HC Deb 13 June 2000 vol 351 cc607-8W
Mr. Webb

To ask the Secretary of State for Social Security (1) if he will estimate the cost of removing the top two bands of housing benefit non-dependant deductions and capping the maximum non-dependant deduction to 50 per cent. of the rent due; [125292]

(2) how many claimants are subject to each level of housing benefit non-dependant deductions; [125289]

(3) if he will estimate the cost of not imposing housing benefit non-dependant deductions where this would leave non-dependants with an income below income support level; [125293]

(4) if he will estimate the cost of abolishing housing benefit non-dependant deductions; [125290]

(5) if he will estimate the cost of capping the maximum housing benefit non-dependant deduction to 50 per cent. of the rent due. [125291]

Angela Eagle

The cost of removing the top two bands of Housing Benefit non-dependent deductions and capping the maximum non-dependant deduction to 50 per cent. of the rent due is estimated to be £40 million a year1.

At May 1998, the latest date for which information is available, the numbers of claimants subject to each level of Housing Benefit non-dependant deductions2 are in the table.

Housing Benefit (HB)—Non-dependant deductions—May 1998
Non-dependants deduction level Number of HB recipients to whom deduction applies
£7 125,000
£16 21,000
£22 19,000
£36 12,000
£41 7,000
£45 15,000

Note:

All estimates were obtained using the Policy Simulation Model, which uses as base data the Family Resources Survey for 1997–98. Estimates are uprated to 2000–01 prices and benefits levels and are consistent with Departmental forecasts of the number of non-dependants in 2000–01. These forecasts are themselves based on extrapolations of Housing Benefit administrative data.

The cost of not imposing Housing Benefit non-dependant deductions where this would leave non dependants with an income below Income Support level is estimated to be £30 million a year.

The cost of abolishing Housing Benefit non-dependant deductions is estimated to be £230 million a year. The cost of capping the maximum Housing Benefit non-dependant deduction to 50 per cent. of the rent due is estimated to be £35 million a year.1 1 Costed on basis that no deduction on behalf of any individual exceeds 50 per cent. of rent, rather than having a 50 per cent. cap on the total deduction for each household. Source: 2 Some HB recipients may be subject to more than one non-dependant deduction Housing Benefit Management Information System, annual 1 per cent. sample inquiries, taken on the second Thursday of May 1998.

Mr. Webb

To ask the Secretary of State for Social Security (1) how many Housing Benefit recipients have been assessed under the 6 October 1997 scheme; [125296]

(2) how many Housing Benefit recipients are still assessed under the pre-January 1996 rules on rent restrictions for private sector tenancies; [125294]

(3) how many Housing Benefit recipients are assessed under the Local Reference Rent (January 1996) scheme. [125295]

Angela Eagle

The information is in the table.

Private tenants receiving Housing Benefit in August 1999 by Housing Benefit scheme—Great Britain
Scheme Housing Benefit recipients
January 1996 273,000
October 1997 287,000

Private tenants receiving Housing Benefit in August 1999 not assessed under the January 1996, October 1996 or October 1997 schemes— Great Britain
Tenancy type Housing Benefit recipients
Total private tenants not assessed under the January 1996, October 1996 or October 1997 schemes 1,191,000
Housing Association 892,000
Regulated 139,000
Deregulated 158,000
"Other" private tenancies 4,000

Note:

Figures are rounded to the nearest thousand

Source:

Housing Benefit Management Information System, quarterly caseload inquiry, taken on the second Thursday of August 1999