The noble Lord is absolutely right; it does represent households. But he asked how the figures were derived and that is how I understand they were derived.
The noble Baroness, Lady Hollis, raised a number of questions about the affirmative regulations that we will bring forward. Introducing a taper will reduce the money coming in. I have just had a note saying that the regulations we will bring forward will provide more detail in due course. The noble Baroness also asked, what is the updated estimate of savings from the policy in light of the taper? Introducing a taper will reduce the money coming in by about half compared to what was set out in the Budget. That is what I can say at this stage.
Amendment 75, tabled by the noble Lords, Lord Kennedy and Lord Kerslake, seeks to allow a local authority discretion to implement the policy where the costs of administering the policy are likely to be greater than the extra rental income raised. It also seeks to allow local authorities to retain the additional revenue raised from increased rental income. I am sympathetic to one half of this amendment and I can give a commitment that we are thinking through the impact of the policy in certain authority areas. I accept that there may be some areas where social rents and market rents are so close that it may not make sense for an authority to operate the policy. We will consider that evidence carefully and consider how to approach this in the regulations. We will not be allowing local authorities to retain any money raised, however. The money has been identified as a contribution to reducing the national deficit and, on that basis, it must come back to government. I reinforce our commitment to allow local authorities to retain reasonable administrative costs.
Government amendment 133 provides for the regulations to be subject to the affirmative resolution procedure, which I am sure will be supported. I do not think that I need to say much more about this. I have given a commitment that the Government are in listening mode and want to take on board the views of noble Lords across a number of areas of detail. The affirmative regulations give us the chance to do this and I welcome the opportunity.
I hope that I have provided some reassurance and highlighted areas where we are thinking carefully about the way forward. Although we cannot accept a voluntary approach, we will work with noble Lords to consider the impact in some local authority areas. On that basis, I commend the government amendment and hope that the noble Lord will withdraw his.