HC Deb 27 July 2000 vol 354 cc845-6W
Ms Walley

To ask the Secretary of State for Social Security what enhanced payments independent sector organisations which provide care services receive; and what assessment he has made of the implications of this for local authority social service departments. [132419]

Mr. Bayley

Independent sector organisations which provide care services do not receive enhanced payments of Social Security benefits. A resident in an independent sector care home who was there on 31 March 1993 remains entitled by way of preserved rights to higher levels of Income Support as a contribution towards the fees charged by such homes which the resident is responsible for meeting.

Number of families, in households below contemporary half average income, that are dependent primarily on selected Social Security benefits
Million
1996–97 1997–98 1998–99
BHC AHC BHC AHC BHC AHC
Families below half average (mean) income 5.1 7.2 5.2 7.1 5.4 7.3
Those dependent primarily on:
National Insurance pension benefits 1.4 1.8 1.5 1.8 1.6 1.9
Other National Insurance benefits and Child Benefit 0.3 0.5 0.4 0.5 0.4 0.5
Income Support 0.9 1.1 0.8 1.0 0.7 0.9
All benefits 3.5 5.0 3.4 4.8 3.6 4.9

Notes:

1. All figures are estimates and are taken from HBAI which is based on the Family Resources Survey. All estimates are subject to sampling error and response bias.

2. 'Dependent primarily' has been defined as income from benefits exceeding 50 per cent. of the family's total gross weekly income. HBAI counts the number of families/benefit units in receipt of Social Security benefits, not the number of households. Therefore figures are quoted on family/benefit unit level. An individual household may consist of more than one family/benefit unit therefore figures presented in the table will be higher than counting the number of households.

3. National Insurance pension benefits consists of the Retirement Pension (including SERPS). Other National Insurance benefits include Jobseeker's Allowance (Contributory based), Incapacity Benefit and Widows Benefit. Income Support includes the income based element of Jobseeker's Allowance.

4. The 'All benefits' line relates to the number of families with income below half average that are dependent primarily on income from Social Security benefits.

5. All figures include the self-employed.

6. Figures are presented for families in households below half average income before the deduction of housing costs (BHC) and after (AHC), in line with HBAI conventions.

A person who took up residence in such a home from April 1993 under community care arrangements would receive Income Support, including appropriate premiums in broadly the same way as they would if they remained at home, with the addition of a Residential Allowance as contribution towards their housing costs. The relevant local authority is responsible for meeting the fees and collecting a contribution from the resident; subject to the resident retaining from their income at least £15.45 per week for personal expenses.

My right hon. Friends the Prime Minister and the Secretary of State for Health announced today in the context of the NHS plan that the preserved rights scheme will end in April 2002 and cases will become the responsibility of local authorities with an appropriate transfer of funding from this Department to local authorities, and that the funds for the Residential Allowance will also be transferred to local authorities.