The changes to Housing Benefit announced in the 2015 Autumn Statement involve aligning the rules for claimants in the social sector with those for claimants renting privately. Crucially though, the Government recognises the importance of protecting those who are providing supported accommodation to some of the more vulnerable members of Bath and our wider society.
People who rent privately have their rent, in the assessment of Housing Benefit, limited to a level appropriate to their household size and local area by the Local Housing Allowance. This limit will now apply to social tenants as well. Over the last five years, average social rent rises have been double those for private sector accommodation.
I do not think it is fair for social landlords to consistently raise rents knowing the taxpayer will pick up the bill, while those renting privately have limits on the amount of rent they can claim for. However, it is important to ensure this change does not have an unintended impact on vulnerable people, which is the point of the Government's review.
Reductions will not apply until April 2018 and the change will only apply to new or renewed tenancies from April 2016; the Chancellor confirmed in the 2016 Budget that for supported accommodation this will be delayed until April 2017 to allow time for the review to be considered.
As part of the policy announcement in the Autumn Statement an additional £70 million for 2018-20 was announced for Discretionary Housing Payments. Although these payments are generally to afford an element of support during transition, the Government recognises that some people will need additional support for the longer term, which is why funding is being substantially increased. A total of £870 million for these payments is being provided over the course of this Parliament. This will allow local authorities to ensure vulnerable groups are not negatively impacted
I welcome the fact that the one per cent yearly reduction in social sector rents which the Government announced in the Summer Budget will not apply to supported housing for one year. This will leave time for the Government's review of the sector to report back, so that the best policy framework can be worked out based on those findings.
It is welcoming to hear that funding for the Disabled Facilities Grant, which helps disabled people make adaptations to their home, is due to increase by nearly 80 per cent next year. The Government is also spending £400 million on delivering 8,000 specialist homes for the vulnerable, elderly or those with disabilities.