§ Baroness Hollis of Heigham
asked Her Majesty's Government:
What would be the cost of each of the proposed changes to the Child Support Agency referred to in the government statement of 23 January [co1.869]; and
What they estimate to be the savings if any, to the Treasury, resulting from the establishment of the Child Support Agency (CSA); from amendments to the function of the CSA in February 1994, and what they estimate will be the savings resulting from the proposed changes of 23 February 1995 for the financial year 1995–96,1996–97 and 1997–98.
§ The Minister of State, Department of Social Security (Lord Mackay of Ardbrecknish)
The reduction in benefit expenditure, and hence in the burden on the taxpayer, estimated at the time of the launch of the Child Support Agency was £530/665/805 million for the three years 1993–94 to 1995–96. Savings beyond that period were estimated to be of the order of £800 million a year. The changes introduced in February 1994 reduced these figures by £110/85/95 million in the period 1994–95 to 1995–97 and by £95 million a year thereafter. The proposed changes announced on 23 January will result in a further reduction of £40/65/85 million in the period 1995–96 to 1997–98.
The cost of each of the proposed changes is estimated as follows:
(All figures in £ million, rounded to nearest £5 million).
95/6 96/7 97/8 Formula changes Property/capital settlements 5 10 10 Travel to work costs 10 15 20 Provision for full housing costs 5 10 10 Deferral of liability by 8 weeks 10 10 10 30 per cent. cap on payments 10 10 10 Changes requiring primary legislation Departure orders 10 10 Maintenance credit 15 Total 40 65 85