Housing: Underoccupancy Charge

Lord Bishop of St Albans Excerpts

Tuesday 28th January 2014 Lords Chamber

[Lord Freud]

My Lords, we have a high level of discretionary housing payments, running at £180 million. More importantly, £20 million of that is to be bid for. I have currently had 67 bids and we are paying out. I am not sure whether local authorities will actually be using up all the discretionary housing payment at their disposal. As noble Lords know, a review is going on. I will be able to publicise the interim findings in the spring and the final version will appear next year.

[The Lord Bishop of St Albans]

My Lords, as affordable rental properties in rural areas are in such shortage, will the Government extend the scheme, which currently applies only to the 21 most sparsely populated districts, and allow more local authorities to use discretionary housing payments to help retain more couples and families in their homes?

[Lord Freud]

My Lords, that is exactly what the discretionary housing payment is for. It is for local authorities to take decisions, based on their local knowledge, so that they get the funds to the right people. The emerging signs are that we will not spend all the discretionary housing payments this year. I am, however, making sure that a substantial amount of discretionary housing payment goes out next year, for which the total figure will be £165 million.