§ Mr. Squireasked the Secretary of State for Social Services whether non-dependant deductions made from the housing benefit of households with non-dependant income support claimants living in them will be abolished.
§ Mr. NewtonThis is a matter for further consideration in the light of comments made during the consultative period on the "Reform of Social Security: Programme for Change" (Cmnd. 9518).
§ Mr. Gordon Brownasked the Secretary of State for Social Services if he will publish details of the basis on which the non-dependant deductions to rent and rate rebates, now housing benefit have been increased each year since their introduction; in each year what percentage increase was involved; and how that compared with the percentage by which the needs allowance was uprated.
§ Mr. WhitneyThe information in the form requested is set out in the table.
I understand that under the rate rebate, rent rebate and rent allowance schemes, which preceded housing benefit,
744Wthe basis for any uprating of non-dependant deductions was the movement in the general retail prices index. Between 1972 and 1976 no increases were made but in 1976 deductions were increased to restore them to 1972 levels. Increases between 1977 and 1981 were made in line with changes in the general retail prices index. In 1982, prior to the introduction of the housing benefits scheme, the deductions were increased to bring them into line with deductions which were applied under the supplementary benefits scheme. It was decided, that with the introduction of housing benefit in 1983 all non-dependant deductions would follow in future the practice under the supplementary benefit scheme which was to uprate them in line with the movement of the housing element of the retail prices index.
The increases shown in April 1984 were part of the measures we took then to limit the growth in housing benefit expenditure.
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Percentage increases in non-dependant deductions from rate rebates, rent rebates and rent allowances, and in the single person's needs allowance from 1973 to 1985 Year Percentage increase in non-dependant deductions from rate rebates, rent rebates and rent allowances* Percentage increase in single person's needs allowance† 1973 April 0 33.3 October 0 10.7 1974 October 0 14.5 1975 April 0 9.0 November 0 8.8 1976 November 50 9.5 1977 November 0 9.5 1978 November 7.5 7.9 1979 November 17.0 13.9 1980 November 16.5 12.4 1981 November 10.0 7.0 1982 November ‡22.9–56.2 10.8 1983 November 0 4.0 1984 April ‡0–55.7 0 November 7.5 4.8 1985 November 18.1 5.8 * The statutory rate rebate, rent rebate and rent allowance schemes were introduced in 1972. The first uprating was in 1973. † Between 1973 and 1981 the needs allowances were uprated by a cash amount equal to the increase in the supplementary benefit long term scale rate. Since 1982, the main element of the needs allowances has been increased in line with increases in the supplementary benefit long term scale rate and, in addition, the housing element has been increased in line with the movement in average weekly local authority rents, domestic rates, and water and sewerage charges.
‡Range of percentage increases applied to different categories of non-dependant deductions.
§ Sir Brandon Rhys Williamsasked the Secretary of State for Social Services in what circumstances young people under 25 years of age will qualify for housing benefit under his social security review proposals; and whether single people, married couples and lone parents will be treated similarly.
§ Mr. NewtonAs at present, any householder will be able to claim housing benefit. However, we are proposing that in calculating entitlement, the rules for housing benefit should be aligned with those for income support. This means that the proposed income support structure, including different rates according to whether the claimant is above or below 25, and single or married, plus special premiums for lone parents and those with families, will be reflected in the housing benefit assessment.
§ Mr. Gordon Brownasked the Secretary of State for Social Services if he will estimate how many persons will receive less in housing benefit, or have to pay more towards their rent and rates costs, as a result of the changes in non-dependent deductions to be implemented in November 1985; and how much money the changes involve.
§ Mr. Newton[pursuant to his reply, 8 July 1985, c. 367]: We estimate that approximately 1 million households will be affected by increases in the levels of deductions made from housing benefit in respect of non-dependants to take effect from November 1985. The estimated cost of not uprating the levels of these deductions would be approximately £30 million.
§ Mr. Gordon Brownasked the Secretary of State for Social Services if he will show the weekly gross and net earnings levels at which eligibility for housing benefit will expire, assuming average amounts for rent and rates, following the proposals for the November 1985 uprating in respect of the following household types, assuming one wage-earner (a) single person, (b) married couple, (c) married couple with one child, (d) married couple with two children, (e) married couple with three children and (f) married couple with an 18-year-old in work or training, living at home; and if he will also provide information on the net income derived from these earnings levels taking account of income from child benefit and expenditure on housing costs, including water rates, and average travel to work costs.
§ Mr. Newton[pursuant to his reply, 8 July 1985, c. 367–68]: The information requested is given in the table.
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Earnings levels at which housing benefit will expire November 1985 (i) Gross earnings (ii) Net earnings (iii) †Net income £ £ £ Household type* (a) single person 91.95 68.82 42.22 (b) married couple 114.45 89.75 63.15
(i) Gross earnings (ii) Net earnings (iii) †Net income £ £ £ (c) married couple with one child 125.16 96.28 74.08 (d) married couple with two children 135.04 102.31 85.81 (e) married couple with three children 142.54 106.88 97.38 (f) married couple with 18 year old non-dependent in work/training 92.54 76.38 57.58 * The following rent and rate levels respectively have been assumed for the various household types: £13.85 and £5.20 for (a) and (b): £15.40 and £6.25 for (c) and (f); £16.55 and £6.40 for (d) and (e). † As requested, the figures in column (iii) are obtained by subtracting full rent and rates, £5.90 for fares to work, and £1.65 for water rates from column (ii), and then adding child benefit where appropriate. For household (f), the non-dependent contribution of £10.40 has also been added. If the non-dependent were on a Youth Training scheme, no non-dependent deduction would be made.
§ Mrs. Beckettasked the Secretary of State for Social Services how many households on supplementary benefit are subject to non-dependant deductions from housing benefit.
§ Mr. Whitney[pursuant to his reply, 9 July 1985, c. 375]: We estimate that there are approximately 400,000 households on supplementary benefit which have deductions made from housing benefit in respect of non-dependants.