§ Mr. MorleyTo ask the Secretary of State for Social Security if he will estimate the effect on public revenues in 1996–97 and 1997–98 of allowing income support claimants to disregard work-related child care expenses in calculating income support entitlement. [18235]
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§ Mr. Roger Evans[holding answer 29 February 1996]: The estimated cost of offsetting work-related child care expenses against earnings in income support is in the region of £10 million for 1996–97 and 1997–98. This figure takes no account of around 50,000 income support claimants who currently have unpaid child care. On the assumption that these people each started to pay £10 a week for child care, the additional cost is estimated to be in the region of £25 million in both years. These figures do not take account of other behavioural changes or of the additional costs of administration.
Note:
Estimates based on data from the 1991–92 and 1993 family expenditure surveys, and the 1994 annual statistical enquiry, uprated to 1996–97 and 1997–98 levels, adjusted using data on child care from the 1993–94 family resource survey.