HC Deb 12 December 1991 vol 200 cc523-4W
Mr. Clay

To ask the Secretary of State for Social Security what index he used to calculate the figure of £600 million a year in real terms as an increase in means-tested benefits for low-income families.

Mr. Jack

The figure of £600 million has been calculated by revaluing each additional package of help into 1992–93 terms by the GDP deflator.

Mr. Clay

To ask the Secretary of State for Social Security (1) if he will give a detailed breakdown of how the £600 million extra a year in real terms which has been made available to families through income-related benefits, has been allocated to families with low incomes;

(2) if he will give details for each year from 1988–89 onwards of how much of the extra £600 million a year, in real terms, given to low-income families has (a) gone into each means-tested benefit, (b) increased the real value of each means-tested benefit to individual households and (c) been spent because of changes in the numbers of families receiving means-tested benefits.

Mr. Jack

The detailed breakdown is in the table.

It is not possible to estimate the increased value of each income-related benefit to individual households because individual families will have benefited in different ways and at different times from one or more of the separate packages.

Costings of each package of help are calculated using forecasts of family numbers receiving income-related benefits in the year of introduction. In arriving at the total cost no account is taken of subsequent changes in the numbers of families receiving income-related benefits.

Year and change Amount Value in a full year at 1992–93 prices
£ million £ million
April 1988
Introduction of Family Credit 200 256
April 1989
Extra 50p in IRB child allowances 70 84
April 1990
£1 on Family Credit adult credit 70 78
Extra 50p on Income Support, Family Credit and Housing Benefit family premium
Extra 50p on childs personal allowances in Income Support, Family Credit and Housing Benefit
Increase in lone parent premium in Housing Benefit and Community Charge Benefit
Increase in lone parent earnings disregard in Housing Benefit and Community Charge Benefit
Extra in disabled child premium in Income Support (£8 million)
Extra for expectant mothers through Social Fund maternity payment (£3 million)
October 1991
Increase for families on Income Support to ensure they gain from Community Housing Benefit inclusive 163 133
April 1992
Change in Family Credit hours rule and maintenance disregard for lone parents 69
Total annual extra help in 1992–93 made available for families with children since 1988 620
1 Half year.