§ 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.