HL Deb 26 June 1995 vol 565 c39WA
Earl Russell

asked Her Majesty's Government:

Further to Lord Mackay of Ardbrecknish's remarks on 5th June at HL Deb col. 1214, whether the figure of £110 million which he there gave as a figure for the cost of a £5 disregard for lone parents on Income Support is a gross figure, or whether it is calculated net of tax and National Insurance revenues resulting from mothers returning to work; and whether they have studied or will study the work done on this subject by Sally Hottermann for the Daycare Trust.

The Minister of State, Department of Social Security (Lord Mackay of Ardbrecknish)

The figure of £110 million quoted as a cost for a £5 maintenance disregard on Income Support is an estimated gross benefit cost. As indicated in the passage cited, the Government believe that a maintenance disregard in Income Support would act as a disincentive for mothers to return to work.

The Government are aware of the recommendations of the Daycare Trust and have considered them.