HC Deb 06 December 1979 vol 975 cc310-1W
Mrs. Renée Short

asked the Secretary of State for Social Services how many of those currently claiming supplementary benefit will become ineligible as a result of the changes proposed in the White Paper as the reform of the supplementary benefit scheme.

Mrs. Chalker

The only change in the White Paper which could have this result is the proposal to introduce a fixed cut-off point of £2,000 of capital in place of the present system of calculating an assumed income from capital in excess of £1,200. Under this proposal, capital of up to £2,000 would be completely disregarded while claimants with more than £2,000 would not be entitled to receive benefit. In November 1978 there were about 13,000 claimants with capital in excess of £2,000.

Mrs. Renée Short

asked the Secretary of State for Social Services if he will make public the background information which led to the proposals contained in the White Paper on the reform of the supplementary benefit scheme including the costings of alternative options.

Mrs. Chalker

The proposals for the reform of the supplementary benefits scheme derive from the report "Social Assistance" and nearly 40 background papers which were published in 1978; from the Government's consideration of the comments received in response to that report; and from our priorities in the face of unavoidable limitations on financial and staff resources. We have recently published an analysis of the response to the review—available from the Department, price £4.35 including postage and packing. Copies of the analysis have been placed in the Library of the House. "Social Assistance" discussed a number of options for change, and gave alternative costings wherever possible. The only major proposal in the White Paper that was not discussed in "Social Assistance" was that of assuming standard contribution from non-dependants, towards housing costs, outlined in paragraph 18 of the White Paper. On the basis of claimant numbers in November 1978 it has been estimated that, if the standard contribution from non-dependants not receiving supplementary benefit was fixed at £3.80, there would be a saving of approximately £15 million.