§ Mr. KirkwoodTo ask the Secretary of State for Work and Pensions how much he estimates has been saved by the introduction of local reference rent and single room rent. [61382]
§ Malcolm WicksThe local reference rent and single room rent were introduced to ensure that the needs of people receiving benefit are balanced against those of the taxpayer. These rules ensure that people receiving housing benefit do not have their rent met in full if it exceeds the broadly average rent for similar sized properties in the locality in which they live, and that the benefit system does not provide unemployed young adults with better housing than their working peers can afford.
The information is in the table.
Estimated reduction in housing benefit expenditure arising from the introduction of the local reference rent and single room rent £ million Financial year Estimated reduction in housing benefit expenditure 1995–96 5 1996–97 55 1997–98 135 1998–99 150 1999–2000 150 2000–01 145 2001–02 145 2002–03 160 Notes:
- 1. Estimates are expressed in nominal terms.
- 2. Estimates have been rounded to the nearest £5 million.
- 3. Estimates for 2001–02 and 2002–03 are based on forecast caseload and price levels.
Sources:
Rent Officer data and Housing Benefit administrative data 1996 to 2001.