Social Housing: Furniture Affordability

I beg to move,

That this House has considered the matter of furniture affordability and social housing.

It is a pleasure to serve under your chairmanship, Ms Elliott. I am surprised to be starting the debate early—I was taken unawares, but strike while the iron is hot, I always say. I am delighted to be here, partly because this has been a very tricky debate to secure. Every time I go to the Table Office, they rewrite the topic. To get pulled out of the hat, I re-submit it with that same title and it gets rejected, so I have to rewrite the title again. That causes confusion.

Then we had no idea which Department should reply to the debate. Was it the Department for Work and Pensions? Was it the Department for Levelling Up, Housing and Communities? Even the Minister did not know, but I am delighted that she has made it here today. Maybe she will enjoy the experience—who knows?

On hearing mention of the term “furniture poverty”, many people say, “What do you mean?” Some Members did so when I walked in the door. Many take it for granted that they have a chair to sit on, a fridge or freezer in which to keep food and a cooker with which to cook it. Far too many people in this country lack such basics. Some 26% of those in social housing lack one or more of the major pieces of furniture in the average household, compared with just 3% of homeowners.

Take something as basic as flooring. In social housing, more than 700,000 people—9% of those in social housing —do not have any flooring. The situation is worsening because of the cost of living crisis. Furniture inflation is running at 35%, which is even higher than food inflation. Appliance inflation is running at 21%. The answer is not to just go down to IKEA to get something cheap, because inflation at IKEA is at 80%.

The problem is not just the cost of furniture. There are some underlying problems. The first is the lack of a savings culture in this country. The average savings of people in my constituency are just £95, and most people in my constituency could not cope with an unexpected bill of even £500. That puts them in a very vulnerable position in the first place. We could have a whole debate just on the lack of a savings culture.

The second reason is the disappearance of cheap and readily available credit for the most deprived in my constituency. The usual financial service providers have withdrawn from that market entirely, leaving people with nowhere to go for credit other than to those who charge very high costs. That causes further financial problems for them.

The final reason is the lack of microinsurance products. The insurance sector has pulled out of allowing people to pay a very small amount to insure a fridge, cooker or any other piece of furniture. People are therefore flooded with large unexpected bills to replace significant items. When faced with that financial impact, they are often tipped over to the more dangerous forms of lending. I can spare the Minister a debate on illegal moneylending, but only because I recently had an Adjournment debate on the subject. Those unexpected bills push many in my constituency into risky doorstep lending. Often they borrow from illegal moneylenders, but sometimes they borrow from friends or family members. That is a type of illegal moneylending that is quite disguised, and it is a real problem.

Furniture poverty is not just about lacking items, but about the associated costs. The charity Turn2us calculates that not having a cooker can add more than £2,000 to the annual expenses that an average family of four face, because it means that they must rely on takeaways, which are becoming increasingly expensive. People who do not have a fridge cannot buy in bulk, store food for the future or plan meals. That leads to further costs, as they must rely on local convenience stores—again, we could have a separate debate on the difference between food prices in convenience stores and in supermarkets. Lacking a washing machine adds about £1,000 to the average bills of a family of four, because they have to go to the launderette to wash their clothes, which they often require for work. Launderettes are a rapidly disappearing phenomenon anyway, and significant energy costs mean that the prices they charge are going up.

There is a vicious, vicious cycle here. Let us take two examples. People may think that a dining table is almost luxury item and not necessary for a household at all—that it is something someone might go to John Lewis for, perhaps. I would argue that if we are talking about social mobility and life chances in my constituency, nothing is more important than the dining table. In smaller houses, that is where children do homework. If they have nowhere to do their homework, their educational performance will decline. There are 2.4 million people in this country who do not have a dining table, so when I hear about social mobility and everyone fretting over how to get more working-class people into Oxford and Cambridge, that is not “life chances” to my constituents. To my constituents, “life chances” means having a dining table as a space to do homework—something as simple as that.

I mentioned flooring earlier. I would love to have an hour-and-a-half debate on flooring. I put the Minister on warning: that is on the way.

Flooring?

Flooring, yes—I am about to talk about it. You will learn something. End Furniture Poverty, the charity that has helped me on this topic, is doing a separate piece of work on the issue of flooring, which I will come on to.

Let me share a quote from one individual in social housing. He says:

“It’s cement downstairs and upstairs it’s wood with a lot of nails sticking out. It is a hazard…I have a young child.”

The lack of flooring is perhaps one of the great unknown scandals of 21st-century Britain. When someone enters into a new social housing tenancy and moves into a new flat or property, in all likelihood the social housing provider has ripped out the flooring in advance, often when it is in perfectly good condition. They do so because they believe that that is what they should do with void tenancies, and it means the person moving in is faced with a great bill to replace the flooring. Often it is simply beyond their means and capacity to afford it.

Will the hon. Gentleman give way?

I was waiting for the moment. I was looking eagerly at the hon. Gentleman, and he has finally taken the bait.

I commend the hon. Gentleman for bringing this issue forward. Covid had a medical effect on everybody, but it also brought about many broken relationships. What I have found in my constituency over the last three years is that families are parting because of domestic abuse, and the ladies are moving with their children into houses that are not furnished. In my area, I am fortunate that we have churches and charity groups that can help to furnish houses, but there are so many domestic abuse cases that not everybody can be helped. I support what the hon. Gentleman is putting forward. At this stage, maybe the Government, and particularly the Minister, should be looking to see what can be done to help people who have had to move out of their property because of domestic abuse and who find themselves with nothing but the clothes on their back, and certainly not the furniture that they need for their house.

I agree entirely. The hon. Gentleman makes a very important point, and he anticipates my 13th point, which I will come to, about why that does indeed matter.

The Minister might have thought that I was acting as a Labour Member of Parliament for the past few minutes, as I have been bemoaning the state of affairs and demanding that more be done. Of course the Government are doing something, but the challenge is that local government is not quite doing its part as well. The Minister will be more than aware of the local welfare assistance scheme. It is worth £167 million, which has been passported over to local councils to disburse as they see fit. Unfortunately, not every council uses that money to its fullest extent.

It is a wonderful pot of money, because it allows so many options: for example, that is where those fleeing domestic violence ought to go for help and support. The whole point of the local welfare assistance scheme is to meet that sort of need, but unfortunately, as End Furniture Poverty has discovered, 35 councils have now scrapped their local welfare assistance scheme, despite getting funding from the Department for Work and Pensions. Many more are spending less than 10% of what they have been allocated, which means that the burden is falling on a wider range of groups. Many charities, benevolent organisations and even churches are filling the gap that councils ought to be filling, including, sadly, Blackpool Council, which I gently chastise. I do not normally do that, but in this case I do, because it has shrunk its LWAS budget. The local welfare assistance scheme is there, but it is not being used by councils.

I urge the Minister not to overlook the existence of the local welfare assistance scheme, because since I started banging on about local welfare assistance about three years ago, the pandemic has come along, as has the household support fund, which dwarfs the LWAS in budget. The Minister now has a choice to make, and I am keen to hear her views. The household support fund is being put to so many different uses by so many different councils that it is marginalising the local welfare assistance scheme, but that means that there is now a focus on targeted pots of money for grants given to particular groups in society, which is how the household support fund has been devised, defined and decided on. That means less focus on the situation-specific support that is needed, such as for those fleeing domestic violence —as the hon. Member for Strangford (Jim Shannon) said—who get squeezed out of the household support fund. If local welfare assistance schemes are not maintained, people cannot access the emergency support that they need to replace their furniture and white goods.

I thank my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard) for his tenacity in securing this debate. I also thank you, Ms Elliott; it is a pleasure to serve under your chairmanship. It is a pleasure, too, to respond to my hon. Friend. I thank him for his typical care and great regard for the most vulnerable in his community and our society, and for his focus on basic life chances, which are incredibly important. I hope to provide a multitude of responses for him this afternoon.

I am keen to touch on launderettes. The cost of those small businesses—particularly for those in work, those caring, those who need suitable drying facilities and small businesses that want to support people in the community—has been a great concern to me as a constituency MP. We should all be very mindful of that. The hon. Member for Strangford (Jim Shannon) spoke about domestic abuse, and I am keen to pick up on that point shortly.

I reassure the House that we are committed to a strong welfare system that, most importantly, supports those who are most in need, as my hon. Friend the Member for Blackpool North and Cleveleys pointed out. In 2023-24, we are spending around £276 billion through the welfare system of Great Britain and around £124 billion on people of working age and their children. For 2023-24, we have increased benefit rates and state pensions by 10.1%.

The decisive action that we have taken over the past year and during the pandemic reflects our commitment to protecting the most vulnerable in these changing economic conditions. I am proud to be the Minister who is taking forward the next stage of the cost of living payments, made up of £650 to more than 8 million low-income households. This year, a similar number of eligible households are receiving their first payments of up to £900. I am pleased to confirm that we have made 8.3 million payments of £301—the first cost of living payment this year—to people on means-tested benefits. I was also pleased to sign the regulations that will provide more than 6 million people across the UK on eligible “extra costs” disability benefits with a further £150 disability cost of living payment this summer, to help with additional costs. Included in our cost of living support package is the energy price guarantee, which continues at the same rate until the end of June.

I thank the Minister for that; it is helpful and encouraging. My understanding is that, during covid, there was a phenomenal number of relationship breakdowns and that domestic abuse was part of the reason in many of those cases. That means that a wife or partner and the children move out and they have nothing. When it comes to the large number of people who need that service, is there enough and adequate money to assist them when they need it?

I reassure the hon. Member that I am looking at every area—including policy, universal credit, work across Government, work with the Domestic Abuse Commissioner and work across the violence against women and girls piece with the Home Office—to make sure that that is exactly the case. There is work to support people to get, stay and declare in work, as well as the Ask for ANI and J9 programmes in our jobcentres, so that nobody coming forward feels that their finances need to keep them in an unsafe place. I remind the House: this is criminality in the home and it needs to be stopped and declared, and those who are impacted should be roundly supported. I hope that helps the hon. Member.

On the local welfare funding assistance, my hon. Friend the Member for Blackpool North and Cleveleys mentioned part of the unringfenced local government finance settlement. Councils do not have to provide local welfare assistance, but HSF is a form of that, and I understand his points. Many councils provide upstream support to stop people falling into destitution, and some of the things that he said about that are concerning. I am concerned about how this works and interacts with the household support fund, so I undertake to look closely at what he said. Blackpool Council, for example, provides its own discretionary support scheme, which can provide the essentials that he mentioned. Some local authorities operate local welfare schemes beyond the household support fund for essential costs. However, his point was incredibly well made.

On helping people with funding to manage the cost of living challenges, I point the House to the work of the Department for Culture, Media and Sport, which recently announced a new allocation of £76 million of dormant assets funding. That includes £45 million for financial inclusion programmes delivered by Fair4All Finance. Beneficiaries include 69,000 individuals struggling with their personal finance, who will have access to a no-interest loan to help them to get out of problem debt. As my hon. Friend said, it is so important that we unlock every way of helping people to make good choices.