§ The Minister for Housing and Planning (Keith Hill)Following the consultation exercise which concluded on 6 January, my right hon. Friend the Deputy Prime Minister will today lay Regulations to update the Home Loss Payment thresholds in section 30 of the Land Compensation Act 1973 (as amended). Home loss payments are paid at a rate of 10 per cent. of the market value to owner-occupiers who are displaced from their homes as a result of compulsory purchase or certain housing orders. These are subject to maximum and minimum payments. Tenants receive a flat rate equal to the minimum payment to owner-occupiers.
With effect from 1 September 2003, the maximum payment to owner-occupiers displaced from their home will be increased from £15,000 to £31,000 and the minimum payment will be increased from £1,500 to £3,100. The flat rate will be increased from £1,500 to £3,100.
The period of about two months between laying the Regulations and commencement will give acquiring authorities reasonable notice to revise their budgets for compensation. This is similar to the two months notice that was given the last time home loss payments were amended in 1991. The existing provisions were commenced two months after Royal Assent was given to the Planning and Compensation Act 1991, which amended the Land Compensation Act 1973.