§ Mr. PikeTo ask the Secretary of State for Social Services what is his Department's policy on meeting the full cost of weekly payments for the purchase of housing under rental purchase schemes, including capital, assuming all other factors within the housing benefit scheme justify that level of payment.
§ Mr. PortilloPayments under rental purchase schemes, including payments of capital, have been eligible for help through housing benefit since the introduction of the scheme in 1982. It is for local authorities to decide on the level of weekly rent (including payments under a rental purchase agreement) which should be taken into account in calculating entitlement to housing benefit but we expect local authorities to use their powers under the housing benefit regulations to restrict benefit if the level of the payment is unreasonable in a particular case. We understand that some local authorities have exercised these powers to restrict benefit to rental purchasers.
The arrangements for helping rental purchasers with their housing costs differ from the arrangements for other people buying their home. Housing benefit is not available for owner-occupiers' mortgage payments. For people who are buying their home with a mortgage and who are not in full-time employment help with mortgage interest payments is available through supplementary benefit but capital repayments are not eligible for assistance. These arrangements will be carried forward in the income support scheme to be introduced in April 1988. In the light of concern about the level of some rental purchase payments and the need to ensure that help given to rental purchasers is fair in comparison with the assistance given to other people buying their homes we are currently reviewing the arrangements for providing help with rental purchase payments.