Homelessness (Hansard, 28 January 1991)

Viscount Astor
My Lords, councils are obliged to assist homeless people under the provisions of Part III of the Housing Act 1985 even when they have transferred their housing stock. However, before the Secretary of State will consent to the transfer of a council's housing stock to another landlord he has to be satisfied that the council will be able to continue to meet its homelessness duties. The code of guidance to the homelessness legislation, to which councils must have regard, helps them carry out those duties.

§ Baroness Fisher of Rednal
My Lords, I thank the Minister for that Answer. How does a local authority pay for the homeless when the properties that it has transferred are no longer its responsibility? What does the local authority then do with homeless families? Does it cast them on to other local authorities which have not got rid of their housing stock?

Viscount Astor
My Lords, local authorities have benefited from the receipts of council house sales. The noble Baroness will be aware that local authorities can use 25 per cent. of their housing receipts to finance new capital expenditure on renovations, improvements or new homes.

§ Lord Dean of Beswick
My Lords, how does the Minister suggest that local authorities, most of which have a greatly increasing incidence of homelessness, should deal with their responsibilities now that their housing stock has shrunk due to the Government's housing policy, which includes the withholding of capital assets that the Minister has just mentioned? If local authorities were allowed increased access to those capital receipts, they could once again start to build houses.

Viscount Astor
My Lords, the total housing public expenditure programme remains large. Public expenditure on housing next year, including local authority self-financing expenditure from receipts, will amount to well over £8 billion. Your Lordships will be aware that there is a Question on the Order Paper next week which asks whether the Government will remove the restrictions on local authorities. I expect that during the discussion on that Question, the noble Lord's question will be asked.

§ Baroness Flather
My Lords, does my noble friend agree that the homelessness pressures are greatest in London and the South East, and that the problem continues mainly because of the over-use of bed-and-breakfast accommodation about which something needs to be done?

Viscount Astor
My Lords, I entirely agree with my noble friend. That is why the Government have targeted £300 million on London and the South East, 449 where the worst problems exist, to alleviate the plight of families forced to live in temporary bed-and-breakfast accommodation. The additional resources have been made available to local authorities and housing associations for schemes to bring their empty stock back into use. Our prime objective is, as I have said, to reduce the use of bed-and-breakfast hotels as temporary accommodation for homeless families.

§ Lord Stallard
My Lords, does the Minister accept that his replies to these questions have been interesting, but that he has not answered the Question on the Order Paper? The Question asks, "what guidance to assess and deal with homelessness" the Government give to local authorities. The Question is not the one that we have asked a thousand times before and to which we have received the same reply about using 25 per cent. of revenue. Will the Minister deal with the Question on the Order Paper?

Viscount Astor
My Lords, a code of guidance is being revised and currently has been sent out for consultation with the local authority associations. The deadline for written comments is 31st January. We aim to issue the revised document shortly. Our experience to date has shown that there have been no problems with regard to local authorities fulfilling their homelessness duties where stock has already been transferred.

§ Baroness Fisher of Rednal
My Lords, I thank the Minister for elaborating upon his original Answer, but does he accept that two thirds of the homeless families registered with local authorities are located outside London and are spread throughout all of our industrial cities?

Viscount Astor
My Lords, yes, the problem is not necessarily confined to London. However the rural housing programme, announced by the Minister for Housing on 9th November, amounts to £50 million of credit approval for local authorities to provide, through housing associations, houses for rent in rural areas.

§ Lord Dean of Beswick
My Lords, what advice do the Government give local authorities in rural areas which, because of their political complexion, supported the forced sale of council houses and now find themselves without any stock with which to deal with homelessness, and which are now complaining about the Government's policy?

Viscount Astor
My Lords, the Government welcome the transfers in principle provided they conform to the department's guidelines. They fit in well with the enabling role in housing that the Government envisage for local authorities. They are also in line with the Goverment's objective of providing wider choice in rented housing.