HC Deb 16 January 1986 vol 89 cc696-7W
Mr. Squire

asked the Secretary of State for Social Services what savings are expected to accrue from the proposed changes in maternity allowance; and what estimate Her Majesty's Government have made of income arising as a result of taxation of the statutory maternity allowance.

Mr. Newton

These estimates will depend on decisions to be taken following the outcome of the consultations on maternity allowance currently under way with employers' and other interested organisations. I shall write to my hon. Friend when these decisions have been taken.

Mr. Squire

asked the Secretary of State for Social Services how many women eligible for the maternity allowance under current arrangements are expected to lose by the proposed changes; and how many women currently ineligible are expected to gain under the new arrangements.

Mr. Frank Field

asked the Secretary of State for Social Services if he will provide estimates of the numbers of gainers and losers resulting from the proposed changes to the maternity allowance.

Mr. Newton

Provisonal estimates are that some 75,000 to 85,000 women will no longer qualify for the allowance. These almost entirely be women who were not in fact working when their pregnancies began, and who therefore do not come within the category for whom such an earnings-replacement benefit was intended. We estimate that between 5,000 and 10,000 will be entitled to the allowance for the first time.

Mr. Frank Field

asked the Secretary of State for Social Services if he will provide an estimate of the public expenditure saving as a result of the changes proposed to the maternity benefits including the abolition of the maternity grant (a) in total and (b) for each benefit.

Mr. Newton

I shall let the hon. Member have a reply as soon as possible.