Exempt Accommodation

Debate between Steve McCabe and Clive Betts

Thursday 27th October 2022 Commons Chamber

[Mr Betts]

We did not specifically look at that issue, but we looked at giving councils the powers to ensure that standards are met. My hon. Friend is absolutely right that one of the problems is that there is no control over the referral process—anyone can refer themselves, which is why people use Facebook and Gumtree to self-refer. If we can give powers to the councils to control referrals, it would be appropriate for them to consider commissioning services themselves in some circumstances. Some services are already commissioned; many are not. We did not call for all services to be commissioned, because some very good voluntary local providers are doing work in this area and we do not want them to close down. It is about controlling the referral process and ensuring that housing benefit is paid out only for properties that meet these standards. Once the money loophole has been closed, the rest of the abuse will stop —in our view.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

I acknowledge the way that the hon. Member for Walsall North (Eddie Hughes) engaged with the issue when he was a Minister. I congratulate the Chair of the Select Committee on the report. I was privileged to sit in on a couple of the evidence sessions in Birmingham, which were certainly illuminating. In view of the serious issues raised in the report, I have two questions.

First, there is a reference to the West Midlands police saying that such properties are sometimes used as a front for money laundering and drug gangs. Does the Chair agree that any standards must include a fit and proper test of any person who owns or purports to manage such a property, so that we know they are not a front for that kind of activity? Secondly, as well as trying to restrict the concentration of such properties through a planning measure, does he agree that any standards must include a proper inspection regime of the quality of the property and of the so-called support that is being offered? Otherwise, this activity will continue to be lucrative for anyone who wants to pursue it.

[Mr Betts]

I thank my hon. Friend for drawing the Committee’s attention to the issue, because he had had experience in his constituency, as he pointed out to us. He was the first Member who said, “You need to have a look at this. It is absolutely awful.” Unfortunately, he was absolutely correct about that. The idea of a fit and proper person test is interesting. We did not specifically address that as a Committee, but if we are going to have proper standards of accommodation and proper support on an ongoing basis, we need to ensure that the people doing that are legitimate people with legitimate objectives. He is absolutely right that if we are going to have standards, we need to enforce them. That is why local authorities need the powers and the resources, and why we need to bring all such properties within the HMO regulations, so that local authorities can send their health inspectors in to make sure that standards are kept and maintained.