HC Deb 18 December 1986 vol 107 cc695-7W
Ms. Clare Short

asked the Secretary of State for Social Services (1) if he will publish, in the same format as the reply given on 5 July 1985, Official Report, column 301,the latest available estimates of recipients of housing benefit not on supplementary benefit; if he will publish estimates of the numbers of households affected by the rent taper change to be introduced in April 1987 and the number of households losing entitlement to rent rebates, again in the same format used in the information given on 5 July 1985, Official Report, columns 305–3;

(2) if he will give information on the changes to the housing benefit needs allowance by publishing a table showing the real value of the April 1987 needs allowances and disregards compared with the level at which they stood before the change to the updating formula; and if he will also publish a table giving a detailed breakdown of the numbers of households losing (a) less than 25p, (b) 26p to 50p, (c) 51p to £1 and such other ranges of losses as may be appropriate as a combined result of both the taper and needs allowance changes, distinguishing as far as possible between pensioners, those in work and other households.

Table 1
Estimated maximum standard housing benefit caseload at April 19871
Thousands, Great Britain
Rate rebate recipients Rent rebate or allowance recipients
Household type Above needs allowance Below needs allowance Total Above needs allowance Below needs allowance Total
Pensioners 1,210 1,340 2,550 620 820 1,440
Working 190 170 370 140 100 240
Others 250 520 770 190 370 570
All 1,650 2,030 3,680 950 1,290 2,240
1 This table represents the estimated caseload which would arise from an uprating using the traditional formula, without a taper change, including those who would have been brought into entitlement for the first time.

Table 2
Estimated number affected by the rent taper change
Thousands, Great Britain
Household type Number affected by rent taper change Number losing all rent rebate/allowance
Pensioners 620 60
Working 140 30
Others 190 20
All 950 110

Table 3
Needs allowances and earnings disregards from April 1987
Category Proposed April 1987 rate £ Rate implied by traditional formulae £
Needs allowances single person 48.90 49.65

Mr. Lyell

The information requested is given in the following tables. Table 1 shows the estimated potential standard housing benefit caseload at April 1987, using a traditional uprating and without a taper change. Table 2 shows the numbers affected by the rent taper change and the numbers losing all entitlement to rent rebates or allowances. Table 3 shows the proposed April 1987 needs allowances and earnings disregard and the levels implied by the traditional uprating formulae. Table 4 shows a detailed breakdown of the combined effect of the two measures.

It should, however, be borne in mind that the majority of standard housing benefit recipients will not actually face cash losses next April: for one thing, increased benefit resulting from increases in rent and rates will normally outweigh the effect of the taper change. Also, the proposed increases in the needs allowances will normally lead either to the same level of entitlement (when combined with the retirement pension increase) or to higher entitlement (for example, for most working families). Table 4 therefore represents not actual cash losses, but rather a comparison between the effects of an uprating based on the traditional formula with no taper change, and the effects of the proposed changes, with other parameters such as rent and rate levels held constant.

Any discrepancies in the totals are due to rounding. The tables show the effects on standard housing benefit only—for approximately a quarter of a million people also getting housing benefit supplement there will be no net effect because increases in the latter benefit will automatically compensate them for the changes.

Category Proposed April 1987 rate £ Rate implied by traditional formulae £
couple-single parent 72.15 72.85
single handicapped person 54.50 55.35
couple (one handicapped) or handicapped single parent 77.75 78.55
couple (both handicapped) 80.45 81.25
pensioner addition 0.85 0.90
dependent child addition 14.75 15.10
Principal earner's disregard 17.30 17.10

Table 4
A comparison of the proposed measures with an uprating according to the traditional formula (without a taper change), showing recipients of

any housing benefit broken down by the extent of the difference in total entitlement

thousands, Great Britain
Household type 1p-25p 26p-50p 51p-100p 101p-200p over £2
Pensioner 1,380 300 810 140 10
Working 230 40 50 80 20
Other 490 130 120 90 10
All 2,100 470 980 310 40