HC Deb 13 June 1974 vol 874 cc645-6W
Mr. Wigley

asked the Secretary of State for Wales on what date the district councils of Wales were sent information concerning the extension of the 75 per cent. house improvement grants beyond 23rd June 1974; and whether such information was sent by the Welsh Office to every district council in Wales on that date.

Mr. John Morris

I announced the Government's intention to extend the termination date for the 75 per cent. rate of improvement grant in certain cases in a Written Answer on 30th April 1974— [Vol. 872, c. 459.]—which was extensively published. Circular 143/74 giving further guidance on the interpretation of the concession was sent to all Welsh local authorities on 28th May 1974.

Mr. Wigley

asked the Secretary of State for Wales if he will clarify the position of persons who received grant approval for home improvement at a 75 per cent. level under the 1971 Act subsequent to 30th September 1973, who have already completed in excess of £1,125 of the work and who therefore have received advance payments of up to £900, but who have been unable to make any further progress with the work, which will not be completed prior to 23rd June 1974.

Mr. John Morris

An applicant whose house improvement grant was approved at the 75 per cent. rate after 30th September 1973, but who does not complete the work before 23rd June 1974, will qualify for the 50 per cent. rate of grant. Any advance payments made will be set off against the amount eventually found to be due.

The provisions of the Acts restrict instalments to 75 per cent. of the aggregate cost of the works executed up to that time. Completed works costing £1,125 could not, therefore, attract instalments totalling more than £843.75. If the applicant made no further progress with the work before 23rd June 1974 the entitlement to grant would fall to 50 per cent. of £1,125—i.e., £562.50—giving rise to an overpayment of £281.25, which would be recoverable by the local authority.

There should be few such cases; local authorities were advised in Welsh Office Circular 126/71 to review the percentage at which instalments of grant were paid if it became doubtful whether the works would be completed by the termination date for the higher rate of grants. They were also reminded as recently as 14th September 1973 in Circular 224/73 about the risks involved in approving applications for grant at the 75 per cent. rate where there was doubt that the work-could be completed by 23rd June 1974.

Mr. Wigley

asked the Secretary of State for Wales whether those persons who obtained grant sanction for house improvement after 30th September 1973 and who will not have completed the work on 23rd June 1974 are entitled to make an application under the 1958 Act for a loan from their local authority for that part of the grant which they are now liable to forfeit; and whether there are any limits or conditions on such loans.

Mr. John Morris

Yes. I invite the hon. Member's attention to paragraph 3 of Welsh Office Circular 143/74 dated 28th May. It is, of course, for local authorities themselves to decide in any particular case whether or not to make loans for house improvement or repair.

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