Source · Select Committees · Public Accounts Committee
Recommendation 25
25
Rejected
Scale of supported housing subsidy loss is increasing significantly for local authorities
Conclusion
The scale of subsidy loss varies between local authorities and some local authorities experience a high subsidy loss. The amount of subsidy loss is increasing overall with local authorities in England experiencing a subsidy loss of £108 million (in cash terms) in 2021–22 compared with £53.8 million in 2017–18.49 The LGA told us that subsidy loss is a “further budget pressure on already stretched council budgets”.50 41 Q 46 42 Committee of Public Accounts, Tackling fraud and corruption against government, 69th Report of Session 2022–23, HC 1230, 8 September 2023; Committee of Public Accounts, Local authority administered COVID support schemes in England, 68th Report of Session 2022–23, HC 1234, 6 month 2023 43 Written evidence submitted to committee – DSH0007 44 Qq 44, 45 45 Q 30 46 Qq 46, 47 47 Q 47 48 C&AG’s Report, para 2.17 49 C&AG’s Report, para 2.18 50 DSH0007 14 Supported housing
Government Response Summary
The government disagrees with any implied recommendation to directly address subsidy loss. While DWP will consider feedback from LAs and monitor the issue, it has no plans to explicitly address subsidy loss in the upcoming Act or consultation.
Government Response
Rejected
HM Government
Rejected
6.1 The government disagrees with the Committee’s recommendation. 6.2 DWP agrees that it should consider feedback from LAs on subsidy loss. As subsidy is not part of the scope of the Act there is no plan to ask an explicit question as part of the consultation, but DWP fully expect that some stakeholders will raise this issue in their responses, and it has previously received representations from LAs on this issue. 6.3 This is a complex area with a range of contributing factors many of which are not within DWP's control. DWP anticipate the Act may address some of the contributing factors and this will be monitored closely as part of the department’s continual review. The Housing Benefit subsidy rules and how these are administered are reflected in the Income-related Benefits (Subsidy to Authorities) Order 1998.