§ Mr. BattleTo ask the Secretary of State for Social Security what future provisions his Department is making to pay full housing benefit to tenants in receipt of housing benefit in private rented accommodation; and if he will make a statement.
§ Mr. Peter Lloyd[holding answer 9 March 1989]: The Government have given a firm commitment that housing benefit will continue to be available to help those on low incomes with their reasonable housing costs up to market rent levels.
However, housing benefit is not intended to enable claimants to occupy, at public expense, accommodation which the majority of people could not afford. The Government have therefore announced that they intend to introduce formal limits on benefit for properties at the top of the market, once sufficient information is available about the level of market rents.
§ Mr. BattleTo ask the Secretary of State for Social Security if his Department will be fully reimbursing all local authority resources paid out in housing benefit to private tenants under the Housing Act 1988.
§ Mr. Peter Lloyd[holding answer 9 March 1989]: From April 1989, under the arrangements for subsidising local authorities' housing benefit expenditure, full subsidy at the rate of 97 per cent. will be payable, up to the level determined by the rent officer as representing a reasonable market rent, on housing benefit awarded to claimants with deregulated tenancies created under the Housing Act 1988. Benefit above that level will not attract subsidy unless the local authority has paid benefit, above the level of the rent officer's determination, to a person in a vulnerable group, when 50 per cent. subsidy will be paid. For housing benefit claims on deregulated tenancies created before April 1989, until such cases are referred to the rent officer, 97 per cent. subsidy will be payable on benefit awarded on rents up to the subsidy rent threshold for the area and 25 per cent. subsidy above that level. Housing benefit expenditure not met by direct subsidy is reflected in the rate support grant arrangements.