Supported Housing: Benefit

Jim Cunningham Excerpts

Wednesday 20th July 2016 Commons Chamber

[Grahame M. Morris (Easington) (Lab)]

Before I move the motion, I take the opportunity to welcome the Secretary of State for Work and Pensions and members of his team to their posts.

I beg to move,

That this House notes that the Government intends to cut housing benefit for vulnerable people in specialist housing, including elderly people and people who are homeless, disabled or fleeing domestic violence; believes that this will have harmful effects on current and future tenants of these specialist housing schemes; further notes that there is already a significant shortfall in this type of housing provision across the country; notes that charities, housing associations, councils and others have made Government Ministers aware of the damaging impact these cuts will have on tenants and the financial viability of these schemes and that the Government’s proposal to mitigate these cuts with discretionary housing payments will not compensate for these cuts; notes that the Government’s own evidence review into the impact of its decision, commissioned in December 2015, has yet to be published; notes that the Government has postponed the implementation of these cuts for new tenants to April 2017 but plans to fully roll out its planned cuts to housing benefit in April 2018; and therefore calls on the Government to exempt supported housing from its planned housing benefit cuts and to consult fully with supported housing providers to identify ways in which all vulnerable people who need supported housing can access it.

Six months ago my right hon. Friend the Member for Wentworth and Dearne (John Healey) led an Opposition day debate on the Government’s decision to cap housing benefit support for vulnerable people in specialist housing. The decision will affect elderly citizens, our armed forces veterans, those with disabilities, people with learning difficulties and people with mental health problems. It will hit homeless people and it will jeopardise the safety of people fleeing domestic violence.

Following pressure from the Opposition Benches, and concerns raised by Members on the Government Benches, there was an interesting debate last week led by the hon. Member for Waveney (Peter Aldous). A campaign has been mounted across the country by community groups and housing providers. I was pleased that the Government agreed to delay the implementation of the cap, but I press Ministers now to go one step further. They must reverse their decision to slash housing benefit for a huge range of vulnerable people living in supported housing. What kind of country would we be if we abandoned the most vulnerable in our society? What kind of message will it send, not just to the country and to vulnerable people but to observers around the world, about the priorities of this Government?

What credibility will be left for the outgoing Prime Minister’s repeated assertion that the Government would not balance the books on the backs of the poorest? Unless Ministers reverse that destructive decision, that is precisely what they will be doing. I am willing to give way to the Secretary of State if he is prepared to stand at the Dispatch Box, say that he will reverse the decision and make the announcement that we are all hoping for. To implement that decision would be a damning legacy for the former Prime Minister and a broken promise to those who can least afford it. The decision is not just detrimental to the most vulnerable members of society; in purely financial terms, it makes no sense.

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

Does my hon. Friend not agree that it is becoming more difficult for people to get housing benefit, and that in some instances, it might not be adequate?

[Grahame M. Morris]

Indeed, that is the case. The groups I originally listed are some of the most vulnerable in society—they are people who should be protected and who require supported housing. If the Government proceed on their intended course, some of the most disadvantaged and vulnerable people will be further disadvantaged, and the cost to the taxpayer and the Exchequer will be greater.

The Government’s proposal does not make financial sense, and it leaves the providers of supported housing in an invidious position. I know that housing providers—I have met many of them—breathed a collective sigh of relief when the decision to cap support was delayed pending a review, but they are still left in a very precarious position, with the sword of Damocles hanging over the services they provide.

As my right hon. Friend the Member for Wentworth and Dearne pointed out in a debate in the House on 27 January, unless the Government reverse this pernicious proposal, 156,000 units of supported and sheltered housing may have to close.