§ Mr. Frank FieldTo ask the Secretary of State for Social Services if he will list details of each change to the 247W housing benefit system since the scheme was announced; and if he will detail the date these changes took effect and the savings to public expenditure of each of these reforms.
§ Mr. PortilloSignificant changes to the housing benefit scheme were as follows:
- April 1983
- Rent taper above needs allowance increased from 17 per cent, to 21 per cent.
- Rates taper above needs allowance increased from 6 per cent, to 7 per cent.
- April 1984
- Rent taper above needs allowance increased from 21 per cent, to 26 per cent.
- Rates taper above needs allowance increased from 7 per cent, to 9 per cent.
- 18 to 20-year-old non-dependent deductions incorporated into the adult rate. Deductions for 18 to 20-year-olds on supplementary benefit or youth training schemes abolished.
- November 1984
- Rent taper above needs allowance increased from 26 per cent, to 29 per cent.
- Minimum payments above needs allowance increased to 50 pence.
- Non-dependant deductions for 16 to 17-year-olds not on supplementary benefit, youth training schemes or non-contributory invalidity pension introduced at the lower rate.
- 50 pence real improvement to dependent child's needs allowance.
- April 1985
- High rent scheme thresholds raised to 130 per cent, of average rents.
- November 1985
- Rate taper above needs allowance increased from 9 per cent, to 13 per cent.
- 95 pence real improvement to dependent child's needs allowance.
- July 1986
- Age at which deductions made in respect of non-dependents receiving supplementary benefit increased from 21 to 25, in new and repeat claims only.
- April 1987
- Rent taper above needs allowance increased from 29 per cent, to 33 per cent.
- Needs allowances increased in line with cash increase in basic retirement pensions instead of using traditional formula.
- The table shows the expenditure effects of these measures.
Estimated cash savings from main changes to the housing benefit scheme Date of change 1Amount saved (£ million) April 1983 (approx) 50 April and November 1984 2171 April 1985 6 November 1985 357 July 1986 26 April 1987 68 1 All savings are shown in terms of the full-year effects and include savings in rate rebate expenditure, which is not formally classified as public expenditure. The savings for different years cannot be aggregated over a period because the effects of the changes overlap and are partly offset by other factors. 2 This figure is the estimated full-year cost in November 1984 of restoring the November 1983 tapers, minima, and equivalent levels for non-dependent deductions and the dependent child's needs allowance. 3 This figure was offset by extra expenditure of £12 million resulting from the real increase in the childs' needs allowance (net saving £45 million)