HC Deb 30 March 1983 vol 40 cc194-6W
Mr. Deakins

asked the Secretary of State for Social Services how many employees are earning less than the appropriate amount of supplementary benefit plus child benefit in each of the following categories: (a) single person, (b) married couple and (c) a married couple with one, two and three or more children, respectively; and how many in each category are receiving family income supplement.

Mr. Newton

I regret that not all of the information requested is available.

Latest estimates relate to 1979. About 100,000 employees in full-time work were estimated to have incomes below their supplementary benefit level, which is calculated net of any child benefit receivable. 50,000 of the total were estimated to be single people and 50,000 to be married. Many of the latter are likely to have had children, but no detailed estimates about family characteristics can be made from the data available. It is not possible to estimate reliably how many employees were in receipt of family income supplement.

Mr. Field

asked the Secretary of State for Social Services if he will list the cost of increasing to the long-term supplementary benefit rate (a) invalid care allowance, (b) non-contributory invalidity benefit, (c) invalidity benefit, (d) sickness benefit, (e) unemployment benefit and (f) retirement pension, assuming (i) the benefit were untaxable and (ii) the benefit were taxable.

Mr. Rossi

[pursuant to his reply, 14 March 1983, c. 50]: The information is as follows:

£ million
Benefits already taxable Benefit cost of proposed increase* Increased tax yield if benefit remains taxable Current tax yield
Invalid care allowance
Unemployment benefit 290 100║ 325
Retirement pension

Great Britain
Year and benefit Number of women, with children, estimated not to be claiming Numbers of children in families headed by a woman not claiming benefit Average weekly amount unclaimed £ Total annual amount unclaimed £ million
1979
Supplementary Benefit* 70,000 110,000 9.50 30
1979
Free Welfare foods on low income grounds† 130,000 160,000 1.20 8
1978–79
Family Income Supplement 35,000 55,000 4.00 8
1979–80
One Parent Benefit‡ 135,000 135,000 2.20 15
1980–81
One Parent Benefit‡ 120,000 120,000 2.68 19
1981–82
One Parent Benefit‡ 120,000 120,000 3.11 22
* The estimate is net of those individuals who, although entitled to supplementary benefit, would be better off receiving housing rebates.
† The estimate excludes pregnant women who may qualify. No estimate of their number is available.
‡ One Parent Benefit is only payable for the first child in a one parent family. The figures given are those who would gain from receiving the benefit but are not claiming it.

Note: Individual families may fail to claim more than one benefit.

Benefits not at present taxable Benefit cost of proposed increase* Yield from taxing benefit at present rates Additional tax yield from the proposed benefit increase
Non-contributory invalidity pension 15 7 3
Invalidity benefit 50 85 5
Sickness benefit 155 215 50
* At average 1982–83 benefit rates.
† Additional tax yield if benefits had been paid at the enhanced rates.
‡ The 1982–83 tax yield in respect of the benefits at average 1982–83 rates.
|| No change in tax liability is assumed in respect of unemployed people entitled only to supplementary benefit.
¶ The yield in 1982–83 if benefits at then current rates had been taxable.
● The additional yield in 1982–83 if benefits at the proposed increased rates had been in payment
■ Already above the long term supplementary benefit rate.

Mr. Greville Janner

asked the Secretary of State for Social Services if he will estimate the number of women and children in the United Kingdom not claiming benefits or allowances due to them under each scheme administered by his Department, the average level of such potential claims and the total of such sums unclaimed during each of the past five years for which records are available.

Mr. Newton

[pursuant to his reply, 14 March 1983, c. 56]: I regret that I can only give part of the information requested and then not including information relevant to Northern Ireland, since that is a matter for my right hon. Friend the Secretary of State for Northern Ireland.

The following table gives the latest estimates about the four benefits for which there is a significant take-up problem. Information about years earlier than 1979 is either not available or could only be obtained at disproportionate cost.