HC Deb 17 July 2003 vol 409 c527W
Mr. Willetts

To ask the Secretary of State for Work and Pensions how much extra grant per year would need to be paid from central Government to local authorities if take-up of all income-related benefits was to be 100 per cent. assuming that current take-up rates are at the mid-point in the range of estimates provided by the Government. [126564]

Mr. Pond

We estimate that a 100 per cent. take-up of income related benefits in 2003–04 would increase centrally funded housing benefit and council tax benefit expenditure by £1.7 billion. Subsidy for local authorities to administer housing benefit and council tax benefit claims is distributed by the Department using a caseload based formula on a definitive sum. Any changes in caseload, or type of caseload, may affect the amount allocated to individual authorities, but not the overall allocation.


  1. 1. Estimates are consistent with Budget 2003 estimates of 2003–04 Housing Benefit and Council Tax Benefit (HB and CTB) expenditure.
  2. 2. The estimate of the increased funding is rounded to the nearest £100 million
  3. 3. Current take-up rates are mid-point 2000–01 estimates from "Income Related Benefits Estimates of Take-Up in 2000/2001", published by DWP.
  4. 4. Centrally funded benefit expenditure is defined as all HB and CTB benefit expenditure not funded by local authorities.
  5. 5. Estimates are based on the assumption that local authorities would contribute the same proportion of HB and CTB benefit expenditure as at present.


DWP Information and Analysis Directorate, Benefit Forecasting