HC Deb 02 December 1997 vol 302 cc185-201W
Mr. Duncan Smith

To ask the Secretary of State for Social (1) what measures she proposes to take account of the gap between recent rises in benefits and the current rate of inflation; and what will be the source of any increase in funding; [16725]

(2) what will be the impact on Government spending plans of the increase in her Department's expenditure arising from increases in inflation since 1 May. [16729]

Mr. Field

I refer to the hon. Member to the reply I gave the hon. Member for Gordon (Mr. Bruce) on 5 November 1997,Official Report, column 247.

Mr. Truswell

To ask the Secretary of State for Social Security if she will set out the new rates of benefit proposed from April 1998. [19161]

Ms Harman

I have reviewed Social Security benefits in accordance with section 150 of the Administration Act 1992. My proposals for the revised rates of benefit are set out in the schedule. The new rates will take effect in week beginning 6 April 1998.

The statutory instruments to implement the changes will be laid before both Houses for debate in the new year.

My right hon. Friend the Secretary of State for Northern Ireland proposes to introduce similar changes for Northern Ireland.

National Insurance benefits will be uprated in line with the annual increase in the Retail Prices Index (RPI) up to September, which this year is 3.6 per cent.

Jobseeker's allowance and income-related benefits will generally rise by 2.4 per cent. in line with the increase in the Rossi index. The Rossi index is RPI less certain housing costs.

The total cost of uprating for 1998–99 will be £2.45 billion.

The key points of my review are as follows:

Retirement pension The basic rate of retirement pension will be increased by £2.25 to £64.70 for a single person and by £3.60 to £103.40 for couples.

Child benefit The rate for the eldest child will be increased to £11.45. The rate for each subsequent child is increased to £9.30.

Income support The couple rate of income support for those aged 80 and over will increase by £2.75 to £117.90.

War pensions War pensions will be increased in line with the RPI.

Earnings top-up Benefit rates for the pilot Earnings top-up scheme will be increased by the Rossi index.

Benefits for lone parents The higher rate for lone parents in child benefit will be £17.10, and the higher rates of family premium in income support and jobseeker's allowance will be £15.75 and in housing benefit and council tax benefit will be £22.05.

Non-dependent deductions New rates of deduction in respect of non-dependents living in the household are shown in the schedule. The rate of deduction for housing benefit, income support and income based jobseeker's allowance in respect of those not in work, or with gross income below £78, remains unchanged.

Protecting benefits from inflation underlines our commitment to the elderly and the most vulnerable in society.

Schedule of main proposed Social Security Benefit Rates—April 1998 (Weekly rates unless otherwise shown)
Old rates 1997 New rates 1998
Attendance Allowance
higher rate 49.50 51.30
lower rate 33.10 34.30
Child Benefit
—only, elder or eldest for whom child benefit is payable (couple) 11.05 11.45
—only, elder or eldest for whom child benefit is payable (lone parent) 17.10 17.10
—each subsequent child 9.00 9.30
Child's Special Allowance
see note on Child Dependency Increase 11.20 11.30
Council Tax Benefit Personal allowances
single
18 to 24 38.90 39.85
25 or over 49.15 50.35
lone parent—18 or over 49.15 50.35
couple—one or both over 18 77.15 79.00
Dependent Children
birth to September following 11th birthday 16.90 17.30
from September following 1lth birthday to September following 16th birthday 24.75 25.35
from September following 16th birthday to day before 19th birthday 29.60 30.30
Premiums
family 10.80 11.05
family (lone parent rate) 22.05 22.05
pensioner
single 19.65 20.10
couple 29.65 30.35
pensioner (enhanced)
single 21.85 22.35
couple 32.75 33.55
pensioner (higher)
single 26.55 27.20
couple 38.00 38.90
disability
single 20.95 21.45
couple 29.90 30.60
severe disability
single 37.15 38.50
couple (one qualifies) 37.15 38.50
couple (both qualify) 74.30 77.00
disabled child 20.95 21.45
carer 13.35 13.65
Allowance for personal expenses for claimants in hospital
higher rate 15.60 16.20
lower rate 12.50 12.95
Non-dependant deductions aged 18 or over and in remunerative work
—gross income: £250 or more 4.00 6.00
—gross income: £200–£249.99 3.50 5.00
—gross income: £116–£199.99 3.00 4.00
—gross income less than £116 1.50 2.00
others, aged 18 or over 1.50 2.00

Schedule of main proposed Social Security Benefit Rates—April 1998 (Weekly rates unless otherwise shown)
Old rates 1997 New rates 1998
Alternative maximum Council Tax Benefit
second adult on Income Support or income based Jobseeker's Allowance second adult's gross income: 25 per cent. of Council Tax
—under £116 15 per cent. of Council Tax
—£116 to £151.99 7.5 per cent. of Council Tax
Capital
upper limit 16,000.00 16,000.00
amount disregarded 3,000.00 3,000.00
child's limit 3,000.00 3,000.00
upper limit for permanent resident of RC/NH 16,000.00 16,000.00
amount disregarded for permanent resident of RC/NH 10,000.00 10,000.00
Tariff income
£1 for every complete £250 or part thereof between amount of capital disregarded and capital upper limit
Earnings disregards
where disability premium awarded 15.00 15.00
various specified employments 15.00 15.00
lone parent 25.00 25.00
where the claimant has a partner 10.00 10.00
single claimant 5.00 5.00
where carer premium awarded 15.00 15.00
childcare charges 60.00 60.00
Other income disregards
maintenance disregard 15.00 15.00
war disablement pension and war widow's pension 10.00 10.00
certain voluntary and charitable payments 20.00 20.00
student loan 10.00 10.00
student's covenanted income 5.00 5.00
income from boarders: — —
disregard the fixed amount (£20) plus — —
50 per cent. of the balance of the charge 20.00 20.00
30 Hour Adult Allowance in DWA 10.55 10.80
30 Hour Adult Credit in FC 10.55 10.80
Expenses for subtenants
furnished or unfurnished 4.00 4.00
where heating is included, additional 9.25 9.25
Dependency Increases
Adult Dependency Increases For spouse or person looking after children, with;

retirement pension on own insurance, long term incapacity benefit, unemployability supplement

 37.35 38.70
Severe Disablement allowance 22.40 23.20
invalid care allowance 22.35 23.15
short-term incapacity benefit if beneficiary over pension age 35.90 37.20
maternity allowance/short-term incapacity benefit 29.15 30.20
Child Dependency Increases, with; short-term incapacity benefit at the higher rate and long—term incapacity benefit, invalid care allowance severe disability allowance, higher rate industrial death benefit, unemployability supplement and short—term incapacity benefit if beneficiary over pension age 11.20 11.30
The Overlapping Benefits Regulations provide for the rate of child dependency increases, guardian's allowance and child special allowance to be adjusted where the increase or allowance is payable for the eldest eligible child for whom child benefit is also payable. The weekly rate of the increase or allowance is reduced by the differential (less the 75p derived from the October 1991 increase in child benefit) between the rate

Schedule of main proposed Social Security Benefit Rates—April 1998 ( Weekly rates unless otherwise shown)
Old rates 1997 New rates 1998
of child benefit payable for the oldest eligible child and that payable for a subsequent child.
Disability Living Allowance Care Component
Highest 49.50 51.30
Middle 33.10 34.30
Lowest 13.15 13.60
Mobility Component
Higher 34.60 35.85
Lower 13.15 13.60
Disability Working Allowance Adult allowance
Single people 49.55 50.75
Couples/Lone Parents 77.55 79.40
30 hours Allowance 10.55 10.80
Child allowance
from birth 12.05 12.35
from September following 11 th birthday 19.95 20.45
from September following 16th birthday 24.80 25.40
Child allowance for children with protected rates
age 11 before 7th October 1997 19.95 20.45
age 16 before 7th October 1997 24.80 25.40
age 18 before 7th October 1997 34.70 35.55
Applicable amount (i.e. taper threshold)
Single People 57.85 59.25
Couples/Lone Parents 77.15 79.00
Disabled Child's Allowance 20.95 21.45
Capital
upper limit 16,000.00 16,000.00
amount disregarded 3,000.00 3,000.00
child's limit 3,000.00 3,000.00
Tariff income
£1 for every complete £250 or part thereof between amount of capital disregarded and capital upper limit
Disregards
maintenance disregard 15.00 15.00
war disablement pension and war widow's pension 10.00 10.00
certain voluntary and charitable
payments 20.00 20.00
student loan 10.00 10.00
student's covenanted income 5.00 5.00
income from boarders:
disregard the fixed amount (£20)
plus 50 per cent, of the balance of the charge 20.00 20.00
childcare charges 60.00 60.00
Expenses for subtenants
furnished or unfurnished 4.00 4.00
where heating is included, additional 9.25 9.25
Earnings Rules
Invalid Care Allowance 50.00 50.00
Therapeutic earnings limit 46.50 48.00
Industrial injuries unemployability
supplement permitted earnings level (annual amount) 2,418.00 2,496.00
War pensioners' unemployability supplement permitted earnings level (annual amount) 2,418.00 2,496.00

Schedule of main proposed Social Security Benefit Rates—April 1998 (Weekly rates unless otherwise shown)
Old rates 1997 New rates 1998
Adult dependency increases with short-term incapacity benefit where claimant is
(a) under pension age 29.15 30.20
(b) over pension age 35.90 37.20
maternity allowance 29.15 30.20
retirement pension, long-term incapacity benefit, Severe Disablement Allowance, unemployability supplement where dependent
(a) is living with claimant 49.15 50.35
(b) still qualifies for the tapered earnings rule 45.09 45.09
retirement pension, long-tem incapacity benefit and unemployability supplement where dependant not living with claimant severe disablement allowance where dependant not living with claimant 37.35 38.70
severe desablement allowance where dependant not living with claimant 22.40 23.20
invalid care allowance 22.35 23.15
Child dependency increases
level at which CDIs are affected by earnings of claimant's spouse or partner for first child 135.00 140.00
for each subsequent child 17.00 18.00
Family Credit
Adult credit 47.65 47.65
30 hours credit 10.55 10.80
Child credits
from birth 12.05 12.35
from September following 11th birthday 19.95 20.45
from September following 16th birthday 24.80 25.40
Child credits for children with protected rates
age 11 before 7th October 1997 19.95 20.45
age 16 before 7th October 1997 24.80 25.40
age 18 before 7th October 1997 34.70 35.55
Applicable amount (i.e: threshold) 77.15 79.00
Capital
upper limit 8,000.00 8,000.00
amount disregarded 3,000.00 3,000.00
Child's limit 3,000.00 3,000.00
Assumed income from capital
£1 for every £250 or part of £250 between amount of capital disregarded and capital upper limit
Disregards
maintenance disregard 15.00 15.00
war disablement pension and war widow's pension 10.00 10.00
certain voluntary and charitable
payments 20.00 20.00
student loan 10.00 10.00
student's covenanted income 5.00 5.00
income from boarders: disregard the fixed amount (£20) plus 50 per cent. of the balance of the charge 20.00 20.00
childcare charges 60.00 60.00
Expenses for subtenants
furnished or unfurnished 4.00 4.00
where heating is included, additional 9.25 9.25
Guardian's Allowance 11.20 11.30
see note on Child Dependency Increase

Schedule of main proposed Social Security Benefit Rates—April 1998 (Weekly rates unless otherwise shown)
Old rates 1997 New rates 1998
Hospital Downrating
20 per cent. rate 12.50 12.95
40 per cent. rate 25.00 25.90
Housing benefit
Personal allowances
single
16 to 24 38.90 39.85
25 or over 49.15 50.35
lone parent
under 18 38.90 39.85
18 or over 49.15 50.35
couple
both under 18 58.70 60.10
one or both over 18 77.15 79.00
Dependent children
birth to September following 11th birthday 16.90 17.30
from September following 11th birthday to September following 16th birthday 24.75 25.35
from September following 16th birthday to day before 19th birthday 29.60 30.30
dependent children with protected rates age 18 before 1st/7th April 1997 38.90 39.85
Premiums
family 10.80 11.05
family (lone parent rate) 22.05 22.05
pensioner
single 19.65 20.10
couple 29.65 30.35
pensioner (enhanced)
single 21.85 22.35
couple 32.75 33.55
pensioner (higher)
single 26.55 27.20
couple 38.00 38.90
disability
single 20.95 21.45
couple 29.90 30.60
severe disability
single 37.15 38.50
couple (one qualifies) 37.15 38.50
couple (both qualify) 74.30 77.00
disabled child 20.95 21.45
carer 13.35 13.65
Allowance for personal expenses for claimants in hospital
higher rate 15.60 16.20
lower rate 12.50 12.95
Non-dependant deductions rent rebates and allowances
aged 25 and over, in receipt of Income Support or income based job Seeker's Allowance

Schedule of main proposed Social Security Benefit Rates—April 1998 (Weekly rates unless otherwise shown)
Old rates 1997 New rates 1998
aged 18 or over, not in remunerative work or
—gross income less than £78 7.00 7.00
aged 18 or over and in remunerative work
—gross income: less than £78 7.00 7.00
—gross income: £78 to £115.99 13.00 16.00
—gross income: £116 to £151.99 17.00 22.00
—gross income: £152 to £199.99 33.00 36.00
—gross income: £200.00 to £249.99 36.00 41.00
—gross income: £250.00 and above 39.00 45.00
Service charges for fuel
heating 9.25 9.25
hot water 1.15 1.15
lighting 0.80 0.80
cooking 1.15 1.15
Amount ineligible for meals three or more meals a day single claimant 17.55 17.95
each person in family aged 16 or over 17.55 17.95
each child under 16 8.85 9.05
less than three meals a day single claimant 11.65 11.95
each person in family aged 16 or over 11.65 11.95
each child under 16 5.85 6.00
breakfast only—claimant and each member of family 2.10 2.15
Capital
upper limit 16,000.00 16,000.00
amount disregarded 3,000.00 3,000.00
child's limit 3,000.00 3,000.00
upper limit for permanent resident of RC/NH 16,000.00 16,000.00
amount disregarded for permanent resident of RC/NH 10,000.00 10,000.00
Tariff income
£1 for every complete £250 or part thereof between amount of capital disregarded and capital upper limit
Earnings disregards
where disability premium awarded 15.00 15.00
various specified employments 15.00 15.00
lone parent 25.00 25.00
where the claimant has a partner 10.00 10.00
single claimant 5.00 5.00
where carer premium awarded 15.00 15.00
childcare charges 60.00 60.00
Other income disregards
maintenance disregard 15.00 15.00
war disablement pension and war widow's pension 10.00 10.00
certain voluntary and charitable payments 20.00 20.00
student loan 10.00 10.00
student's covenanted income 5.00 5.00
income from boarders:
disregard the fixed amount (£20) plus
50 per cent. of the balance of the charge 20.00 20.00
30 hour. adult allowance in DWA 10.55 10.80
30 hour. adult credit in FC 10.55 10.80
Expenses for subtenants
furnished or unfumished 4.00 4.00
where heating is included, additional 9.25 9.25

Schedule of main proposed Social Security Benefit Rates—April 1998 (Weekly rates unless otherwise shown)
Old rates 1997 New rates 1998
Incapacity Benefit
Long-term incapacity benefit 62.45 64.70
Short-term incapacity benefit (under pension age)
lower rate 47.10 48.80
higher rate 55.70 57.70
Short-term incapacity benefit (over pension age)
lower & higher rate 59.90 62.05
Increase of long-term incapacity
benefit for age
higher rate 13.15 13.60
lower rate 6.60 6.80
Invalidity Allowance (Transitional)
higher rate 13.15 13.60
middle rate 8.30 8.60
lower rate 4.15 4.30
Income Support
Personal Allowances
single
under 18—usual rate 29.60 30.30
under 18—higher rate payable in specific circumstances 38.90 39.85
18 to 24 38.90 39.85
25 or over 49.15 50.35
lone parent
under 18—usual rate 29.60 30.30
under 18—higher rate payable in specific circumstances 38.90 39.85
18 or over 49.15 50.35
couple
both under 18 58.70 60.10
one or both 18 or over 77.15 79.00
dependent children
birth to September following 11th birthday 16.90 17.30
from September following 11th birthday to September
following 16th birthday 24.75 25.35
from September following 16th birthday to day before 19th birthday 29.60 30.30
Residential Allowance
except Greater London 56.00 57.50
Greater London 62.00 64.00
Premiums
family 10.80 11.05
family (lone parent rate) 15.75 15.75
pensioner
single 19.65 20.10
couple 29.65 30.35
pensioner (enhanced)
single 21.85 22.35
couple 32.75 33.55
pensioner (higher)
single 26.55 27.20
couple 38.00 38.90
disability
single 20.95 21.45
couple 29.90 30.60
severe disability
single 37.15 38.50
couple (one qualifies) 37.15 38.50
couple (both qualify) 74.30 77.00
disabled child 20.95 21.45
carer 13.35 13.65

Schedule of main proposed Social Security Benefit Rates — April 1998 Weekly rates unless otherwise shown)
Old rates 1997 New rates 1998
Maximum amounts for accommodation and meals in residential care homes old age 208.00 213.00
very dependent elderly 240.00 247.00
mental disorder (not handicap) 220.00 225.00
drug/alcohol dependence 220.00 225.00
mental handicap 250.00 257.00
physical disablement
(a) (under pension age) 285.00 292.00
(b) (over pension age) 208.00 213.00
others 208.00 213.00
maximum Greater London increase 41.00 44.00
nursing homes
mental disorder (not handicap) 312.00 319.00
drug/alcohol dependence 312.00 319.00
mental handicap 318.00 325.00
terminal illness 311.00 318.00
physical disablement
(a) (under pension age) 352.00 359.00
(b) (over pension age) 311.00 318.00
others (including elderly) 311.00 318.00
maximum Greater London increase 46.00 49.00
Amounts for meals where these cannot be purchased within the accommodation (Daily Rate)
breakfast 1.10 1.10
midday meal 1.55 1.55
evening meal 1.55 1.55
Allowances for personal expenses for claimants in
private and voluntary residential care and nursing homes
personal expenses 14.10 14.45
dependent children
(a) under 11 5.80 5.95
(b) 11 to 15 8.45 8.65
(c) 16 to 17 9.80 10.05
(d) age 18 14.10 14.45
hospital
higher rate 15.60 16.20
lower rate 12.50 12.95
local authority (Pt III)
accommodation 62.45 64.70
of which, personal expenses 14.10 14.45
Allowances for personal expenses for claimants in:
the Polish home Ilford Park maximum amount for accommodation and meals 352.00 359.00
personal expenses for claimant 17.35 17.35
personal expenses for partner 17.35 17.35
personal expenses for dependent children
(a) under 11 5.80 5.95
(b) 11 to 15 8.45 8.65
(c) 16 to 17 9.80 10.05
(d)18 15.55 15.55
Housing costs deduction for non-dependants: aged 25 and over, in receipt of income support
aged 18 or over, not in work or —gross income less than £78 7.00 7.00
aged 18 or over and in remunerative work:
—gross income: £78 to £115.99 13.00 16.00
—gross income: £116 to £151.99 17.00 22.00
—gross income: £152 to £199.99 33.00 36.00
—gross income: £200.00 to £249.99 33.00 41.00
—gross income: £250.00 and above 33.00 45.00

Schedule of main proposed Social Security Benefit Rates—April 1998 (Weekly rates unless otherwise shown)
Old rates 1997 New rates 1998
Deduction for direct payments arrears of housing, fuel and water costs
council tax and fines default, and 2.50 2.55
deductions for child maintenance (standard) 5.00 5.10
deductions for child maintenance (lower) 2.50 2.55
Arrears of Community Charge
court order against claimant 2.50 2.55
court order against couple 3.90 3.95
Maximum rates for recovery of over payments
ordinary overpayments 7.50 7.65
where claimant convicted of fraud 10.00 10.00
Reduction in benefit for strikers 26.50 27.00
Capital
upper limit 8,000.00 8,000.00
amount disregarded 3,000.00 3,000.00
child's limit 3,000.00 3,000.00
upper limit for permanent resident of RC/NH 16,000.00 16,000.00
amount disregarded for permanent resident of RC/NH 10,000.00 10,000.00
Tariff income
£1 for every complete £250 or part thereof between amount of capital disregarded and capital upper limit
Disregards
standard earnings 5.00 5.00
couples' earnings 10.00 10.00
higher earnings 15.00 15.00
war disablement pension and war widow's pension 10.00 10.00
voluntary and charitable payments 20.00 20.00
student loan 10.00 10.00
student's covenanted income 5.00 5.00
income from boarders:

disregard the fixed amount (£20) plus 50 per cent. of the balance of the charge

 20.00 20.00
Expenses for subtenants
furnished or unfurnished 4.00 4.00
where heating is included, additional 9.25 9.25
Industrial Death Benefit
Widow's pension
higher rate 62.45 64.70
lower rate 18.74 19.41
Industrial Disablement Pension
18 and over, or under 18 with dependants
100 per cent. 101.10 104.70
90 per cent. 90.99 94.23
80 per cent. 80.88 83.76
70 per cent. 70.77 73.29
60 per cent. 60.66 62.82
50 per cent. 50.55 52.35
40 per cent. 40.44 41.88
30 per cent. 30.33 31.41
20 per cent. 20.22 20.94
Under 18
100 per cent. 61.90 64.15
90 per cent. 55.71 57.74
80 per cent. 49.52 51.32
70 per cent. 43.33 44.91
60 per cent. 37.14 38.49
50 per cent. 30.95 32.08
40 per cent. 24.76 25.66
30 per cent. 18.57 19.25
20 per cent. 12.38 12.83

Schedule of main proposed Social Security Benefit Rates—April 1998 (Weekly rates unless otherwise shown)
Old rates 1997 New rates 1998
Maximum life gratuity (lump sum) 6,720.00 6,960.00
Unemployability Supplement 62.45 64.70
plus where appropriate an increase for early incapacity
higher rate 13.15 13.60
middle rate 8.30 8.60
lower rate 4.15 4.30
Maximum reduced earnings allowance 40.44 41.88
Maximum retirement allowance 10.11 10.47
Constant attendance allowance
exceptional rate 81.00 84.00
intermediate rate 60.75 63.00
normal maximum rate 40.50 42.00
part-time rate 20.25 21.00
Exceptionally severe disablement allowance 40.50 42.00
Invalid Care Allowance 37.35 38.70
Jobseekers Allowance
Contribution based JSA—rates
under 18 29.60 30.30
18 to 24 38.90 39.85
25 or over 49.15 50.35
Income-based JSA—personal allowances
under 18 29.60 30.30
18 to 24 38.90 39.85
25 or over 49.15 50.35
lone parent
under 18—usual rate 29.60 30.30
under 18—higher rate payable in specific circumstances 38.90 39.85
18 or over 49.15 50.35
couple
both under 18 29.60 30.30
both under 18, one disabled 38.90 39.85
both under 18, with responsibility for a child 58.70 60.10
one under 18, one 18–24 38.90 39.85
one under 18, one 25+ 49.15 50.35
both 18 or over 77.15 79.00
dependent children
birth to September following 11th birthday 16.90 17.30
from September following 11th birthday to September following 16th birthday 24.75 25.35
from September following 16th birthday to day before 19th birthday 29.60 30.30
Residential Allowance
except Greater London 56.00 57.50
Greater London 62.00 64.00
Premiums
family 10.80 11.05
family (lone parent rate) 15.75 15.75
pensioner
single 19.65 20.10
couple 29.65 30.35
pensioner (enhanced)
couple 32.75 33.55
pensioner (higher)
single 26.55 27.20
couple 38.00 38.90
disability
single 20.95 21.45
couple 29.90 30.60

Schedule of main proposed Social Security Benefit Rates—April 1998 (Weekly rates unless otherwise shown)
Old rates 1997 New rates 1998
severe disability
single 37.15 38.50
couple (one qualifies) 37.15 38.50
couple (both qualify) 74.30 77.00
disabled child 20.95 21.45
carer 13.35 13.65
Maximum amounts for accommodation and meals in residential care homes
mental disorder (not handicap) 220.00 225.00
drug/alcohol dependence 220.00 225.00
mental handicap 250.00 257.00
physical disablement (a) (under pension age) 285.00 292.00
others 208.00 213.00
maximum Greater London increase 41.00 44.00
nursing homes
mental disorder (not handicap) 312.00 319.00
drug/alcohol dependence 312.00 319.00
mental handicap 318.00 325.00
terminal illness 311.00 318.00
physical disablement
(a) (under pension age) 352.00 359.00
others (including elderly) 311.00 318.00
maximum Greater London increase 46.00 49.00
Amounts for meals where these cannot be purchased within the accommodation (Daily Rate)
breakfast 1.10 1.10
midday meal 1.55 1.55
evening meal 1.55 1.55
Allowances for personal expenses for claimants in
Private and Voluntary residential care and nursing homes
personal expenses 14.10 14.45
dependent children
(a) under 11 5.80 5.95
(b) 11 to 15 8.45 8.65
(c) 16 to 17 9.80 10.05
(d) age 18 14.10 14.45
hospital
higher rate 15.60 16.20
lower rate 12.50 12.95
local authority (Pt III) accommodation 62.45 64.70
of which, Personal Expenses 14.10 14.45
Housing costs
deduction for non-dependents: aged 25 and over, in receipt of income support or income based job seekers allowance;
aged 18 or over, not in remunerative work or
—gross income: less than £78 7.00 7.00
aged 18 or over and in remunerative work
—gross income: less than £78.00 7.00 7.00
—gross income: £78 to £115.99 13.00 16.00
—gross income: £116 to £151.99 17.00 22.00
—gross income: £152 to £199.99 33.00 36.00
—gross income: £200.00 to £249.99 33.00 41.00
—gross income: £250.00 and above 33.00 45.00
Deduction for direct payments
Deductions from JSA (IB)
arrears of housing, fuel and water costs council tax and fines default, and 2.50 2.55

Schedule of main proposed Social Security Benefit Rates—April 1998 (Weekly rates unless otherwise shown)
Old rates 1997 New rates 1998
Deductions for Child Maintenance deductions for child maintenance (standard) 5.00 5.00
deductions for child maintenance (lower) 2.50 2.50
Arrears of Community Charge
court order against claimant 2.50 2.50
court order against couple 3.90 3.95
Deductions from JSA (continued)
Arrears of Community Charge, Council Tax and fines
Age 16–17 9.86 10.10
Age 18–24 12.96 13.28
Age 25+ 16.38 16.78
Maximum deduction for arrears of Child Support Maintenance
Age 16–17 9.86 10.10
Age 18–24 12.96 13.28
Age 25+ 16.38 16.78
Maximum rates for recovery of overpayments
ordinary overpayments 7.50 7.65
where claimant convicted of fraud 10.00 10.00
Reduction in benefit for strikers 26.50 27.00
Capital
upper limit 8,000.00 8,000.00
amount disregarded 3,000.00 3,000.00
child's limit 3,000.00 3,000.00
upper limit for permanent resident of RC/NH 16,000.00 16,000.00
amount disregarded for permanent resident of RC/NH 10,000.00 10,000.00
Tariff income
£1 for every complete £250 or part thereof between amount of capital disregarded and capital upper limit
Disregards
standard earnings 5.00 5.00
couples earnings 10.00 10.00
higher earnings 15.00 15.00
war disablement pension and war widow's pension 10.00 10.00
voluntary and charitable payments 20.00 20.00
student loan 10.00 10.00
student's covenanted income 5.00 5.00
income from boarders:
disregard the fixed amount (£20) plus 50 per cent. of the balance of the charge 20.00 20.00
Expenses for subtenants
furnished or unfurnished 4.00 4.00
where heating is included, additional 9.25 9.25
Maternity Allowance
lower rate 48.35 50.10
higher rate 55.70 57.70
Pneumoconiosis Byssinosis, Workmen's Compensation and other schemes
Total disablement allowance and major incapacity allowance (maximum) 101.10 104.70
Partial disablement allowance 37.35 38.70
Unemployability supplement plus where appropriate increases for early incapacity 62.45 64.70
higher rate 13.15 13.60
middle rate 8.30 8.60
lower rate 4.15 4.30

Schedule of main proposed Social Security Benefit Rates—April 1998 (Weekly rates unless otherwise shown)
Old rates 1997 New rates 1998
Constant attendance allowance
exceptional rate 81.00 84.00
intermediate rate 60.75 63.00
normal maximum rate 40.50 42.00
part-time rate 20.25 21.00
Exceptionally severe disablement allowance 40.50 42.00
Lesser incapacity allowance
maximum rate of allowance 37.35 38.70
based on loss of earnings over 49.50 51.30
Retirement Pension
Category A or B 62.45 64.70
Category B(lower)—husband's insurance 37.35 38.70
Category C or D-non—contributory 37.35 38.70
Category C(lower)-non—contributory 22.35 23.15
Additional pension Increase by: 3.60 per cent.
Increments to:
Basic and additional pensions Increase by 3.60 per cent.
Contracted out deductions (CODs)
(Pre April '88 earnings)
Graduated Retirement Benefit (GRB)
Increments to CODs (April 1988-April 1996 earnings) Additional increase 0.6 per cent. to that paid by schemes
[3.0 per cent, paid by schemes]
Graduated Retirement Benefit (unit) (pence) 8.11 8.40
Graduated Retirement Benefit (Inherited) Increase by: 3.60 per cent.
Addition at age 80 0.25 0.25
Severe Disablement Allowance
Basic rate 37.75 39.10
Age-related addition (from December 1990)
higher rate 13.15 13.60
middle rate 8.30 8.60
lower rate 4. 15 4.30
Statutory Maternity Pay
Earnings threshold 62.00 64.00
Lower rate 55.70 57.70
Statutory Sick Pay
Earnings threshold 62.00 64.00
Standard rate 55.70 57.70
War Pensions
Disablement Pension (100 per cent. rates)
officer (£ per annum) 5,594.00 5,797.00
other ranks 107.20 111.10
Age allowances
40 per cent.-50 per cent. 7.15 7.40
over 50 per cent, but not over 70 per cent. 11.05 11.45
over 70 per cent, but not over 90 per cent. 15.75 16.30
over 90 per cent. 22.10 22.90
Disablement gratuity
specified minor injury (minimum) 682.00 707.00
specified minor injury (maximum) 5,100.00 5,284.00
unspecified minor injury (minimum) 284.00 294.00
unspecified minor injury (maximum) 6,632.00 6,871.00
Unemployability allowance personal 66.25 68.65
adult dependency increase 37.35 38.70
increase for first child 9.90 9.90
increase for subsequent children 11.20 11.30
Invalidity allowance higher rate 13.15 13.60

Schedule of main proposed Social Security Benefit Rates—April 1998 (Weekly rates unless otherwise shown)
Old rates 1997 New rates 1998
middle rate 8.30 8.60
lower rate 4.15 4.30
Constant attendance allowance
exceptional rate 81.00 84.00
intermediate rate 60.75 63.00
normal maximum rate 40.50 42.00
part-time rate 20.25 21.00
Comforts allowance
higher rate 17.40 18.00
lower rate 8.70 9.00
Mobility supplement 38.55 39.95
Allowance for lowered standard of occupation (maximum) 40.44 41.88
Exceptionally severe disablement allowance 40.50 42.00
Severe disablement occupational allowance 20.25 21.00
Clothing allowance (£ per annum, maximum) 137.00 142.00
Education allowance (£ per annum) (maximum) 120.00 120.00
War widow's pension
Widow (private) 81.00 83.90
Widow (NCO) 81.25 84.20
Widow—Officer (£ per annum maximum) 5,010.00 5,190.00
Childless widow u-40 (private) 18.74 19.41
Childless widow u-40 (NCO) 19.02 19.70
Childless widow u-40 (Officer maximum £s per annum) 5,010.00 5,190.00
Supplementary Pension age allowance 52.80 54.70
(a) age 65 to 69 9.25 9.60
(b) age 70 to 79 17.75 18.40
(c) age 80 and over 26.45 27.40
children's allowance
increase for first child (adjusted for child benefit increase) 14.15 14.25
increase for subsequent children 15.45 15.65
Orphan's pension
increase for first child (adjusted for child benefit increase) 15.90 16.05
increase for subsequent children 17.20 17.45
Unmarried dependant living as (spouse maximum) 78.95 81.85
Rent allowance (maximum) 30.65 31.75
Adult orphan's pension (maximum) 62.45 64.70
Widower's pension private (maximum) 81.00 83.90
officer (£ per annum) maximum 5,010.00 5,190.00
Widow 's Benefit
Widow's payment (lump sum) 1,000.00 1,000.00
Widowed mother's allowance 62.45 64.70
Widow's pension
standard rate 62.45 64.70
age-related
age 54 (49) 58.08 60.17
53 (48) 53.71 55.64
52 (47) 49.34 51.11
51 (46) 44.96 46.58
50 (45) 40.59 42.06
49 (44) 36.22 37.53

Schedule of main proposed Social Security Benefit Rates—April 1998 (Weekly rates unless otherwise shown)
Old rates 1997 New rates 1998
48 (43) 31.85 33.00
47 (42) 27.48 28.47
46 (41) 23.11 23.94
45 (40) 18.74 19.41

Note:

For deaths occurring before 11 April 1988 refer to age-points shown in brackets.

Earnings top-up (ETU) rates
Old rates 1997 New rates 1998
Scheme A
Credit
Couple 47.65 48.80
Single 25 and over 28.75 29.45
Single under 25 23.35 23.90
For working 30 hrs + pw 10.55 10.80
Applicable amount (i.e., taper threshold)
Couple 77.15 79.00
Single 25 and over 59.70 61.15
Single under 25 49.45 50.65
Scheme B
Credit
Couple 57.50 58.90
Single 25 and over 28.75 29.45
Single under 25 23.35 23.90
For working 30 hrs + pw 10.55 10.80
Applicable amount (i.e., taper threshold)
Couple 77.15 79.00
Single 25 and over 77.15 79.00
Single under 25 77.15 79.00
Both schemes
Capital
upper limit 8,000.00 fixed rates
amount disregarded 3,000.00
Tariff income
£1 for every complete £250 or part thereof between amount of capital disregarded and capital upper limit fixed rate

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