Immigration Bill
Debate between Jeremy Corbyn and Heidi Alexander(10 years, 6 months ago)
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Food Security and Famine Prevention (Africa)
Debate between Jeremy Corbyn and Heidi Alexander(12 years, 7 months ago)
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Jeremy Corbyn (Islington North) (Lab)
I compliment my hon. Friend on her speech. She mentioned land purchases by western farming interests and other wealthy countries—some in the far east, in Asia. Does she not think that there has to be some change in the mechanism so that it is impossible for wealthy countries to buy and take very valuable land which they then keep for themselves and for private food exports to themselves, leaving the people surrounding them in Africa in the very vulnerable and dangerous situation in which they are now?
Heidi Alexander
My hon. Friend makes an incredibly important point. I am not an expert on these issues, but I think that the international system needs to change. It seems completely wrong that huge amounts of land in parts of Africa are growing crops that go into our cars rather than food that goes into the mouths of the people who live in those areas.
Before I move on to some of the wider international issues, I take the opportunity to ask the Secretary of State if he might update us on some of the things that are already under way in the UK in terms of our contribution to food security. In L’Aquila in 2008, we made a number of commitments. When will the Secretary of State publish the data on disbursements for 2010-ll? I know that the Department claims to be on track, but there are those who would like to see the evidence of that money being spent. Will he also tell us if and when a decision will be taken about investing the funds of the global agriculture and food security programme?
I want Africa to have the chance to realise its potential—
Social Housing in London
Debate between Jeremy Corbyn and Heidi Alexander
Heidi Alexander (Lewisham East) (Lab)
I congratulate my hon. Friend the Member for Islington North (Jeremy Corbyn) on securing this debate. I know that he has been a fearsome campaigner for social housing and all manner of other housing issues in London, and I am pleased to be able to make a contribution today.
I would also like to pick up on the comments made by the hon. Member for Ealing Central and Acton (Angie Bray), just before she leaves the Chamber. She said that London faces specific and often unique circumstances in relation to housing. Many people across the country might not understand that. When I tell my parents, who live in Swindon, that I spend a lot of my time doing work on housing, they look at me slightly quizzically, as if to say, “Why is that?”, but anyone listening to this debate must realise that London faces quite extraordinary circumstances.
According to an estimate by the Greater London authority, the cost of renting in London is 51% higher than anywhere else in the country, and the National Housing Federation has recently estimated that, in order to buy an average-price house in London, a first-time buyer would need a salary of almost £100,000. Social housing, whether it is owned by a local authority, an arm’s length management organisation or a housing association, therefore fulfils a large number of needs for people across the spectrum, including those on benefits and all the others we have heard about today: the construction workers, the public sector workers, the nurses and the doctors. Sometimes, when people outside the capital think about housing, they do not really understand the true nature of the housing market here.
I also want to reflect on the fact that we are having this debate on the day when people are going to the polls to vote on changing the voting system. A couple of weeks ago, I did my street surgery. I write to 2,000 residents once a month and say, “If you want to see me on a Saturday morning, please put this poster up in your window. I will come and sit in your front room and talk about whatever you want to talk to me about.” A couple of weeks ago, when the Westminster village and the media were getting very excited about today’s referendum on changing the voting system, all my constituents wanted, without fail, to talk to me about social housing. One elderly gentleman lived in a block of flats, and his wife had just broken her leg. They had lived there for 25 years. He said, “I just need the housing association to move us to the vacant flat downstairs.”
Heidi Alexander
Well, I am really pleased to be able to tell my hon. Friend that the housing association—it is quite a large one, London and Quadrant—responded superbly when I contacted it. I am pleased to say that that gentleman has been moved to the flat that he wanted. So there are cases where housing associations respond and provide the sort of services people need, but that is not to say that there are not other circumstances in which couples desperately need to live in a more suitable home but cannot achieve that. There are hundreds of people whom I have seen in my surgeries and out on the doorstep since I became an MP whose families are living in desperately overcrowded situations—and it is mainly for those people that I make my remarks in today’s debate.
I shall speak on three main themes. The first is the massive need, as others have mentioned, for more homes that people can afford to rent. The second is the Government’s proposals on housing and how they relate to the wider welfare reform changes. I have a number of concerns about how they interrelate. Thirdly, I shall speak briefly on a topic that has not been mentioned so far—the proposed changes to the planning system and how some of them might result in fewer homes, particularly affordable homes, being built. I shall reflect on how proposals in the Localism Bill might make it harder to build the affordable homes that London needs.
Let me deal with the supply side first. We know that 350,000 people are on the social housing waiting list in London, and that one in 10 households are living in overcrowded conditions. As others have said, there is undoubtedly a massive need for more homes in London that people can afford to rent. Tackling the problem of under-occupation has been mentioned, and some argue that people are living in properties that are too big for the number of people living in them. I have seen research that shows that even if we tackled the problem of under-occupation in London completely, it would come nowhere near to solving the housing crisis.
Jeremy Corbyn
My hon. Friend makes an important point in that under-occupation is only a slight issue and tackling it would not solve the problem. If children move away from home and grandchildren are born, is there not something quite reasonable, normal and acceptable in the idea of those grandchildren going to stay with their grandparents in the house’s bedroom? Why should it be that those in social housing cannot lead the kind of lives that anyone living in an owner-occupied place would assume to be perfectly normal and sufficient for them and the entire family’s needs? Why cannot we be a bit more human about it?
Heidi Alexander
I entirely agree. Many people look forward to that sort of thing in later life. We need to ensure that, whatever policies are in place in future, we recognise that issue. I would say, however, that I sometimes meet constituents who are living in a large three-bedroom house and find it too hard to manage and cope with. Lewisham has a positive record as a local authority in providing the assistance needed to make a move easier. More can be done about under-occupation, but it will not solve the problems in London, as I said. In the rest of the country, it could make a significant difference, but not in London because of the scale of the challenge we face.
Heidi Alexander
My right hon. Friend makes a very good point, with which I entirely agree. Interestingly, I spoke a few months ago at the launch of the National Housing Federation’s “Breaking the mould” report, which looked at the housing needs of older people or those moving into later life. Given that one in five children born today will live to the age of 100, it is important for us to ensure that, as more people move into later life, we provide housing that meets the specific needs of our population.
Campaigns are sometimes mounted against the building of extra care housing. When I spoke at the launch of that report a few months ago, I encountered a gentleman who had been trying to build such housing through a church-sponsored scheme in north London. He was amazed at the degree of opposition that the scheme had generated in the local population, who said that the development was too big, too ugly and too wide. I could not help thinking that their concerns might be genuine. There is a desperate need for new forms of extra care housing, but we must give thought to the specific type of housing that is required, whether it is social or private sector housing. I shall say more about that later.
The hon. Member for Brentford and Isleworth (Mary Macleod), who is no longer in the Chamber, referred to the amount being invested in the national affordable house building programme. I asked her how that compared with the level of investment over the past three years. She declined to give me the answer, but I can give it to the House now. The national affordable house building programme has been cut by 63%. Between 2008 and 2011, £8.5 billion was invested in it, with a target of building 155,000 affordable homes. In the current comprehensive spending review period, between 2011 and 2015, £4.5 billion is being invested, and the Government have a similar target, namely the building of 150,000 affordable homes. That represents a halving of the programme. The budget has been slashed, and, whatever Boris Johnson or Government Members may say, that has dealt a devastating blow to the future of house building.
I mentioned Boris Johnson, the Mayor of London. I want to say a little more about some of his pronouncements about his record of building affordable homes. We have seen him on television recently, standing in front of new flats. I often scream at the television—I do not know whether other Members do as well—
Heidi Alexander
It does not, which is partly why I am making this speech in the House.
When Boris Johnson stands there and looks proudly at new homes, I feel like saying to him, and to the public, “Those new homes are a result of the Labour Government’s investment in housing. They are a direct result of the national affordable house building programme.”
I have been involved in regeneration and attempts to build new homes in Lewisham for a number of years, and I know how long it takes to get new developments off the ground. Any homes that are being built at the moment probably went through the planning process three or four years ago, and the commercial viability of the scheme was probably assessed and agreed three or four years ago. For Boris Johnson to stand there and claim this as his victory is entirely wrong. His record will relate to what happens in the years to come. As we have heard, the Homes and Communities Agency predicts that in a couple of years no new affordable housing will be being built in London. It will fall off a cliff face. Boris Johnson should bear in mind that that will be his legacy for London, not the legacy left by the last Labour Government.
Another thing that I wish to say about my experience of trying to deliver regeneration in Lewisham is that no thanks are due to the Liberal and Tory councillors in this regard. As soon as there was the faintest whiff of local opposition to a new housing scheme, whether it was a private sector development or affordable housing, they generally chose to vote against it. Some of the plans in the Localism Bill will make it easier for some of those nimbys to block development. If we really are going to build more homes, we need to be thinking about how the planning system works.
I have talked a little about the fact that the capital grant programme has been slashed and the Government seem to be moving to a way of funding new homes that relies on the future rents that they will get in from properties. The approach of allowing housing associations to build and charge 80% of market rents seems to relate to an argument about why capital grants are being reduced. My big problem with that approach is that I fear we are simply not going to build the type of housing that Londoners, including my constituents, can afford.
I have done a bit of research on the average rents in Lewisham in the private rented sector and for housing association properties, and I have thus been able to work out what 80% of market rent would mean. At the moment, the average median rent for a one-bedroom flat in Lewisham is £170 a week and the rent in a housing association for such a property is about £80 a week. An increase to 80% of the market rental value would make the cost £136 a week and would mean a weekly increase of about £55.
That is bad enough, but the average market rent for a four-bedroom flat or house in Lewisham is £300 a week. Someone living in a similar London and Quadrant property would pay, on average, £114 a week. If London and Quadrant builds new homes in Lewisham and charges 80% of market rent, that figure would increase to £240 a week, which is an increase of about £125 a week. That represents a monthly increase of £500 and an annual increase of £6,000 in someone’s housing costs. If someone is lucky enough to be in full-time work in Lewisham and they are on the minimum wage, they will be earning less than £12,000 a year, so how on earth are they going to find £6,000 extra to pay towards their housing costs? I cannot see how that will happen and the London Council agrees with me. Its recent briefing produced for councillors in London on the affordable rent model states:
“There is already a widespread recognition that the ARM will fail to deliver on larger sized family homes; and that, at 80% of market rates, the model’s maximum rent level will be unaffordable in the capital”.
As I have mentioned, I am also concerned about families living in overcrowded situations. When they are offered a flat or house at 80% of the market rate, how are they going to be able to afford it? If they are going to have to pay an extra £6,000 a year, they are not going to move and so will stay in the overcrowded flat that they are living in.
My hon. Friend the Member for Westminster North (Ms Buck) discussed in an intervention the additional costs that could be pushed on to housing benefit, and that is precisely what the affordable rent model could result in. I recently read an interesting report by Family Mosaic entitled “Mirror, signal, manoeuvre: our drive to provide more social housing”. Family Mosaic did some research on about 50 of its new tenants who moved into properties across London at the end of last year. Some of those people were in work and some had caring responsibilities; the real-life situations of a vast range of people were researched when putting together that report.
Family Mosaic estimates that if every one of those 50 individual households lived in a property at 80% of market rent, the housing benefit bill would increase by 151%. That is a huge amount of extra money that will have to go out in housing benefit and my hon. Friend the Member for Westminster North is completely right to say that that is a way not of tackling the deficit but of making it worse.
At the end of the report, Family Mosaic asks what we can do:
“How do we go forward?”
In answer, the report states:
“To mitigate this risk”—
the risk that people might not be able to afford the rents—
“we could change the profile of our tenant group, and not let new properties to those most in need: this, however, goes against our core principles.”
I am concerned about how the affordable rent model will deliver any homes in which people can afford to live.
Heidi Alexander
My hon. Friend is completely right. Our debate about what it is affordable to pay out in housing costs was interesting. My hon. Friend the Member for Islington North gave scenarios in which people might be spending 50% of their household income on their housing costs alone. I know that the Department for Communities and Local Government, in the guidance it published a number of years ago on how local authorities should carry out strategic housing market assessments—the Minister might wish to comment on this—says that the definition of affordable housing costs is a household paying 25% of its overall income on housing. We are clearly seeing situations in which households are paying much more.
Jeremy Corbyn
My hon. Friend makes a very important point and I have intervened on her now so that the Minister can have time to think about giving us an answer later. If a local authority ensures that an offer of a property is made at 80% of market rents and the family cannot afford to move into it, according to my understanding of the law, the local authority will have discharged its duty to provide a property for those homeless people who would then have no access to any public sector housing. They would only be able to access a completely free-market private sector. We will end up building a sub-class of people who are unhouseable in law and homeless in reality.
Heidi Alexander
It is a complete trap. I look forward to the Minister’s response to that.
I used some figures to demonstrate how much more people would have to pay out were they living in a family-sized property and being charged 80% of market rates. What concern me more are the proposals for universal credit in this context and what the £26,000 will mean for people in London who are paying out such amounts of money in their housing costs.
If we assume that the universal credit means that a family in London will get no more than £500 a week and that they are paying £240 a week for a four-bedroom flat at 80% of market rent in Lewisham, they will be left with £260 a week for all their other living costs. I presume that that £260 will cover their council tax benefit as well as payments for their gas, electricity and phone. We must also remember that if those people want to move into work, the costs of child care in the capital are much higher than elsewhere in the country and so are public transport costs. I therefore take this opportunity to ask the Minister to have conversations with his colleagues about how realistic the £26,000 universal credit cap is in a London context.
I draw a distinction between London and the situation elsewhere in the country. I heard my hon. Friend the Member for Hayes and Harlington (John McDonnell) talk about his upbringing. My dad is an electrician. He has a nice house now. If he was an electrician in London, there is no way that he would live in the sort of house that he lives in now. He would tell me that £26,000 is a lot of money. His annual income has been about that figure for as long as I can remember. So I have some sympathy with what the Government are trying to do with welfare reform, but I ask them to consider carefully what that means for people in London. I have spoken a lot about figures, and they show how dreadfully difficult that reform could be for people who live in London on low incomes.
If the Government do not think that families on low incomes should be able to live in London, they should come clean and say so, because that will be the result of their proposals and policies. We have talked about the impact of housing benefit changes and the potential clearance from London of people who simply cannot afford to live in their private rented properties. They will have to move either to the outskirts of London or elsewhere.
Personally, I genuinely think that we must ensure that those people—my hon. Friend the Member for Eltham (Clive Efford) talked about them—who drive the lorries to clear our roads and who clean our offices and work in our shops can live close to their places of work. It is right to do that. It makes absolutely no sense for people to have to rely on the transport system, and it makes no sense to people’s lives when they have caring responsibilities and need to pick up their children from school. It is right that we have genuinely mixed communities of people able to live in central London. The proposals to change the welfare and housing benefit systems run a real danger of making that impossible in future.
Before I move on from the wider changes to welfare reform, I want to pick up another point: the possibility of paying housing benefit directly to tenants so that they can pay it to their landlords. Housing associations in the capital have some concerns about that. I see where the Government are coming from, and it is right to make people realise and think about quite how much it costs to live in a property—encouraging individual responsibility is a good thing—but equally, housing associations tell me that this is the worst time that the Government could consider giving housing benefit and accommodation support benefit, even if incorporated in universal benefit, straight to tenants, because we all know that their household incomes and budgets are coming under extreme pressure.
Housing associations also tell me that if rent arrears increase, they could find it harder to borrow money because their cash flow will be less secure. They are concerned that the banks will re-price their debts when they borrowed the money to build homes. I hope that the Minister will pick up on some of those concerns when he responds.
I want to say a little about planning. I served on the Committee that considered the Localism Bill for a number of weeks, and I have a number of concerns about how the Bill’s proposals will impact on the construction of new affordable homes in London. I think the Chancellor said when he announced his Budget that there would be a presumption in favour of sustainable development, and that is completely at odds with what is said about planning in the Localism Bill. I am not saying that there are not occasions on which people should be able to say, “No, that development is not appropriate.” Indeed, there is a housing development like that in my constituency at the moment in a place called Pitfold close. It is right that local people should have a say about what happens in their neighbourhood, but what the Government propose, as many hon. Members will know, is the creation of neighbourhood forums that will be able to come up with neighbourhood plans. The Minister with responsibility for decentralisation, the Minister of State, Department for Communities and Local Government, the right hon. Member for Tunbridge Wells (Greg Clark), who was on the Bill Committee, seemed to think that those neighbourhood plans would always contain higher housing numbers than the strategic plan for the local area, but my experience of attempts to bring development forward is that local people often want to say no.
I can understand people’s concerns about new homes. If a block of flats going up at the end of the road would cut out the sunlight to someone’s garden, I can understand why they might say, “I am not too happy about that.” I can understand why people might say, “How’s my child going to get into the new school?”; “How am I going to get on to the doctor’s or dentist’s list?”; or “What about all those cars coming down my road, blocking up the road network?” I understand why people are concerned about new development, but if we give too much power in the planning process to very small community groups in these neighbourhood forums, which it is proposed would include only three people, I am not sure that we will get the levels of house building in the capital that we need.
While I am on the subject of planning, there was much debate in the Committee about the 50% target, whereupon the Minister would jump out of his seat and say, “Ah, well, even though you had the 50% target, Ken Livingstone delivered only 36%,” to which I would say that at least we tried. Setting that target and saying that we believe the provision of affordable housing is so important that half of all the new homes built in the capital should be affordable is the right message to send to developers and planning officers. When those planning officers sit down at the table and start their negotiations, they should be saying, “Ideally, we want 50% of new homes to be affordable.” Yes, there will be some situations in which it is impossible to do that because of the commercial realities of the scheme, but it is right to have that target.
Decent Homes
Debate between Jeremy Corbyn and Heidi Alexander(13 years, 3 months ago)
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Heidi Alexander
I completely share my hon. Friend’s concerns about that and I press the Government to look at new ways of making sure that public money is used in the best way possible. My experience on Lewisham council—indeed, I was also a member of the Lewisham Homes board for a year—showed me that the right skills need to be in place to make sure that programmes are delivered effectively and efficiently. I am not saying that things cannot change in that respect and that money cannot be saved, but clearly people need to have the right clienting skills to get the most out of the contract.
Jeremy Corbyn
I understand the point that my hon. Friend is making, and I pay tribute to those ALMOs and councils that are well run, deliver good programmes, have got their two-star rating and are obviously improving things. The point made by the hon. Member for Loughborough (Nicky Morgan) is, nevertheless, important: by restricting ourselves to investing where there is a two-star rating, we are actually punishing the tenants and the residents. There needs to be some thought about how one can still deliver a programme either by some other means or by forcing the authorities to be more efficiently run and so on. I am not advocating throwing money away or bad management; I am advocating recognising that our duty as public servants is to the tenants and to the residents. We need to ensure that public money is invested in them and think carefully about the matter.
Heidi Alexander
My hon. Friend makes some good points, and I am sure that he will appreciate my role as a representative of Lewisham. I know what effort has been put in by my local residents, by the members of the board and by the staff who have worked incredibly hard. They feel very disappointed by the fact that although they have put in a huge amount of effort, that will not necessarily give them a greater chance of accessing funds.
If I can move on, I shall say something about the particular situation that we face in London. In the capital, we have the potential problem of higher unit costs—by that, I mean that it would perhaps cost more to bring an individual property up to standard in London than it would elsewhere in the country. That is because of the cost of construction labour in the capital and the fact that a number of homes are of a non-standard construction type. Anyone who looks at the skyline in London will see a large number of high-rises. Such buildings can cost a lot of money to bring up to the decent homes standard. I am hoping that the Minister appreciates those regional subtleties and that he will give me some assurance that such issues will be taken into account when the applications are considered.
Before I finish, I shall touch on the importance of the proposed reform of the housing revenue account annual subsidy system. The way in which historic debt is allocated to local authorities is very important and must be addressed as part of the reform. The ability of ALMOs and councils to meet the decent homes standard and to continue to meet those standards as some homes fall out of decency—as mentioned earlier—will be determined by how we allocate that debt and resolve the issue of HRA reform. I do not claim to be an expert on the matter and I can only begin to imagine how incredibly complex it must be to try to reform it but, for areas such as mine that have significant investment needs and a large amount of housing stock, it is too important to get wrong.
I could say much more on the matter—not least about standards in the private rented sector, which now accounts for a third of all households, as it does in the constituency of my hon. Friend the Member for Islington North (Jeremy Corbyn)—but I am conscious of the time and the fact that other hon. Members want to speak. In conclusion, I urge Ministers to reconsider the amount of money that has been allocated to the future programme. I ask them not to forget the importance of comprehensive estate regeneration schemes—new kitchens and bathrooms are all well and good, but sometimes the problems of an area cannot be solved by such things alone. Finally, in moving beyond decent homes, my plea is this: do not walk on by areas such as mine, where significant need so blatantly exists and where investment can really change people’s lives.