Housing Reform

Sheila Gilmore Excerpts

Monday 21st November 2011 Commons Chamber

[Grant Shapps]

That is right. More than 40% of local authorities report that the new homes bonus is making it easier to propose and introduce new housing in their local areas, which is very important. Last year, nearly £200 million of new homes bonus was paid out, and this year we expect to pay out more than £400 million. Incidentally, there will be a boost of another £19 million for the affordable social housing that has been included in the scheme. That approach is very important indeed.

[Sheila Gilmore (Edinburgh East) (Lab)]

The Minister has made it clear that the one-for-one promise on council house sales appears to depend on higher rents. How does that square with the Government’s intention to keep housing benefit down?

[Grant Shapps]

As with the general affordable rent programme, what will typically happen is that people will be brought out of the private rented sector and into the affordable rent sector. Rather than paying 100% rent, people will be paying affordable rent, which in London, for example, is just 65%. That does indeed keep the pressure on housing benefit down.