§ Lord Evans of Parksideasked Her Majesty's Government:
How many individuals in the United Kingdom are in receipt of the lone parent element of child benefit; and how many there are in each parliamentary constituency.
§ Baroness Hollis of HeighamThere are an estimated 1,100,000 families in the United Kingdom currently receiving the lone parent element of child benefit. This information is not currently available at parliamentary constituency level.
§ Lord Evans of Parksideasked Her Majesty's Government:
What would be the annual cost to the Department of Social Security if all lone parents with children under five years of age were allowed to retain the lone parent element of child benefit.
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§ Baroness Hollis of HeighamExisting recipients will continue to retain entitlement to the lone parent element of child benefit. The estimated additional annual cost of allowing all new lone parents with children under five to receive the lone parent rate of Child Benefit is set out in the table.
Year Savings 1998–99 £2m 1999–00 £8m 2000–01 £12m Note:
All numbers are rounded to the nearest £1 million.
§ Lord Evans of Parksideasked Her Majesty's Government:
How much family credit a lone parent with two school-age children and in receipt of lone parent element of child benefit would receive if he or she moved into full time employment at an hourly rate of (a) £3; (b) £2.75; (c) £2.50; (d) £2.25; and (e) £2.00.
§ Baroness Hollis of HeighamThe information requested is in the table. These calculations are based on a number of alternative lengths of working weeks, with one child aged under 11 and one aged 11–15. No allowance has been made for childcare costs.
Weekly Family Credit Entitlement (Hours worked) Hourly rate 16 hrs 24 hrs 30 hrs 40 hrs £3.00 £79.65 £79.65 £84.03 £67.35 £2.75 £79.65 £79.65 £88.76 £72.25 £2.50 £79.65 £79.65 £90.20 £77.73 £2.25 £79.65 £79.65 £9020 £84.03 £2.00 £79.65 £79.65 £90.20 £90.20 Source:
The figures have been derived using the 1997 version of the Tax Benefit Model (TBM). The TBM is designed to illustrate the financial circumstances of a selection of hypothetical local authority and private tenants at April 1997.
Notes:
- 1. In addition to the assumptions set out in the reply, the TBM also rests on a number of other more minor assumptions:
- (i) No tax allowances apart from personal allowances are in operation;
- (ii) There is no reduced tax liability for spells of unemployment or sickness earlier in the tax year;
- (iii) National Insurance Contributions (NICs) are paid at the not contracted out rate.
- 2. Whether the family are local authority or private tenants makes no difference to the answer in this case.
- 3. Maximum Family Credit (FC) for this lone parent is £79.65, made up of the personal allowance (£47.65) and child allowances (£12.05 + £19.95). When the FC claimant works 30 hours a week or more, the maximum FC is increased by the 30 Hour Credit of £10.55. giving a maximum FC of £90.20. The maximum applies where net income (gross income less income tax and NICS) is lower than the FC threshold of £77.15.
§ Lord Evans of Parksideasked Her Majesty's Government:
What would be the annual cost to the Treasury if 100,000 individuals in receipt of the lone parent element of child benefit were to move into full time 147WA employment and each one received the free services of a child minder for 20 hours per week at £2.75 per hour.
§ Baroness Hollis of HeighamThe information requested is not available.
Direct comparisons between out of work income and in work income for those lone parents currently receiving income support are difficult. It is not straightforward to predict the earnings of those lone parents who move into work, since this would depend on the type of job they might get, and for how many hours.