§ Mr. Johnasked the Secretary of State for Social Services what would be (a) the gross and (b) the net cost of extending widowed mother's allowance on a noncontributory basis to all single parents, assuming abolition of one-parent benefit and taking into account savings on means-tested benefits, revenue from taxation of the benefit and recovery of maintenance from liable relatives; how many people would be removed from eligibility for supplementary benefit and family income supplement as a result; and what would be the corresponding figures for a benefit paid at the same rate as non-contributory invalidity pension.
§ Mr. Newton[pursuant to his reply, 24 January 1983, c. 299]: The gross cost assuming full take-up would have been some £1.9 billions in 1982–83 at widowed mother's allowances rates, and some £1.4 billions at noncontributory invalidity pension rates. The net cost after allowing for savings on other social security benefits and rent and rate rebates and deducting the tax yield would have been respectively £900 million to £950 million and £550 million to £600 million. The numbers ceasing to become eligible for supplementary benefit or better off claiming rent and rate rebates, would have been about 330,000 and 150,000 and the numbers removed from entitlement to FIS about 60,000 and 50,000. However if the benefit were paid net of maintenance payments the gross cost would be lower by some £300 million and £250 million respectively, though the net cost would be reduced by less than this. These estimates have been compiled using a number of different sources relating to different dates and should be regarded as a broad indication of the costs in 1982–83.