Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 15
15
Rejected
Paragraph: 85
The Government should conduct a review of exempt housing benefit claims to determine how much...
Recommendation
The Government should conduct a review of exempt housing benefit claims to determine how much is being spent and on what. Rent should be capped at a reasonable level that meets the higher costs of managing exempt accommodation. Funding for support should be provided separately.
Government Response Summary
The government is working to improve Housing Benefit data, but cannot determine a standardised rent cap due to the complexity of housing models and services. Funding for local support services is provided through the Local Government Settlement, and local authorities have powers to restrict rents covered by benefit awards in cases where rents are unreasonably high.
Paragraph Reference:
85
Government Response
Rejected
HM Government
Rejected
38. As explained in the previous recommendation, the Housing Benefit data held by the Department for Work and Pensions (DWP) is incomplete for exempt accommodation. We recognise that we need to address this, and work is in hand to improve the quality of data. However, as the changes will apply to new claims, it will take some time for data to improve across all exempt accommodation. 39. Rents are generally higher for supported housing than general needs housing which reflects the additional costs that can be associated with operating this type of accommodation. However, the Government cannot effectively determine a standardised rent cap at this point for these additional costs, due to the complexity and wide range of housing models and services, even within cohorts, across the supported housing sector. 40. In Housing Benefit exempt accommodation claims where rents are unreasonably high, or the property is larger than the claimant needs, the local authority has powers to restrict the rent covered by the benefit award. However, the reality is that it is difficult for local authorities to find suitable alternative accommodation, which is cheaper, as other providers will ‘match’ rents in that area to market levels. 41. Funding for local authorities for housing-related local support services is through the wider Local Government Settlement, as the Government believes that local authorities are best placed to make decisions on what services they provide and commission, based on local priorities and circumstances. 42. The Government is committed to supporting local authorities in making those decisions, including through the Local Government Finance Settlement for 2023/24 which makes available up to £59.7 billion for local government in England, an increase in Core Spending Power of up to £5.1 billion or 9.4% in cash terms on 2022/23. This boost in funding demonstrates how Government stands behind councils.