Housing: Social Housing

Baroness King of Bow Excerpts

Thursday 7th February 2013 Lords Chamber

Asked By

[Baroness King of Bow]

To ask Her Majesty’s Government what plans they have to improve the social housing stock during 2013.

[Lord Ahmad of Wimbledon]

My Lords, I thank the noble Baroness for her Question. For 2013-14, the Government have allocated £411.5 million to 38 local authorities and £123 million to 13 housing associations, with stock transferred from local authorities, enabling them to bring properties up to the decent homes standard. This funding is, of course, additional to the local authorities’ own funding. Following self-financing, which was introduced in 2012, local housing authorities now keep their rental income, allowing them to ensure that their properties reach, and most importantly maintain, the decent homes standard.

[Baroness King of Bow]

The Minister will be aware that the figures that he has just outlined in areas such as Tower Hamlets represent a 60% cut on the money available to improve social housing in the spending review. However, is he also aware that backloading the social housing budget means that those in the worst housing conditions have to wait the longest for upgrades? Can he clarify whether the Secretary of State will ask the Chancellor to increase the amount of money in the next spending review to make up for that previous shortfall and, if so, will they abandon the backloading of the budget that hurts hardest those in the worst housing? Combined with the bedroom tax, this makes people in social housing feel that they are under a sustained and unjust attack from this Government.

[Lord Ahmad of Wimbledon]

First, perhaps I may correct something that is misunderstood. The bedroom tax is not a tax; it is a benefit. My right honourable friend the Prime Minister made that clear, and it needs to be reiterated. On the point about decent homes and Tower Hamlets specifically, I will share the figures with the House. The decent home benefits grant in 2011-12 was £12.5 million; in 2014-15 it is projected to be £45 million. That, to me, is an increase in any terms.