Baroness Grender (LD)

My Lords, I will speak to Amendment 5 in this group, which would amend Clause 1 to retain the original rate of 13.8% for both charities and housing associations. I refer to my interests as set out in the register. I also support Amendment 4 in the name of my noble friends Lord Storey and Lord Sharkey, and Amendment 8 in the name of my noble friend Lady Kramer. I thank the noble Lord, Lord Randall, for his support for my amendment. Given the previous Government’s record and the legacy they left, charities and not-for-profit organisations, such as housing associations, will be a vital part of the Government’s future plans—for instance, to increase housing and end homelessness, which is an ambition that can and should be realised. I am going to use one case study to highlight what is going to happen to housing associations. I would really appreciate it if the Minister could respond to that case study, which is about the housing association Peabody. For context, the recent government announcement of £500 million for the affordable homes programme for the whole of the UK is the equivalent of around £500 million that Peabody alone spent in the last financial year on bringing new homes into play and having a development pipeline. It is a very significant partner, I would say, in terms of some of the objectives that the Government have. Peabody estimates that the additional cost for it is likely to be around £800,000 and would challenge the viability of some of its services, particularly supported housing and care services that rely so much on high levels of staffing. Those supported housing and care services are provided for more than 10,000 people, with a wide range of complex needs, from addiction to recovery from mental illness, as well as people at risk from homelessness, those with learning disabilities and young people, as well as people who are older and in need of specialist accommodation. For some housing associations, the proposed increase would wipe out much of the additional revenue generated from the Government’s proposed five-year rent settlement. Across London’s 15 largest housing associations, it is estimated that the increase will cost around £30 million, which could impact other key priorities such as new homes in development.