§ 26. Mr. David HeathTo ask the Secretary of State for Social Security what will be the net saving to her Department from the removal of lone-parent entitlements to additional income support and child benefit. [9054]
§ Mr. Keith BradleyThe estimated net saving from the removal of entitlement for new cases to the lone-parent rates of child benefit and the family premium in income support, jobseeker's allowance and housing and council tax benefits is, in the three years starting from 1998–99, £60 million, £140 million and £195 million.
§ 39. Mrs. GillanTo ask the Secretary of State for Social Security if she will make a statement on her Department's proposals to reduce dependency on benefits among lone mothers. [9067]
§ Mr. BradleyWe believe that work is the best form of welfare for all people of working age, including lone 101W mothers, and that children should grow up in an environment where work is the norm, not life on benefits. Currently, over 1 million lone mothers bring up 2 million children on income support—we are determined to change this. Our new deal for lone parents will bring opportunities to those previously excluded from society and help to build a one-nation Britain.
§ Mr. WebbTo ask the Secretary of State for Social Security what estimate she has made of the number of lone parents who would(a) be unaffected, (b) lose up to £2 per week, (c) lose £2 to £3.99 per week, (d) lose £4 to £ 5.99 per week and (e) lose £6 or more per week from (i) the abolition of the higher rate of child benefit paid to lone parents, (ii) the reduction of the lone-parent family premium in income support and related benefits to the same level as the family premium for two-parent families and (iii) (i) and (ii) simultaneously; and in each case if she will list the average loss for all lone parents, and the total effect on public funds. [10795]
§ Mr. BradleyRemoval of the lone-parent rates of child benefit and family premium for new cases will not create any cash losers because existing recipients will be protected. Some lone parents making new claims will receive less benefit than they would have done without the changes.
Information for 1998–99, the first year of the changes, is in the tables. All numbers refer to the total number affected, or not, at the end of the year. Average losses refer to the average notional loss for the lone parents who will be affected. The numbers unaffected refer only to those lone parents in receipt of social security benefits; reliable estimates of the total number of lone parents unaffected are not available.
Removal of the higher rate of child benefit for lone parents Child benefit Unaffected 965,000 £0 to £2 loss 0 £2 to £3.99 loss 0 £4 to £5.99 loss 75,000 £6 + loss 0 Average notional loss: £5.85— only those affected.
Removal of higher rate of family premium in income-related benefits Income support Housing benefit 1 Council tax benefit 1 Unaffected 800,000 150,000 125,000 £0 to £2 loss Negligible Negligible Negligible £2 to £3.99 loss Negligible Negligible 45,000 £4 to £5.99 loss 260,000 Negligible Negligible £6 + loss 0 60,000 Negligible 1 Excludes those on income support, who are covered in the income support estimate.
Notes:
1. Average notional loss:
Income support = £4.75
Housing benefit = £7.20
Council tax benefit = £2.20
2. Reliable information on the precise number losing specified amounts through the interaction of the changes in the different benefits is not available. The maximum overall notional loss will be £10.25 and applies to lone parents who are not on income support, for example, because they are in work, who are not able to claim the lone-parent rate of child benefit, but who become eligible for 102W housing benefit and council tax benefit. The majority of those who will be able to claim the lone-parent rate of child benefit as well as housing and council tax benefit will notionally lose a maximum of £ 9.40. The majority of lone parents moving on to income support will lose £4.75, since the changes to other benefits will not affect them while on income support.
3. The total effect on public funds is forecast to be a saving of £60 million in 1998–99.
§ Mr. WebbTo ask the Secretary of State for Social Security to what extent child benefit received by lone parents is counted as income when a claim for family credit is made. [10793]
§ Mr. BradleyChild benefit is disregarded when calculating family credit. Account is taken of the level of child benefit when the family credit children's rates—the "child credits"—are set. The child credits and child benefit combined are greater than income support children's rates to provide a contribution in lieu of free school meals and welfare foods available only to children of families on income support.