5. Statement by the Minister for Housing and Local Government: Housing, Poverty and Communities

Part of the debate – in the Senedd at 5:25 pm on 15 September 2020.

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Photo of Julie James Julie James Labour 5:25, 15 September 2020

Unfortunately, the Audit Wales report was a report that's very retrospective. I've had good meetings with the auditor general about what we can do to look at the provision going forward and how we can learn from the lessons in collaboration and the different approach that we had during the pandemic. So, I'm very happy that they are going to work well with us in terms of taking those lessons learned forward.

In terms of landlords and tenants, the vast majority of people who are struggling in the private rented sector are tenants who, through no fault of their own, have had their income reduced as a result of COVID, and now can no longer pay their rent, when they've always been able to do so whenever in any difficulty. So we announced a series of things to do that—myself and Jane Hutt combined have announced a set of provisions around debt advice and debt counselling and support and advice services across Wales to help people who are dealing with that. We've also announced the tenancy saver loan scheme. Those tenancy saver loans, Mark, are paid to the landlord, so the tenant requests the loan, we've been able to do them at a 1 per cent interest through our credit unions—again, something Wales should be rightly proud of. So there's virtually no cost to the tenant, allowing them to spread the cost of paying back the arrears over five years in an affordable way alongside help and support. But they're paid to the landlord so that the landlord gets the income on the rent and the tenant maintains their secure home. 

The thing about private sector landlords is of course it's an income for them, but the house is somebody's home. It's where they say, 'I'm going home', and they mean that person's business proposition, but for them it's a home, and that's the most important thing—that we make sure that they can maintain that home, and that we don't have a flood of people who are put into awful circumstances in which they find themselves unable to pay their rent, and they can't recover. So, on that basis, I call on the Conservative Government once more to make sure that the local housing allowance stays at at least the 30 per cent mark where it is now, that they really consider putting it back up to the 50 per cent mark, which is where is should be—and when it was first conceived by a Labour Government, that's where it was—and that they certainly don't reduce it back down to the levels that we saw before the pandemic when it was—and I said this in a Plenary debate with you, Mark, before—lower than in the poor laws in the Elizabethan era. Because that is something we should all be ashamed of. So, I really do call on the Government to do that, and I hope the Conservatives in the Welsh Parliament will assist us with that call, because if people have their local housing allowance reduced, then we really will have a big problem with the private rented sector.

The landlord who is in the position you mentioned, with difficulties with their income and so on, will also, of course, be able to access the debt advice that I've just discussed, because that's open to all citizens of Wales, and I would recommend that. If you want to give me details, I can pass that on for you. 

The Conservative Government in England has announced a stay on possession proceedings because they too can see that there's a big problem with people who, through no fault of their own, can no longer pay their rent, and I'm very happy to welcome that, and the approach of the courts in making sure that, before anyone can take eviction proceedings for rent arrears, they must go through a protocol with their tenant to make sure that they understand the nature, and that it isn't possible to make a long-term arrangement for the repayment of those arrears. I really welcome that. It's very much in line with where we're going. 

Then in terms of the poverty issues that you raised, Mark, just to say that that's exactly what I was saying in my statement—that what we need to do is build on community strength, maximise people's income and make sure that we put them in the best possible position. So I couldn't agree more with you that we need to work with our communities to make sure that people have a streamlined approach to being able to access the right advice. I recently had a very good meeting with the Bevan Foundation in which we agreed to work together on an action plan for being able to bring that forward, and I look forward to being able to do that very shortly.

Then on the fuel poverty strategy, I'm delighted to say that, unlike the approach in England, where we're just having a one-size-fits-all approach, we've recently announced the optimised retrofit programme, where we're asking a series of landlords across Wales to come forward with a range of different types of housing so that we can see what best retrofit can happen to make those houses better insulated. There is no one-size-fits-all. What works for a Victorian terraced house in the Rhondda does not work for a cavity wall house built in the 1970s in Rebecca's constituency, for example. They're very, very different propositions, and the idea that one fit would work for all of them just does not work. So, our programme will bring forward a series—in the way that our innovative housing programme did, it will bring forward a series of potential solutions to that, and then we'll be able to roll that out as part of our fuel poverty and our Warm Homes initiative, and we'll get the right fit for that. And, in doing so, not only will we reduce fuel poverty, but we will of course decarbonise the housing stock in Wales and produce a home-grown industry of skilled people who can do that right across our housing sector. Diolch.