Widows (Hansard, 15 July 1996)

§ Mr. Andrew Mitchell

The widows benefit income lost by a widow with one or two children aged between 16 and 19 years in full-time education if child benefit was abolished would depend upon the age of the widow at the date child benefit entitlement ended. A widow with one child, who was aged 55 or over at the time child benefit ended would have widowed mothers allowance replaced with widows pension at a lower rate—a weekly loss, including lost child benefit, of £20.70 a week. Such a widow with two children would lose a total of £40.65 a week. Any additional pension paid with widowed mothers allowance would continue to be paid with widows pension.

A widow with one child, who was aged under 45 when child benefit ended would lose widowed mothers allowance and receive no further widows benefit. With the lost child benefit, there would be a loss of £81.85 a week. Such a widow with two children would lose a total of £101.80 a week. Any additional pension paid with widowed mothers allowance would also be lost. Where, but for its abolition, child benefit would otherwise have continued for at least one child until she attained the age of 45, she would also lose entitlement to age-related widows pension of at least £18.35 a week from this later date. There would be different effects for women aged between 45 and 55 at the date of change. Special rules also apply in respect of women widowed before April 1988.

The net income effect on a widow aged under 45 in receipt of (i) income support, (ii) a third of average earnings, (iii) half average earnings and (iv) average earnings is set out in the table.

Weekly loss of income
Widow in receipt of	One child, age 16 £	Two children, one age 16 and one age 18 £
Income support	Nil	Nil
⅓ average earnings	8.14	10.54
½ average earnings	22.20	20.31
Average earnings	64.80	82.07

1. Indicates net loss of income, taking into account entitlement to income support, family credit, housing benefit and council tax benefit as appropriate (April 1996 rates).

2. Assumes continuing child allowances in income support and family credit while children remain in full-time education.

3. Assumes average local authority rent and council tax liability.

4. For all in-work examples it is assumed that the widow is working 30 hours per week and paying not contracted out national insurance contributions.

5. Assumes April 1996 average earnings figure of £349.80 per week, based on April 1995 figure uprated by average earnings index.