HC Deb 28 June 2000 vol 352 cc529-31W
Ms Buck

To ask the Secretary of State for Social Security what assessment he has made of the impact of Housing Benefit shortfalls on the family budgets of households on Income Support/Incapacity Benefit. [127006]

Angela Eagle

Restrictions on the rent met by Housing Benefit can arise for a number of reasons. For example, any rent met by Housing Benefit will be net of ineligible

Housing Benefit (HB) family recipients also in receipt of Income Support (IS) in Great BritainߞMay 1998
Family
Total Single with dependants Couple with no dependants Couple with dependants
Total in receipt of HB and IS 1,130,000 816,000 188,000 127,000
Total assessed under the Local Reference Rent scheme 157,000 129,000 15,000 13,000
Total restricted under the Local Reference Rent scheme 55,000 45,000 6,000 4,000
Average amount of restriction as a result of the Local Reference Rent scheme £ 5.90 £ 6.30 £ 4.60 £ 3.30
Housing Benefit (HB) family recipients also in receipt of Incapacity Benefit (IB) in Great Britain—May 1998
Family type
Total Single with dependants Couple with no dependants Couple with dependants
Total in receipt of HB and IS 187,000 19,000 110,000 59,000
Total assessed under the Local Reference Rent scheme 13,000 3,000 6,000 4,000
Total restricted under the Local Reference Rent scheme 5,000 1,000 3,000 1,000
Average amount of restriction as a result of the Local Reference Rent scheme £4.30 £4.60 £4.50 £3.10

Notes:

1.Information refers to the number of benefit units.

2.The figures are rounded to the nearest thousand and the average amounts of restriction or deduction are rounded to the nearest 10 pence.

3.Some people claim both IS and IB. Therefore, there is some overlap in the tables above.

4.Families are couples and benefit units with children; the tables exclude single people with no dependants.

Source:

Housing Benefit Management Information System, annual 1per cent. sample, taken on the second Thursday of May 1998.

Mr. Corbyn

To ask the Secretary of State for Social Security (1) when he expects to receive a report from his inspectorate on Housing Benefit in Islington; and if he will make a statement; [127905]

(2) what representations he has received on the competence of IT Net to administer Housing Benefit in Islington; [127906]

(3) what steps are being taken by his Department to ensure that Housing Benefit claimants in Islington receive an appropriate level of service. [127907]

Angela Eagle

The Benefit Fraud Inspectorate has recently started an inspection of the administration of service charges. It is a basic principle of the scheme that such costs should be met from clients" other income, including Income Support.

Restrictions may also be made under the local reference rent scheme. This scheme is designed to give tenants an interest in their housing costs and to deter private sector landlords from charging higher rents to those claiming Housing Benefit than they would be able to get from tenants who are not in receipt of Housing Benefit.

The available information on family units receiving Housing Benefit and Income Support and Incapacity Benefit who were assessed under the local reference rent scheme in May 1998 (the latest date for which figures are available) is set out in the tables. It is important to note that there is no direct correlation between the average amounts of rent restriction shown in the tables and families' actual incomes which will vary with individual circumstances. For a family on Income Support their actual income may be higher than Income Support levels because of the various disregards on both earned and unearned income. In addition, local authorities have discretionary powers to make additional payments where they judge that the rent restriction would cause the family exceptional hardship.

Housing and Council Tax Benefit in the London borough of Islington. This inspection is part of a programme to inspect the 30 authorities with the highest Housing Benefit programme spend. The Benefit Fraud Inspectorate is working closely with the authority and expects to present the report to me for publication early in 2001.

The Department is aware of media reports on the administration of Housing Benefit in Islington and of the hon. Member's interest in this issue. However, we have not received any other representations on Housing Benefit administration in Islington.

Where local authorities choose to contract out support functions for their benefit services, the local authority remains statutorily accountable for the service. It is their responsibility to manage these contracts robustly.

The Benefit Fraud Inspectorate's work will contribute to ensuring that Islington's claimants receive an appropriate level of service. Where the inspection report identifies weaknesses we shall expect the authority to remedy them. If appropriate the Secretary of State has powers to direct authorities on the standards they are to meet and the timescales for achieving them.

More widely, Best Value performance indicators have also been introduced from this April for all local authorities. The indicators we have set for Housing Benefit delivery are designed to ensure that authorities provide their communities with a faster, more accurate service which is more secure against fraud, and which provides value for money and takes account of the views and needs of clients.

Mr. Corbyn

To ask the Secretary of State for Social Security what his Department's estimate is of the profits made to date by IT Net from the Housing Benefit contract with the London Borough of Islington. [127908]

Angela Eagle

Information on any profits made by IT Net is not held by the Department.

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