§ Mr. Andrew F. Bennettasked the Secretary of State for Social Services what will be the future policy of his Department regarding the payment of supplementary benefit to unmarried mothers, in the light of the judgments on 31 March by Mr. Justice Latey and Mr. Justice Purchas on an appeal against a decision of the Derwentside magistrates.
§ Mr. Prentice[pursuant to his reply, 3 April 1980]: These judgments do not affect the payment of benefit, as they relate to the liability of a parent to maintain a child. Present policy in this respect will continue. The Supplementary Benefits Commission has always interpreted section 17 of the Supplementary Benefits Act 1975 as meaning that a parent's liability to maintain a child for whom Supplementary Benefit was paid extended to the full amount of supplementary benefit paid for the child unabated by any payment of child benefit made under the Child Benefit Act 1975. The judgments confirm that interpretation.
§ Mr. Alfred Morrisasked the Secretary of State for Social Services (1) if he will 604W list the gross savings, the net savings and the extra numbers which will require supplementary benefit in 1980–81 and 198182, respectively, as the result of his decision to abate invalidity benefit by five points; and what is his estimate of the number of invalidity pensioners whose income in 1980–81 would not have exceeded their personal tax allowance even if the increase in their pension had not been abated;
(2) what is his estimate of the gross savings, the net savings and the extra numbers which will become entitled to supplementary benefit as a result of his decision (a) to abate the increase in sickness benefit and (b) to phase-out the earnings related supplement to sickness benefit in 1980–81 and in a full year; and what is his estimate of the number of people receiving sickness benefit whose income in 1980–81 would not have exceeded their personal tax allowance even if the increase had not been abated;
(3) what is his estimate of the gross savings, the net savings and the extra number which will become entitled to supplementary benefit as a result of his decision (a) to abate the increase in unemployment benefit and (b) to phase out the earnings-related supplement to unemployment benefit in 1980–81 and in a full year; and what is his estimate of the number of people receiving unemployment benefit whose income in 1980–81 would not have exceeded their personal tax allowance even if the increase had not been abated;
(4) what is his estimate of the gross savings and net savings and the extra numbers which will become eligible for supplementary benefit as a result of his decision to abate the maternity allowance by five points; and what is his estimate of the number of women whose income in 1980–81 would not have exceeded their own personal tax allowances even if the maternity allowance had been unabated;
(5) what is his estimate of the increase in the number of people who will become entitled to means tested benefits in 198081, 1981–82, 1982–83, and 1983–84; what is his estimate of the increased number of officials who will be required to administer claims; and if he will make a statement.
§ Mr. Prentice[pursuant to his reply, 14 April 1980]: It is not possible to give 605W information in the precise detail which the right hon. Gentleman seeks since this depends upon the levels of both national insurance and supplementary benefits in the relevant years, and of course on the numbers of beneficiaries in these years.
COMBINED EFFECT OF ABATEMENT OF CERTAIN BENEFITS IN NOVEMBER 1980 AND REDUCTION/ABOLITION OF EARNINGS RELATED SUPPLEMENT BY JANUARY 1981 Gross saving£ million Additional cost of supplementary benefit (Note 1) £ million Additional claims to supplementary benefit 000s 1980–81 First full year 1980–81 First full year 1980–81 First full year Invalidity benefit 20 55 1 5 5 5 Sickness benefit 13 215 2 20 10 30 Unemployment benefit 17 155 4 62 15 75 Maternity allowance 2 40 * * * * (Note 2) Others 2 35 * * * * * Negligible. Notes:
1. At current rates which are not directly comparable with the earnings related supplement element of the gross savings.
2. Including phasing out of earnings related supplement payable with maternity allowance. These estimates do not take account of any consequential changes in the receipt of other means-tested benefits.
In relation to these changes it is estimated at this stage that the net additional manpower requirements would be about
Man years 1980–81 110 1981–82 400 1982–83 1,020 1983–84 1,020 Data available from the Inland Revenue are not sufficiently detailed to enable the additional effect of the changes proposed in the Bill to be determined but it is estimated that in the course of a year, those drawing benefits, whose annual income does not exceed their personal tax allowances might be of the order of
- Invalidity benefit—400,000.
- Sickness benefit—data not available but likely to be small.
- Unemployment benefit—200,000.
- Maternity allowance—50,000.