HC Deb 23 October 1975 vol 898 cc237-9W
Mrs. Winifred Ewing

asked the Secretary of State for Social Services (1) why certain tenants in England and Wales have received sums of money as rent repayments in cases in which central funds were used for rents or portions thereof; what steps are taken to recover is being held at its present level of £1,600 a year while the upper limit is being increased from £3,600 to £4,900 a year in line with the increase in the upper limit for employed contributions. The rate of Class 4 contributions is not being increased. The effect is that there will be no increase in the total amount of contributions payable by a self-employed man on any particular level of profits or gains up to £3,600 a year. For those with profits or gains in excess of £3,600 the additional contribution will be 8 per cent. of the excess, subject to the new upper limit of £4,900 a year.

As a result of these changes, the proportion of flat-rate element in the contributions of the self-employed will be reduced and a higher proportion will come from earnings-related contributions. The changes are thus a further step towards the Government's objective of earnings-related pensions in return for corresponding contributions for the self-employed. I announced earlier this year that I was putting in hand a detailed examination of the problems involved in establishing such an arrangement. Work on this study is proceeding, but it is a major undertaking to overcome the practical difficulties which have in the past ruled out such a system.

the sums; and what are the total number of households involved and the total amount of central funds involved, broken down into local authorities;

(2) what authority there is to recover local rent advances from certain council tenants in England and Wales who have had sums paid to them by local authorities as rent refunds.

Mr. O'Malley

I assume the hon. Member is referring to rent refunds made under the Housing Rents and Subsidies Act 1975 and the situation will not recur. The Department, since there was no misrepresentation or failure to disclose a material fact, has no power to recover these sums. Information is not available centrally about the number of households or amounts of money involved.