In a Parliamentary written answer, Government Minister Baroness
Williams accepts that local authorities do not receive a subsidy
from the Exchequer.
Lord Kennedy of Southwark, asked a written
"What is the level of subsidy from the public purse provided
for council housing?"
To which Baroness Williams replied:
"Local housing authorities do not receive subsidy from the
exchequer; the Localism Act 2011 abolished housing revenue account
subsidy. The Housing Revenue Account self-financing determination
published in 2012 provides a once and for all settlement that
allows local authorities in England to keep all rental income in
return for a rebalancing of housing debt." (Source House of Lords Written Answers
"ARCH members may find the Minister's response useful in
reminding their local MPs, media and taxpayers generally that,
contrary to popular belief, council housing is not subsidised by
the general taxpayer through the Exchequer."
The Minister's written answer also casts doubt on the claim by
the DCLG made in a Press Release on 9 October 2015 that the introduction of a
mandatory 'pay to stay' scheme "will put an end to the
situation where higher-income social housing tenants benefit from
tax-payer funded subsidies of up to £3,500 per year".