doing. Had it thought the funds were sufficient for the purposes of the Bill, I suspect there would have been a little more fanfare and the statement would have been more attuned to the media than it was. I guess that was partly to do with the negotiation with the LGA and others.

[Will Quince]

Having seen the announcement from the Government for the £48 million, I was surprised to see the response from the LGA. I expected its response to be, “It’s not enough. It’s never enough. It cannot possibly be enough.” In fact, its response was the opposite. It agreed fully with the Department’s methodology, which is a huge credit to the Minister and his departmental officials. Why does the hon. Member for Hammersmith suggest it is not enough? The LGA has only said that the measure should be reviewed in two years’ time, two thirds of the way into the three-year funding formula.

[Andy Slaughter]

We can all read the statements in the way that we wish to. Everybody wants the Bill to succeed. In the statements made not just by the LGA but by London councils and non-governmental organisations, I detected a sigh and a comment that seemed to suggest, “We hope this will succeed”. I did not see anything in the LGA’s statement or any other statement that said the funding was sufficient. The LGA’s statement welcomed the Minister’s comments in Committee that the Government wish to fully fund the Bill. I do not think it specifically said—hence the comment on review—that that was necessarily going to be the case. Let me rely on my own counsel rather than the LGA’s in this matter. I am simply raising our concerns.

It is difficult—I will concede this to the Government—to come up with a figure, because we are in new territory. I appreciate that. That should be an absolute reason why the Government should adopt the view of the LGA and agree to a review. Perhaps the Minister will say whether we will get a review. If it is right that none of us can be absolutely certain, we need to know, within the time that the money is still being paid out, which is effectively one to two years, whether the money will be sufficient.

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[Helen Hayes (Dulwich and West Norwood) (Lab)]

I would like to take this opportunity to comment on yesterday’s long-awaited announcement of funding for the Bill. The first thing to say is that the lateness of the announcement combined with its lack of detail is somewhat at odds with the cross-party spirit in which the Bill is being brought forward. All members of the Committee want major reform of homelessness legislation, so that it has a transformative impact on homelessness, but Opposition Members have always been clear that the Bill’s success will depend on the Government’s commitment to resourcing the new burdens in the Bill realistically and properly.

I am concerned about several aspects of yesterday’s announcement. I want to put those concerns on record, and I hope that the Minister will respond to them. First, the Government must publish more detail on the formula and the assumptions used to calculate the funding commitment. How does that commitment relate to local authorities’ estimates of costs? The briefing states that it does relate to them, but does not say how. What are the assumed activities that it will fund?

A number of the Bill’s clauses change the way that local authorities will work with applicants who find themselves homeless, but the funding announcement does not make explicit the nature of the activities that the money is expected to fund. The briefing talks about an increase in cases, but does not say how local authorities’ activities will differ under the new prevention duty. It is based on the assumption that practice will change and that local authorities’ workload will increase, but I am simply not sure how that detail has been worked through. How do the new activities that local authorities will undertake under the new prevention duty relate to an increase in applicants, who may come forward earlier in the process? How are those two dynamics flushed out in calculating the funding? How does the funding commitment take into account regional variance in cost and, in particular, the much higher costs faced by London boroughs?

From what I can tell from the detail behind the announcement, there appears to be an assumption that most of the additional money will be spent on administration and officer costs, not costs related to, for example, supplementing somebody’s rental payments in order to sustain their tenancy during a period in which they are working through a benefit sanction. We need to understand that, because local authorities need to understand how the funding can be applied practically, and whether it is enough to make the difference we want.

It is important that the Government publish the distribution of funding across the country, by local authority, as soon as possible. On the face of it, if the funding is evenly spread, which I do not think it will be, £300,000 will be allocated per council area. If that is the distribution, or if the distribution looks anything like that, that is of great concern to me. It is significantly less than the sum—possibly considerably more than £1 million—allocated to the London Borough of Southwark under the trailblazers programme. That sum was presumably what the Government believed Southwark needed to undertake that work as a trailblazer. We need to understand how the distribution will work across the country and how it will relate to local authorities’ calculations about their additional costs.

Finally, it is of some concern that the Government’s announcement shows funding for two years, but none at all for the third year. While the Bill is clearly intended to reduce costs and homelessness, the desperate shortage of genuinely affordable housing, in London in particular, and the need for other measures—such as, in my view, tenure reform of the private rented sector—to help to reduce homelessness, it is at least possible, if not probable, that the reduction in costs and homelessness will not be entirely achieved within the first two years.

Without a commitment to looking again at funding beyond the first two years, and to fund local authorities as needed beyond that period, this really does not look like a long-term commitment from the Government to sorting out homelessness; it looks like a headline announcement to tick a box that says that the Government have fulfilled their pledge to fund the new burdens in the Bill. I am concerned that, having received the announcement very late in the day, we are left without time to consult properly with local authorities at a detailed, fine-grain, local level, or to scrutinise properly the level of funding, what it will fund and how local authorities have worked that through. Without that, I am concerned that this funding commitment simply lacks credibility. I therefore ask the Minister to confirm the funding arrangements beyond the first two years, and to come back with the further detail I have requested.

The lateness of the announcement, combined with the announcement we will receive and further amendments to the Bill on Report, somewhat undermine effective scrutiny of the Bill. Scrutiny, particularly of a Bill that commands cross-party support, is about strengthening legislation and making it as good and effective as possible. It is an important process from which the Government have nothing to fear. I regret that we have received this information so late in the day that the Committee, members of which have such a significant amount and depth of knowledge of homelessness and the process in the Bill, has not had the opportunity to scrutinise and debate it in greater depth. I therefore hope that the Minister will provide additional information as soon as possible, and that on Report we will have an opportunity to debate and scrutinise the clause with the benefit of further input from local authorities.

I represent two local authorities, Lambeth and Southwark, which are at the forefront of the intensification of the problem of homelessness. They are both under extreme pressure from the growth of homelessness in recent years, and are both doing the best they can on this significant set of challenges. Both authorities welcome the principle and intention behind the Bill, but they cannot be expected to work miracles. They need the Government to put the resources into officer time, and the funding necessary to mitigate and prevent homelessness properly within existing arrangements; into the provision of more genuinely affordable housing; and, perhaps more importantly than anything else in the very short term, into the reform of the private rented sector, so that authorities do not feel the pressure of successive no-fault evictions under the section 21 process presenting at their door.

[Will Quince]

I support clause 1. Extending the period for those threatened with homelessness from 28 to 56 days is one of the Bill’s core elements, and it will make the biggest difference.

I very much welcome the clear definition of tenants as homeless once a valid section 21 notice has expired. I have been one of the largest critics of local councils that routinely dish out the advice to stay in a property until the bailiffs arrive. I have had numerous people come to my constituency surgeries who have reached crisis. They went to the council at the first available opportunity, when they knew they were getting into difficulty—they were getting into rent arrears or had complex needs, as the Minister pointed out earlier, or problems such as relationship breakdown—and their landlord was looking to end the tenancy, but they were told at that point by the local authority, “Stay in the property. Come back to us when you’re in crisis—the point at which the bailiffs are knocking on your door.” I have raised concerns about that for numerous reasons. Apart from the financial pressure it puts on that family, there is a huge social cost to them as well. I have two young children, and I cannot imagine what that is like.

I had a call recently from a constituent who told me that the bailiffs were at the door, and because she would not let them in, they smashed the window and tried to encourage and coax the children to open the door while she was not looking. That will stay with those children forever. If local councils are giving out this advice, it is disgraceful.

[Mrs Flick Drummond (Portsmouth South) (Con)]

Does my hon. Friend agree that that approach discourages landlords from taking in people who may be on benefits, which reduces the number of houses available to them?

[Will Quince]

My hon. Friend is right. The reputation of local housing authorities among landlords is, in my view, at an all-time low, because of the approach that those authorities are taking to section 21 notices—not all of them; many are very good, but some take this approach, and it leads to terrible reputational damage among landlords.

For the first time in our nation’s history, there are more private-sector lets than social lets. The role of the private sector is vital, but we may undermine that by the approach we take with local authorities. If I were a landlord, would I take someone who is on social security benefits, or recommended by the LHA? I do not know the answer to that, but if there were other options, I probably would take them. At the moment, because of a shortage of housing supply, and because of the demand, landlords have other options, hence we see rent increases. The advice to stay until the bailiff arrives is not good advice in nearly all instances.

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[Michelle Donelan]

Does my hon. Friend accept that failing to act early not only hinders our ability to combat homelessness but allows complex needs and problems to escalate over time? Many charities in my constituency have echoed the message to me that the quicker we act and the earlier we get in, the less those needs will escalate and develop. That will save the NHS, local authorities and other sectors money in the long run.

[Will Quince]

My hon. Friend is right to suggest that prevention is always better than cure, but there is also the question of rewarding the right kind of behaviour. We want to encourage people to come to us at the earliest possible opportunity, when they are not in crisis but can foresee a risk of homelessness. Then we can take the most appropriate action. She is right to say that at that early opportunity people have options, but when they reach a crisis they have few, and they are expensive.

To return to the point about which I am concerned, I hope that the Minister can give me comfort on the Government amendment, because this is important. As I have said, I am the first to chastise local authorities or housing authorities that routinely advise tenants to stay in the property, for all the reasons I gave—I recently met representatives of my local housing authority, and I have been a critic of it—but on occasion, that can be the right advice. A hypothetical example might be a local authority that has no option but to rehouse a family out of area that week; it might work with the landlord, and say, “I understand why you have done what you have, that you would like them to leave, and that you have served the section 21 notice, but we are happy to cover the rent, if you are happy for the tenants to stay there for three more weeks, when we know there will be a more suitable property locally.” My concern—this is why I like the original wording—is that we should include conditions in which it could be considered reasonable to stay until the expiry of the possession order.

[Michael Tomlinson]

I invite my hon. Friend to look at my submission on section 8 notices. As he has acknowledged, section 21 notices are no-fault notices, and what he has described, rightly and properly, are cases where tenants have fallen into arrears of rent, which would ordinarily come under a notice served under section 8. If there are sufficient rent arrears, that is a mandatory ground, and therefore homelessness is inevitable, and the case should be caught by the clause. Does he agree?

[Will Quince]

I absolutely agree with my hon. Friend, who makes a valid point based on his experience and practice. I hope that the Minister will answer those points.

My hon. Friend the Member for Chippenham made a good point about emphasising early intervention. The clause encourages those at risk of homelessness to seek advice at the earliest opportunity, and I worry at the moment about the advice being given to local authorities. This advice disseminates quickly across local authority areas so people know that is being given out and it discourages them from going to the local authority. For example, first and foremost, they will often go to their Member of Parliament, the local council or a citizens advice bureau. If they say the likely advice from the council is this, they will be reluctant to take it. As my hon. Friend rightly said, the crisis point is far too late. We must intervene earlier, which will lead to far fewer people reaching a crisis.

Finally, I want to touch on funding. I was pleased about the funding announcement. As the hon. Member for Dulwich and West Norwood rightly pointed out, it would have been helpful to have it sooner, but nevertheless it was useful to have it before this sitting. I welcome the £48 million and, as I mentioned in an intervention on the hon. Member for Hammersmith, I was interested to read the LGA’s response because, given the fact that it is a membership organisation representing local authorities across the country, I was expecting its response to be, “It’s not enough money.” I expected that response whatever the sum was.

It is hugely to the credit of the Minister and the officials in his Department for using the methodology that the LGA concurs, rightly in my view, is the right one and hence why a rather bland statement does not question the amount of money. It would certainly be worthwhile to review it after two years. Nevertheless it was somewhat disappointing, given the reaction of the LGA, to hear the response from the hon. Members for Hammersmith and for Dulwich and West Norwood. There is no indication from the membership body of local authorities—which, incidentally, will be the LHAs implementing the Bill—to suggest that the funding is not sufficient.

[Mr Burrowes]

Good authorities are already, before the legislation is in place, fulfilling the mandate to do a lot of prevention, so they will welcome the fact that they will now have a lot more money than before.

[Will Quince]

My hon. Friend makes an important point. He is right to suggest that good local authorities up and down the country are already doing a lot of this work, which eats into other budgets, so for them this is very valuable. We know there will be a transition, training requirements and a cultural change within organisations. LHAs—I spoke to my LHA only last week on this very point—do not want just to implement the Bill in full; they want to do it well. They want to make sure it works and they want emphasis and focus on prevention.

I very much support the clause, but I would like some reassurance from the Minister that there will still be flexibility in the advice, particularly in relation to ending a tenancy via a section 21 notice.

[David Mackintosh]

I share some of the concerns that have been raised about the timing by the hon. Member for Dulwich and West Norwood and my hon. Friend the Member for Colchester. I also share my hon. Friend’s view that the LGA has put forward a much more positive response than anticipated. I agree that there should be a review of the funding formula going forward and I also agree with some of the comments by my colleague on the Select Committee on Communities and Local Government, the hon. Member for Dulwich and West Norwood, that the Bill alone will not solve some of the homelessness issues. The Select Committee recently had evidence sessions with the Director General, Housing and Planning, and questioned her on some of these issues. She rightly pointed out, as I am sure will the Minister, that the Government are planning to publish very soon a White Paper on housing, which may address some of the issues that my colleague on the Select Committee raised. They are valid points, but will not necessarily be addressed in the Bill.

Moving on to the amendments, I am pleased that they have been raised. They help to prevent some unintended consequences. For example, amendment 16 will help to prevent the trauma of people and families being forced to wait for a local authority to get involved and a bailiff to knock at the door, as outlined by my hon. Friend the Member for Colchester. In my experience, the sooner a council can start helping, the more help can be offered without a long-term effect on people’s wellbeing or credit rating because of county court judgments. We have heard about that throughout our discussions.

I worry about the effects that we see under the current rules, including tenants being served with eviction notices. I am sure that all hon. Members have dealt with families who have contacted them when faced with eviction, which often comes out of the blue, and as well as the practical challenges there is also huge trauma for people to deal with. They face having to leave their home and often their community or social support networks, perhaps without much notice, and then they face being told by the council that they cannot be helped until they have been physically evicted.

Therefore, I am pleased that amendment 17 allows those households that have received an eviction notice, even if it has not expired, to be treated as “threatened with homelessness”, thereby coming under the duty on local authorities to prevent the household from becoming homeless, as we discussed at length when we considered clause 4. This is a really positive step forwards that will make a huge difference in the future to people facing eviction.

As for the rest of the clause, when the Communities and Local Government Committee started looking into homelessness, we developed a clear idea of things that could be done to help to prevent homelessness. Indeed, other work that has been done by the all-party group on ending homelessness has also fed into the hopes and aspirations that the law will be changed.

However, I must confess that things have moved much faster than I had imagined and we now look forward to this Bill becoming law—hopefully. The Bill being chosen by my hon. Friend the Member for Harrow East has propelled this agenda forward so much quicker than we could have hoped. I am grateful that that is happening, but I also have some questions for the Minister about how the Bill can be implemented, which I hope he can address in his response.

How can local authorities cope with this sudden change in legislation when the Bill becomes law, as anticipated? What lessons can we learn from the changes implemented in Wales and what detailed measures are being put in place to ensure that that best practice is spread as far and wide as possible? How fast can training be put in place, not only for local authority staff but for other staff in the public sector, so that they can properly understand these big changes in the legislation and any new responsibilities they might have to refer people at risk of becoming homeless? Also, I urge the Minister to talk to his counterparts in other Government Departments, to make sure that they are aware of these changes and that that knowledge filters down through them.