HL Deb 17 June 1996 vol 573 cc12-3WA
Lord Williams of Elvel

asked Her Majesty's Government:

How they propose to use their powers in the Housing Bill to help council leaseholders facing high service charges for repair and improvement works.

Earl Ferrers

On 14th June we invited comments on our detailed proposals to reduce charges to leaseholders of local authorities and other social landlords. We wish to help leaseholders whose charges are particularly high in relation to any benefits which they receive from such works. We also wish to give landlords flexibility so that they can help those in greatest difficulty—for example, those who would suffer particular hardship as a result of high charges. We have therefore included in the Bill, in Clauses 191 and 192, powers to issue directions to social landlords telling them when they can, or must, reduce charges, and to what extent.

Our consultation paper, Leaseholders of local authorities, housing action trusts, urban development corporations, registered housing associations and other registered social landlords: further proposals to reduce charges for repairs and improvements, sets out in detail how we propose to use those powers—in particular, the circumstances in which we propose charges should be reduced, and by how much. We plan to require social landlords to reduce charges in certain cases where these are particularly high and where they will be seeking government financial assistance for the works on or after the date of the direction. In a wide range of others cases we propose to allow them to reduce charges, and to offer refunds on charges already paid.

I have placed a copy of the paper in the Library. We have invited comments by the end of August. The Welsh Office will be consulting similarly in Wales.