HL Deb 09 June 1989 vol 508 cc1119-20WA
Lord Kilmarnock

asked Her Majesty's Government:

Whether the combined rent and service charge for the new specialist housing schemes being planned by housing associations for people with HIV infection and AIDS are likely to exceed the housing benefit rent subsidy threshold in many areas, and part of the service charge may not be treated as eligible for housing benefit, and accordingly housing provision for people with HIV and AIDS may not prove financially viable, and if this is the case, what action will they take to remedy this.

The Parliamentary Under-Secretary of State, Department of Social Security (Lord Skelmersdale)

The Department of the Environment are currently reviewing their support arrangements for the provision of housing accommodation for special needs groups by housing associations and will take account of the income available to residents of such accommodation. Housing benefit is available to help those on low incomes with their reasonable housing costs, including charges for accommodation-related services. It is for local authorities to decide whether charges for particular services are eligible in individual cases, in accordance with housing benefit regulations.

The subsidy rent thresholds do not apply to housing benefit paid in respect of new private sector tenancies, including housing associations tenancies, created after the implementation of the Housing Act 1988. Full subsidy at the rate of 97 per cent. is payable on housing benefit awarded to claimants with such tenancies, up to the level determined by the rent officer as representing a reasonable market rent. Benefit above the level of the rent officer's determination will not attract housing benefit subsidy unless the authority has paid benefit above that level to a person in a vulnerable group, such as the elderly or the sick and disabled, when 50 per cent. subsidy will be paid on the excess benefit. Under these arrangements, local authorities are not required to refer housing association cases to the rent officer unless they consider the rent to be unreasonably high. Where no referral is made, full subsidy is payable on the benefit awarded by the local authority.