HC Deb 16 January 1986 vol 89 cc694-6W
Mr. Meacher

asked the Secretary of State fcr Social Services if he will provide the figures, for all the cases analysed in tables P1 to P6 of the technical annex to the "Reform of Social Security", published 16 December 1985, for an unmodified state earnings related pension scheme on the same basis as those quoted for a modified state earnings related pension scheme.

Mr. Newton

I shall let the hon. Member have a reply as soon as possible.

Mr. Meacher

asked the Secretary of State for Social Services if he will publish in the Official Report figures similar to those given in tables P1 to P6 of the technical annex of the "Reform of Social Security" on the basis of a rate of return of 1½ per cent. , 2 per cent. and 2½ percent.

Mr. Newton

I refer the hon. Member to my reply to the hon. Member for Dunfermline, East (Mr. Brown) on 20 December at columns435–436.

Mr. Meacher

asked the Secretary of State for Social Services if he will publish figures, for all categories listed in the technical annex to the "Reform of Social Security", for changes in disposable income following the White Paper proposals by comparison with current benefit levels in 1985–86.

Mr. Newton

The figures in the technical annex already illustrate these changes.

Mr. Meacher

asked the Secretary of State for Social Services on what basis the rate of return figures quoted in tables P1 to P6 of the technical annex to the "Reform of Social Security" are calculated.

Mr. Newton

The rate of return figures used in tables P1 to P6 of the technical annex to the White Paper "Reform of Social Security" are calculated in real terms net of increases in prices.

Mr. Squire

asked the Secretary of State for Social Services at what levels of gross income entitlement to family credit will cease for a family with one, two, three and four children.

Mr. Newton

These levels would depend on the ages of the children and would, therefore, vary between families of the same size. They would be determined by the actual decisions about benefit rates to be taken nearer the time of implementation in April 1988. However, using the illustrative figures contained in the technical annex to the social security White Paper, some examples would be as follows:

Level of gross income* at which entitlement to family credit ceases£
Family with one child aged 3 129
Family with two children aged 4 and 6 141
Family with three children aged 3, 8 and 11 165
Family with four children aged 3, 8, 11 and 16 197

*Excluding child benefit.

Mr. Squire

asked the Secretary of State for Social Services what arrangements are planned under the family credit scheme to deal with (a) those who move in and out of short-term or temporary jobs, (b) lay-offs, (c) those employed in more than one part-time job, (d) those whose employers are not liable to pay tax and national insurance contributions and (e) cases of marriage break-up where the parent in receipt of family credit is not the parent who has care of the child or children.

Mr. Newton

Detailed procedures have not been finalised. On(a), to be entitled to family credit a person will have to be engaged and normally engaged in remunerative work. If a person in a short-term or temporary job fulfils the "normally engaged" condition and family credit is payable, he will be subject to the rule in paragraph 3.83 of the White Paper "Reform of Social Security" (Cmnd. 9691) that an award will end if the payee loses his job or moves to a new employer. The situations in (b), (c) and (d) all concern payment of family credit through employers, and the detailed procedures in this area are to be the subject of further consultations with employers. On(e), the intention is that there will be provision for family credit to be withdrawn in this sort of situation.

Mr. Squire

asked the Secretary of State for Social Services whether he will be consulting interested voluntary organisations as well as local authorities on the unresolved housing benefit questions listed in paragraph 3.64 of Cmnd. 9691.

Mr. Newton

Many of the matters which we will be discussing with local authority interests involve very detailed questions of administrative practice and procedure. But where it seems appropriate, we will certainly consider seeking the views of other organisations on an informal basis.

Mr. Squire

asked the Secretary of State for Social Services what procedures will be used to calculate family credit where a claimant is on emergency tax coding.

Mr. Newton

Detailed procedures have not been finalised, but as family credit will be based on normal net earnings it is anticipated that there will be provision for an estimate to be made of what the normal tax deduction would be.

Mr. Frank Field

asked the Secretary of State for Social Services if he will provide a breakdown by gross income level of the totals illustrated in the bottom line of tables 3(i)B, 3(ii)B, and 12(ii)B of the technical annex to the White Paper on the reform of social security, distinguishing, where possible, between couples and single parents, using the following or similar gross weekly income bands: under £50, £50– £74, £75– £99, £100–124 and –125 plus.

Mr. Newton

I shall let the hon. Member have a reply as soon as possible.

Mr. Frank Field

asked the Secretary of State for Social Services if he will provide estimates of the numbers of losers resulting from the changes to standard housing benefit proposed in the White Paper on the reform of social security, Cmnd. 9691, including the suggested 20 per cent. rate contribution; how many of these would lose entitlement to housing benefit altogether; and if he will break the above estimate down into the following categories: (a) pensioners, (b) working households with children, distinguishing between couples and single parents, (c) working households without children, (d) others with children, distinguishing between couples and single parents and (e) others without children.

Mr. Newton

I shall let the hon. Member have a reply as soon as possible.

Mr. Gordon Brown

asked the Secretary of State for Social Services how many households currently claiming housing benefit will lose entitlement to (a) rent rebate and (b) rate rebate, under the proposals in Cmnd. 9691; and, in each case, what is the number of pensioner households and the number of working households with and without children.

Mr. Newton

[pursuant to his reply, 15 January 1986, c. 596]: Using the illustrative assumptions in the technical annex to the White Paper*, including a minimum contribution to domestic rates of 20 per cent., the estimated numbers losing entitlement are shown below. In the case of working households with children, the loss of entitlement would often arise because of increased income through the proposed family credit, and would be more than offset by the increased entitlement in that respect.

Thousands
Rent Rebate/Allowance Rate Rebate
Total 460 810
—pensioners 140 330
—working households with children 170 290
—working households without children 80 70

Note: *Cmnd. 9691.