HC Deb 25 November 1987 vol 123 cc246-7W
Mr. Frank Field

To ask the Secretary of State for Social Services if he will list details of each change to the 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. Portillo

Significant 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)

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