Family Credit (Hansard, 15 March 1994)

§ Ms Corston
To ask the Secretary of State for Social Security if he will make it his policy for lone parents to be reassessed for family credit, if their circumstances change, one month or more after the previous assessment.

§ Mr. Burt
No. Family credit awards are fixed for 26 weeks and neither increases nor decreases in income during that period are taken into account. This works to the advantage of many beneficiaries.

§ Ms Corston
To ask the Secretary of State for Social Security how many lone mothers on family credit were affected by the regulations introduced by his Department on 7 February to reduce the maintenance payments from their former partners; and how much money on average they will lose before their family credit is reassessed.

§ Mr. Burt
We estimate that there are fewer than 1,000 families whose family credit awards have been based on a Child Support Agency maintenance assessment figure and where this maintenance may be liable to reduction as a result of the recent child support changes. We estimate that the average loss per family will be under £100 in total. However, those families entitled to housing benefit and council tax benefit, or who become entitled following changes in maintenance, could recover up to 85 per cent. of their loss through an increase of those benefits.

§ Ms Corston
To ask the Secretary of State for Social Security (1) if he will reimburse lone mothers at their next assessment for family credit for loss of income incurred as a result of the regulations introduced on 7 February to reduce the level of maintenance payments from their former partners;
(2) whether he will ensure that funds will be made available to reimburse lone parents on family credit for losses incurred in income as a result of DSS regulations introduced on 7 February to reduce the level of maintenance payments from their former partners.

§ Mr. Burt
Family credit awards are fixed for 26 weeks and neither increases or decreases in income during that period are taken into account. This works to the advantage of many beneficiaries. Any reduction in maintenance during the period of a family credit award will be taken into account in assessing the renewal award. However, those families entitled to housing benefit and council tax benefit, or who become entitled following changes in maintenance, could recover up to 85 per cent. of any loss through an increase of those benefits.