§ Mr. BattleTo ask the Secretary of State for the Environment what estimate he has made of the effect on the percentage of new housing association tenants reliant on housing benefit for the payment of rent of the proposed reduction of housing association grants in 1995–96.
§ Mr. BaldryThe Government have announced their objective of reducing the average housing association grant rate in England from the current year's level of 67 per cent. to 60 per cent. in 1994–95 and 55 per cent. in 1995–96.
Final decisions will be taken when Ministers have considered all the relevant evidence, including the likely impact on rents, on housing benefit and the availability of private finance. No decisions about grant rates for 1995–96 will be taken until much closer to the time.
§ Dr. Lynne JonesTo ask the Secretary of State for the Environment what guidance he issues to the Housing Corporation on the maximum housing association grant level per person for a new scheme.
§ Sir George YoungGrant rates are proposed by the Housing Corporation and approved by my right hon. Friend after he has considered all the relevant information, including advice from the Housing Corporation on the implication of different grant levels on rents and the availability of private finance.
Grant rates vary according to scheme type and location and represent the maximum proportion of scheme costs which will be funded by any form of public subsidy including housing association grant. They are determined by reference to the income of tenants, the unit costs of schemes in a given area and other factors such as management and maintenance costs.