Increasing the repayment period for households on universal credit that take out budgeting advances from 12 months to 24 months is clearly helpful, especially for those struggling to make ends meet or coping with an emergency, but that still leaves millions of people on universal credit subject to unaffordable deductions from their benefits to repay other Government debts. Those deductions from an amount of money that is frankly too little to live on in the first place cause real hardship.
We have to put those small changes in the context of a cost of living crisis that is affecting millions of people. StepChange says that two in five people are currently struggling to keep up with household bills and credit commitments, and its advisers regularly speak to clients struggling to meet even the most basic needs, such as getting a healthy meal and keeping the heating on. They are also increasingly seeing people on negative budgets, which means that they do not have enough income to meet their necessary outgoings, let alone put towards paying off their debt. A new report published today by Christians Against Poverty highlights that and the fact that many people lack credit, but I am not sure the Government recognise the problem as well as those charities do. That is why people need more help with the fundamentals, such as council tax and energy bills. Where is the much-needed council tax support scheme and a social tariff for energy? Those changes would make a real difference.
We also need major changes to the kinds of debt solutions that advice agencies can offer. The announcement of the scrapping of the up-front £90 application fee and the uplift to the vehicle value to qualify for debt relief orders is a start, because debt relief orders were a real barrier to those in financial hardship who had to find £90 before they could even deal with their debts. The statement on financial vulnerability is welcome, but it is estimated that an extra 556,000 debt relief orders will be applied for—a 75% increase on 2023. The statement asserts that individuals will be put in contact with free debt advice where appropriate, so my question to the Chancellor is: where will the extra money come from to pay for the additional debt advice? The free advice sector is already overloaded. Debt advisers are working beyond their capacity and suffering burnout, and many are leaving the sector, despite their commitment to it. More and sustained funding is urgently needed.
Enough with tinkering around the edges. We need a system of simple and straightforward debt solutions, and we must ensure that people, including those on negative incomes, are always able to access the solution that best suits their needs. One part of the solution has to be to reduce creditors’ reliance on bailiffs, whose fees, which rose substantially last year in the middle of a cost of living crisis, are simply added to people’s debts, making them less and less affordable. Bailiffs are often part of the problem, not the solution. We have to encourage creditors—including public sector organisations, the Government and local authorities—to embrace a fairer and more effective system that prioritises affordable payment plans over the seizure of goods.
Of course, we need to prevent people from falling into debt in the first place, so we must look at the issues more holistically. The causes and solutions are complex. Many people affected by debt have multiple categories of debt, spanning lots of regulatory regimes. That complexity is replicated across Government and Whitehall, and laws and regulations span several Departments. For example, the regulation of “buy now, pay later” firms, which is far too delayed—I was really sorry to see that it appears to have been kicked into the long grass—is the preserve of the Treasury. Bailiff fees are an issue for the Ministry of Justice, and prepayment meters are the responsibility of the Department for Energy Security and Net Zero. The Department for Work and Pensions looks after deductions from universal credit, and rent arrears are dealt with the Department for Levelling Up, Housing and Communities—and that is not a complete list. Actually, all those Departments need to work together, and any policies need to have a financial inclusion impact assessment. That would stop many of the policies that are pushing people into more hardship and debt.
This may sound a little strange, but I am looking to introduce a ten-minute rule Bill to regulate e-scooters that use lithium-ion batteries, which will come under the Department for Transport. This is a financial inclusion matter, because it is often the cost of living that causes people to search for cheap bargains online that turn out to be anything but and are actually dangerous.
I will not pretend to have all the answers to the complex issues, but I do know that we have to have a joined-up approach to solving them. Far too many people in our country are struggling with what seems like hopeless debt, and they gain little from the tinkering and short termism of this Budget.
]]>Amendment 4, clause 4, page 2, line 37, at end insert—
“(3) The Secretary of State must lay before Parliament—
(a) a draft of a statutory instrument containing an Order in Council under section 1, and
(b) a draft of a statutory instrument containing an Order in Council under section 2
within fourteen days of the passing of this Act.”
Clause stand part.
Clause 5 stand part.
Clause 6 stand part.
]]>Clause stand part.
Amendment 2, clause 4, page 2, line 27, leave out “or privilege” and insert “, privilege or exemption”.
This amendment is consequential on Amendment 1 and ensures that an exemption conferred by an Order under clause 2(1)(e) can be subject to exceptions set out in the Order.
]]>Clause 3 stand part.
The schedule.
]]>My selection and grouping for today’s meeting is available online and in the room and shows how the selected amendments have been grouped for debate. Please note that decisions on amendments do not take place in the order in which amendments are debated, but in the order in which they appear on the amendment paper.
]]>Government amendments 112, 115 and 116.
]]>Amendment 178, in schedule 2, page 77, line 17, leave out “omit subsection (5)” and insert—
“for subsection (5) substitute—
‘(5) A person is also threatened with homelessness if—
(a) a valid notice has been given to the person under section 8 of the Housing Act 1988 in respect of the only accommodation the person has that is available for the person’s occupation, and
(b) that notice will expire within 56 days.’”
This amendment would maintain the homelessness prevention duty owed by local authorities to persons who have received a notice to vacate a property and would extend it to notices for possession issued under section 8 of the Housing Act 1988.
Amendment 179, in schedule 2, page 77, line 26, leave out “omit subsection (6)” and insert—
“for subsection (6) substitute—
‘(6) But the authority may not give notice to the applicant under subsection (5) on the basis that the circumstances in subsection (8)(b) apply if a valid notice has been given to the applicant under section 8 of the Housing Act 1988 that—
(a) will expire within 56 days or has expired, and
(b) is in respect of the only accommodation that is available for the applicant’s occupation.’”
This amendment would ensure that the homelessness prevention duty owed by a local authority cannot end whilst a valid notice under section 8 of the Housing Act 1988 has been issued in respect of the only accommodation available to that person.
]]>Government amendments 20 to 25.
Amendment 163, in clause 11, page 15, line 14, leave out “£5,000” and insert “£30,000”.
This amendment would increase the maximum financial penalty that local authorities could levy against a landlord or former landlord that they are satisfied beyond reasonable doubt has contravened provisions contained in clauses 9 (inserted section 16D of the Housing Act 1988) or 10 (inserted section 16E).
Government amendments 26 to 41.
Amendment 164, in clause 11, page 17, line 22, leave out “£30,000” and insert “£60,000”.
Government amendments 42 to 49.
Clause stand part.
Government amendments 51 to 54.
Clause 12 stand part.
Government amendments 55 to 59.
Clause 13 stand part.
]]>Amendment 140, in clause 10, page 13, line 11, leave out “three” and insert “12”.
Amendments 140 and 141 would prohibit a landlord from reletting or remarketing a property within 12 months of obtaining possession on the ground for occupation or selling; and from authorising a letting agent to market the property within that period.
Amendment 134, in clause 10, page 13, line 13, after “tenancy” insert
“or on a short-term let or holiday let”.
This amendment would clarify that a landlord cannot let a property as a short-term or holiday let for at least three months after taking ownership of the property for the purposes of them or their family occupying it.
Amendment 135, in clause 10, page 13, line 14, at end insert
“or on a short-term let or holiday let”.
This amendment would clarify that a landlord cannot market a property as a short-term or holiday let for at least three months after taking ownership of the property for the purposes of them or their family occupying it.
Amendment 133, in clause 10, page 13, line 19, leave out “three” and insert “six”.
This amendment would increase the time which must elapse between a landlord taking ownership of a property for the purposes of them or their family occupying it and the landlord authorising a letting agent to make the property available to rent from three months to six months.
Amendment 141, in clause 10, page 13, line 19, leave out “three” and insert “12”.
Amendments 140 and 141 would prohibit a landlord from reletting or remarketing a property within 12 months of obtaining possession on the ground for occupation or selling; and from authorising a letting agent to market the property within that period.
Amendment 142, in clause 10, page 13, line 27, leave out paragraph (b) and insert—
“(b) the tenant either surrenders the tenancy without an order for possession being made or delivers up possession of the dwelling house under the terms of an order for possession.”
This amendment would extend the prohibitions on a landlord reletting or remarketing a property, and from authorising a letting agent to market the property, for which possession has been obtained on the Ground for occupation or selling by court order.
Clause stand part.
]]>Amendment 182, in clause 7, page 8, line 37, at and insert—
“(d) the landlord may not review or withdraw consent once given.”
This amendment ensures that a tenant may keep a pet for the duration of their tenancy once consent has been given.
Amendment 184, in clause 7, page 9, line 2, leave out “42nd” and insert “14th”.
This amendment would ensure that where a request for further information is made on or before the 14th day after the tenant’s request, the landlord may delay giving or refusing consent for a further 7 days if that information is provided.
Amendment 185, in clause 7, page 9, line 15, leave out “42nd” and insert “14th”.
This amendment would ensure that where a request for the consent of a superior landlord on or before the 14th day after the tenant’s request, the landlord may delay giving or refusing consent for a further 7 days if that information is provided.
Amendment 186, in clause 7, page 9, line 16, leave out “7th” and insert “14th”.
Amendment 187, in clause 7, page 9, line 18, at end insert—
“(3A) Where the consent of a superior landlord is required for the purposes of subsection (3), the superior landlord must give or refuse consent on or before the 14th day after the date of the request from the landlord.”
These amendments require a superior landlord to give or refuse consent within 14 days of a request being received.
Amendment 181, in clause 7, page 9, line 27, at end insert—
“(7) The Secretary of State must, within 180 days of the day on which this Act is passed, publish guidance on what constitutes a reasonable ground for refusal of consent to keep a pet for the purposes of this section.”
This amendment would require the Government to publish guidance on what qualifies as a reasonable ground of refusal for a tenant to keep a pet.
Clause stand part.
Clause 8 stand part.
]]>Amendment 159, in clause 5, page 6, line 23, at end insert—
“
(1) Any increased rent which is paid otherwise than in accordance with section 13 or section 13A is recoverable from the landlord by the tenant as a debt claim in the courts.
(2) The Secretary of State may, by regulations, provide for such claims to be recoverable by proceedings in the First-Tier Tribunal, rather than the courts.”
This amendment would ensure that in instances where a private landlord increases the rent without issuing a section 13 or section 13A notice the tenant can seek to recover costs through a debt claim in the court. It also provides the government with the power by regulation for such claims to be recoverable by tribunal.
Clause stand part.
Amendment 201, in clause 6, page 7, line 3, leave out paragraphs (b), (c) and (d) and insert—
“(b) leave out from ‘shall determine the rent’ to end of subsection and insert ‘in accordance with subsection 13(4F)’.”
This amendment would require a tribunal to determine an appropriate rent in accordance with proposed subsection 13(4F).
Amendment 197, in clause 6, page 7, line 13, at end insert—
“(3A) After subsection (1) insert—
‘(1A) In making a determination under this section, the appropriate tribunal must have regard to the original rent agreed with the tenant and subsequent changes in—
(a) Local Housing Allowance;
(b) the average rent within the broad rental market area as assessed by the Valuation Office Agency or as listed in the Property Portal;
(c) the consumer price index; and
(d) median income growth.’”
This amendment would allow the tribunal to take into account not only new rents in the market but current rents in existing tenancies, changes in wages, inflation, and local housing allowance when making a determination.
Amendment 198, in clause 6, page 7, line 25, at end insert—
“(5A) After subsection (5) insert—
‘(5A) Where a notice under section 13(2) has been referred to the appropriate tribunal, then, unless the landlord and the tenant otherwise agree, the rent determined by the appropriate tribunal (subject, in a case where subsection (5) applies, to the addition of the appropriate amount in respect of rates) shall be the same or below the original rent and the increase in consumer price index or medium income growth, whichever is lower over the period since the tenancy started.’”
This amendment would limit tribunals to an upper cap of CPI or medium income growth, whichever is lower, for rent increases.
Amendment 199, in clause 6, page 7, line 25, at end insert—
“(5A) After subsection (5) insert—
‘(5A) Where a notice under section 13(2) has been referred to the appropriate tribunal, then, unless the landlord and the tenant otherwise agree, the rent determined by the appropriate tribunal (subject, in a case where subsection (5) applies, to the addition of the appropriate amount in respect of rates) shall be set using the statutory guidance on in-tenancy rent increases laid before Parliament by the Secretary of State.’”
Amendment 199 and NC66 would require the Secretary of State to issue guidance to tribunals on the determination of in-tenancy rent increases, and require tribunals to take such guidance into account when making determinations.
Amendment 160, in clause 6, page 7, line 27, at end insert—
“(7A) After subsection (8) insert—
‘(8A) Where a notice under section 13(2) has been referred to the appropriate tribunal then, unless the landlord and the tenant otherwise agree, the rent determined by the appropriate tribunal (subject, in a case where subsection (5) above applies, to the addition of the appropriate amount in respect of rates) shall be the same or below the rent specified in the section 13 notice and the rent as determined by the tribunal shall only become payable once the decision of the tribunal has become final.
(8B) A decision becomes final only on the latest of—
(a) the determination of any appeal;
(b) if earlier, on the expiry of the time for bringing a subsequent appeal (if any); or
(c) by its being abandoned or otherwise ceasing to have effect.’”
This amendment would ensure that where a rent assessment is carried out by a tribunal, the rent subsequently determined by that tribunal cannot be higher than that originally requested by a landlord in a section 13 notice.
Amendment 190, in clause 6, page 7, line 38, at end insert—
“(c) no more than the rent proposed by the landlord in the notice served on the tenant under section 13 of the 1988 Act.”
This amendment would mean that the rent payable after a tribunal determination can be no higher than the rent initially proposed by the landlord in the notice served on the tenant.
Amendment 161, in clause 6, page 8, line 20, at end insert—
“which must be no earlier than two months following the date of determination”.
This amendment would ensure that in cases of undue hardship tenants would have a minimum of two months from the date of determination before a new rent became payable.
Amendment 162, in clause 6, page 8, line 21, leave out subsection (4) and insert—
“(4) A date specified under subsection (3)(b) must be no earlier than the date on which the determination becomes final, with a decision only becoming final on the latest of—
(a) the determination of any appeal;
(b) if earlier, on the expiry of the time for bringing a subsequent appeal (if any); or
(c) by its being abandoned or otherwise ceasing to have effect.”
This amendment would remove the requirement for a date determined by a court for rent to become payable in cases of undue hardship to not be later than the date of the determination.
Clause 6 stand part.
]]>