Rent Rebate Scheme (Hansard, 28 July 1971)

§ 5. Mr. Skinner
asked the Secretary of State for the Environment how many tenants out of the 2½ million in the 549 private sector he expects to derive direct benefit from the proposed rent rebate scheme; and what will be the total cost of this particular scheme to the Exchequer.

§ 19. Mr. Tebbit
asked the Secretary of State for the Environment what is his estimate of the number of tenants in the private and public sectors, respectively, who will live rent free in the first full year following the implementation of his proposed rent rebate scheme.

§ 24. Mr. Ashton
asked the Secretary of State for the Environment to what extent he estimates, as a result of his White Paper, that tenants at present drawing their full rent from social security will have part of their rent paid by local authorities out of their rates; and how many of these cases are included in his figure of 2½ million tenants who will benefit.

§ 41. Mr. Frank Allaun
asked the Secretary of State for the Environment approximately how many tenants will incur rent increases, and by what average amount, as a result of his housing finance proposals; how many will benefit; and by what amount.

§ 46. Mr. Meacher
asked the Secretary of State for the Environment what is the total number of council tenants and private tenants, respectively, who will be entitled to a rent allowance under the "Fair Deal for Housing" proposals; what is the estimated national cost of rent allowances by the time the scheme is fully implemented; and how many council and private tenants, respectively, are expected to benefit from rent allowances in each local housing authority area.

§ Mr. Amery
I have not made these estimates. There will be so many variations in both rents and tenants' circumstances that national calculations of this kind would not be meaningful.

§ Mr. Skinner
Is the Minister aware that we are getting accustomed to this Government issuing White Papers that contain no real estimates of the cost? Does he also realise that the net effect of this scheme is to transfer money out of the council tenant housewife's purse, straight into the landlord's pocket? When he brings forward his legislation next Session, will he bear in mind what the 550 C.B.I, has said about 5 per cent. increases and compel local authorities not to increase rents by more than 5 per cent.?

§ Mr. Amery
The net effect will be to take the money from those who can afford it to help people and areas in need. This is the basis of the reform. The increases in rents which are suggested are only marginally above those authorised by the previous Government.

§ Mr. Tebbit
Would my right hon. Friend not agree that, however many people come into the net of the help which will be offered to enable them to live rent-free, this will be the first time that any Government, despite all the conscience-stricken protestations, have gone that far in offering that sort of aid to the people that hon. Members opposite pretend they care for?

§ Mr. Amery
I am grateful to my hon. Friend for denouncing in those words the hypocrisy of hon. Members opposite who protest against the White Paper.

§ Mr. Allaun
But have not the Government several times declared that they will reduce subsidies by up to £200 million a year compared with what they would be in 1975? So will the right hon. Gentleman admit that this inevitably means huge rent increases for millions of families? If he is saying, as his hon. Friend the Member for Epping (Mr. Tebbit) says, that some of them will get a rebate, why is it that only one in four of those expected by the Government to apply for F.I.S. relief have done so?

§ Mr. Amery
I am sure that the hon. Gentleman would not wish to misrepresent the Government. We have said "between £100 million and £200 million", and I am not at all sure that we shall save more than £100 million by the middle of the decade——

Hon. Members
Oh!

§ Mr. Amery
The Chancellor of the Exchequer said between £100 million and £200 million. We do not know, because we do not know how many people will apply for the rebate. [An HON. MEMBER: "Then why say it?"] He said between £100 and £200 million. I shall take every step possible to publicise to the tenants in both private and public sector the opportunities which are open to them for claiming rebates.

§ Mr. Crosland
The net effect of this will be a doubling of council rents on average, an increase of council rents for three or four years ahead of virtually 25 per cent. a year, means-testing on a mass scale for the first time and a large saving in Government subsidies. The right hon. Gentleman must be able to estimate—[HON. MEMBERS: "Question."]—these actual effects. Will he not give some of the figures which have been asked for? If he can estimate the likely saving in Government subsidies, is he not also able to estimate the amount by which rents will rise?

§ Mr. Amery
The right hon. Gentleman has given us his estimate. My right hon. Friend the Chancellor said that it would be between £100 million and £200 million savings by the middle of the decade. We do not know within £100 million what it will be—[Laughter.]—nor do we pretend to know. We are not putting forward this reform as a means of saving money. [Interruption.] We are putting it forward as a means of helping people and areas in need. This is the point which the Labour Party has not yet cottoned on to. It is to help people and areas in need.