HC Deb 20 December 1995 vol 268 cc1268-9W
Mr. Chris Smith

To ask the Secretary of State for Social Security what estimate he has made of the cost to local authorities of the software and other administrative changes that will be necessitated by the provisions of the Housing Benefit (General) Amendment Regulations 1996 in respect of payments four-weekly in arrears. [6131]

Mr. Roger Evans

The estimated total gross administrative cost to local authorities arising from the introduction of new payment rules for housing and council tax benefit is some £3 million. However, there are offsetting savings for local authorities because we estimate that there will be a reduction in overpayments of benefit as a result of the changes. On-going costs after introduction are expected to be negligible although authorities will continue to benefit from savings arising from overpayments avoided.

Mr. Wicks

To ask the Secretary of State for Social Security if he will estimate the annual cost of reducing the housing benefit taper for those in work to (i) 60 per cent., (ii) 55 per cent., (iii) 50 per cent., (iv) 45 per cent., (v) 40 per cent., (vi) 35 per cent. and (vii) 30 per cent., and how many people would be entitled to housing benefit in each of these cases. [7185]

Mr. Evans

The information is set out in the table.

Estimated cost of reducing the housing benefit taper for those in work
Taper Net cost £ million Housing benefit caseload
65 per cent. 4,875,000
60 per cent. 70 4,895,000

Estimated cost of reducing the housing benefit taper for those in work
Taper Net cost £ million Housing benefit caseload
55 per cent. 160 4,925,000
50 per cent. 265 4,975,000
45 per cent. 390 5,030,000
40 per cent. 545 5,105,000
35 per cent. 740 5,195,000
30 per cent. 980 5,295,000

Notes:

Estimates based on the Family Expenditure Surveys of 1991, 1992 and 1993, uprated to 1996–97 prices and benefit levels.

Estimates of costs are rounded to the nearest £5 million.

Estimates of caseloads are rounded to the nearest 5,000.

Figures may not sum exactly due to rounding.