Contribution
I thank my hon. Friend for that really important intervention. It is clear that so many people desperately want to get their foot on the housing ladder and are worried about the precarious nature of private renting, which is why we welcome the Government’s ambition to end no-fault evictions, but there is much more we can do, and it starts with building the homes.
It is important that the Government set out their plan for reaching their target, instead of leaving it too late, so I have three questions for the Minister. First, when will the House have clarity on how much funding will be coming forward in each year of the 10-year affordable homes programme? The Government have said that spending will reach £4 billion a year in 2029-30. What does that mean until then? While the £400 million uplift accounted for the affordable homes programme is welcome, it is not clear that that is a sufficient rise for the Government to achieve their goal of 1.5 million new homes.
Secondly, when will we see the long-term housing strategy? The Government have said that the strategy will be published “later this year”. Now that we have the long-term certainty of 10 years’ worth of funding, housing associations are calling out for clarity—they want to get building the homes that we need.
Thirdly, what discussions is the Department having with Homes England about the design of the new affordable homes programme? What is the Minister’s view on how much of that funding should go to shared ownership or right to buy? My Committee has consistently called on the Department to set out how that target will be achieved by tenure, including the important target of social rented homes.
My Committee has been undertaking an inquiry into local government funding and we have heard that local government continues to be under severe financial strain. Local authorities across the country are being asked to deliver ever more, but simply have not been given adequate funding to do so. I welcome the Department’s day-to-day spending in respect of local government and the uplift of 22%—£2.5 billion overall—according to the proposed estimate.
However, the financial strain councils are facing is almost entirely driven by high-cost, demand-led services, over which councils have little control. Those services, which include the provision of social care and homelessness support, are vital and often relied on by some of the most vulnerable people in our respective areas. The cost of social care has soared over recent years. In 2023-24, local authorities in England spent £20.5 billion on adult social care—19% of the total service net expenditure. If children’s social care is included in that figure, it is over 30% of the total budget.
A significant proportion of the 22% uplift in the estimate comes from new money—over £850 million—for adult social care grants. I welcome that much-needed injection of funding. There is also an uplift of £684 million for children’s social care, but that figure appears to be somewhat inflated by a budget transfer from the Department for Education. While that uplift for the Ministry is welcome, it still may not be enough.
I want to touch briefly on homelessness and temporary accommodation again. Our first inquiry as a Select Committee in this Parliament deliberately chose to look at the sharp end of the housing crisis, and we published reports on children in temporary accommodation and rough sleeping. We found that at the heart of the crisis are over 165,000 homeless children and their families, who are often voiceless, out of sight and stuck in completely unsuitable temporary accommodation. That is also damaging council finances. I have repeated the figure before and I will repeat it again: councils spent £2.29 billion on temporary accommodation in 2023-24, which amounts to London boroughs spending a combined total of £4 million per day on temporary accommodation. That is not sustainable.
The estimate includes over £260 million in funding for the rough sleeping prevention grant, and an uplift of £194 million in the homelessness prevention grant. Again, while these uplifts are a positive step in the right direction, my Committee heard that the restrictions placed on the homelessness prevention grant are quite troubling for some London councils. The new ringfencing introduced for 2025-26 requires almost 50% of that grant to be spent on that specifically. The homelessness situation in the capital is not deceasing and boroughs are spending almost 80% of that funding on temporary accommodation. The Committee urges the Government to engage with councils to solve the issue, to ensure that we do not see a reduction in provision and to address homelessness levels.
The current system also has small, short-term pots of funding. We urge the Department to reform those funding streams to ensure that there is long-term sustainable funding, instead of multiple, short-term funding pots.
My Committee is concerned that there is slow progress on the inter-ministerial group that is developing the strategy. We know that the Department plans to publish that “later this year”. This area may not be in the Minister’s direct remit, but will he be more specific about when we will get that strategy? Given that we cannot end homelessness without building the social homes we need, could the homelessness strategy be published at the same time as the long-term housing strategy?
There is so much to welcome in the estimate for 2025-26. The Government are moving in the right steps and the right directions, but we need to hear the detail of the affordable homes programme funding, especially if we are to deliver a boost to housing before the end of this Parliament. We need to ensure that our local authorities are on a stable footing to provide for the most vulnerable in our society, whether it is those who need adult social care, people sleeping rough or families at risk of homelessness. I welcome the funding commitments outlined in this estimate, but I urge the Government to go further and be more ambitious in their funding and financial support for these priority areas. I look forward to hearing the Minister’s response to my questions.