Supported Housing

Mark Prisk Excerpts

Wednesday 25th October 2017 Commons Chamber

[Mr Clive Betts (Sheffield South East) (Lab)]

Like the Chair of the Work and Pensions Committee, my right hon. Friend the Member for Birkenhead (Frank Field), I pay tribute to my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes) and the hon. Member for Gloucester (Richard Graham) for their work in chairing the joint inquiry, which produced an excellent report that was agreed unanimously by both the Work and Pensions Committee and the Communities and Local Government Committee. It is a tribute to the strength of the Select Committee system that the joint inquiry listened to the evidence, which overwhelmingly said that the Government had got themselves into the wrong place on this issue.

The local housing allowance has no connection whatsoever with the costs of supported housing. By starting from the assumption that the two are connected, the Government could not come up with a system that worked. I am pleased that they have accepted that fundamental point today and agreed that the local housing allowance will play no part when they develop a new system to help supported housing. Having reached that position, away from the local housing allowance, the Government can get themselves to the point where they can develop a sensible system for the future. We will hear next Tuesday whether they will go on to develop such a sensible system, when they respond to the joint Select Committee report, but at least we are in a better place. I thank the Government for at least listening to that fundamental recommendation from the joint report.

We are currently waiting for the Government’s detailed response, but as the hon. Member for Waveney (Peter Aldous) just explained, Lord Best has worked with five housing associations and come forward with a considered piece of work that shows that a discrete and particular allowance for supported housing can be developed at no extra cost. Such an allowance should take into account the fact that the regional variations in the costs of providing supported housing throughout the country are actually very small. If we develop a system with small regional variations that is more related to the actual costs of supported housing, with relatively small top-ups, we can provide a much greater degree of certainty for supported housing providers.

One of the problems with the LHA system was that the massive differences in LHA rates throughout the country meant that we needed significant top-ups, which varied up and down the country. That introduced great uncertainty to the system. Suppliers have not been sure whether the top-ups would be forthcoming in future years, so the housing providers have not been able to go to their investors and say with certainty what their future funding and financial arrangements are. That was a problem, but hopefully we have got away from it. The scheme that was put forward in principle by the National Housing Federation and worked on by the five housing associations and Lord Best shows that it can be done in a way that does not cost any more but results in a much more sensible and considered system. I hope that the Government will reflect on that and come forward with something similar when they respond next Tuesday. We look forward to the details of that response.

It is important that, next week, the Government give us a timeframe, because 85% of schemes in the pipeline have been put on hold. There have been doubts about the continuation of some existing schemes, but, certainly, a big hold has been put on other schemes in the pipeline. Those are schemes that are badly needed by people for a whole range of reasons. Some people struggling in their own homes, for example, could be helped to live in much better circumstances. Let us have a timeframe for implementation.

We must also recognise that it is not just what we think about the proposals, but what the local authorities think as they will have to implement the costs and provide the grants. Most importantly, it is also what the providers—housing associations and others—think about them. After next Tuesday, will they say, “We now feel that we can go forward with this investment with some degree of certainty?” Will the Government take on board the recommendations of the joint Select Committee to bring forward these proposals not merely with a timeframe, but in a considered way to allow organisations to adapt to the changes—adapt in a way that means that these developments will proceed in the future in the way that we all hope.

[Mr Mark Prisk (Hertford and Stortford) (Con)]

Does the hon. Gentleman agree that, alongside that geographical flexibility, it is also important that faith-based organisations, such as Emmaus and the Salvation Army, have flexibility about the model that they provide—very often they work alongside Shelter—so that the new system can accommodate a variety of approaches?

[Mr Betts]

The hon. Gentleman, who is a member of the Communities and Local Government Committee, makes a very good point. Supported housing is often a global term used to describe a very wide variety of provisions from different providers and different suppliers. When we have a grant system that covers all such provision, it is important that it also covers the differences, and allows for those differences to be reflected in the way that the provision is made. When we get that recommendation from the Government next week, in response to the joint Select Committee report, it is important that it is flexible enough to take on board all those different circumstances. That is what I will be looking for. We will also be looking not just at the Government’s response, but at the response of housing associations and other providers as to how they view the Government’s proposals in terms of what they will enable them to do in the future.

I recognise that others wish to speak, so let me say to the Minister that I will wait for the recommendations next week before responding further. Obviously, that is the appropriate thing to do. However, it is clear that while the Minister’s response will be made directly to the two Select Committees—that is the way the Government will respond to our report—there clearly is a wider interest in the matter across the House among Members who do not necessarily belong to the two Select Committees. I am very happy to work with the Minister—I am sure that the same is true for my right hon. Friend the Member for Birkenhead, the Chair of the Work and Pensions Committee—to find a way in which these proposals can be shared and considered by all Members of the House. I hope that he will take on board that offer, because it is important that there is a wider debate on this as there is such widespread interest in it.