Family Credit

HC Deb 15 October 1990 vol 177 cc911-2

7. Mr. Arbuthnot

To ask the Secretary of State for Social Security how many families are now in receipt of family credit.

Mrs. Gillian Shephard

The number of families receiving family credit has risen in each month during 1990. The latest available information is for the end of July, by which stage the caseload had reached 323,000. That is the highest ever level since the scheme began.

Mr. Arbuthnot

Is it correct that the Government are carrying out a successful campaign to publicise family credit and does my hon. Friend agree that the Government's commitment to the family is well demonstrated by the fact that this year nearly £5,500 million is being paid in social security benefits to low-income families? Is it true that when the Labour party was in power, it cut benefits to families?

Mrs. Shephard

Family credit certainly represents an important part of the Government's policy for the family. Interestingly, on average the amounts payable in family credit come to £30 a week but over 15 per cent. of family credit recipients receive £50 or more. The advertising campaign increased not only applications but the level of awareness of that worthwhile benefit.

Mr. Pike

Is the Minister concerned about people who take part-time work and thereby become ineligible for family credit, who would be better off being out of work and claiming benefit and income support? Is not it time that the Government did something to help them?

Mrs. Shephard

I think that the hon. Gentleman is referring to the cases of certain ancillary workers, of which I am aware. The chief adjudication officer has issued further guidance for those cases and we are considering its effects carefully. It was clearly never our intention that families should find themselves unable to get income support or family credit.

Mr. Peter Bottomley

Will my hon. Friend confirm that every family who is receiving family credit is also receiving child allowance? Will she confirm that income support, whether it be family credit, supplementary benefit or other systems, has always taken the child allowance into account? Does she agree that instead of referring to child benefit, we should refer to child allowance, so that we can agree with our right hon. Friend the Prime Minister, who said on 17 March 1981 that the tax and benefits system should always take account of people who have children and that it is a matter not of income support but of child allowance?

Mrs. Shephard

I thank my hon. Friend for that contribution, which was as interesting as one has come to expect from him. All families with children receive child benefit for each child. As for the name of the benefit, I quite like child benefit.