§ Lords amendment: No. 174, in page 115, line 44, at end insert—
§ ("(4) The powers conferred by this section shall not be regarded as restricting those conferred by section 137 of the Local Government Act 1972 (powers to incur expenditure for purposes not authorised by any other enactment) and accordingly the reference to any other enactment in subsection (1)(a) of that section shall not include a reference to this section.")
§ Motion made, and Question proposed, That this House doth agree with the Lords in the said amendment.—[Sir George Young.]
§ Ms Ann Coffey (Stockport)The Minister will remember the discussion in Committee about the effect of immediate transfer of the cost of warden services from the housing revenue account to the general fund, and the effect that that might have on the provision of those services.
I want to explore further some of the difficulties of the original clause by reference to the situation in my constituency.
Stockport provides a warden care call service to its tenants which is currently being converted to a speech-based telephone system. That scheme is provided to 1,783 council tenants, of whom 1,341 live in group schemes—special accommodation for the elderly. Wardens monitor and respond to calls and visits. All tenants are visited weekly and 15 per cent. of tenants are visited daily. This year there is a demand for a further 12 schemes for a total of 218 elderly people. The number of elderly people is increasing, and they often live alone—the care call offers them safety and peace of mind. Demand for the care call service is likely to increase.
At present, the cost of warden services is mainly provided through the housing revenue account. There are 689 differentials in rent multipliers because the accommodation with access to the care call warden system is special accommodation, but the differentials do not fully reflect the cost of the provision. It seems that, from 1 April 1994, the Government intend to transfer from the housing revenue account to the general fund the cost of essential care services managed by the housing wardens. The definition of essential care is assistance with personal care, feeding, dressing and getting up. In Stockport that is unlikely to be a significant cost of the housing wardens service.
What is not clear at present is what, when or whether the Department of the Environment may issue regulations that would effectively lead local authorities to meet the cost of warden and care alarm services, which are not defined as essential care, through a service charge with the rent. The question is whether such a service charge would be eligible for housing benefit.
In general, the charge will qualify for housing benefit only if it is an essential requirement of the accomrnodation. If some degree of choice for tenants is involved, that service charge may not be eligible for housing benefit. If it is not, it will mean that the cost of the warden service will transfer to the general fund because certain tenants, including the elderly and frail, will not be able to afford the service charge. Clearly the authority will have to provide that service. If it cannot do so through the housing revenue account and tenants have no access to housing benefit, the cost will have to be provided through the general fund.
The issue caused me much concern because, as the Minister must realise, social services departments are under extreme pressure to cut their budgets in the forthcoming year. I would be concerned if, either directly or indirectly, the cost of those services was transferred to the general fund. That might well result in the dimunition of the provision of the present service to elderly people at a time when there is a growing elderly population, we are seeking to keep more people in the community and a crucial part of community care is the accommodation that those people are offered.
I appreciate that there is a long-standing argument about what constitutes housing welfare and what degree of responsibility a housing authority has to provide welfare to its tenants. The housing authority is not responsible merely for the maintenance of bricks and mortar—it must take into account the welfare needs of its tenants. Rightly or wrongly, over the years the welfare housing needs of elderly people have been met in countless authorities through care call warden services provided from the housing revenue account. Any sudden shift in responsibility for that provision would have disastrous consequences for the provision of care call and warden services to the elderly.
When he considers the amendment—resulting provisions will be provided through regulations—I hope that the Minister will carefully consider the position of elderly tenants and social services departments. I hope that he will introduce regulations to transfer the cost over a period so that it is affordable for both the housing and the social services departments. He must also ensure that elderly people continue to receive the same level of provision as they have in the past. That provision is crucial for them and in great demand by them.
§ Sir George YoungI can give the hon. Member for Stockport (Ms. Coffey) the assurance that she sought: 690 there is no question of there being a sudden shift in responsibility for those services. We are talking about a vulnerable group of people and important services. There will be no turbulence in the continued delivery of those services.
Following the Ealing judgment, there was some doubt about whether local authorities had the powers, through the housing account, to pay for services. Clause 113 validates the status quo and gives local housing authorities the power to provide welfare services for their tenants. The amendment is merely a tidying amendment to ensure that the authorities can go on providing certain services for the private sector.
The Government have been consulting and have received more than 200 representations. We are currently considering the outcome of that exercise. As the hon. Lady implied, the subject is complicated. It is not merely a question of deciding what constitutes a housing service and what constitutes a welfare service; it also involves the knock-on effect on housing benefit.
The Government are not minded to take dramatic action, for the reasons outlined by the hon. Lady. A number of options are available to us. One option would be to wait until local Government responsibilities are reorganised and we move to unitary authorities. We could take that opportunity to clarify the division of responsibilities between housing services and social services.
There should be no disruption to services to tenants. That principle will inspire us as we resolve the matter. I hope that the hon. Lady will accept my assurance.
§ Question put and agreed to.—[ Special entry.]