Affordable Housing

Department for Work and Pensions written question – answered on 12th September 2014.

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Photo of Chris Bryant Chris Bryant Shadow Minister (Work and Pensions)

To ask the Secretary of State for Work and Pensions, pursuant to the contribution of 5 September 2014 by the Minister of State for Disabled People, of 5 September 2014, Official Report, columns 554-64, if he will publish the evidential basis for the statement that implementation of the Affordable Homes Bill would cost £1 billion; when those calculations were made; and by whom they were calculated.

Photo of Mark Harper Mark Harper Minister of State (Department for Work and Pensions) (Disabled People)

The calculation of the cost of about £1 billion for the Affordable Homes Bill was made on Thursday 4th September by Departmental Officials following an assessment of the potential effects of the provisions set out in the draft Bill at Second Reading.

The potential cost was estimated using administrative data (Single Housing Benefit Extract) and the department’s policy simulation model. The following assumptions were made:

  • The bill in effect nullifies the removal of the spare room subsidy policy, which would negate the projected savings from being realised;
  • That Clause 2 as currently drafted would result in non-dependent deductions falling out of the calculation of Housing Benefit but would bring in ineligible service charges for all claimants who are social sector tenants (including pensioners) who meet the conditions described at Clause 2 (1) (a), (b) and (c) regardless of whether or not they are affected by the Removal of the Spare Room Subsidy.

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