HL Deb 27 February 1991 vol 526 cc49-51WA
Lord McIntosh of Haringey

asked Her Majesty's Government:

Of the current expenditure of £47 million on home loss payments quoted in the financial memorandum to the Planning and Compensation Bill, how much is attributable to (i) owners and leaseholders and (ii) tenants and other occupiers, and what was the total number of payments, and average payment, made to each category.

Baroness Blatch

The home loss payment currently made to all claimants is £1,500. Approximately one-fifth of the current estimated annual expenditure of £47 million on home loss payments in Great Britain is paid to owner-occupiers and four-fifths to tenants. That estimate is based on broad assessments of the incidence of displacements as a result of actions under statutory powers. These assessments cannot be used as a basis for reliable estimates of the precise numbers of claimants in particular categories.

Lord McIntosh of Haringey

asked Her Majesty's Government:

Of the estimated £50 million increase in home loss payments which would result from the Planning and Compensation Bill, what amounts are attributable, respectively, to (i) the increase in the level of payments to owners; (ii) the payment of home loss to those serving blight notices; (iii) the reduction in the residence qualification for all claimants from five years to one; (iv) counting occupation of a previous home under Section 32(3A) and, in Scotland, Section 29(3A) towards that residence qualification; and (v) the discretionary payments introduced under Section 29(2) and, in Scotland, Section 27(2); and how much of that total increase is likely to be paid to (a) owners and leaseholders and (b) tenants and other occupiers.

Baroness Blatch

Of the estimated increase in expenditure on home loss payments, £34 million is attributed to higher payments to owner-occupiers (including £3 million due to the reduction in qualifying period), and £16 million to tenants and others. The total cost of reducing the qualifying period for all claimants is approximately £19 million. It is not possible to make separate estimates in respect of blight notice acquisitions, occupation of a previous home, or the making of discretionary payments.

Lord McIntosh of Haringey

asked Her Majesty's Government:

What would be the current value of home loss payments had they been index-linked in 1973 to (i) retail prices, (ii) average earnings or (iii) house prices.

Baroness Blatch

Estimated annual expenditure on home loss payments under existing provisions is £47 million. If payments had been indexed-linked from 1973 onwards to (i) retail prices (ii) average pre-tax earnings and (iii) house prices (with the scheme operating for the same number of cases under existing provisions in other respects), their projected value in 1990 would have been (i) £70 million, (ii) £97 million and (iii) £94 million respectively.