§ Sir Ralph HowellTo ask the Secretary of State for Social Security if he will publish in theOfficial Report the undated letter produced by his Department referred to in his answer of 19 July 1995, Official Report, column 1487. [2001]
§ Mr. Roger EvansYes.
The letter reads as follows:
You recently tabled a Parliamentary Question asking what would be the estimated reduction in expenditure on Social Security benefits and on welfare foods and free school meals for Social Security benefit recipients if everybody between the ages of 16 to 65 years who was fit and able to work earned (a) £120 per week gross of tax and national insurance contributions, (b) £140 per week gross and (c) £160 per week gross. At the time I was unable to reply and promised to write.85WThe estimated savings are shown in the table. These estimates assume that the level of earnings received would involve working 16 hours a week or more, thus excluding entitlement to Income Support. Earnings have also been calculated individually, so that at £120 a week each a couple would be deemed to be earning £240, providing they were both fit for work.Savings do not increase proportionately to the increase in assumed earnings since earnings of £120 are already sufficient to extinguish income-related entitlement for most claimants.
Benefit Gross weekly earnings (Deemed) £120 £140 £160 Estimated savings (£ billion) Income Support 12.08 12.08 12.09 Housing Benefit 4.92 5.33 5.7 Family Credit –1.36 –0.53 0.24 Council Tax Benefit 1.06 1.08 1.09 Unemployment Benefit 1.28 1.28 1.28 Total 17.98 19.24 20.39 Notes:
- (i) Based on data from the 1991/92/93 Family Expenditure Surveys and the Income Support 1994 Quarterly Statistical Enquiry modelled at 1995/96 prices and benefit levels
- (ii) Figures have been rounded to the nearest £10 million. Due to rounding figures may not add up to the total.
- (iii) Positive figures are savings, negative figures are costs.
- (iv) Income Support figures include free school meals and welfare foods.