Sir Stephen Timms

I am delighted to be serving under your chairmanship, Ms Lewell. I congratulate the hon. Member for St Ives (Andrew George) on securing this timely debate just the week before the Budget. Stable, affordable, good-quality housing is fundamental to individual wellbeing, economic stability and public health. That is why the Government have set out, as Members know, the ambition to deliver 1.5 million homes. We are supporting that with a record £39 billion investment in social and affordable homes. That is the programme that my hon. Friend the Member for North East Hertfordshire (Chris Hinchliff) referred to. We are also supporting that with our £16 billion national housing bank. Securing an adequate number of decent affordable homes is our priority. People have wanted to do that for a long time. We are making sure that the investment is going in to deliver those homes. It is true that delivery will not happen overnight, but delivery is going to happen. We inherited a very serious housing crisis, and we acted quickly in response. Policies in place are having an impact already. There are over 400,000 new homes in England since the start of this Parliament, more than a quarter of the target. New build starts in the year to June were up 15% on last year. We are driving forward big reforms of the planning system. In August, we announced a new planning policy framework with clearer rules-based policies to unlock more homes where they are needed. We are investing in construction skills. My Department spent nearly £38 billion last year supporting renters with housing costs via universal credit and housing benefit. That is an increase of around £3.5 billion over the last decade. No other OECD country spends a greater proportion of its GDP on housing support than we do. I recognise the picture that hon. Members have set out of the impact of local housing allowance in their local areas. Rental inflation across the country varies according to specific challenges in each area. The local housing allowance determines the maximum financial support for renters in the private rented sector. Households in similar circumstances living in the same area are entitled to the same maximum rent allowance, regardless of the rent that they are required to pay. Local housing allowance was never intended to cover all rents in all areas. The rates for that are set annually by the Secretary of State for Work and Pensions. Future decisions will be based on the Government’s priorities, and those are the priorities that the Chancellor will have in mind as he makes his announcements in the Budget next week. The Government provide additional discretionary housing support to local authorities to help tenants to meet shortfalls in their rent costs. In England, that is through the crisis and resilience fund housing payment. I wonder whether, in some of the cases that the hon. Member for St Ives referred to, his constituents would find it worth their while to contact the local council to see whether they could benefit from a discretionary housing payment. The crisis and resilience fund includes support for preventive wraparound help, as well as assistance for people facing a financial crisis. I know that local authorities are increasingly looking at what they can do with those resources to protect people in the kinds of situations that the hon. Member for St Ives describes. Local housing allowance rates are set within broad rental market areas determined by rent officers in the valuation office across England. There are 192 broad rental market areas across Great Britain. As the hon. Member for St Ives said, Kernow West is the one that includes St Ives. A BRMA is an area within which a person could reasonably be expected to live, having regard to facilities and services for the purposes of health, education, recreation, banking and shopping, taking account of the needs of travel to and from those services by both public and private transport. Across each BRMA, rent officers gather a representative sample of private rental data of all property types and sizes from a range of sources, including both new and existing tenancies. They survey rents across the full year to capture current market conditions. That includes collecting a representative sample from all the local authority areas within a BRMA, including any larger urban centres and more sparsely populated rural areas in that BRMA. Perhaps the hon. Member for St Ives might find it useful to have a conversation with the Valuation Office Agency, because he raised perfectly understandable concerns about whether the data it uses is out of date. The process is designed to ensure that that is not the case and that up-to-date data is provided. Of course, it was only just over two years ago that the local housing allowance was uprated to the 30th percentile of the levels of rents in each BRMA.