§ 1. Mrs. GormanTo ask the Secretary of State for Social Security if he has any plans to increase the amount of earnings disregard before benefits for lone parents are affected.
§ The Parliamentary Under-Secretary of State for Social Security (Mr. Michael Jack)We have no plans at present to change the earnings disregard in income support, housing benefit or community charge benefit. However, in family credit, the threshold at which earnings start to affect the maximum credit for lone parents will be increased at next April's uprating from £62.25 to £66.60.
§ Mrs. GormanI thank my hon. Friend for that encouraging news. As he will know, those in work who earn more than £15 a week lose £1 for every £1 that they earn. That discourages people from working.
Almost 1 million lone parents are now managing on benefit. Only 10 per cent. work, and the number is falling. Will my hon. Friend consider allowing working women in such circumstances a greater disregard? Will he at least 2 allow them the cost of paying childminders? I am sure that he agrees that we should not dock the benefit of deserving mums.
§ Mr. JackI thank my hon. Friend for advancing, in her characteristic way, the case of women who wish to return to the labour market.
The Government have listened carefully to what my hon. Friend has said. As she will know, from next April a £15 maintenance disregard will, for the first time, be applied to family credit. We shall also reduce the number of hours required for people to qualify for that benefit. Given those two improvements—together with child benefit, one-parent benefit and housing benefit—many women in my hon. Friend's constituency will find that they have enough financial room for manoeuvre, so that they can both go out to work and meet their childcare costs.
§ Mr. KirkwoodThe Minister will recognise that lone parents are being given some useful assistance under the "children come first" proposals, in the form of a reduction from 24 to 16 hours in the full-time working week. Is he aware that many people who work part time, for less than 24 hours a week, and who can currently claim income support, will lose out substantially in terms of mortgage interest relief? Have the Government considered that and, if so, what steps is the Minister taking to mitigate the losses involved?
§ Mr. JackI am grateful to the hon. Gentleman for asking that question. The Government have carefully considered the matter, and transitional arrangements will be made to safeguard those who are now receiving income support and would like to move to family credit, but may be worried for precisely the reasons that the hon. Gentleman has mentioned.