PARLIAMENTARY EARLY DAY MOTION
HOUSING ASSOCIATION GRANTS (3 March 1993)

That this House notes with concern that in two years' time the Government intends to reduce housing association grants from 65 to 55 per cent. for the development of new housing; declares that this policy will have a regressive effect on the ability of housing associations in meeting the needs of those people to establish a home, thereby forcing housing associations to raise a much higher proportion of their costs from private financial sources, such as banks and building societies; believes that the likely outcome of this policy change will be much higher rents, making it difficult for those on low wages to accept a house from housing associations, and leading to those tenants on housing benefits who currently form the majority of the tenancies from being able to accept work, if offered, because their rents would in fact make them worse off financially; and, therefore, condemns these proposals and calls upon the Government to invest in a proper capital programme of housing construction in the social housing sector, which should include local authorities as well as housing associations.

Sponsored by:
Llew Smith (Labour)