Shapps climbs down on two year tenancies

Housing minister Grant Shapps is reported in the housing press to have bowed to pressure to stipulate a five year minimum for fixed term social tenancies.

24dash reports that the draft tenure direction, part of the proposed new Directions to the Social Housing Regulator, issued for consultation on 7 July, will be amended to state that where "registered providers grant general needs tenancies these are for a minimum fixed term of five years, or exceptionally for a minimum term of no less than two years, in addition to any probationary tenancy period."

It adds that if social landlords decide there are 'exceptional circumstances' where tenancies of less than five years may be appropriate, then they will be required to set out in their tenancy policy what those circumstances will be.

The revision has not (at the time of writing) appeared on the DCLG website.

Shelter's head of policy Roger Harding told the BBC website:

"While this is a positive step, we don't see it as a particularly firm base for someone to be regularly faced with prospect of eviction.

"It is far better to give someone a stable home as a base for getting them back on their feet."

He highlighted research undertaken in New South Wales, Australia, which suggests that far from acting as a "springboard" for people to improve their income, as Shapps claims, tenants will be deterred from seeking work for fear of losing their home. The report found that less than one per cent of fixed-term social tenancies created under the policy that heavily influenced the Government's thinking have so far been terminated.

Co-author of the research, Professor Suzanne Fitzpatrick of Heriot-Watt University, said:

"The Australian (NSW) experience calls into question the efficacy of the policy now proposed in England, given that so few of their fixed-term tenancies have been terminated, generating a negligible number of additional vacancies, but raising serious concerns about work disincentives."

National Planning Policy Framework consultation

Last December, planning minister Greg Clark MP announced a review of planning policy, designed to consolidate all policy statements, circulars and related documents into a single, 50-page National Planning Policy Framework (NPPF).

The government has now published its draft NPPF for consultation, drawing on responses to an initial call for evidence earlier in the year. The government intends to consult on simplifying other guidance on national policy as the next step.

The draft Framework underlines the need for councils to work closely with communities and businesses and actively seek opportunities for sustainable growth to rebuild the economy; helping to deliver the homes, jobs, and infrastructure needed for a growing population whilst protecting the environment.

Opponents claimed in the Guardian and Telegraph that the new draft Framework effectively removes the national target for recycling brownfield land and allows local communities to support building on the green belt.

Greg Clark said, "Today's proposals set out national planning policy more concisely, and in doing so make clearer the importance of planning to safeguarding our extraordinary environment and meeting the needs of communities, now and in the future."

"We now want to hear the thoughts of councils, communities and businesses on the draft Framework and work together to get the planning system right for generations to come."

Chairman of National Association of Local Councils, Michael Carter said:

"The National Association is delighted that the overarching aim of the document is to empower communities, including very local parish and town councils, to shape the areas in which they live. We agree that they should have a major say in where housing, and other types of sustainable development, should go. The National Association believes that this is vital for sustainable economic growth in England."

Welfare Reform Bill delayed

The government has delayed the second reading of the welfare reform bill which was due to be heard in the House of Lords this week. The second reading of the bill is now scheduled for 13 September 2011.

This has prompted speculation that the House of Lords is faltering over controversial changes to the benefits system. Though speaking about the delay a spokesperson for the Department for Work and Pensions (DWP) said: "The second reading of the welfare reform bill in the Lords was moved due to parliamentary business."

The Disability Alliance is considering taking legal action against the DWP over proposals to cut Disability Living Allowance (DLA) support for disabled people. It says the proposed new benefit (Personal Independence Payment – PIP) will not provide an equivalent level of support for the 652,000 disabled people currently receiving low rate care DLA payments.

The Guardian also found that concerns have been raised over the impact of welfare reform on disabled people living in social housing. "Disabled people are more reliant on social housing and will be particularly badly affected by government plans," a spokesperson for Disability Alliance said.

"Estimates range to over 100,000 disabled people being forced to leave [their] homes as a result of changes. This is despite there not being enough accessible homes for disabled people to move into and ignores the costs councils will incur of having to adapt thousands more flats."

The Independent reported that chancellor George Osborne also faced a rebellion within the coalition over the proposed benefits cap of £26,000 for workless families:

"Lib Dem sources yesterday predicted that unless the Treasury backed down there would be a rebellion against the Government’s Welfare Bill when it is debated in the House of Lords." 

"Sarah Teather, the Families Minister, said she was 'extremely worried' about the cap which will apply to all households where no-one works from 2013."

Proposals to reform housing benefit for supported housing

The Department for Work and Pensions has launched a far-reaching consultation on proposals to change Housing Benefit arrangements for those living in supported housing within the social and voluntary sector.

The government claims that the current Housing Benefit system for people in supported housing no longer works, citing complexity, poor fit with individual choice in commissioning their own care, unfairness, unnecessary risk to specialist housing providers and cost to local authorities as the reasons that reform is needed.

The government stresses in the consultation that it is not looking to cut expenditure in the supported housing sector but to better direct it. Any changes will be cost neutral overall.

For most supported housing residents, living in hostels, refuges, foyers and purpose-built sheltered housing, the government is proposing to pay the Local Housing Allowance but with fixed additions which will continue to recognise the higher costs of providing this type of housing. These would take the form of a flat rate amount, perhaps with some regional variation.

The paper says "The level of additional help would be aimed at providing a reasonable amount towards certain additional costs. Anything attracting a cost beyond that would have to be met through alternative funding streams or from resources available to the claimant."

For those needing more intensive levels of personal care and support to help them live in the community, who require very individual care and accommodation, higher level of payments will be available. However, the extra help will no longer be decided by those processing benefit claims but by those with expertise in the local provision of supported housing.

Those making the decisions would have a background in and knowledge of housing procurement and the costs involved in providing specialist supported housing, or have access to those with such expertise.

The proposals assume that help with the higher costs of providing supported housing should remain within Housing Benefit, but the consultation paper asks:
"Is there a case for considering housing costs more fundamentally within a wider context by having the extra help with supported housing taken out of Housing Benefit altogether and administered locally in the same way as Personal Budgets?"

Supported housing provided by registered providers and registered social landlords will, under the proposals, be treated in the same way, for Housing Benefit purposes, as the mainstream social sector housing which, according to the consultation paper, is what already happens in practice.

Service charges will be supported at a level adequate to meet the running costs of supported housing, but limited to genuine housing related costs.

The public consultation applies to England, Scotland and Wales and runs until 9 October 2011.

Single Accommodation Rate regulation laid before Parliament

Regulations have been laid before Parliament this evening to extend the Shared Accommodation Rate (SAR) to single claimants up to age 35 from January 2012. However, following lobbying by Crisis and others in the homeless sector, an exemption has been included that will protect some previously homeless people.

As part of the October 2010 Spending Review the government announced that the SAR would be extended to cover single claimants up to age 35 from April 2012. Currently 25-34 year-olds can claim housing benefit based on the cost of renting a one-bedroom flat. On 28 March 2011 it was announced that the change would be brought forward to take effect from January 2012.

The government claims the measure will save £215m a year by 2014/15.

The exemptions will apply only to those aged 25-34 who are either subject to an active Multi-Agency Public Protection Arrangement (MAPPA) or who have experienced three months or more in hostel accommodation. In the latter case, the three months need not be continuous and can include time spent in hostels prior to turning 25.

Leslie Morphy, Chief Executive of Crisis, said:

“We are very disappointed that the Coalition has forged ahead with this pernicious cut in the face of mounting evidence that there is simply not enough shared accommodation available and with no indication of where the tens of thousands of people affected are meant to live.

“We are pleased that the Government has recognised our concerns that shared accommodation is completely inappropriate for formerly homeless people. It is baffling however, that they can’t see that the same is true for other vulnerable groups such as those with disabilities or mental health problems, those fleeing domestic violence or parents who need to have their children to stay.”

The DWP's impact assessment, published in April 2011, estimated that 62,500 people would lose an average of £41 a week under the changes, with the majority being men not in employment.

Almost 12,000 claimants in London stand to lose an average of £87 a week.

Open Public Services White Paper

The Prime Minister David Cameron launched the much delayed Open Public Services White Paper on Monday 11 July.

The White Paper sets out five core principles for modernising public services:

• Choice – wherever possible Government will increase choice
• Decentralisation – public services should be de-centralised to the lowest appropriate level
• Diversity – public services should be open to a range of providers competing to offer a better service
• Fair access – Government will ensure that there is fair access and fair funding for all
• Accountability – public services should be accountable to users and to taxpayers

Launching the document Cameron said:

"It’s about ending the old big government, top-down way of running public services and bringing in a Big Society approach - releasing the grip of state control and putting power in people’s hands. The old dogma that said Whitehall knows best – it’s gone. There will be more freedom, more choice and more local control."

The White Paper floats proposals to enshrine in law "a general right to choose" in areas like education, health, social care and housing, with new powers for the ombudsman services to act as an "enforcer of choice in public services".

There will be a rolling out of personal budgets across health and social care, often in the form of direct payments that people can then use to choose services in the way that suits their lives best. The DCLG will explore whether the approach can be extended to Supporting People funded services.

The document recognises that, in order to make informed choices and hold services to account, people need good information, promising:

"we will ensure that key data about public services, user satisfaction and the performance of all providers from all sectors is in the public domain in an accessible form. This will include data on user satisfaction, spending, performance and equality."

It promises to consult on how this is to be achieved, and whether the data should be collected in a standardised form to enable comparison and transparency. The White Paper also predicts an increase in Trip Advisor-type websites that allow the public to share opinions and compare performance data on public services.

Tenant management is cited as a favoured mechanism to ensure that service users are in control, with two examples - housing association Poplar HARCA and the Bloomsbury Estate Management Board - cited as case studies on the Cabinet Office's Open Public Services website.

The White Paper proposes that every public service except for national security, frontline policing and the judiciary will be opened up to providers from the private and voluntary sector. It promises to introduce "Open Commissioning" in a number of specific services (to be consulted on). In those areas, commissioners will consult on and be challenged by potential providers from all sectors on the future shape of the service; seek and fully consider a minimum of three providers when they contract for services and transparently link payment to results.

Ten local authorities are already working with the DCLG to test out a number of payment by results models with their providers in relation to Supporting People services, with an evaluation promised by late 2013.

Further information

Cabinet minister Oliver Letwin's Commons statement on the White Paper, 12 July
Open Public Services White Paper: LG Group Briefing, 12 July
Supporting People funds aligned to performance, Inside Housing 24 June 2011

Shapps consults on draft directions to regulator

Housing minister Grant Shapps has launched draft directions to the social housing regulator about the content of regulatory standards. These are much longer and more detailed than those issued under the last government following passage of the Housing and Regeneration 2008 Act, which they would replace.

The draft directions cover:

• Tenure reform
• Tenant involvement - including Tenant Cashback
• Mutual exchange
• Rent
• Quality of accommodation - Decent Homes

Tenure reform

The current tenancy standard requires social landlords to "offer and issue the most secure form of tenancy compatible with the purpose of the housing and the sustainability of the community". The new direction refers to tenancies that are "compatible with the purpose of the accommodation, the needs of individual households, the sustainability of the community, and the efficient use of their housing stock."

General needs tenancies should be for a minimum term of two years, in addition to any probationary period. A TSA spokesperson told 24dash:

"The purpose of the proposed new tenancy direction in relation to probationary tenancies is to make it clear that housing associations can grant probationary tenancies where they see fit, and extend these up to 18 months, in line with local authority providers."

There is no reference to an expectation that tenancies should in general be for longer than the minimum period. This is surprising, as Shapps told Parliament on 28 June that "I am being clear, in all our language and in the tenancy standards that we will put in place, that two years is to be considered as an exceptional circumstance, and that at least five years would be the norm."

Tenant involvement

The direction on tenant involvement is substantially expanded to require landlords to support "tenant panels or equivalent groups and responding in a constructive and timely manner to them" and to provide "timely and relevant performance information" in a form to support tenant scrutiny, including an annual report with information on repair and maintenance budgets.

The Tenant Cashback scheme, launched by Shapps in April 2011, is addressed. Landlords are to be required to give tenants the opportunity to influence and be involved in "the management of repair and maintenance services, such as commissioning and undertaking a range of repair tasks, as agreed with landlords, and the sharing in savings made."

An impact assessment of the Tenant Cashback scheme accompanies the consultation.It finds that a government-prescribed system for devolving control or repairs budgets "could cause landlords to incur additional costs that are not offset by efficiencies elsewhere, to the detriment of social tenants who would witness pressures on rents or service standards."

The impact assessment identifies the preferred option to achieve the government's objectives would give landlords the freedom to design their own Tenant Cashback scheme, and to ensure that savings from tenant involvement in repairs are, at a minimum, sufficient to offset any running costs associated with the scheme.

Mutual exchange

Social landlords will be required to provide their tenants with access to internet-based mutual exchange services and ensure that appropriate support is provided for those tenants who do not have internet access.

Affordable rent

This is a technical change that largely reflects the current position.

Decent Homes

This largely reflects the current position, although it explicitly states that homes must contain no category 1 hazard and that homes which have attained the Decent Homes standard must be maintained at that standard.

The consultation runs until 29 September. The Tenant Services Authority intends to consult later in 2011 on the changes to its standards that will arise from the new directions. Although the Localism Bill may not by then have become law, the consultation will take account of the indicative final form of the directions, which the government plans to publish in the autumn.

Progress on Regulation Committee of HCA

Housing Minister Grant Shapps is bringing forward funding in advance of the Localism Bill to allow the recruitment and appointment of a chair, with support arrangements, and for the recruitment of committee members, for the reformed Homes and Communities Agency’s (HCA) Regulation Committee.

In a written Ministerial Statement on 5 July, Shapps said he was bringing forward spending of £14,000 from the Contingencies Fund to enable "enable efficiency savings to be achieved and provide significant reductions in public spending."

The HCA’s Regulation Committee will focus on the economic regulation of the social housing sector.

Should tenants retain direct access to the housing ombudsman?

Three 'big hitters' have thrown their weight behind the National Housing Federation's campaign to ensure tenants can continue to complain directly to the Housing Ombudsman.

Shelter, TPAS and 24housing magazine are supporting the Federation's scheme to remove a clause in the Localism Bill that would force tenants to complain through councillors, MPs or tenant panels to access the Ombudsman, having first completed their landlord's internal complaints procedure. This is known as the 'democratic filter'.

The Federation sees this as unneccessary red tape, likely to mean fewer, less successful complaints. Their campaign has already attracted the support of Baroness Hayter of Kentish Town, Lord Best and Lord Patel of Bradford.

In May this year the Federation published an article voicing concern that, 'the proposal would force tenants who might have an in-depth knowledge of the policies surrounding the particular issue at hand to make their complaint via someone who in effect would be a third party generalist.'

The Ombudsman has published information outlining its current position - inviting questions or comments, and in February 2011 the British and Irish Ombudsman Association submitted evidence to Parliament's Public Bill Committee.

They said, 'In summary, we believe that restricting access to ombudsmen by the introduction of a filtering scheme would undermine the rights of the citizen and would not in practice achieve more local resolution of complaints.'

During a recent Westminster debate, Grant Shapps made it clear that he is in favour of the democratic filter. He said:

'The reason why I am so keen for [complaints] to be channelled through local MPs, local councillors and tenants panels is that the tenants will be empowered to resolve problems, with the implicit threat that if the problem is not resolved through work with tenants and their representatives, a referral can be made to the ombudsman.'

'I believe that if that happens, far more cases will be resolved at local level and it will have the added benefit of drawing in councillors, who in many cases have become distant and disconnected from local housing problems, particularly where stocks have been transferred. It will draw them back into the discussion and an understanding of what is happening with the stock. It is very much about resolution.'

In December 2010 we wrote an article outlining moves to end the system of two separate ombudsmen handling social housing complaints in England.

Benefit cap 'could leave 40,000 families homeless'

The potential impact of benefit cuts on homelessness reached the front page of the Sunday papers after the Observer obtained a leaked copy of a letter sent by Eric Pickles's Private Secretary (a civil servant) to his counterpart in the Prime Minister's office.

The letter, sent in January, predicted that the introduction of a limit of a benefits cap of £500 a week could make 40,000 families homeless:

"Our modelling indicates that we could see an additional 20,000 homelessness acceptances as a result of the total benefit cap. This on top of the 20,000 additional acceptances already anticipated as a result of other changes to housing benefit."

In addition, DCLG warned that the estimated savings of £270m a year from 2014-2015 does not take account of the additional costs to local authorities from homelessness and temporary accommodation, saying "we think it is likely that the policy as it stands will generate a net cost".

The letter also expresed fears that half of the 56,000 new "Affordable Rent" homes planned up to 2015 could be lost because the Overall Benefit Cap would prevent providers charging rents of 80% market rents in so many areas.

DCLG offered a solution - suggesting that Child Benefit should be removed from the Overall Benefits Cap, arguing:

"This would be a fairer way to bring the benefits included in the Cap in line with working households, as a working household on the median £500 weekly earning would still receive child benefit on top of their income. This would also mean the overall message of the cap would not be lost. In practical terms it would also fit with the introduction of Universal Credit as Child Benefit will sit outside of this."

Since the letter was sent, ministers and officials have made a series of Commons statements that Labour believes are hard to square with what Pickles was telling No 10 in private. However the Speaker has turned down a call from shadow pensions secretary Liam Byrne to bring the work and pensions secretary, Iain Duncan Smith, to the Commons to explain whether he or his ministers had misled the house.

A spokesman for Pickles told the Guardian:

"We are fully supportive of all the government's policies on benefits. Clearly action is needed to tackle the housing benefit bill which has spiralled to £21bn a year under Labour."

This leak comes hard on the heels of a leaked report from Westminster Council predicting increased homelessness and flight from the area as a result of benefit reforms.

Westminster Council predicts large scale outward migration

The Guardian's Patrick Butler has had sight of a disturbing report prepared by Westminster Council's housing director in May assessing the implications of the planned housing benefit changes for Westminster residents.

Butler quotes from the executive summary:

"Over 5,000 Westminster households will be affected by the changes and for the majority their current rents will be unaffordable. There are a significant range of variables around the impact of the changes including uncertainty about the response of the private rental market but it is likely that a sizeable proportion of these households will need to move with many of them leaving Westminster when the caps affect current claimants during 2012. Moving out of the borough is likely to be problematic for families with children at critical schooling points and elderly and disabled individuals."

The report says that 81% of housing benefit recipients in Westminster will be affected, with most losing between £84 and £130 a week.

4,000 schoolchildren may have to move out of the borough, affecting school rolls, whilst the council might need to find need to find 1,500 temporary homes for those becoming homeless as a result of the changes, at a cost of up to £18m.

However, the report predicts that in three years time the demands on services such as schools, children's centres and libraries will reduce, as young affluent renters move into Westminster. London Mayor Boris Johnson's predictions of "Kosovo-style social cleansing" of the poor from London looks increasingly likely.