HC Deb 01 December 1988 vol 142 cc391-2W
Mr. Worthington

To ask the Secretary of State for Social Security (1) how much of the proposed increase of £2.50 a pensioner of over 75 years will retain in net additional income if he is in receipt of housing benefit;

(2) how much of the proposed increase of £3.50 a pensioner couple of over 75 years will retain in net additional income if they are in receipt of housing benefit.

Mr. Peter Lloyd

It is the intention that all pensioners currently on income support will see a gain in net additional income of either £2.50 or £3.50 with any housing benefit entitlement remaining unchanged. Those pensioners with incomes remaining above income support levels after the changes but receiving housing benefit should see a cash increase in their housing benefit but this will be affected by the housing benefit tapers as shown in the following table:

Family Credit Ceilings (£pw) Net income after housing costs on income support (£pw)
Family Type (Gross Wage) (Net Wage)
(i) 1988 (ii) 1989 (iii) 1988 (iv) 1989 (v) 1988 (vi) 1989 (vii) (iii) as per cent. of (v) (viii) (iv) as per cent. of (vi)
Single person with one child aged 3 130 139 105 113 54.29 57.24 193 197
Single person with two children aged 4 and 6 114 155 114 123 67.49 71.44 169 172
Married couple with one child aged 3 130 139 105 113 68.64 73.24 153 154
Married couple with two children aged 4 and 6 143 155 114 123 81.84 87.44 139 141
Married couple with four children aged 3, 8, 12 and 16 200 218 152 165 122.44 130.69 124 126

Notes:

(a) Family credit ceiling rounded to nearest £.

(b) Net income after housing costs is defined as income support allowance plus free school meals and free welfare milk less 20 per cent. rate contribuition.

(c) Rates are assumed to be the local authority average for council tenants with the appropriate family accommodation.

(d) The approximate possible 1989 rate levels are those for 1988 enhanced by 5.9 per cent.

(e) The average value of free school meals is assumed to be £2.55pw.

(f) The average value of free welfare milk is assumed to be £1.83pw.

(g) Tax thresholds for 1989–90 have been calculated using a simple uplifting of 1988 thresholds.

(h) The basic tax rate is assumed to remain at 25 per cent. in 1989–90.

Couple £ Single person £
Increase in rent rebate or allowance 2.28 1.63
Increase in rate rebate 0.70 0.50
Increase in community charge rebate 0.53 0.38