Insolvency of Registered Providers of Social Housing Regulations 2018

Lord Kennedy of Southwark Excerpts

Tuesday 20th March 2018 Grand Committee

[Lord Beecham (Lab)]

My Lords, I refer again to my relevant interests. Has there been any consultation with, for example, the Local Government Association about the possible role of local housing authorities in this situation? In other words, could they be another potential source—I am not sure what phrase I am looking for here—for taking over the responsibility, as opposed to it necessarily being another housing association? In certain areas it might be more feasible for the local housing authority to do that. If the Government have not considered that, could they now take a look at it?

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, I draw the Grand Committee’s attention to my relevant interests, which I mentioned on the previous order. I am always slightly concerned when I hear mention of the dreaded Housing and Planning Act; it really is one of the worst and most ill-thought-out pieces of legislation that any Government have put on the statute book in recent times. Unfortunately, I regularly have to remind noble Lords of that. I think it is a terrible piece of legislation.

Having said that, I read the regulations and their Explanatory Memorandum before today’s Committee and I am happy to support them as far as they go. As we have heard, they seek to extend a new protection regime that already applies to registered social housing providers that are companies to registered societies and charitable incorporated organisations. I am happy to support that.

I am aware that this has come about following discussions between the department and the lending sector. I am also aware of the issue of the Cosmopolitan Housing Group in the north-west of England, which has had problems. Although in the end they were resolved, they have highlighted some weaknesses in the statutory provisions governing insolvency in a registered provider of social housing. Many providers now have to make other arrangements regarding how they do their business and have to cross-subsidise things, which exposes them to more risk, so I am happy to support the regulations before us.

Paragraph 10.3 in the Explanatory Memorandum states:

“An Impact Assessment has not been prepared for this instrument. However, an assessment of impact will be published alongside this instrument”.


I have it here. Can the Minister tell me the difference between an impact assessment and an assessment of impact? Certainly this one is easier to read than the others; perhaps that is the difference. Can he tell us the status of it compared to impact assessment? Are they the same and, if not, why has this arrived? I would be keen to understand that. Having said that, I understand the regulations and am happy to agree them.

--- Later in debate ---

The noble Lord, Lord Kennedy, does not miss his opportunities: I was pleased to see that he did his party piece on the Act, for which we are very grateful. However, he quite rightly said that this is to be welcomed, and I very much join with him on that. He asked a fair question, which had also struck me. When I looked at it I thought it was an impact assessment rather than an assessment of impact. I have asked what the difference is and I am still not quite clear. It is rather compounded by the fact that I think an impact assessment now has been produced as well. I understood today that an impact assessment had been produced, but it was just an assessment of impact. It seemed a model of lucidity, so I certainly was not going to question it. The point is that one is not required to produce a full impact assessment, which is more extensive, if the likely economic impact is less than £5 million, and I think this was adjudged to be beneath that, so it was a somewhat abbreviated version.

[Lord Kennedy of Southwark]

I must say that this is much easier to read than those forms you get, so maybe at some point they should look at how impact assessments are presented to Members.

[Lord Bourne of Aberystwyth]

I agree with the noble Lord; that is a fair point. I certainly found it easier to follow than some. I thank the noble Lord for his help on that point and others, and I thank noble Lords for their general support.