Below is the text of Mr Major’s written Parliamentary Answer on Housing Benefit on 24th July 1986.
Mr. Alton Asked the Secretary of State for Social Services what is the ceiling on the rent which a landlord may charge where the rent is being paid via housing benefit.
Mr. Major The regulations do not specify a maximum allowable rent for housing benefit purposes, but if a rent is registered housing benefit is payable only on the registered rent. However, local authorities can in certain circumstances limit the amount of rent which is taken into account in calculating entitlement to housing benefit if they consider that the rent charged is unreasonable. We propose to strengthen local authorities’ powers to withhold benefit and that the Secretary of State should have a reserve power to limit the level of rent eligible for housing benefit.