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Council House Tenants (Subsidy)

Volume 891: debated on Monday 28 April 1975

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asked the Secretary of State for the Environment what is estimated to be the total subsidy paid by ratepayers and taxpayers to tenants of local authority housing in 1974–75; and whether he intends to persist with this arrangement, in view of the fact that 22 per cent. of the local authority tenants had household incomes in excess of £3,000 per annum in 1973, compared with only 32 per cent. for households of all tenures.

The best current estimates for England and Wales in 1974–75 are as follows:

Exchequer Subsidies£million
Rent Rebates150
Other520

Rate Fund Subsidies(60·5 per cent. of the national total of which is met by taxpayers as rate support grant)

£million

Rent Rebates37
Other155

These estimates do not include the cost of supplementary benefit assistance to certain tenants in meeting the part of their rent which is not remitted by way of rebate.

The system of rents and subsidies under the Housing Rents and Subsidies Act 1975 is of an interim nature pending the outcome of my right hon. Friend's current review of housing finance which will take account of all relevant factors, including those mentioned by the hon. Member.