Housing Benefit (Hansard, 20 March 1997)

§ Mr. Leigh
To ask the Secretary of State for Social Security when he proposes to respond to the report of the Social Security Advisory Committee on the proposed changes to housing benefit regulations. [20954]

§ Mr. Lilley
I have received the Social Security Advisory Committee report. It recommended against proceeding without further research of the effects of existing measures on the housing market. In the event the Government do go ahead, the committee further recommended that the proposals should apply only to new claims and that certain accommodation for tenants who have been referred by the local authority or probation service should be exempt.
I have considered these recommendations carefully. I have decided not to accept them in the form in which they were presented, but to exempt from the single room rent determination severely disabled people who are entitled to severe disability premium and single claimants who have non-dependants residing with them.
I have today laid before Parliament the social security advisory committee's report and my response to it. I have also laid the regulations to give effect to the changes.

§ Ms Harman
To ask the Secretary of State for Social Security what projections his Department has made, and over what periods, of future levels of provision of accommodation matching the single room rent definition. [21130]

§ Mr. Roger Evans
The rental market is flexible and we believe it will respond to changes in demand arising from the application of the single room rent determinations. To encourage people who have spare rooms in their houses to let them out, my right hon. Friend the Chancellor of the Exchequer announced in the Budget, an increase to the current rent-a-room threshold of £3,250. From April, rental income of up to £4,250 will be exempt from tax.

§ Ms Harman
To ask the Secretary of State for Social Security what estimate he has made of the housing benefit costs in respect of the private rented sector in (i) 1995–96 and (ii) 1996–97. [21132]

§ Mr. Evans
The information is set out in the table:

Estimated rent allowance expenditure

£ million

1995–96 ¹1996–97

Housing association tenants 1,600 2,100

Other private sector tenants 3,850 3,900

Total rent allowance expenditure 5,450 5,900

Note
¹ Figures are provisional and do not sum due to rounding.
Source:
1. Housing benefit management information system.
2. 1995–96 departmental report.

§ Ms Harman
To ask the Secretary of State for Social Security what estimate he has made of the(a) financial and (b) other effects of (i) the Housing Benefit 886W Regulations, S.I. 1996, No. 965, and (ii) the proposed housing benefit regulations restricting housing benefit for single people aged 25 to 59 years. [21129]

§ Mr. Evans
The information is set out in the table:

Year Estimated savings(£ million) Numbers likely to be affected

(i) Under 25 changes S.I. 1996 No. 965 1996–97 13 40,000

1997–98 57 90,000

1998–99 62 105,000

(ii) Proposed changes for most single claimants between 25 and 59 years 1997–98 6 72,000

1998–99 47 210,000

1999– 2000 69 265,000

Estimated rent allowance expenditure
£ million
	1995–96	¹1996–97
Housing association tenants	1,600	2,100
Other private sector tenants	3,850	3,900
Total rent allowance expenditure	5,450	5,900

	Year	Estimated savings(£ million)	Numbers likely to be affected
(i) Under 25 changes S.I. 1996 No. 965	1996–97	13	40,000
	1997–98	57	90,000
	1998–99	62	105,000
(ii) Proposed changes for most single claimants between 25 and 59 years	1997–98	6	72,000
	1998–99	47	210,000
	1999– 2000	69	265,000