HC Deb 27 February 1987 vol 111 cc440-5W
Sir Brandon Rhys Williams

asked the Secretary of State for Social Services what would be the net cost of a £5 a week increase in child benefit for all children under five years; and what would be the net cost if the supplement for one-parent families were withdrawn.

Mr. Major

The gross annual cost of a £5 a week increase of child benefit for children under 5 would be £920 million. The gross annual cost of one parent benefit is £148 million. Individual net costings could be provided only at disproportionate expense. The effect of such a change is not clear cut because a substantial number of single parent families and families with children under 5 are entitled and would continue to be entitled to supplementary benefit.

Table 1 Percentage increase in benefit rates since previous uprating at uprating dates
Per cent.
Benefit 1979 November 1980 November 1981 November 1982 November 1983 November 1984 November 1985 November 1986 July
Retirement pension
Single 19.5 16.5 9.0 11.0 3.7 5.1 7.0 1.0
Couple 19.6 16.5 9.0 11.0 3.7 5.1 7.0 1.1
Non-contributory over 80s pension
Single 19.7 16.4 8.9 12.4 2.5 5.1 7.0 1.1
Couple 19.5 16.5 8.8 12.7 2.2 5.0 7.0 1.1
Widows' benefits
Widows' allowance 19.4 16.6 8.9 11.0 3.7 5.1 7.0 1.1
Widowed mother's allowance 19.5 16.5 9.0 11.0 3.7 5.1 7.0 1.0
Widow's pension 19.5 16.5 9.0 11.0 3.7 5.1 7.0 1.0
Age-related widow's pension—30 per cent.—93 per cent, of rate of widow's pension
Invalidity pension
Single 19.5 11.6 9.0 10.9 3.7 5.1 11.8 1.0
Couple 19.6 11.5 9.0 10.9 3.7 5.1 11.9 1.1
Unemployment benefit
Single 17.5 11.6 9.0 11.1 8.2 5.2 7.0 1.1
Couple 17.5 11.5 9.0 11.1 8.2 5.1 7.1 1.1
Sickness benefit
Single 17.5 11.6 9.0 11.1 3.8 5.0 7.0 1.0
Couple 17.5 11.5 9.0 11.1 3.7 5.0 7.0 1.1
Maternity allowance
Single 17.5 11.6 9.0 11.1 3.8 5.0 7.0 1.0
Couple 17.5 11.5 9.0 11.1 3.7 5.0 7.0 1.1
Severe disablement1 allowance
Single 19.7 16.4 8.9 11.0 3.8 5.1 7.0 1.1
Couple 19.5 16.5 8.8 10.9 3.8 5.0 7.0 1.1
Attendance allowance
Higher rate 19.2 16.4 9.2 11.0 3.6 5.1 7.0 1.1
Lower rate 19.2 16.5 9.0 11.1 3.7 5.2 7.1 1.0
Invalid care allowance
Single 19.7 16.4 8.9 11.0 3.8 5.1 7.0 1.1
Couple 19.5 16.5 8.8 10.9 3.8 5.0 7.0 1.1
Mobility allowance 20.0 20.8 13.8 10.9 3.8 5.3 7.0 1.2
Child benefit 233.3 18.8 10.5 11.4 11.1 5.4 2.2 1.4

Mr. Meacher

asked the Secretary of State for Social Services if he will indicate, for all welfare and national insurance benefits and allowances, the percentage change in value each year since 1979 and the comparable change in national average earnings for each of those years.

Mr. Major

[pursuant to his reply, 17 February 1987 c. 598]: The information requested is shown in the tables.Table 1 gives the percentage increase in the major social security benefit rates at uprating dates in each year from 1979 to 1986. Table 2 gives the percentage increase in average earnings at uprating dates.

Benefit 1979 November 1980 November 1981 November 1982 November 1983 November 1984 November 1985 November 1986 July
One parent benefit 25.0 20.0 10.0 10.6 11.0 4.9 7.1 1.1
Family income supplement
Prescribed amount3 for one-child family, where child is aged
Under 11 21.7 19.6 10.4 11.5 3.6 5.3 8.3 1.1
11–15 9.4 1.1
16 and over 10.6 1.1
Maximum amount for one-child family, where child is aged
Under 11 28.6 25.9 8.8 13.5 4.8 4.5 8.7 1.2
11–15 10.9 1.2
16 and over 13.0 1.2
Supplementary benefit
Long-term rates Single (householder) 19.1 14. 6 9.0 10.5 4.3 4.7 5.0 1.1
Couple 19.3 15.4 9.0 10.5 4.3 4.7 5.1 1.1
Non-householder 18 or over 18.8 14.5 9.0 10.6 4.2 4.8 5.1 1.2
Non-householder 16–174 17.8 48. 0 9.0 10.5 4.2 4.8 5.0 1.1
Ordinary rates Single (householder) 17.7 16.4 9.2 10.5 4.3 4.7 5.2 1.0
Couple 17.6 16.5 9.1 10.5 4.3 4.7 5.0 1.1
Non-householder 18 or over 17.7 16 .4 9.1 10.5 4.4 4.7 5.1 1.1
Non-householder 16–17 17.8 16.4 9.2 10.5 4.4 4.8 5.2 1.1
Dependent children5 Over 18 17.7 16.4 9.1 10.5 4.4 4.7 5.1 1.1
16–17 17.8 16.4 9.2 10.5 4.4 4.8 5.2 1.1
11–15 17.6 41.6/16.6 9.2 10.5 4.2 4.7 5.2 1.3
Under 11 17.9/18.2 40.4/16.8 8.2 10.8 4.6 4.9 5.2 1.0
Industrial disablement pension
Over 18 19.1 16.6 9.0 11.0 3.7 5.0 7.0 1.1
Under 18 19.-5 16.5 9.0 10.3 3.7 5.1 7.0 1.0
Reduced rates—10 per cent. —90 per cent, of basic rate
Maximum disablement gratuity (lump sum) 19.3 16.6 8.8 10.9 3.7 5.1 7.0 1.2
Unemployability supplement 19.5 11.6 9.0 10.9 3.7 5.1 11.8 1.0
Maximum special hardship allowance 19.1 16.4 9.2 11.0 3.7 5.0 7.0 1.1
Industrial death benefit Initial rate 19.4 16.6 8.9 11.0 3.7 5.1 7.0 1.1
Higher permanent rate 19.0 16.1 8.8 10. 8 3.6 5.1 6.9 1.0
Lower permanent rate 19.5 16.6 9.0 11.0 3.7 5.1 7.0 1.0
Constant attendance allowance
Normal maximum rate 19.7 16.4 9.6 10.8 3.7 4.9 6.8 1.2
Part-time rate 19.7 16.4 9.6 10.8 3.7 4..9 6.8 1.2
Intermediate rate 19.7 16.4 9.6 10.8 3.7 4.9 6.8 1.2
Exceptional rate 19.7 16.4 9.6 10.8 3.7 4.9 6.8 1.2
Housing benefit6
Needs allowance Single 13.9 12.4 7.0 10.8 4.0 4.8 5.8 0.8
Couple/single parent 15.5 13.5 7.5 9.7 4.1 4.7 5.6 0.9
Single handicapped 14.8 12.4 7.1 10. 8 4.0 4.8 5.8 0.8
Couple—one handicapped 15.9 13.4 7.5 9.8 4.1 4.7 5.6 0.9
Couple—both handicapped 15.5 13.5 7.5 9.7 4.1 4.7 5.5 1.0
Pensioner addition7 — — — — — 6.7 6.3 Not increased
Dependent child addition 17.6 24.7 7.8 10.1 4.4 8.0 12.8 0.7
Child dependency addition
With short-term benefits8 9100.0 -26.5 -36.0 -62.5 -50.0 — — —
With long-term benefits 32.7 5.6 2.7 3.2 _4.4 0.7 5.2 Not increased

Table 2—Percentage increase in earnings since previous uprating dale
Per cent.
November 1979 19.1
November 1980 17.9
November 1981 11.5
November 1982 8.3
November 1983 7.3
November 1984 6.5
November 1985 8.6
July 1986 5.9

All benefits increases apply to weekly rates unless otherwise stated. Small variations in the increases in rates to which the same percentage increase was originally applied are due to rounding. Earnings figures are for whole economy average earnings, seasonally adjusted.

1 Replaced non-contributory invalidity pension and housewives' non-contributory invalidity pension from November 1984.

2 Fully introduced only in April 1979, therefore not uprated in November 1979.

3 These are not rates of benefit.

4 Supplemetary benefit scale rates were restructured in 1980 and separate long-term and ordinary rates for non-householders age 16–17 were introduced. Previously there had been only a single rate for this group.

5 Before the restructuring of the scale rates in 1980 there were separate scale rates for children aged 11–12 and under 5.

6 Housing benefit was fully introduced only in April 1983. The figures used to calculate percentage increases in years prior to this are the most closely comparable figures from the previous rent and rates rebate scheme. Housing benefit needs allowances are not rates of benefit. The way in which they are constructed means that a comparison of increases with increases in other benefits, with price inflation using the RPI or with increases in average earnings, is inappropriate. A fuller explanation of the reasons for this is given in the reply to the hon. Member for Pontefract and Castleford on 4 December 1986 at columns 729–730.

7 Pensioner additions were introduced in 1982 and first increased in 1984.

8 Child dependency additions with short-term benefits were abolished in 1984.

9 Increase since April 1979.