HC Deb 15 January 1997 vol 288 cc254-5W
Mr. Alan Howarth

To ask the Secretary of State for Social Security what is his estimate of the cost of extending the child care disregard to those on maximum family credit and disability working allowance by allowing the amount which would have been disregarded subject to a(a) 70 per cent. taper and (b) 50 per cent. taper. [10214]

Mr. Roger Evans

The information is not available in the format requested. Such information as is available is set out in the table.

Estimated cost of extending the child care disregard to those on maximum family credit subject to different tapers (1996 prices)
Family credit cost (per annum) £ million
70 per cent. taper 10
50 per cent. taper 5

1. Figures are based on the May 1996 family credit statistics, and use actual weekly child care expenditure reported at that time, subject to the appropriate limit. Estimates are rounded to the nearest £5 million.

2. Figures do not include any offsetting savings in housing benefit or council tax benefit.

3. A number of maximum family credit cases gain from the childcare disregard, but by less than the full amount as it is the help with child care that brings them to the maximum. Estimates include allowing these cases to gain by the full amount subject to a 70 per cent. taper or a 50 per cent. taper.

4. Estimates do not include behavioural effects.

5. Estimates do not include disability working allowance as the sample size would be too small to support a reliable estimate.