Supplementary Benefits

HC Deb 11 May 1970 vol 801 cc801-5

10. Mr. William Hamilton

asked the Secretary of State for Social Services when he now intends to increase the scale of supplementary benefit payments.

23. Mr. Boyd-Carpenter

asked the Secretary of State for Social Services whether, in view of the continuing rise in retail prices, he will now increase supplementary benefits.

Mr. Crossman

There is nothing I can usefully add to the reply my right hon. Friend the Prime Minister gave on 16th April in reply to a supplementary question by my hon. Friend the Member for Heywood and Royton (Mr. Barnett).—[Vol. 799, c. 1570–73.]

Mr. Hamilton

That reply means, does it not, that there will be some increase in the next few months? Has my right hon. Friend had any representations on the continuing inadequacy, following the publication of the Supplementary Benefits Handbook, which, although it has been widely welcomed, does not yet inform people adequately of their rights, nor of the discretionary powers in the hands of local officers?

Mr. Crossman

I am surprised that my hon. Friend should refer to the handbook, which deals with discretionary payments, whereas we are dealing here with the scale rates. The whole situation is perfectly clear. What is normal is that, in the year when we do not raise National Insurance benefits, we raise the scale of supplementary benefits. I have no reason to believe that the normal practice will not prevail in this year.

Mr. Boyd-Carpenter

In view of the rapid and accelerating rise in the Index of Retail Prices, is the right hon. Gentleman really content not even to begin the process of increasing the rates of supplementary benefit?

Mr. Crossman

There is no process of doing it: one either does it or one does not. What I am saying is that I see no reason to believe that the time when we do it will be altered in this year.

Mr. Heffer

While praising the fact that this Government have done more for old-age pensioners than any other Government have ever done, nevertheless may I ask my right hon. Friend to appreciate—I am sure that he does—the serious problem facing many old people? Therefore, will he speed up this process of giving these extra supplementary benefits in the near future?

Mr. Crossman

I will certainly consider that possibility, but, as at present planned, we would assume that the announcement of the increase would come at the normal time and that the increase would be paid at the normal time.

Mr. Dean

Is not the rise in the cost of living abnormal? Is it not rising at about 4½ per cent. a year? Does not this mean that those who are most in need should receive help more speedily than has been the case in the past?

Mr. Crossman

Under our new pension plan, we have a biennial uprating at a regular time. Regularity of time has its advantages for the pensioners too.

34. Mr. Newens

asked the Secretary of State for Social Services if he will review the basis on which assessments of entitlement to supplementary benefit for owner-occupiers is made.

The Joint Under-Secretary of State for the Department of Health and Social Security (Mr. Brian O'Malley)

No, Sir. The Supplementary Benefits Commission's powers enable it to provide for any necessary expenditure, other than the repayment of mortage capital which an owner-occupier may incur. We have no reason to believe that these powers are being unfairly exercised.

Mr. Newens

Is my hon. Friend aware that many owner-occupiers who apply for supplementary benefits receive much smaller allowances than they would receive if they were paying rent for the same premises? Is it fair that people, particularly the chronic sick, should be forced to forgo the fundamental necessities of life to avoid being made homeless?

Mr. O'Malley

I should point out that in calculating the amount to be paid to an owner-occupier the Supplementary Benefits Commission is required to take into account his rates and his mortgage interest, but not the mortgage capital repayments. The Commission also makes allowance for ground rent and for the cost of maintenance and repair of the property. It has been the principle under successive Governments that public funds ought not to be provided to enable a person to acquire a capital asset.

Mr. Ridsdale

Will the hon. Gentleman co-ordinate any action that he takes over this with the Ministry of Housing and Local Government, because I have had several cases in which owner-occupiers, because of increases in old-age pensions, have lost their rate rebate?

Mr. O'Malley

With respect, I hardly think that that arises out of this Question.

35. Mr. Newens

asked the Secretary of State for Social Services what limits have been placed on the allowance made for rent in the assessment of eligibility for the payment of a supplementary benefit to applicants living in local authority or privately-rented accommodation.

Mr. Ennals

The Supplementary Benefits Commission, which is required to meet the net rent in full or such part as is, to quote the Act, "reasonable in the circumstances", has not laid down any specific limits. Supervisory staff sometimes however prescribe, for different types of property, limits within which staff must work in making the initial determination as to what is reasonable in the circumstances of each case.

Mr. Newens

Is my hon. Friend aware that many applicants for supplementary benefit who are living in local authority premises or in premises for which rents deemed to be fair have been fixed are now finding that they are not allowed the full mount of their rent in their claim for supplementary benefit? How on earth are these people supposed to pay the additional amount without sacrificing the basic necessities of life?

Mr. Ennals

I am aware of the problem, and urgent discussions are going on with local authority associations to find a solution to this. My hon. Friend must recognise that this problem, which is of recent duration, springs from substantial increases in rents by local authorities and from the ending of the policy by a number of Tory-controlled authorities of pooling rents. The dispute is also linked with the refusal of many local authorities to pay a rent rebate to supplementary benefit claimants.

Mr. Dean

Whatever the reason may be, will the hon. Gentleman have another look at this? Is he aware that there are many instances, including some in my constituency, of people suffering as a result of a lack of co-ordination between the Ministry of Housing and Local Government and rent policy and the Department of Social Security and assistance to meet the rents of those on supplementary benefit?

Mr. Ennals

I assure the hon. Gentleman that it is not a matter of having another look. We are already having an urgent look at this. This difficulty has arisen as a result of the policies of a number of local authorities, and we are determined to find a solution to it. While this problem has just arisen, it represents very much less than 1 per cent. of the very large number of people who have their rents paid or contributed to by the Supplementary Benefits Commission.

Mr. R. C. Mitchell

Will my hon. Friend make sure that his local officers inform tenants in this position that if they are not receiving a full rent allowance from the Department they are usually entitled to a rate rebate?

Mr. Ennals

This is an important point, and we have drawn it to the attention of our local officers. It is a fact that some have estimated that there may be several hundred thousands of people who are entitled to rate rebate but who have not claimed it. Some of the persons concerned might find that their need would be ended were they to make use of their entitlement.