§ Mr. Peter Bottomleyasked the Secretary of State for Social Services whether he is now in a position to give 398W details of the changes to the fuel-direct scheme that he has agreed with the fuel industries and which were announced by the Under-Secretary of State for Energy on 29 March, Official Report, c. 25.
§ Mr. NewtonMy right hon. Friend today laid the necessary amendments to the Supplementary Benefit (Claims and Payments) Regulations before the House.
It has long been a source of concern to us that some fuel boards have maintained limits on the size of debt which they were prepared to accept for fuel-direct, so increasing the risk of disconnections among poor people dependent on supplementary benefit. I am pleased to confirm that, as part of a package of changes, the fuel industries have now agreed to remove the remaining limits.
Under the fuel-direct scheme deductions within specified limits can be made from a claimant's supplementary benefit and paid direct to the fuel authority where it appears to the benefit officer to be in the interests of the claimant and his family. The deduction normally consists of two amounts: one to clear outstanding debts and the other to cover current fuel consumption.
The deduction for outstanding debts is limited to 5 per cent. of the single householder rate—currently £1.20—for each of a gas debt and an electricity debt. Under the new regulations claimants who come on to fuel-direct from the date at which the regulations come into force will, provided they only have one fuel debt, have 10 per cent. of the single householder rate—£2.40 a week—deducted from their benefit rather than £1.20 as at present. This will enable the debt to be cleared sooner.
Provision is, however, made so that if a second debt arises this doubled deduction will be halved. In this way the maximum total deduction that can be made for outstanding fuel debts is not increased. The regulation also provides that existing fuel-direct cases should not be subject to the doubled deduction, even if they have only one fuel debt.
In respect of a deduction for current consumption, the regulations provide more flexibility by enabling it to be periodically adjusted upwards or downwards to take account of any credit or further debt that has accrued as a result of unforeseen fluctuations in the claimant's pattern of fuel consumption.
The rule whereby total fuel deductions cannot exceed 25 per cent. of the claimant's basic benefit without the claimant's agreement will continue to apply.
We are making these regulations now as a matter of urgency to assist in putting the changes into effect as soon as possible so that the new provisions may help with large fuel bills resulting from the past winter. The Social Security Advisory Committee has been kept informed about our consultations with the fuel boards. It has for some time been pressing for the removal of fuel boards' debt limits and it wishes to see this done with all possible speed. It recognises the need for an urgent change in the regulations and has asked that the regulations be referred to it as soon as they have been made.
We shall be monitoring the effect of these changes to see whether any further improvements to fuel-direct need to be made in due course.