§ Mr. BurstowTo ask the Secretary of State for Social Security, pursuant to his answer of 14 March 2000,Official Report, column 147W, on the single room rent, when the single room rent was introduced (a) what was the methodology used to estimate the yearly savings, (b) whether these savings have been achieved and (c) what estimate has been made of the likely cost of abolishing the single room rent. [123531]
§ Angela EagleThe Single Room Rent restriction was introduced in October 1996 by the previous Administration. The reasons, rationale and assumptions for making the change were set out by them in Command Paper (Cm 3225). The estimated savings have been achieved.
The estimated cost of abolishing the Single Room Rent can only be given as a range, because the figures depend on behavioural changes by young people and landlords which are difficult to quantify. For example we need to include the effects of additional household formation. 102W Subject to these caveats, we estimate it could cost up to £160 million. Based on current data, we estimate that the cost of removing the Single Room Rent restriction in 2001–02 would be £140 million.