Hostels (Hansard, 23 October 1989)

§ Mr. Hood
To ask the Secretary of State for Social Security if he will give details of the amount of benefit lost to persons who move from one hostel to another and the reasons for such loss.

§ Mrs. Gillian Shephard
People in hostels who were receiving income support immediately before 9 October are eligible for compensatory payments to make good any shortfall in their total benefit income. The amount of any such payment varies according to an individual's circumstances. When a claimant leaves a hostel the compensatory payments to the claimant cease. This permits the Department to pay over the money due to the hostel instead, thus protecting hostel finances in348W accordance with the undertaking given by my right hon. Friend the Member for Croydon, Central (Mr. Moore) on 16 March, Official Report, column 546.

§ Mr. Hood
To ask the Secretary of State for Social Security if he will give details of the change in benefit entitlement of a person in a hostel who is in receipt of the protected sum.

§ Mrs. Gillian Shephard
From 9 October 1989, people in hostels became eligible for housing benefit to help with their accommodation costs and normal income support personal allowances plus any appropriate premiums for other day-to-day expenses. People in hostels who were receiving income support immediately before 9 October are eligible for compensatory payments to make good any shortfall between the new and old levels of benefit for as long as they remain in the same hostel. They will therefore suffer no reduction in overall benefit entitlement as a direct result of the change in benefit arrangements.

§ Mr. Hood
To ask the Secretary of State for Social Security if he will give details of the financial savings to his Department arising from the changes in legislation regarding people's entitlement to benefit when living in a hostel.

§ Mrs. Gillian Shephard
The aim of the change is to achieve a simple, more rational and more comprehensible social security system while at the same time protecting hostels and claimants. There will be no reduction in the amount of money available to hostels.

§ Mr. Hood
To ask the Secretary of State for Social Security if he will give details on the entitlement to the protected sum paid to people when they transfer from one hostel to another; and if he will make a statement.

§ Mrs. Gillian Shephard
Where an income support recipient changes or vacates his or her hostel, any entitlement to a compensatory payment ceases. The claimant is eligible for both income support personal allowances and premiums as appropriate, and housing benefit at the new address.

§ Mr. Hood
To ask the Secretary of State for Social Security if he will list the circumstances under which the protective sum paid to people living in hostels will be reduced or removed.

§ Mrs. Gillian Shephard
People in hostels are eligible for compensatory payments of income support if they would otherwise have received less benefit overall because of the changes in benefit arrangements introduced on 9 October 1989. These payments will be reduced by any subsequent increase in the normal rate of income support in payment. They will end either where the person changes or vacates his or her hostel or when he or she ceases to be entitled to income support. Exceptionally, entitlement to compensatory payments can continue where a person leaves his or her hostel for a period of 14 weeks or less because of hospitalisation or ceases to be entitled to income support for a period of eight weeks or less (or, in the case of certain persons who have become engaged in remunerative work for at least six weeks, 12 weeks or less), provided that in either case the person returns to or remains in the same hostel.