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Government Minister accepts council housing is not subsidised 28/04/2016

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 question:


"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 HL7173)


ARCH Chief Executive John Bibby commented:


"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".

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