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Housing (Scotland) Act 2006 (Scheme of Assistance) Regulations 2008 (Draft)
Good morning everyone and welcome to the 28th meeting of the Local Government and Communities Committee in 2008. As always, I remind everyone to switch off their mobile phones and BlackBerrys.
I hope that it will assist the committee if I make some opening remarks at this point, if that is acceptable.
I welcome that.
The main aim of the draft Housing (Scotland) Act 2006 (Scheme of Assistance) Regulations 2008 is to set out a revised system of financial assistance for the cost of adaptations to the home of a disabled person. The 2006 act paved the way for creating a clearer distinction between financial assistance for adaptations and assistance for repairs and improvements. It does that by giving ministers powers to make regulations specifying what form of financial assistance should be given for certain types of work.
I very much welcome the changes that are proposed under the 2006 act. The minister is absolutely right that the regulations will help those who are in need of adaptations. However, paragraph 14 of the Executive note that was circulated to members states:
It is realistic. Local authorities have in general welcomed the changes. Most local authorities have accepted that there will be few or no financial implications for them. A small minority of local authorities had concerns but, after further discussion with the Convention of Scottish Local Authorities and the authorities in question, misunderstandings about the regulations were cleared up. There is no doubt that a small number of authorities may have to consider increasing the amount that they spend in the area. It is not wrong that they do so and it is manageable. Local authorities will shift their priorities away from grant for additional works and repairs towards loans and other funding methods, and they will transfer the resources to adaptations. In that scenario, the measures are manageable within existing resources.
I asked the question because I am sure that I am not the only MSP who has had constituents approach them about adaptations issues. In the end, some people decide to pay for adaptations themselves, rather than go through the means-testing process and all that that involves. In many cases, their families pay. I hope that such people will now be better able to access grant, but I wonder what impact that will have.
The change from 50 per cent minimum grant to 80 per cent will be of great assistance to people who require adaptations. The abolition of the test of resources will mean that local authorities will allocate grant on the basis of need: whether people need help and what help they need. Beyond that, for repairs, people will consider what resources they can bring in. However, for adaptations, the 80 per cent minimum grant will be very welcome. Even though the current minimum grant is 50 per cent, research indicates that many local authorities currently provide grant on average at about 80 to 85 per cent. That suggests that the change in policy will not have a financial impact on local authorities. Many disabled people will, of course, get a 100 per cent grant. Indeed, that will be the norm in many cases.
I hope that the regulations will lead to more people feeling able to approach their local authorities for assistance, but are you concerned about the ability of local authorities to deal with that demand?
Many such policies are demand led to a great extent, but I do not expect a sudden surge in demand. There is no expectation that there will be a sudden increase in the number of people who come forward. Many structures that are currently in place identify people with difficulties. Adaptations are intended to help people maintain their independent living, and people come to the attention of the social services, health authorities and others when there is a problem. We have pretty much identified those who require help, and I do not foresee a big change in demand between now and when the regulations are in place.
I will follow on from Mary Mulligan's line of questioning.
For the reasons that I outlined in answer to the previous question, I do not expect a sudden surge in the uptake of grants. The majority of local authorities responded to the consultation and said that they were content with the proposals and that they did not expect them to have additional budgetary implications. They did not identify the possible problem that you have outlined; rather, they expected to contain the grants, and the costs of other actions that they will take, within their existing budgets.
I welcome the minister's response. You said that the minimum grant level will change from 50 to 80 per cent. My fear is that because local authorities have a set annual budget and receive numerous applications for grant, they might decide to reduce the level of grant available for each adaptation that is carried out. I refer to my earlier example of creating a wet room: the money to carry out such an adaptation might be reduced in line with the level of grant that is set.
The key point, as I mentioned earlier, is that we know from the consultation responses that we have had and the research that was done that local authorities are, in the main, providing grants of on average 80 to 85 per cent of the cost of the adaptation. The change that is being made reflects what local authorities already do. There is no sudden surge in grant levels from 50 to 80 per cent in the way that you suggested; we are reflecting the reality on the ground. It is true that for many families we are making it much simpler and providing a much higher level of grant, but we are reflecting what local authorities do on the ground, within the existing budget.
The Executive note makes it clear that
You are right that the situation concerns more than just crofting. Local authorities retain the discretion to provide grant; that has not been removed. Tenant crofters, for example, will be unable to access other forms of equity, so I imagine that grant would be the norm in such cases. However, for owners of crofts or decrofted houses, there may be a case for equity release and other aspects to be taken into account for any changes. I do not mean adaptations, but the kind of repair work that we have talked about.
On a related issue, did you consider in your discussions the issue of rising building costs and where that fits into the picture? Do you have any observations on that issue as it reflects on both repairs and adaptations?
Not particularly. The regulations are for the long term and are, I believe, a change for the better. One of the underlying problems for grant levels, particularly for repairs, is that, as research has made clear, there is in the region of £5 billion of disrepair in the private housing sector. There is no way we can solve those problems through grants. As other members' questions indicated, there is a continual demand and a waiting list for people to make the required changes.
To put what is proposed into perspective, can you indicate how many grant applications local authorities have approved under the existing scheme in the past few years?
If you do not mind, I will hand that over to my officials, who have the details.
The total cost of all grants in 2007-08, including repair and adaptation grants, was £58 million. Just over £20 million of that was for adaptations, which amounted to about 5,500 grants.
Right. I am trying to do the arithmetic.
I did not catch that. What was the total cost?
Do you mean for adaptations or for the total, including repairs?
I think you mentioned the total.
The total given out in grants, including for repairs and adaptations, is about £58 million.
That is fine. Excuse me for interrupting.
That is for 2007-08.
But the grants that we are talking about with regard to the regulations are a subset of that.
That is right. For the adaptations, we are talking about £20 million.
And that effectively financed 5,500 grant applications.
That is right.
Given that the cost to the public purse from the changes in the regulations is expected to remain at around £20 million, do you expect the number of adaptations to increase, decrease or remain the same?
I would certainly not expect it to decrease. We will have to wait and see—and we will review the matter once the regulations are in place—but there are two likely outcomes. Either individual adaptation cases will continue at the same rate, or more could be done, for the reasons that I gave Alasdair Allan. If local authorities use loans more often for repairs and improvements, there will be more money to use for adaptations because there is no financial barrier between the two parts of the mechanism; local authorities can balance how much they spend on one or the other. Therefore, I expect the number of adaptations to stay roughly the same at first, but perhaps increase in future because local authorities will be able to focus slightly more grant on adaptations for disabled people.
Do you have an indication of the current waiting time between application, assessment of the applicant's need and implementation of the works that are approved and authorised? Is there some handle on how long it takes for somebody's adaptations to be done?
It will vary case by case because the assessment that takes place at the beginning of the process determines the case's level of priority. People in the priority 1 group are likely to get their adaptations sooner than those in lower priority groups. The assessment is based on need and is carried out by professionals on the ground. Therefore, it is difficult to give you an exact figure.
Is the system national, and does it ensure that priority 1 is the same in Edinburgh as it is in Glasgow?
It is for local authorities to carry out the assessment but, roughly speaking, it is the same. The prioritisation is based on need and on whether the applicant requires adaptations to stay in their home and remain independent rather than depend on other assistance or move into supported accommodation. Roughly the same process is gone through to identify need, but individual local authorities can vary it. It also depends on how much resource a local authority applies to that part of the overall support that they provide.
Are you saying that different local authorities would prioritise a particular disability differently as priority 1, 2 or 3? That does not seem reasonable to me.
The basic point is that it is roughly the same. Local authorities do the local assessment on the ground.
The whole grants system that the regulations will introduce is, in many ways, about reducing elements of discretion and making things that are discretionary mandatory. As I understand the answers that have been given, the length of time taken to implement a programme of works will depend on what priority the person has been given, which will differ according to levels of need. Surely it is sensible that people with a particular need or disability should expect the same categorisation and prioritisation whether they live in Glasgow or Edinburgh. One would not expect the categorisation that is given to a particular form of disability to be different in Glasgow from that which applies elsewhere in the country. Surely there must be some kind of national guidelines or rules that set out what the priorities should be.
Under community care legislation, social work departments use community care assessments to identify needs. That operates across the country. However, authorities must have local flexibility for the volume of cases that they have and how quickly they can deal with those. Authorities can prioritise people as priority group 1 or priority group 2 but, in effect, their highest priority group will be the ones that they will fund first.
I understand that, but what I am trying to get to the bottom of is the timescales involved. The response to my first question on how long people will wait was, quite rightly, that that depends on the applicant's priority category. That is fine, and I understand that. However, are the different priority categories constant—that is, assessed the same way—across the country? Having established that the priority categories are standardised across the country by reference to levels of disability and need, I had hoped then to ask how long people might expect to wait if they are a priority 1 case or a priority 2 case. Those seem reasonable questions.
I do not dispute the reasonableness of the questions. The difficulty is that individual cases are just that—they are individual cases—so it would be difficult to give a timescale for everyone who is in a particular category. The variation in any category would be such that local assessment would still be required. Community care assessment must identify the impact of the disability, the likelihood that the individual will require the adaptation either now or at some point in future and whether the individual will need supported care or other support in addition to the adaptations.
I am grateful for that clarification.
Certainly, my hope is that things will speed up because of the reduction in bureaucracy. That will not happen immediately, but in the future there should be, for ordinary repairs to properties, a shift in emphasis away from grants and towards loans and other methods of support. That should release funds for investment in other parts of the system, which should speed things up.
Will the Scottish Government be able to monitor whether such improvements have in fact occurred?
We will do research post the implementation of the regulations.
I seek clarity on an issue that follows on from that questioning. You mentioned the demands on local authorities that arise from establishing priorities and the volume of applications. Are you confident that the different criteria that are applied in assessing need and disability in different local authorities are not used to manage demand and volume, rather than to meet the needs of disabled people? Have officials done any work on that?
The regulations will not change the assessment of need—that will remain as it is now. However, my expectation is that the assessment should be based exactly on the needs of individual clients and not on the authority's budget or on any other reason to do with the administration or management of the system. The system that we have in place for supporting people in their homes involves more than just the regulations, as social work departments and community care legislation are also involved. That probably works against the premise that the assessment process could be used as a tool for managing lists.
To all intents and purposes, the policy is a good-news story. However, I just wonder whether the Parliament's and the Government's reputation is being put at risk, because we may be exciting expectation when, at the point of delivery, the regulations may not achieve the desired outcome or meet the expectations of people on waiting lists. I asked whether, as part of the process, work was carried out to establish whether the criteria are being used to manage waiting lists. I presume that no work has been done and that the opportunity has not been taken to confirm whether that occurs.
We considered many of the circumstances surrounding the current system before we introduced the regulations. The regulations and the legislation are clear on local authorities' responsibilities and their duty of care: not only must they identify on the basis of need, they must meet that need in a reasonable time. I certainly do not expect authorities or individual officers to attempt to use the categorisation of people as a tool to manage waiting lists. As I said, we are not changing the current assessment process in the new system. The assessment of need will remain as it is at present.
Mr Blair said that £20 million had been spent on disabled adaptations. I make that an average of £3,636 per adaptation carried out. That leaves £38 million that has been spent on repairs. It would be useful to find out how many repairs were carried out with that money. I also draw your attention to paragraph 15 of the Executive note, which refers to the £20 million being continued in 2008-09 but also refers to a total of £67 million. There seems to be an increase of £9 million for repairs but no similar uprating for disabled adaptations.
The £67.3 million that is mentioned in paragraph 15 is the overall budget. Money within that sum will be used for other things, such as the private rented sector and some other allocations. The figure that David Blair provided was the total figure for adaptations and repairs, which is contained within the overall budget of £67.3 million. It is not that there has been a large increase in the budget, all of which will go to repairs and none of which will go to adaptations; the money is used for other activities within the private sector housing grants. I hope that that clarifies that point.
I never got an answer to my question about how many repairs were carried out under the £38 million budget.
I am sorry, but we do not have that figure at the moment.
I am sure that you will be able to provide it, minister.
Yes.
The regulations seem to improve the situation for those who are applying for adaptations and to give local authorities a bit more leeway in how they deal with that.
I remember the case that you wrote to me about. My understanding is that that is much less likely to arise in future because there will be much more local flexibility and local authorities will be able to take decisions by themselves.
I am struggling to find the exact section of the 2006 act where it says that if a local authority chooses to give a grant in future, it will have the power to apply conditions. It would be for the local authority to decide whether to apply a condition that, for example, the grant would be repayable if the person moved within a certain period. That would be a matter for local discretion.
The point is that we will not impose the application of such conditions on them; they will have the right not to apply such a grant condition.
The concern was that local authorities would have to go through what seemed like a bureaucratic process. I just think that it would be more sensible—
That should not be the case in future because local authorities will have local discretion.
There being no further questions, I thank the minister and his officials for their help and participation.
Motion moved,
That the Local Government and Communities Committee recommends that the draft Housing (Scotland) Act 2006 (Scheme of Assistance) Regulations 2008 (SSI 2008/draft) be approved.—[Stewart Maxwell.]
You have the opportunity to speak to the motion, minister, although I presume that—
I will pass on that opportunity.
Thank you. It appears that no member wishes to debate the motion. I invite the minister to wind up.
Thank you, convener, but I think that I covered all the issues previously.
Motion agreed to.
Thank you for your attendance and evidence this morning, minister.
Notice to Local Authorities (Scotland) Regulations 2008 (SSI 2008/324)
Item 3 is to consider a negative instrument. Members have received copies of the regulations and no concerns have been raised. No motion to annul has been lodged. I invite members to consider the regulations.
I do not object to the Scottish statutory instrument on the procedure for notification when people might be rendered homeless as a result of repossession actions by landlords or creditors. However, I am interested to know what mandatory action is required on the part of a local authority that receives such a notice. Is the notice just neatly filed in the housing department, or does another set of regulations require the local authority, on receipt of such a notice, to contact the landlord, tenant, lender or borrower and provide advice, for example? What happens thereafter?
We can write, but I remind members of our recent discussion in which we said that if members have questions about SSIs, with a bit of notice, we can have officials along to answer them. I ask members to bear that in mind. If members are content to agree that they have no recommendations to make on the regulations, we can write to officials and get some answers to David McLetchie's question. The alternative would be to invite officials to attend a further meeting so that we can ask them personally.
If you wanted to do that, convener, it would have to happen next week. However, we can seek an answer to the question in writing.
As I have said, I have no objection to the principle of notifying councils in that situation. However, it would be useful to know what happens thereafter and in particular whether there is any mandatory requirement on local authorities to take a certain course of action.
Are members content for me to write to officials, seeking answers to those questions?
Members indicated agreement.
In that case, are members agreed that we have no recommendation to make to Parliament on the regulations?
Members indicated agreement.