HC Deb 23 May 1990 vol 173 cc207-8W
Mr. Cousins

To ask the Secretary of State for Social Security how the weighted poll tax average of £340 was calculated in the reply given to the hon. Member for Newcastle, Central on 4 May,Official Report, column 683.

Mrs. Gillian Shephard

The figure of £340 represents the average over all income support recipients and their partners of the amount appropriate to each individual included in the benefit they receive.

Mr. Cousins

To ask the Secretary of State for Social Security (1) whether it will be the intention in future social security upratings(a) to announce the poll tax or community charge assumptions made for income support and (b) to take account of the withdrawal of the transitional relief system;

(2) on what basis it was decided to provide for an assumed community charge or poll tax of £315 for each member of a couple and of £356 for a single person over 25 years in the benefits upratings which came into force in April; and if he will provide an estimate of the cost of providing for an assumed poll tax or community charge for a couple on the same basis as a single person over 25 years;

(3) on what basis it was decided to provide for an assumed community charge or poll tax of £315 for a single person under 25 years but £356 for a single person over 25 years in the benefits upratings which came into force in April; and if he will provide an estimate of the cost of providing for an assumed poll tax or community charge for single people under 25 years on the same basis as single people over 25 years.

Mrs. Gillian Shephard

As was made clear by my right hon. Friend the former Secretary of State in October 1988, the adjustment to the income support levels to provide help towards the 20 per cent. contribution to the community charge (and also towards the contribution of 20 per cent. of local authority rates in England and Wales in 1989–90) was made on a once-for-all basis in April 1989. The amounts included became an integral part of the overall benefit rates to be uprated each year as part of the normal uprating.

The relevant amount for single people under 25 and for couples was £1.15 a head in April 1989. At that time, the rate for single people aged 25 or over already included £1.30 a week as assistance towards their contribution to local authority rates, and it was decided not to reduce it. It is these figures which, allowing for the effect of the uprating in April this year, correspond to 20 per cent. of an annual payment of £315 and £356, respectively. The cost of levelling up for all claimants to the higher figure—which would of course exceed 20 per cent. of the average community charge after transitional relief in Great Britain in 1990–91—would be £36 million in a full year.