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Affordable housing 'trap' warning from MPs | Affordable housing 'trap' warning from MPs |
(about 7 hours later) | |
A government scheme to provide more affordable housing in England could trap some of its poorest residents on benefits, a committee of MPs warns. | A government scheme to provide more affordable housing in England could trap some of its poorest residents on benefits, a committee of MPs warns. |
The Commons Public Accounts Committee said in a report that properties built under the Affordable Homes Programme will cost more to rent. | The Commons Public Accounts Committee said in a report that properties built under the Affordable Homes Programme will cost more to rent. |
The government has negotiated a much lower grant with providers. | |
But it says the new scheme will deliver 53,000 more affordable homes than under the previous funding model. | |
In its report, the Public Accounts Committee (PAC) also raised concerns about whether the programme would deliver the houses ministers have promised. | In its report, the Public Accounts Committee (PAC) also raised concerns about whether the programme would deliver the houses ministers have promised. |
The committee also said it was also "not yet clear" whether the reduced grants would save money in the long-term. | |
The grants are £20,000 per home on average. The previous scheme could provide three times that total. | |
Benefit concerns | Benefit concerns |
The Labour MP who chairs the committee, Margaret Hodge, said higher rents would mean higher payments of housing benefit for those out of work. | The Labour MP who chairs the committee, Margaret Hodge, said higher rents would mean higher payments of housing benefit for those out of work. |
That, in turn, she said, would make it harder for claimants to find jobs that paid sufficiently well to make it worthwhile. | That, in turn, she said, would make it harder for claimants to find jobs that paid sufficiently well to make it worthwhile. |
"The department must do more to understand the full impact of higher rent levels on tenants and ensure that resources are targeted where need is most acute," she added. | "The department must do more to understand the full impact of higher rent levels on tenants and ensure that resources are targeted where need is most acute," she added. |
The MPs' report also warns that completing the homes on time leaves "very little room for slippage". | The MPs' report also warns that completing the homes on time leaves "very little room for slippage". |
But Housing Minister Mark Prisk said the report failed to recognise the flexibility that the system offers. | |
"In many areas, landlords are opting to charge affordable rents at less than 80% of local market rates - with the average set at nearer 65% in London," he said, adding that anyone who was eligible for full housing benefit would have their rent paid in full. | |
The Affordable Homes Programme is meant to deliver 170,000 properties in England by 2015. | |
Social housing providers are now being offered up to £1.8bn in government grants. |
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