Lord Best
Main Page: Lord Best (Crossbench - Life peer)
Lord Kennedy of Southwark
My Lords, this group of amendments is probably the most important that we will consider today as part of our deliberations on the housing section of the Localism Bill. If passed, it would give Parliament the opportunity to reflect on the changes after they become law and a period of three years has elapsed. They would then only be renewed if affirmative resolutions were passed by both Houses.
The changes in the Bill are significant. There is widespread concern about them. When the Government make such changes, they should always be prepared to listen and to be aware of the law of unintended consequences. By passing this amendment, Parliament would have the ability to review the decision it has made in a simple way that would not require lots of parliamentary time. I hope that the Government will be persuaded to accept this group of amendments.
It is important that we remind ourselves of what the Government propose and then reflect on the benefit of what I am proposing to your Lordships’ House today. Clause 134 amends Section 193 of the Housing Act 1996 to enable local authorities to discharge their duty to homeless households by offering private sector accommodation. Individuals concerned lose their right to give their consent to the arrangement. Clause 136 gives a two-year safety net. We have to examine that in the light of the fact that that may not be long enough.
Organisations working closely with homeless households are most concerned by these proposals. The chief executive of Shelter, Campbell Robb, said recently:
“It is unbelievable that at a time when every two minutes someone faces the nightmare of losing their home, the Government is proposing to reduce the rights of homeless people who approach their local authorities for help”.
The charity Crisis has an equally concerned view of these proposals. Both charities, along with many other respected organisations, have a unique understanding of the problems faced by homeless people and we should listen to them carefully.
If the proposals are further considered with the impact of the changes to housing benefit then the risks of homeless households being placed in a difficult, downward spiral are all too apparent. These are the reasons why we should avail ourselves of the opportunity to correct the situation, in case the reality turns out to be much less welcome and more damaging than the intention of the proposals in the Bill. I beg to move.
Lord Best
My Lords, my name is against this amendment, in support of the sunset clause coupled with a report on the position of homelessness three years from now. The Minister said earlier that one of a local authority’s most important duties is towards the homeless. A pretty fundamental change in the way that that duty is to be discharged means that it must be a good idea to pause for thought three years down the line and see whether these quite important and significant changes have made a big difference.
At the moment, the local authority must find the family or householder a secure and affordable place in the social housing sector. In the future, they will be able to fulfil the requirement placed upon them by seeing that family into a place in the private rented sector. That, by definition, is not going to be secure in the long term. Understandably, landlords may wish to have the property back and security of tenure over the long term cannot be offered. It may be that that property, after the reforms to housing benefit and the local housing allowance, will prove to be unaffordable. There is a gap between what the tenant pays in rent and the amount that they receive in benefit, and the private rented sector option may not work out.
It may be that the dire warnings that we have heard from Shelter, Crisis, Homeless Link and others do not work out in practice, but there is a danger that those warnings prove to be entirely timely. We had a lot of discussion on these provisions earlier in the House. The noble Lords, Lord Shipley, Lord Rix, Lord McKenzie and Lord Kennedy, the noble Baronesses, Lady Doocey and Lady Greengross, and others all spoke on this matter in Committee. There is a great deal of concern about the fundamental changes to the duties upon local authorities.
I hope that noble Lords had a chance to look at Hansard over the summer. As I have said, noble Lords should regard reading the last debate as a bit of a teach-in on all the aspects of homelessness that we ought to think about. We were not able to secure all those different aspects as a whole series of amendments to the Bill but the Government have, in trying to ensure that accommodation is suitable in the private rented sector, come up with a code of guidance. That has some very good things in it. It does not go all the way down the line, but perhaps that will lead to a successful outcome for those who are placed in the private rented sector. This sunset clause would ensure that after a period of three years a thoroughgoing report is placed before Parliament, and that unless the Secretary of State revives these measures by order, those measures will fall.
Earlier this year I moved a Motion on the housing benefit regulations asking the noble Lord, Lord Freud, the Minister responsible, whether he would over the months and years ahead put in hand a fundamental reform along the lines of the housing benefit reforms in order to see what impact they had on homelessness, families, poverty, people’s incomes and the local authorities themselves. The noble Lord, Lord Freud, not only agreed to do that and to have a review, which is now under way and which will report in three stages over the next 18 months, but did it in a way that, I am pleased to report back to the House, met entirely with my approval and indeed that of others interested in these matters. He has brought together Professor Kemp from the University of Oxford and Professor Cole from Sheffield Hallam University; he has Ipsos MORI doing surveys and the IFS looking at the macroeconomics. It is a real, thoroughgoing review of the impact of these changes, which is just what we asked for and just what this House required. A comparable exercise to look down the line at how things are going would again be a triumph for the Government and a thoroughly commendable and useful exercise, which would provide the evidence and inform a decision on a sunset clause three years from now. Let us do it again. I strongly support the amendment.
Lord Beecham
I congratulate my noble friend Lord Kennedy and the noble Lord, Lord Best, on moving this amendment. Having paid that compliment, I hope that they will not mind if I claim paternity of the amendment itself.
There are two issues that really need addressing. One is affordability and the other is the quality of the accommodation that will be offered to people. They give rise to the need to review the situation, as noble Lords who have moved and spoken to the amendment have made clear. Nearly half those who are housing allowance claimants find that their housing benefit now falls short of what is required by an average of £24 a week, which is a considerable shortfall. That is before the impending changes. A significant proportion, a quarter of tenants, find themselves spending half their income on rent, which is a very high proportion.
The condition of properties in the private rented sector in particular also gives rise to concern, as 40 per cent of them fall short of the decent homes standard, which is twice as high as the percentage in the social rented sector and well in excess of the figure in the owner-occupied sector. A high proportion of cases dealt with by Shelter come from the private rented sector—twice the proportion of claimants that you would expect from the proportion of households in the sector. Again, a high proportion of environmental health officers are reported by Shelter as encountering landlords who refuse to carry out even the necessary repairs to maintain properties in a safe condition; 36 per cent of environmental health officers say regularly that they find private landlords in breach. Yet this is the sector to which many people will be directed under the provisions of this Bill.
It may be that things will improve, which is obviously the Government’s hope and intention, but it is surely necessary to take a check on this after a reasonable period. These amendments give that opportunity to rethink the situation if necessary. If things are going well, it is a simple enough matter to carry the legislation forward; if not, there will be an opportunity to address what might well be a very difficult situation for a great many people.
Lord Kennedy of Southwark
My Lords, the amendment moved by the noble Lord, Lord Shipley, has the full support of the Opposition. I concur in particular with the remarks of my noble friend Lord Whitty. This amendment was moved by the noble Lord, Lord Best, in the curtailed Committee stage on the last day before the Summer Recess. As the noble Lord explained, the amendment concerns the flexible tenancy regime proposed in the Bill. It is supported by both Crisis and Shelter and seeks to provide protections for certain vulnerable groups by excluding them from the proposals. The groups to be exempt are of people for whom, through a variety of circumstances, flexible tenancies are not appropriate. The groups include older people aged 60 or more, households where one or more member has a long-term illness, and tenants who need more secure forms of accommodation.
What worries me most about this section of the Bill is the reliance that the Government have placed on words such as “in most cases” or “of course, the social landlord will take into account the needs of the vulnerable”. This is all too risky for the people most in need of additional help and protection. I hope that the Minister has had time over the summer to reflect on the proposals, and will be able to give us some welcome news today, and assurances that at least things will be tightened up. If that is not the case, I hope very much that the noble Lord, Lord Shipley, will press his amendment and test the opinion of the House.
Lord Best
My Lords, perhaps I may say a brief word. I moved an amendment along these lines just before the Committee stage finished, and received many helpful reassurances about the way in which the policy might work. Perhaps it would help the House if the Minister, in responding to the question about where the policy leads, would agree with me that a fundamental part of the policy is that no opprobrium will fall upon any council or housing association that decides not to deploy flexible—that is to say, fixed-term—tenures. The Hanover Housing Association, which I chair, houses only older people. We are a retirement housing organisation. We have absolutely no intention of giving anybody a two-year or five-year tenancy: the idea is absolute anathema. People who move in to a sheltered flat or a retirement apartment will be able to stay there for the rest of their life: that is the deal. Some local authorities may take the view that the families whom they are housing—just like the older people in my case—should have security on a permanent, long-term basis. I invite the Minister to confirm—I think that she will be able to do this—that if a social landlord, be they a council or housing association, does not wish to take advantage of flexible tenures and fixed-term tenancies, that will not in any way rebound on them.