§ Mr. Gordon Brown
To ask the Chancellor of the Exchequer how many households are in receipt of housing benefit or family credit; if he will give for 1988–89 for these households the total reduction in the income tax payments resulting from a reduction in the basic rate of tax to 25 per cent.; and if he will estimate the annual saving to the Exchequer in payment of housing benefit and family credit resulting from a reduction in the basic rate of tax to 25p.
[holding answer 23 February 1988]: I have been asked to reply.
Approximately 6..6 million people are expected to receive housing benefit and or family credit in 1988–89. For those within this group who pay income tax, the reduction in tax payments from a 2p reduction in the basic rate would be £36 million in a full year. The savings; in family credit and housing benefit might approach £20 million. Over two thirds of this saving would arise on family credit.