Housing Benefit: Social Rented Housing – Parliamentary Written Answer

Mr Hollobone: To ask the Secretary of State for Work and Pensions what assessment he has made of the effects of the introduction of the under-occupancy penalty on (a) the total housing benefit bill, (b) overcrowding, (c) homelessness and (d) housing mobility.  

Esther McVey: The information is as follows:

 (a) The housing benefit bill was expected to rise above £25 billion in 2014-15 (£15 billion for the social rented sector alone) prior to the introduction of the removal of the spare room subsidy.

The Department estimated the policy would achieve savings of £490 million in 2013-14, £525 million in 2014-15 and £560 million in 2015-16.

(b) to (d) The policy to remove the spare room subsidy introduces not only parity of treatment between the private and social rented sectors, but encourages more effective use of social housing stock. It has reduced the number of households who under-occupy their properties, which has freed up larger homes for those currently on the social housing waiting list who are living in overcrowded conditions. It also encourages social providers to take account of local needs and demographic trends when allocating properties and developing their building programmes. Levels of homelessness acceptances in England have reduced 7% in the last quarter compared to the same period in the previous year. This is 65% lower than the peak in 2003. The effects of the policy are being monitored and evaluated over a two-year period from April 2013. Initial findings will be published before recess and the final report in late 2015.