§ Mr. Frank Allaun
asked the Secretary of State for the Environment if, in view of the average doubling of rents reported by the first two rent scrutiny board decisions in two areas, and the need to halt inflation, he will drop the 50p increase in rents this October.
§ Mr. Channon
No. The proposed increase in the needs allowance will broadly have the effect that those council tenants who cannot afford the increase in the rent of their dwelling due in October will not have to pay more rent, and in many cases will pay less rent, after that increase than before it. It is of course less inflationary for tenants who can afford to pay a rent approaching the fair rent for their homes to do so than to subsidise all rents.