§ Mr. Wareingasked the Secretary of State for Social Services what will be the estimated savings from the changes made regarding the payment of family income supplement; how many families will be affected; what will be the effect on their real incomes; and if he will make a statement.
§ Mr. NewtonI assume the hon. Member is referring to the family income supplement uprating change made this November. The change was made because FIS awards, once made, continue for a year regardless of any change in the recipient's circumstances, including increases in income. In view of this, we concluded that it was anomalous that awards should be uprated during their currency, especially because the result of doing so involves increasing benefit for many families whose circumstances would not justify it at the time.
The FIS savings from the change are estimated at about £10 million. Some 210,000 families were receiving FIS in November and we expect that about 10,000 will be able, under transitional arrangements, to take full advantage of the new levels if they so wish. The difference between the FIS received by the remainder and that which would have been received if awards had been increased in line with 574W previous practice depends upon a number of factors, including the length of time an award has to run after the uprating date (27 November), the number of children in a family and the amount of family income. The estimated average amount involved is £2.40 weekly or £55 in total over the remaining period of the award. Previous estimates indicate that about one half of FIS recipients receive rent and rates rebates and in these cases the average total amount involved would be £37 because of the knock-on effect of those benefits on FIS. Some families will also be receiving supplementary benefit and, because the amount of FIS is taken into account in assessing that benefit, they will suffer no loss during the period they are receiving it.