§ Mr. McCrindleTo ask the Secretary of State for Social Security if he will make a statement on his policy towards funding levels for hostels for jobless offenders in light of the Policy Studies Institute's recommendation of such levels, a copy of which has been forwarded to him.
§ Mr. Peter LloydWe have considered the Policy Studies Institute's favoured recommendation that all hostels be asked to set a flat rate charge which would be met automatically by social security payments. We do not think it practicable to set up such a scheme which would require complex arrangements to ensure an equitable redistribution of funding between hostels following the necessary adjustments to existing charges. Moreover, it would preserve the distortion of special rules for a small sector of the housing market.
§ Mr. McCrindleTo ask the Secretary of State for Social Security if the formula adopted for the purposes of calculating funding for hostels for jobless offenders includes an element for care and supervision; and if he will make a statement.
§ Mr. Peter LloydFunding hostels for offenders is a matter for my right hon. Friend the Home Secretary. Unemployed people in hostels may receive special rates of income support to help with the accommodation charge, meals and other living expenses. The consultation paper "Help with Hostel Charges", issued in July, invited comments on proposals to pay normal income support and housing benefit to hostel dwellers.
As announced in my hon. Friend's reply to my hon. Friend the Member for St. Ives (Mr. Harris) on 27 October at column 337, we have deferred change until after April 1989 to allow more time to consider the effect of the proposals on hostels' finances.