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The government is proposing to remove the controls that currently...
The government is proposing to remove the controls that currently

apply to the operation of local authority Cash Incentive Schemes.

The proposals which are part of wider moves to reduce regulation and

cut red tape for local authorities, will be taken forward through a

draft Regulatory Reform Order, now before parliament.

Currently local authorities are required to obtain the Secretary of

State's consent to run Cash Incentive Schemes. However, new proposals

will reduce the administrative burden by removing the need for

consent, giving local authorities greater flexibility.

Housing minister Jeff Rooker said:

'Reducing the administrative burden by removing the need for consent,

will furnish local authorities with the flexibility they need to run

the Cash Incentive Schemes more easily and tailor them to meet local

housing needs.'

The Reform Order follows a nine-week consultation (16 August - 18

October) resulting in overwhelming support for the proposed change to

the administration of local authority Cash Incentive Schemes.


1. Under the Cash Incentive Scheme local authorities can make grants

to existing tenants to help them buy a home of their own or to carry

out works on a house to provide additional accommodation (which is

rarely used). The main purpose of the scheme is to free up council

houses for other households in housing need. It also supports moves

into home ownership.

2. Guidance notes set out the conditions schemes must meet. These

include a means test for applicants, a limit on the price of the

property to be purchased, confirmation that grants will be limited to

purchases in the UK and arrangements for publicising the scheme.

3. The Consultation paper Removal of the Requirement for Local

Authorities to obtain consent to run a Cash Incentive Scheme was

published by the ODPM on 16 August 2002.

4. We are aiming for the regulatory reform order to come into force

from April 2003.

5. Copies are available at http:/// and

from the Cabinet Office's website at

6. The reform would apply to England only.

7. Details of the Regulatory Reform Act 2001 can be found at:

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