§ Mr. David PorterTo ask the Secretary of State for Social Security whether he intends to make any change to the benefit subsidy arrangements for housing benefit and community charge benefit.
§ Mr. ScottWe are today consulting the local authority associations on a proposal to change the basic rate of direct benefit subsidy from 97 to 95 per cent. from April 1991, as an improved incentive to economy. This change would affect all community charge benefit and housing benefit expenditure other than rent rebates in England and Wales covered by the housing revenue account arrangements, which are taken into account at 100 per cent. in calculating subsidy.
My right hon. Friend the Secretary of State for the Environment and my right hon. and learned Friend the Secretary of State for Scotland are taking the proposed change into account in drawing up their proposed local authority expenditure settlements for the next financial year.