§ Mr. Johnasked the Secretary of State for Social Services what would be (a) the gross and (b) the net cost of raising one-parent benefit to £10, £20, and £30; how many people would be removed from eligibility for supplementary benefit and family income supplement in each case; and what revenue would be yielded in each case if the benefit were made taxable.
§ Mr. Newton[pursuant to his reply, 24 January 1983, c. 298]: The gross cost for 1982–83 would have been about £175 million, £440 million and £700 million respectively; and the cost net of supplementary benefit, family income supplement (FIS), rent and rate rebates £100 million, £250 million and £400 million. Taxation would have yielded £25 million, £50 million and £90 million in a full year.
About 5,000, 20,000 and 60,000 families would have ceased to be eligible for supplementary benefit or would have become better off through claiming rent or rate rebates; and, if the additional benefit had been counted as income for FIS purposes, 4,000, 15,000 and 27,000 families would have been removed from entitlement to FIS.
These estimates assume no improvement in one parent benefit take-up. However, a rise in take-up could be expected and would substantially increase all the costs.