COMMISION ON HOUSING AND WELLBEING – SCOPING PAPER

The Purpose of the Commission

The Commission will be asked to consider the relationship between housing and wellbeing for the people of Scotland in the second decade of the 21st century. It will also be asked to recommendnational housing priorities and policies that should be adopted to foster and sustain wellbeing for all the people of Scotland.

What do we mean by “Wellbeing”?

We envisage that a possible starting point for the work of the Commission would be the concept of “wellbeing” developed by Oxfam in its work on constructing a Humankind Index for Scotland.[1]The aim of this work is to move beyond measures of progress that focus exclusively on economic growth and consumption to a more comprehensive assessment based on all the assets that are important to people. Oxfam’s index of wellbeing includes 18 “sub domains” which are weighted according to the importance currently attached to them byconsultees in Scotland. The two highest priorities were attached to housing and health. The Oxfam report on this work includes the following observation:

“Despite decades of economic growth, regeneration and anti-poverty policies, many Scots face a life characterised by high mortality, economicinactivity, mental and physical illhealth, poor educational attainment, and increasing exclusion from the dominant mode of economic development. It seems thatin pursuingeconomic growth without sufficient regard to its quality and distribution we are chasing the wrong goal”

Housing and Wellbeing

The Oxfam report reflects the importance attached to satisfactory housing as a fundamental pre-requisite for wellbeing. What constitutes “satisfactory housing” has been well debated and most commentators would consider that it includes housing quality (the size, facilities and state of repair of the house), affordability (cost in relation to household income) and security (the extent to which there is an actual or potential threat to continued occupation). But is part of the current conventional wisdom that “location” is also important and that it is difficult to separate this from factors relating to the house itself.Location would include the quality of the local neighbourhood and community both in physical and social terms.

Although the importance of satisfactory housing to wellbeing is widely accepted, the role of public policy in providing and encouragingsatisfactory housing has been debated extensively over the past 100 years or more. Opinions differ on the extent and nature of any state intervention required to secure satisfactory housing i.e. the mix of direct provision of subsidised housing, to financial and other incentives, laws and regulations to specify minimum standards and protect households “at risk” and advice and information.But it is evident that, currently in Scotland, the market itself is not able to guarantee satisfactory housing for all.

As housing is clearly important in its own right to the welfare of the people of Scotland, we anticipate that the Commission may want to consider what broad mix of public policies and state interventions are relevant to achieving satisfactory housing in Scotland.

Housing Policy as a Contributor to Tackling FundamentalWeaknesses in Scottish Society

Since devolution, there has been a shared desire by the various Administrations to try to tackle some of the longstanding social, economic and environmental problems that have bedevilled Scottish society in the recent past and at the current time. Although not a comprehensive list, this would include:

  • A growing problem of health inequality that has seen increasing disparities in life expectancy and levels of sickness between affluent and less affluent communities in Scotland and between Scotland and other Western countries notwithstanding substantial public spending on the NHS.
  • The growing demands on the health and social care services resulting from demographic change and, in particular, the increasing numbers of older persons and households.
  • The failure of the economy to provide sufficient and sufficiently rewarding employment opportunities to offset the loss of jobs through de-industrialisation throughout Scotland but, particularly, in the former industrial heartland of West Central Scotland – again notwithstanding decades of regional economic policy.
  • A continuing problem of underperformance by too many Scottish children and the emergence of the problem of “young people not in education or training” notwithstanding the priority given to expenditure on education and the strong tradition of learning in Scotland.
  • The persistence of poverty in many communities in Scotland often linked to the problems mentioned above, and concentrated, particularly, in areas of multiple deprivation in Scottish towns and cities notwithstanding over 40 years of urban regeneration programmes and deprivation initiatives.
  • A recent awareness of growing disparities in wealth and income in Scotland, mirroring trends in other post industrial Western societies, and a fear that this may hamper further progress in the reduction of social inequality and the provision of opportunities for social mobility.
  • The challenge of environmental problems resulting from Scotland’s industrial legacy, past housing and planning policies which have created too many “soulless estates”, and the growing recognition of the need for sustainable ways of living which reduce our demand on the world’s limited resources.

We would like to see the Commission reviewing each of these issues and others that it may consider important and make suggestions for the way in which housing policy might make a significant contribution to the achievement of relevant Government objectives.

For the purposes of organising the work of the commission, it might be helpful to brigade these various issues into 3 broad groupings:

  • Housing and health wellbeing (both physical and mental health) taking account of health inequalities and the impact of demographic change
  • Housing and social wellbeing taking account of educational underperformance, lack of employment opportunities and the persistence of poverty
  • Housing and community wellbeing taking account of local environmental problems and neighbourhood quality together with the need to achieve sustainable ways of living.

The attached Annex A provides a resume of relevant current Government outcomes and indicators (as set out in the National Performance Framework)[2]and current policy frameworks for achieving these are set out below together with some, initial suggestions for ways in which housing initiatives might contribute.

The Financial Context

It will be important for the Commission to take account of the financial context to public expenditure currently and as anticipated for at least the next few years. Annex B gives more detail, but the key points are:

  • The Scottish Government is very largely dependent on the assigned budget provided by the UK Government under the devolution settlement.
  • In line with the UK Government’s plans to reduce public expenditure with the aim of reducing public sector debt, the Scottish assigned budget has been substantially reduced in the current spending review period and further reductions are expected following the conclusion of the UK spending review which is currently underway. Other UK public sector expenditure reductions not relevant to the assigned budget, for example, welfare reform, will also have a significant impact on Scotland.
  • The Scottish Government undertakes its own Spending Review to determine the allocation of the assigned budget and other income to specific programmes. In relation to housing policy, the Scottish Government has made 2 important changes. Firstly it has abolished a raft of ring fenced programmes so that local authorities now have more discretion on how to allocate their funding allocation. Secondly it decided in the last Spending Review (announced in September 2012) to disproportionately reduce the allocation for capital expenditure on affordable housing.

Conclusion

Commission members are asked to note the points made above and in the Annexes and take them into account in deciding on their future work programme.

Shelter Scotland

June 2013

ANNEX A

Health Inequality

The Performance Framework – National Outcomes and Indicators

The 2 most relevant national outcomes are:

  1. “We live longer, healthier lives” and
  2. “We have tackled the significant inequalities in Scottish society”

There are numerous national indicators relevant to these outcomes including:

  • Increasing the proportion of babies with a healthy birth weight and the proportion of healthy weight children
  • Improving mental wellbeing
  • Reducing premature mortality
  • Reducing the percentage of adults who smoke, alcohol related hospital admissions and the number of individuals with problem drug use.

The Current Policy Context

The policy framework for tackling health inequalities is set out in the report of the Ministerial Task Force on health inequalities “Equally Well”[3] initially published in 2008 and subsequently reviewed in 2010. The original report contains some 78 recommendations.

The Annual Report of the Chief Medical Officer, Health in Scotland 2011[4] sets out a thoughtful analysis of health inequality in Scotland. This includes the following points:

  • We are currently bottom of the league in relation to male life expectancy in comparison with other western European countries, but we only began to fall behind in the 1960s
  • The location of areas with the poorest health in present day Scotland points to the loss of jobs in heavy industry, leading to a loss of self esteem and lack of a sense of control, as the catalyst for decline
  • Most indicators of health inequality suggest that the gaps between affluent and poorer areas in Scotland have not materially changed for the last 10 years.
  • It would be wrong to suggest that the origins of health inequalities are simply a reflection of unequal access to healthcare
  • Conventional approaches to the problem involving attempts to modify the health related behaviours of poorer people have failed and that, instead action should be focussed on the social determinants of health.

Possible Housing Initiatives

The 78 recommendations in Equally Well do not address housing policies and initiatives directly although there are some oblique references in recommendations for “evidence based environmental improvements to promote healthy weight”, “giving high priority to children’s play areas and recreation areas for young people generally” and for the Government to consider “whether improvements in health and reductions in health inequality can be expected as a result of Government action on fuel poverty”.

The Commission may wish to consider if housing could and should play a more substantial role than this and consider, for example:

  • Whether poor housing conditions such as dampness, poor energy efficiency, disrepair and overcrowding have a continuing impact on health inequalities either directly or in combination with other problems
  • Whether problems of housing security, either in extreme forms such as homelessness or rooflessness, or simply, anxiety about housing costs and security of tenure are a significant cause of health problems
  • Whether housing conditions cannot be judged solely by the inside of the home but also by the quality of the neighbourhood and the services it provides and, if so, whether this wider view of housing quality has a significant impact on health inequality.

The Growing Number of Older Persons in Scotland

The Performance Framework – National Outcomes and Indicators

The relevant National Outcome is:

“Our people are able to maintain their independence as they get older and are able to access appropriate support when they need it”

And this links to the following national indicators:

  • Improving support for people with care needs, and
  • Reducing emergency admissions to hospitals.

The Current Policy Context

The Scottish Government has undertaken a major policy review aimed at improving services for older people by shifting care towards anticipatory care and prevention. This review was prompted by the recognition that the older population of Scotland is projected to increase by around two thirds over the next 20 years The conclusions of this review are set out in the report “Reshaping Care for Older People: A Programme of Change 2011-2021”[5] and the Government has also established a Change Fund for Health and Social Care Partnerships to help facilitate change in the way in which care is delivered.

Housing Implications

As the main thrust of this initiative is to create the conditions for older persons to stay in their own homes for as long as possible, there is a clear focus on both the role of housing and social care in the community. The Programme of Change report refers to 5 areas where housing makes a contribution and where improvements are needed – better delivery of housing adaptations, more “special needs” housing designed to appropriate standards for frail older persons and those suffering from dementia with appropriate care and support, the expansion of “low level” preventative services such as handyperson services, the development of equity release and shared ownership to allow older persons to make better use of their assets and a review of building and design standards. These themes and others have been developed further in the Government’s Strategy for Housing Older People 2012 -2021.[6] “

The Commission might wish to review these policy documents to check if the potential housing input has been satisfactorily identified, to identify examples of good practice and the lessons that can be learnt from these and, crucially, to see if there are effective arrangements and funding models in hand to secure delivery of the policy objectives.

De-industrialisation and the Loss of Employment Opportunities in Scotland

The Performance Framework – National Outcomes and Indicators

The most relevant National Outcome is:

“We realise our full economic potential with more and better employment opportunities”

And relevant National Indicators include:

  • Increasing the number of businesses, and
  • Improving the skill profile of the population.

The Current Policy Context

The Scottish Government’s Economic Strategy seeks to deliver on this outcome by supporting business development (through 4 Enterprise Areas, help to small businesses and promoting Scottish exports), promoting learning and skill development for post 16 year olds (including delivering more modern apprenticeships), boosting investment in infrastructure (including investment through the Scottish Futures Trust and delivery of superfast broadband across Scotland) and the smart use of public procurement to promote jobs and growth.

Housing Implications

The Commission may want to consider whether current plans and mechanisms for investment in new and rehabilitated housing optimise the employment and training benefits, taking account of research evidence on employment impacts of housing expenditure as opposed to other forms of capital expenditure.

In addition, the Commission may want to consider whether labour mobility is handicapped by allocation policies in the social rented sector and the operation of the owner occupied sector (with sharp price differentials in different localities) and, if so, whether this impacts negatively on economic growth and on the provision of vital local services such as health and education.

Underperformance by Scottish Children and Young People

The Performance Framework – National Outcomes and Indicators

The Performance Framework contains a number of potentially relevant outcomes including “Our children have the best start in life and are ready to succeed” and “Our young people are successful learners, confident individuals, effective contributors and responsible citizens”. In terms of national indicators “improving levels of educational attainment” and “increasing the proportion of young people in learning, training or work” are relevant.

The Current Policy Context

The Scottish Government’s Early Years Framework[7] aims to break negative cycles of inequality in education that are passed on from one generation to another. It is closely linked to 2 other policy frameworks Equally Well (discussed above) which seeks to tackle health inequalities and Achieving Our Potential (discussed below) which aims to tackle poverty. “Early years” is defined as pre-birth to 8 years old and the focus on this period reflects the view that “there is a wealth of evidence that the earliest years are crucial to a child’s development and future life chances”. The Framework identifies 10 elements of transformational change which are broad brush principles and includes “breaking the cycles of poverty, inequality and poor outcomes in and through early years”. The Framework is, however, intended to apply to all children and not just those from deprived families or communities.

Housing Implications

The Early Years Framework has almost nothing to say about housing policy and practice per se although there is recognition that “adult services, such as housing, transport and development planning should put a greater focus on the needs of young children and families”. The “Progress So Far” [8]makes no reference to action on housing. There is, therefore, a clear need for the Commission to consider the ways in which housing could contribute to meeting the aims and objectives of this policy framework. The relationship between homelessness and educational outcomes, including the impact of temporary accommodation on children, and the more general problems of overcrowding and the need for space for homework etc are the more obvious topics to consider.

The Persistence of Poverty and Social Inequality

The Performance Framework – National Outcomes and Indicators

The National Outcomes include “We have tackled the significant inequalities in Scottish society” and related national indicators include “reducing the proportion of individuals living in poverty” and “reducing children’s deprivation”

The Current Policy Context

“Achieving our Potential”[9] sets out the Scottish Government’s framework for tackling poverty and income inequality in Scotland. It sets out a number of relatively small scale initiatives under the heading of “making work pay”, “maximising the potential for people to work” and “maximising income for all” together with longer term measures to tackle health inequalities, helping children to provide the best start in life, promoting equality and tackling discrimination and providing good affordable housing for all.

The current Government has moved away from the centrally led and funded area based deprivation initiatives which were a feature of the 1980s and 1990s (New Life Partnerships, Social Inclusion Partnerships and others). Although the Government continues to endorse the principle of community based deprivation initiatives, it identifies local authorities and community planning partnerships led by local authorities as the agents to promote them through the mechanism of the Single Outcome Agreements augmented with some modest centrally funded initiatives such as the £7.9m per annum People and Communities Fund.