HC Deb 26 May 1988 vol 134 cc503-5
2. Mr. Allen McKay

To ask the Secretary of State for Northern Ireland how many people in the Province have been refused social fund loans since 11 April.

The Parliamentary Under-Secretary of State for Northern Ireland (Mr. Richard Needham)

Between 11 April 1988 and 29 April 1988—the last date for which information is available—247 applications for social fund loans were refused.

Mr. McKay

Is the Minister aware that, because of the higher cost of living and substantially higher fuel costs in Northern Ireland compared with the rest of the United Kingdom, the number and amount of single payments in Northern Ireland are almost double those in the United Kingdom? In view of those facts, will the hon. Gentleman implement the 1984 parity report and establish a fuel benefit for the poorer families in Northern Ireland?

Mr. Needham

I understand the hon. Gentleman's point. He was right to say that there is greater deprivation in Northern Ireland and, therefore, more families rely on income support, family credit and so on than in the rest of Britain. Nevertheless, there are many poor families in this country who must pay high fuel costs. The parity policy which we adopt in Northern Ireland has always proved to be beneficial. It is proving beneficial at the moment, because the new premium from income support applies favourably to those who have large families, of which there are proportionately more in Northern Ireland.

Rev. Ian Paisley

Will the Minister keep in mind the fact that the electricity tariff in Northern Ireland is set at the maximum of the levels in the rest of the United Kingdom, so Northern Ireland people are not on all fours with the rest of the United Kingdom?

Mr. Needham

We keep that point in mind, but there are swings and roundabouts. Because the premium is especially targeted towards families, particularly those with children, the new overall effect is favourable to Northern Ireland. The hon. Member should bear that in mind.

Mr. McGrady

Is the Minister aware of the devastating effect of the new social security regulations on the poorer sector of Northern Ireland? Is he aware that in South Down alone there were 788 applications for single payments in April 1987, and that in April 1988 there were 189 applications under the social fund—a reduction of 76 per cent.? Is the hon Gentleman aware that there are backlogs in some minor offices of up to 500 applications under that fund, consisting of unprocessed or unlikely to be processed applications? How does the hon. Gentleman reconcile those statistics with his statement: The majority of claimants are likely to have gained or not suffered losses in terms of their benefits"?

Mr. Needham

I accept that there are fewer claims under the social fund at the moment. If the hon. Gentleman compares the figures for March last year with those for March this year, for example, he will find that there were many more claims under the single payments scheme in March this year because it was the last month before the new system was introduced. One would therefore expect the position to be as it is. I am sure that once the backlog of single payments has been cleared, as it will be, the number of claims under the social fund will increase.

Rev. Martin Smyth

In a week when there has been talk about the moral high ground, will the Minister accept that perhaps some of the reaction in Northern Ireland to the social fund and social security regulations is muted because many people there believe that godliness with contentment is great gain. Nevertheless, there is an obligation on the Government as well as others to care for the widow and the fatherless in their affliction. The fact that there are needy in England does not mean that the needy in Northern Ireland should not be looked after, too.

Mr. Needham

I have accepted that deprivation and unemployment in Northern Ireland are significantly greater on average than in the rest of the United Kingdom. That does not alter the fact that because we are targeting the benefits more specifically at families in low-paid work and families with children—[Interruption.] Hon. Members find the matter humorous, but we estimate that in Northern Ireland £43 million more will be spent in social security provision this year than last year. I hope that the hon. Gentleman will welcome that.