HC Deb 09 February 1982 vol 17 cc841-2
1. Mr. Nicholas Ws Winterton

asked the Secretary of State for Social Services how much was allocated for the payment of supplementary benefit in the last 12-month period for which figures are available; and if he has any plans to change this allocation.

The Under-Secretary of State for Health and Social Security (Mrs. Lynda Chalker)

The present allocation for 1981–82 is£41/2 billion. This estimate is kept under review and, if necessary, the Government will bring forward proposals for additional Supply.

Mr. Winterton

I am grateful to my hon. Friend for that response and information. Does she agree that, bearing in mind the level of unemployment, more supplementary benefits will be paid out, much of which will go to people who, through no fault of their own, find themselves unemployed? Does she believe that it is fair that people who have saved all their lives after working hard, and who are made redundant at the age of 50 or 52, should have to resort, after unemployment benefit has run out, to the savings that they have invested for retirement, not for redundancy?

Mrs. Chalker

With regard to additional Supply, I must ask my hon. Friend to await the Government's Spring Supplementary Estimates later this month. With regard to the people who are dependent on supplementary benefit, or who would be but for the fact that they have savings of over £2,000, my hon. Friend will know that we ale reviewing the operation of the capital cut-off rule in the light of the report of the supplementary benefits policy inspectorate and the many other views that have been expressed on the issue. We shall particularly bear in mind the views expressed in the House, but I am afraid that it is too early for me to give any commitment to my hon. Friend.

Mr. Andrew F. Bennett

Has the Minister more up-to-date information of the failure of people to take up supplementary benefit? In 1977 the amount not taken up was £340 million. Is there a more up-to-date figure?

Mrs. Chalker

We do not have the figures now, but we are making extensive efforts to ensure that those who are entitled to benefits take them up. As soon as further figures are available, I shall be glad to let the House have them.

Mr. Rooker

Given that Ministers, from the Prime Minister downwards, and including the Ministers now on the Front Bench, continually refer to supplementary benefit as the safety net for the real poor, why is it planned to tax it from 5 July this year?

Mrs. Chalker

That is a question for my right hon. and learned Friend the Chancellor of the Exchequer. Where supplementary benefit is being paid in lieu of unemployment benefit because that has been exhausted, it has been the policy of this Government, and of the Labour Party when in Government, that these benefits should be brought into taxation as soon as feasible.