§ Mr. Jim CunninghamTo ask the Secretary of State for the Environment what consideration he has given to raising the ceiling for compensation levels for those tenants who are required to leave their property; what representations he has received concerning concerns about the present compensation ceiling; what formula was used to set it; what power local authorities have to set compensation limits to suit local conditions; and if he will consider allowing more discretion for local authorities to decide their own compensation ceiling. [24029]
§ Sir Paul BeresfordThe current level of home loss payment for permanently displaced tenants is £1,500. This level was set during the passage of the Planning and Compensation Act 1991. There are no immediate plans to change it.
The new provisions apply to anyone displaced on or after 16 November 1990. Since they came into force, we have received occasional representations, but there has been no widespread pressure to have this level increased.
Prior to the 1991 Act, the amount of home loss payment was calculated as 10 times the rateable value of the dwelling concerned, subject to a minimum payment of £1,200 and a maximum of £1,500. The minimum period of residence prior to displacement in order to qualify for a payment was five years. The 1991 Act fixed the amount payable to tenants at £1,500 and reduced the minimum period of residence to one year.
The amount of the home loss payment for displaced tenants is fixed at £1,500 and there is no provision for local authorities to vary it.
§ Mr. Jim CunninghamTo ask the Secretary of State for the Environment what guidance he has issued to local authorities as to the levels of compensation a council should provide to tenants who are obliged to move because of redevelopment; and what specific guidelines he provides in respect of compensation for long-term tenants. [24028]
§ Sir Paul BeresfordCircular 15/91 on land compensation and compulsory purchase, issued jointly by my Department and the Welsh Office, describes the new provisions for home losses payments included in the Planning and Compensation Act 1991. At paragraph 23, it sets out the level of compensation payable to displaced tenants. These provisions apply to tenants who have been in residence for at least one year before displacement. All such tenants receive a home loss payment of £1,500. In addition, my Department issues a series of booklets called "Land Compensation—Your Rights Explained". Booklet number 1 in the series, "Your Home and Compulsory Purchase", provides further information about home loss payments. It is available free of charge to the public as well as to local authorities.