§ Mr. Frank FieldTo ask the Secretary of State for Social Security what would be the cost in a full year of reintroducing income support payments for 16 to 17-year-olds. [41867]
§ Mr. Roger EvansInformation is not available to calculate the cost of reintroducing income support payments for 16 to 17-year-olds within normal estimating margins. The behaviourial factors are difficult to estimate; however, illustrative costs, based on a range of assumptions, are in the table:
Cost of restoring income support to 16 and 17-year-olds £ million Assumptions Benefits costs1996–97 10 per cent. move from Education to Income Support 340 20 per cent. move from Education to Income Support 550 40 per cent. move from Education to Income Support 975 Notes:
1. Costs are derived from the movement of young people from education to income support plus the cost of those who claim income support while waiting for a youth training placement plus the costs of those who claim income support who are not in education, training, nor employment.
2. In addition to assumptions regarding the movement from education to income support, it is assumed that: all 16 and 17-year-olds move on to income support from day one of the policy change; 15 per cent. of the families of 16 and 17-year-olds in education are on income support; this assumption is the basis for an 838W estimate of reduction in cost as a result of families losing entitlement to dependency and other family benefits; half of the 16 and 17-year-olds who claim income support move away from home and live independently and so receive housing benefit; and half of the 16 and 17-year-olds are the only children in their families.
3. The numbers of education and youth training are based on projections for 1996–97.
4. The numbers not in education, training or employment are based on information from the spring labour force survey and DSS benefit statistics.
5. Costs have been rounded to nearest million but are not accurate to that degree.