HC Deb 12 February 2004 vol 417 cc1592-3W
Annabelle Ewing

To ask the Secretary of State for Work and Pensions what the cost was of administering council tax benefit payments in(a) the United Kingdom and (h) Scotland in each of the last five years; what the value was of council tax benefit payments made in (i) the United Kingdom and (ii) Scotland in each of those years; and what estimate he has made of the total amount of council tax benefit unclaimed in each of those years. [149782]

Mr. Pond

The available information regarding the cost of administering council tax benefit and the total value of council tax benefit payments is in the tables.

Cost of administering council in tax benefit (in £ million)
Great Britain Scotland
1998–99 185.284 13,355
1999–2000 240.871 14,796
2000–01 219.162 14,644
2001–02 247.133 17,889

Note:

Figures for 2002–03 have not yet been finalised.

Source:

1. Scotland figures taken from Scottish Local Government Finance Statistics.

2. Figures for England provided by Office of the Deputy Prime Minister.

3. Figures for Wales provided by the National Assembly for Wales.

Total value of council tax benefit payments (in £ million)
Great Britain Scotland
1998–99 2,452 303
1999–2000 2,511 307
2000–01 2,575 311
2001–02 2,686 316

Note:

Figures for 2002–03 have not yet been finalised.

Source:

Final audited subsidy returns sent to Department for Work and Pensions by local authorities.

Estimates of the amount of council tax benefit left unclaimed in Great Britain are available in the Department for Work and Pensions/Department of Social Security annual report entitled "Income Related Benefits Estimates of Take-Up". Statistics are presented on a financial year basis; the latest estimates relate to 2000–01. Copies of the publications are available in the Library.

Mr. Prosser

To ask the Secretary of State for Work and Pensions (1) what estimate he has made of the(a) cost and (b) number of beneficiaries of abolishing the upper capital limit on council tax benefit for people aged 60 years and over; and what plans he has to introduce this change; [152795]

(2) what the basis is for setting the council tax benefit upper capital limit at £16,000 for pensioners; and when the limit was last uprated. [152796]

Mr. Pond

Council Tax Benefit has lower capital limits above which benefits are reduced and upper limits above which benefits cannot be paid. When the present scheme was introduced in April 1988, the upper capital limit was set at £6,000. It was subsequently increased to £8,000 on 30 May 1988 and to £16,000 on 1 April 1990.

The estimated annual cost of abolishing the upper capital limit is approximately £50 million, with around 100,000 beneficiaries. We have no current plans to change these arrangements; however, under the new Pension Credit, there is no upper capital limit.

Notes:

i. Costs are rounded to the nearest five million, beneficiaries are rounded to the nearest 25,000.

ii. Each beneficiary represents a benefit unit, which can be a single claimant or a couple; where the benefit unit is a couple, at least one member is aged 60 or over.

iii. Costs are estimated using the DWP Policy Simulation Model for 2004–05; this model is based on the 2001–02 Family Resources Survey data, uprated to 2004–05 prices, benefit rates and earnings levels, and is calibrated to latest published fore casts and policies.

iv. Costs arise from cases becoming newly entitled to council tax benefit as a result of abolishing the upper capital limit. The estimates above assume that those with significant amounts of capital are as likely to take up benefit entitlement as those currently entitled.

Mr. Hoyle

To ask the Secretary of State for Work and Pensions what proportion of pensioners were eligible for council tax benefit in each year since 2000 in(a) the North West, (b) Lancashire and (c) Chorley. [154224]

Mr. Pond

The information requested is not available.

National figures of the number of the pensioners in receipt of council tax benefit, plus the estimated number that are entitled but not receiving benefit, can be obtained from the DWP report, "Income Related Benefits Estimates of Take-Up". The latest statistics relate to financial year 2000–01; a copy of the publication is held in the Library.

National results for 2001–02 will be released later this month.