Housing Associations (Hansard, 11 April 1984)

§ 1. Mr. Bruce
asked the Secretary of State for Scotland if he has any plans to increase funding to housing associations in Scotland.

§ The Parliamentary Under-Secretary of State for Scotland (Mr. Michael Ancram)
The allocation given to the Housing Corporation for 1984–85, which reflects the Government's present plans, will enable housing associations in Scotland to undertake a programme in excess of £100 million for the third consecutive year. This is more than three times the expenditure in 1978–79.

§ Mr. Bruce
I thank the Minister for that information, but I draw his attention to the fact that the Government have cut support for housing in other areas over the last year or two. Does he accept that housing associations have an increasingly important role to play to fill the gap that is becoming apparent with growing waiting lists for council houses throughout Scotland? Will he consider increasing the allocation to housing associations in Scotland?

§ Mr. Ancram
In terms of the total housing expenditure in Scotland, the proportion that goes to the housing associations through the Housing Corporation is considerable—a policy which the Government have pursued since 1979—and is a reflection of the regard in which we hold the housing associations and the view that we take of their work.

§ Mr. Henderson
Does my hon. Friend agree that the role of housing associations in Scotland has been very valuable, particularly in fulfilling special needs which local authorities were slow to observe, such as housing for the elderly? Will he concentrate the resources available to housing associations on that area of special need?

§ Mr. Ancram
I am grateful to my hon. Friend for pointing out the work that has been done in this area. As he may know, the expenditure of housing associations is divided between rehabilitation and new build housing, with an overall commitment on the basis of a 60:40 ratio between the two. This reflects the point that he made.

§ Mr. Foulkes
Is the Minister aware that, because of Government cuts, three Scottish local authorities are ceasing to provide financial support for the warden services in sheltered housing operated by housing associations? As a result, 2,500 old people will have to pay increased rents of between £3 and £6 per week. Will the Minister tell us what action the Government will take to sort out the matter?

§ Mr. Ancram
As the hon. Gentleman knows, various housing benefits are available to cover people on low incomes. If he refers to the written question that he asked and to the answer that I gave, I think he may see that that is the case. In relation to the particular points that he has raised, my understanding is that the situation is not yet definite. Indeed, in the case of Lothian region, my understanding is that the decision has already been changed.

§ Mr. Bill Walker
Is my hon. Friend aware that a substantial number of houses have been built by housing associations in North Tayside and they wish to place on record their thanks on behalf of the substantial number of disabled people who are occupying those houses and are no longer a problem for the health department in the area?

§ Mr. Ancram
I am grateful to my hon. Friend for his comments. It is worth pointing out that the Housing Corporation plans to spend 40 per cent. of its allocation for the current financial year on special needs housing—that is £36.86 million. Of that, £5.81 million has been set aside for housing the physically disabled and the mentally handicapped.

§ Mr. Craigen
Will not the imposition of VAT on building alterations produce a real cut in the money allocated to housing associations? Will the Minister give early consideration to my recent proposals for a housing-employment link programme to compensate housing authorities which have rehabilitation programmes in hand?

§ Mr. Ancram
It is for the Housing Corporation to consider whether any adjustment needs to be made to its programme as a result of the announcements in the Budget. However, in view of the line taken by the hon. Gentleman, it is worth remembering that the Government have provided more than £100 million a year in the past three years to the Housing Corporation. That compares favourably with the record of his Government who, in their last three years of office, provided £16.3 million, £27 million and £31.4 million respectively.