HC Deb 18 November 1982 vol 32 cc289-90W
Mr. Stallard

asked the Secretary of State for Social Services (1) what would be the loss in cash terms in the November 1983 benefit uprating if the following benefits were increased by 1.7 per cent. less than the rate of inflation: retirement pension for a single person and for a married couple, invalidity pension and the short-term and long-term supplementary benefit scale rates for both a single person and a couple;

(2) if he will update his answer to the hon. Member for Birmingham, Perry Barr (Mr. Rooker), Official Report, 19 October, c. 126, concerning net savings on benefits on the basis of an estimated part year saving for 1983–84 on pensions, social security benefits and child benefit of £180 million.

Mr. Newton

If these questions reflect an assumption that the reduction of £180 million in the social security programme for 1983–84, mentioned in paragraph 2.25 of the autumn statement, implies a decision that the increase in all benefits at the November 1983 uprating will be reduced by 1.7 per cent., I must emphasise that that assumption is not correct. My right hon. Friend has made it clear that decisions about the November 1983 uprating will not be taken until the time of the Budget, and that priorities will then be considered as between changes in social security benefits and adjustment of the rates at which they are paid. On this understanding the answers to the questions, are as follows:

Benefit Difference in cash terms* Net savings
£ £ millions
Retirement pension
single person 0.55 90
adult dependent 0.35 90
(married couple) 0.90 90
Invalidity pension
single person 0.55
Supplementary benefit ordinary rate
single householder 0.45
couple 0.70 18
Supplementary benefit long-term rate
single householder 0.55 8
couple 0.90 8
Unemployment benefit 10
Invalidity benefit 10
Child benefit 24
Other 20

* Note:

(1) The above figures have been calculated on the assumption that the existing rates of benefit would be uprated by the same percentage. The differences illustrated by the figures, derived from the 1982 benefit rates, would apply generally whatever the forecast movement in prices. In a few instances, depending upon the actual forecast, the amounts could vary by 5p because of rounding effects.

(2) Amounts quoted are rounded to the nearest 5p.

Mr. Field

asked the Secretary of State for Social Services what have been the savings in each year since 1979 from changes made in the rules governing the claims of students to supplementary benefit since 1979.

Mr. Newton

[pursuant to his reply, 12 November 1982, c. 303]: The last major change affecting students' entitlement to supplementary benefit occurred in the academic year 1976–77 when, following the inclusion of an element in the ordinary maintenance grant to cover the Christmas and Easter vacations, the majority of students were excluded from benefit during these vacations.

Since 1979 only minor changes have been made in the rules governing students' supplementary benefit entitlement. Information on the costs and savings is not available.