HC Deb 29 January 2002 vol 379 cc257-8W
Mr. Coleman

To ask the Secretary of State for Work and Pensions (1) what was the total grant available to local authorities in 2001–02 following the introduction of the discretionary payment scheme to those persons who require additional assistance to pay their rent or council tax; [26957]

(2) how much money was claimed by local authorities from his Department in 2000–01 from the Regulation 61 payment scheme; [26955]

(3) what are the estimated savings to his Department from the abolition of Regulation 61 payments and the introduction of the discretionary payment scheme for those persons who require additional assistance with rent or council tax; [26958]

(4) what was the budget available to local authorities in 2000–01 for Regulation 61 payments; and how much of this money (a) was direct grant and (b) had to be funded from the general fund of local authorities; [26956]

(5) what consultations his Department had with the local authority associations regarding the abolition of the Regulation 61 payment scheme. [26959]

Malcolm Wicks

From 2 July 2001 we replaced the exceptional hardship and exceptional circumstances schemes with improved arrangements that are broader in scope than the old Regulation 61 provisions. Subject to certain conditions, local authorities are now able to give additional payments to any person whose housing benefit or council tax benefit is restricted where they are satisfied the person is in need of further financial assistance with housing costs. Unlike the old scheme there are no prescribed definitions of either "exceptional hardship" or "exceptional circumstances".

The new measures give local authorities an incentive to direct funds to helping those people most in need and were not introduced to generate savings.

The total budget available to local authorities in 2000–01 for exceptional hardship payments under Regulation 61(3) was £50 million of which the Government contribution was £20 million. Each local authority was allocated a share of the £20 million. In the same year the budget available to each local authority for exceptional circumstance payments under Regulation 61(2) was 0.1 per cent, of its total housing benefit expenditure in that year. No Government contribution was made towards these payments.

The total budget available to local authorities under the new arrangements from their introduction on 2 July 2001 until 31 March 2002 is £37.5 million, of which the Government contribution is £15 million.

We consulted the local authority associations in the usual way about these changes. In addition, a user group of local authority representatives was actively involved in the development of the new arrangements.