HC Deb 05 December 1983 vol 50 cc56-61W
Mr. Squire

asked the Secretary of State for Social Services if he will provide details of the savings and numbers of losers for each one of the changes in housing benefit and in assistance with housing costs paid with supplementary benefit recently announced.

Mr. Madden

asked the Secretary of State for Social Services if he will publish a breakdown showing the number of households losing housing benefit because of (a) the increased tapers above the needs allowance, (b) the increases in non-dependant deductions (c) the higher minimum rebate allowance limit, and (d) the higher threshold for "high rent schemes" authorisations, or any combinations of these elements.

Dr. Boyson

The 1984–85 savings break down approximately as follows:

£ million
Increased tapers above the needs allowance 115
Withdrawal of the non-householder's contribution from 18–20 years olds 60
Other non-dependant deduction changes 40
Other items 15

The numbers affected* break down as follows:

000s
Households affected by the taper and minima changes combined† 2,170
Non-householders aged 18–20 losing the non-householder's contribution 350
Households affected by changes in non-dependant deductions‡ 700
Households currently getting enhanced benefit through the high rent scheme in an area where the authority will lose its authorisation 40

Notes

*The totals are not cumulative as households may fall into more than one category.

†It is not feasible to distinguish the effect of the proposed changes in the tapers from the proposed increase in the minima for standard cases.

‡The housing benefit recipients in these households need not lose financially because non-dependants will be expected to contribute rather more towards the cost of rent and rates.

Mr. Madden

asked the Secretary of State for Social Services what are the latest available figures or estimates for (a) the total number of households receiving housing benefit in the United Kingdom, (b) the division of these between "standard" and "certificated" cases, (c) the number receiving housing benefit supplement and (d) the number receiving the transitional addition (limiting taper losses: (i) at April 1983 and (ii) after 21 November 1983.

Dr. Boyson

The following table shows our latest estimates for Great Britain.

Households 000s
Total number receiving housing benefit—of which, 6,960
standard cases 3,910
certificated cases 3,050
Numbers receiving housing benefit supplement (included in standard cases above) 200
Numbers receiving the transitional addition to limit taper losses
i. at April 1983 580
ii. after 21 November 1983 200

The Northern Ireland housing benefits scheme, which only came into effect on 21 November 1983, is the responsibility of my right hon. Friend the Secretary of State for Northern Ireland.

Mr. Madden

asked the Secretary of State for Social Services if he will publish information about total expenditure on housing benefit showing the division of the expenditure between (a) rate rebates, (b) rent rebates, (c) rent allowances.

Dr. Boyson

The estimated total cost of housing benefit in 1983–84 is as follows:

£ million
(a) rate rebates 1,239
(b) rent rebates 1,937
(c) rent allowances 396
Total cost 3,572

Mr. Madden

asked the Secretary of State for Social Services (1) of the housing benefit cases so far heard by review boards, in how many the authority's original determination was (a) altered and (b) upheld;

(2) how many housing benefit cases referred to review boards involved representations about (a) eligible rent-rates, (b) non-dependants or sub-tenants, (c) overpayments and (d) other matters.

Dr. Boyson

On the basis of statistical returns made to the Department covering the period 1 April — 30 September 1983, 303 cases have been referred to review boards. A decision has been reached in 21 cases; 11 original determinations were revised and 10 were upheld. The large number of cases outstanding is due mainly to a hearing involving student claimants in one authority where a decision has still to be reached. The representations fell into the following categories; some cases have been counted under more than one heading;

Cases
(a) eligible rent/rates 295
(b) non-dependants or sub-tenants 4
(c) overpayments 2
(d) other matters 10

Mr. Madden

asked the Secretary of State for Social Services what was the average weekly amount of housing benefit supplement payments to claimants since April 1983.

Dr. Boyson

The information needed to calculate this is still being processed. I shall let the hon. Member have a reply within the next few weeks.

Mr. Madden

asked the Secretary of State for Social Services what was the average weekly amount of transitional addition housing benefit payments to claimants (a) at April 1983; and (b) after 21 November 1983.

Dr. Boyson

We estimate that the average weekly amounts were as follows:

  1. (a) 67p
  2. (b) 55p

Mr. Madden

asked the Secretary of State for Social Services if he will publish a breakdown of the losses in housing benefit related to non-dependant deductions (a) between "standard" and "certificated" cases and (b) between the different age brackets of non-dependants., that is 16 to 17-year-olds, 18 to 20-year-olds and those aged 21 years up to retirement age.

Dr. Boyson

The following table shows the best available breakdown of the number of households which we estimate will be affected by the proposed non-dependant deduction changes, excluding those with 18 to 20-year-old non-dependants on supplementary benefit or a youth training scheme who will gain benefit in April:

Households affected, 000s
Standard cases Certificated cases
Household contains a non-dependant aged:
16–17 in work etc. 80 35
18–20 in work etc. 80 225
21-pension age in work etc. 275

The total of these figures overstates the total number of households affected because some will contain a non-dependant in more than one category.

It is not possible to provide a breakdown of losses. In any case the householder should not lose financially because non-dependants will be expected to contribute rather more towards the cost of rent and rates. However, the maximum possible reductions in benefit for non-dependants, are as follows: they apply to both standard and certificated cases.

Maximum reduction in benefit per non-dependant (£ a week)
Non-dependant aged From rates assistance From rent assistance (or mortgage interest assistance in supplementary benefit)
16–17 in work etc. 0.90 2.20
18–20 in work etc. 0.45 2.20
21-pension age in work etc. 0.20 1.45

Mr. Madden

asked the Secretary of State for Social Services if he will publish a breakdown of the losses to claimants which will arise from the cuts in housing benefit expenditure announced by the Chancellor of the Exchequer in his financial statement on 17 November, showing the total number of households suffering financial loss and a breakdown of these by (a) tenure groups (council tenants—tenants of private landlords or housing associations-owner occupiers), (b) household type (pensioner households — families with dependent children — other), (c) income brackets and (d) the amount of benefit which will be lost each week per household, showing the number of households losing up to 75p per week, between 75p and £1 per week, between £1 and £1.50 per week, between £1.50 and £2 per week, and more than £2 per week.

Dr. Boyson

The following estimates show a breakdown of the 2.2 million households in Great Britain who will be affected by the proposed changes to the tapers above the needs allowance and the proposed increase in the minima for standard cases. All figures are in thousands and discrepancies in the totals are due to rounding.

(c) and (d)—the table below shows a distribution of those affected by distance from the needs allowance and size of weekly loss.
Thousands
Distance above the needs allowance
Size of loss Below the needs allowance 0–£10 £10.01–£20 £20.01–£30 30.01–£40 £40+ Total
1p–75p 30 550 260 200 110 130 1,280
76p-£1.00 10 70 10 20 20 90 220
£1.01–£1.50 0 40 80 20 30 70 230
£1.51–£2.00 0 * 90 10 10 20 130
£2.01+ 0 0 70 110 80 50 310
Total 40 660 500 360 260 350 2,170

Note:

* indicates number less than 5,000 but greater than 0.

Mr. Madden

asked the Secretary of State for Social Services (1) what is the total local authority expenditure on setting-up costs for housing benefit incurred in 1982–83; and what is his estimate for costs to be incurred in 1983–84;

(2) what were the costs to local authorities of administering the housing benefit scheme in 1983–84, broken down as follows (a) total costs, (b) less expenditure attributable to continuation of the former rent rebate, rent allowance and rate rebate schemes and (c) less savings reported by local authorities as a direct result of the introduction of housing benefit.

Dr. Boyson

The current estimate of local authorities' expenditure on setting-up costs incurred in 1982–83 is £8.5 million. It is too early to make a firm estimate of the costs to local authorities of administering the housing benefit scheme in 1983–84.

Mr. Andrew Bowden

asked the Secretary of State for Social Services if, further to his answer to the hon. Member for Brighton, Kemptown on 29 November 1983, Official Report, c. 473–74, he will estimate how many pensioners will lose more than (a) £1 a week, (b) £1.25 a week and (c) £1.50 a week and over as a result of the changes in housing benefit regulations.

Dr. Boyson

The estimates show the number of pensioner households affected by the proposed changes in the tapers above the needs allowance and by the proposed increases in the minima for standard cases.

(a) tenure groups
LA tenants 950
Private tenants (including housing association tenants) 190
Owner Occupiers 1,020
Total 2,170
(b) Household type
Pensioner* 1,330
Families with children 460
Others 380
Total 2,170

Note:

* the small number of pensioners with dependent children have been counted as pensioners.

Numbers losing Pensioner households 000s
(a)£1–£1.24 80
(b)£1.25–£1.49 50
(c) £1.50 and over 210

Mr. Andrew Bowden

asked the Secretary of State for Social Services if, further to his answer to the hon. Member for Brighton, Kemptown on 29 November 1983, Official Report, c. 473–74, he will estimate total savings to the Treasury as a result of cuts in eligibility of certain occupational pensioners for housing benefits.

Dr. Boyson

I regret that information is not available on which to make a reliable estimate. Whilst we hold data about the number of pensioners and their total income, we do not have separate data about the breakdown of income as between occupational pension and other sources.

Mr. Andrew Bowden

asked the Secretary of State for Social Services whether the changes to housing benefit regulations announced in the autumn economic statement will make any occupational pensioners worse off than any supplementary pensioners receiving housing benefit.

Dr. Boyson

Housing benefit supplement will protect occupational pensioners affected by the changes from being taken below supplementary benefit levels, provided that they satisfy the eligibility conditions for supplementary benefit.

Mr. Andrew Bowden

asked the Secretary of State for Social Services how many pensioners lost all entitlement to rent rebates and allowances and rate rebates through the taper changes introduced in the new housing benefit scheme to April 1983.

Dr. Boyson

We estimate that approximately 120,000 pensioner households lost entitlement to benefit in April 1983 because of the taper changes at that time.

Mr. Andrew Bowden

asked the Secretary of State for Social Services if he will estimate the minimum and average income above the needs allowance at which occupational pensioners will start to lose money under the changes to housing benefit outlined in the autumn economic statement.

Dr. Boyson

The proposed changes to the tapers will affect everyone whose income is above the needs allowance. The needs allowances for pensioners are £43.80 for a single person and £64.25 for a couple—£9.75 above state retirement pension levels.

Mr. Frank Field

asked the Secretary of State for Social Services if he will list the total number of supplementary benefit claimants who were floated off benefit as a result of the introduction of the new housing benefit; and if he will break down this total according to whether the claimant was (a) a pensioner, (b) unemployed, (c) sick, (d) a one parent family and (e) other.

Dr. Boyson

It is estimated that 296,000 supplementary benefit claimants were floated off benefit in April 1983. There were:

  1. (a) 234,000 pensioners;
  2. (b) 28,000 unemployed;
  3. (c) 25,000 sick;
  4. (d) 3,000 one-parent families;
  5. (e) 5,000 others.

The components do not add up to the total because of rounding.

Mr. John

asked the Secretary of State for Social Services whether, in view of the proposed housing benefit changes and the 10-day consultation period for representations to be made on these changes, he will ask the Social Security Advisory Committee to extend the time limit for making representations.

Dr. Boyson

No. We want to give local authorities as much time as possible to prepare for changes in April. This means that the consultation period on the proposals and the Government's consideration of views must be completed urgently.