HC Deb 12 January 1993 vol 216 cc707-8W
Lady Olga Maitland

To ask the Secretary of State for the Environment what plans he has for changes to the house renovation grant system; and if he will make a statement.

Sir George Young

As I explained to my hon. Friend the Member for Langbaurgh (Mr. Bates) in my reply of 11 January, during recent months it has become clear that the present renovation grant system is placing increasing financial pressure on a growing number of local authorities, mainly because of the demands of mandatory grants. I have concluded that there is a need to take a further thorough look at the operation of the system, in particular to examine whether it offers the best structure for investing the resources that are likely to be available in future years. Accordingly, my Department will shortly be issuing a consultation paper setting out possible options for change. I shall want to consider very carefully the views expressed by local authorities and others in response to this document.

On 17 December 1992, I announced the resources which we are making available in 1993–94 to support the local authorities expenditure on renovation grants, on other aspects of private housing renewal and on dealing with defective housing. I am pleased to say that, taken together with authorities increased spending power receipts next year, these provide for higher total expenditure than in the current financial year.

On 22 December my officials wrote to the local authority associations consulting them on the amendment regulations to give effect to the changes to the renovation grant system that I announced on 16 July 1992, Official Report, column 1047. These changes will be implemented from 1 April this year. Among other things, these involve adjustments to the means test which will enable more help to be given to low income applicants, a limit of £50,000 on mandatory renovation grants and revised cost limits for minor works assistance and group repair schemes.

These changes are being made without prejudice to further revision of the system, possibly including adjustments to the means test to target resources even more tightly on the poorest households, that I may decide to make for 1994–95 onwards as a result of the review.