HC Deb 06 March 1987 vol 111 cc724-5W
Mr. Chris Smith

asked the Secretary of State for the Environment, pursuant to his reply of Friday 16 January, Official Report, column 331, what is his estimate of the comparative public sector costs of housing homeless families who are in receipt of supplementary benefit by (a) providing them with temporary accommodation under the 1988 housing corporation programme involving mixed public and private sector funding, (b) providing them with dwellings acquired from the private sector and improved for letting under secure tenancies and (c) providing them with bed and breakfast accommodation.

Mr. Tracey

The estimated public sector costs in the first year of providing accommodation of the kinds specified, on various assumptions and on as comparable a basis as possible, are shown in table 1. The table provides separate information for both London and non-metropolitan districts because mixed funding projects are expected in practice to be heavily concentrated on the London area. The figures are based on the latest statistics available and up-rated to 1987–88.

Table 1
London Non-metropolitan districts
£ £
Housing corporation mixed funding1 7,600 4,300
Local authority acquisition1 8,500 4,800
Bed and Breakfast2 12,400 6,100
1 Includes interest on capital, management and maintenance, and an allowance for furnishing. Any single payments made in respect of furnishing to households in receipt of supplementary benefit would

Table 2
Social security benefits available to households of various composition in various kinds of accommodation
Rented accommodation Bed and breakfast
Single person £30.40 (£38.65 if on long.term rate) plus eligible amount of actual rent and rates. Amount of actual charge (plus an allowance for those meals which are not included in the charge) up to limit varying from £45 to £70 depending on location, plus personal expenses allowance of £10 (£11.15 if on long-term rate.)
Couple without children £49.35 (£61.85 if on long.term rate) plus eligible amount of actual rent and rates. As for a single person for each partner.
Single parent with one dependent child £38.65 plus eligible amount of actual rent and rates and age.related allowance for each child: As for a single person, plus (a) age.related, extension to limit, and (b) personal expenses allowance, for each child:
age under 11 £10.40. (a) £15.60;
(b) £3.35.
age 11 or more £15.60—24.35. (a) adult single rate;
(b) £5.15—£10.
Couple with two dependent children As for a childless couple, plus age.related allowances for each child as above Twice the amount for a single person with one dependent child.

It should be noted that the public expenditure implications of transferring homeless households from one kind of accommodation to another would depend inter alia on the level of social security benefits applying to them and to any replacement households in both their previous and their new accommodation. As indicated in my hon. Friend's reply of 16 January, a distinction also needs to be made between permanent and temporary accommodation. Where capital works are involved there would be an increase in public expenditure prior to transfer.