§ Mrs. Wiseasked the Secretary of State for Social Services why families on supplementary benefit are not receiving any extra income from last month's increase in child benefit.
§ Mr. OrmeChild benefit is a universal benefit paid whether a family is in work or not. It is part of the Government's plan to reduce reliance on means-tested benefits. Supplementary benefit, which is means-tested, is paid to prevent a family's income from falling below a fixed level; it covers the gap between that level and the family's income from other sources, including child benefit. If the other income increases, as happens when child benefit goes up, the amount of supplementary benefit needed to cover the gap is correspondingly reduced. If those receiving supplementary benefit while out of work were able to keep child benefit on top, they would be given resources in210W excess of their supplementary benefit level, and this would worsen the problem of incentives to work. Part of the object in moving from means-tested benefits for those not in work to universal benefits which go to those in work as well is to prevent the gap between family incomes in and out of work from narrowing. There is nothing new in the principle of offsetting one benefit against another; it used to be done with family allowances, and it applies to national insurance benefits as well as supplementary benefits. People receiving those benefits get their increase in income not from child benefit but from the uprating of the other social security benefits each autumn.