Source · Select Committees · Public Accounts Committee
Recommendation 17
17
Accepted
In contrast, the Department does consider welfare savings and quantified these in the 2021 programme...
Recommendation
In contrast, the Department does consider welfare savings and quantified these in the 2021 programme business case. The Department’s modelling showed that delivering new homes for social rent in London leads to significant savings in future housing benefit costs, compared to other regions. The Department forecast that over a 30-year and 60- year period respectively, 69% and 110% of the grant funding needed to deliver a home for social rent is repaid by forecast housing benefit savings.45 The Department noted that these savings are very long term, with the payback period measured in decades. The Department told us that it was an option to allocate more money to London, but this must be balanced with other policy considerations.46 38 C&AG’s Report, paras 22, 4.10 39 Written evidence submitted by London Councils, dated September 2022 40 Qq 40, 52 41 Q 53 42 Qq 82–84 43 Written evidence submitted by McCarthy Stone, dated September 2022 44 Q 81 45 C&AG’s Report, paras 22, 4.9 46 Qq 78–79 The Affordable Homes Programme since 2015 13 Net-zero standards
Government Response Summary
The government agrees to quantify the wider savings it could make to areas such as adult social care and temporary accommodation, before the next iteration of the Programme. The evaluation for the 2021 programme will collect evidence through resident surveys to help understand many of these impacts, with the first surveys in 2024.
Government Response
Accepted
HM Government
Accepted
4. PAC conclusion: The Department does not quantify potential savings in some areas, such as temporary accommodation, into the Programme. 4. PAC recommendation: Before the next iteration of the Programme, the Department should quantify the wider savings it could make to areas such as adult social care and temporary accommodation. 4.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2024 4.2 The government understands that there are wider outcomes and positive impacts that flow from increasing the supply of affordable housing. The evaluation for the 2021 programme will collect evidence through resident surveys to help the department understand many of these, including impacts for adult social care and temporary accommodation. The government’s published scoping study details a proposed methodology for how it intends to undertake the evaluation. It is anticipated that the first round of resident surveys will take place in 2024 and these surveys will repeat until 2029.