HC Deb 19 May 1988 vol 133 cc550-1W
Mr. Frank Field

To ask the Secretary of State for Social Services when he expects to reply to the question from the hon. Member for Birkenhead on net weekly spending power to which he gave a holding reply on 25 April.

Mr. Portillo

I have replied to the hon. Member today.

Mr. Ralph Howell

To ask the Secretary of State for Social Services if he will publish tables similar to his Department's tax benefit/model table, and assuming in each case that 25 per cent. of income is spent on housing costs, showing the net weekly spending power for each of(a) a single person, (b) a married couple with no children, (c) a couple with a child aged 11 years, (d) a couple with two children aged eight and 11 years, (e) a couple with three children aged eight, 11 and 15 years and (f) a couple with four children aged three, eight, 11 and 15 years, with weekly earnings of (i) £180, (ii) £190, (iii) £200, (iv) £250, (v) £300 and (vi) £400, under (A) the original tax and benefit system and (B) the new system implemented in April.

Mr. Scott

I regret that the reply can be supplied only at disproportionate cost.

Mr. Frank Field

To ask the Secretary of State for Social Services whether the figures given comparing net weekly spending power under the supplementary benefit system with those under income support, 11 March,Official Report, columns 406–8 take into consideration the fact that under the new regulations claimants will have to pay water rates and 20 per cent. of general rates.

Mr. Portillo

[holding answer 25 April 1988]: The figures, at columns 406–8, Official Report, 11 March, show the actual cash receipts of claimants, from which they would be required to pay water rates (pre- and post-reform) and the minimum contribution to general rates (post-reform). There is therefore an inadvertent inconsistency in the treatment of general rates which the footnotes should have highlighted. The revised table shows the net position after all housing costs and water rates have been paid. They also include revised estimates of the hypothetical supplementary benefit assessments which such recipients might have received, had the reforms not been introduced.

Illustrative income support cases April 1988—£pw Old and new income related benefit systems compared
Supplementary benefit Income support Net change
Claimant's net incomes after any contributions toward housing costs and water services
1. Rent paying lone-parent, two children aged 4 and 11, claiming three months 60.40 67.00 +6.60
2. Lone-parent with mortgage, three children under 10, claiming six months. Attendance allowance, heating and laundry additions for one child 96.15 98.60 +2.45
3. Rent-paying lone-parent, one child aged 12, part-time earnings £25, claiming under one year 59.50 71.70 +12.21
4. Single unemployed man aged 30, non-householder 29.35 33.40 +4.05
5. Pensioner aged 76, diet and heating addition, non-householder 64.35 66.45 +2.10
6. Single woman aged 26, severe disability allowance, and heating addition, non-householder 36.10 46.45 +10.35
7. Unemployed man, wife and a child aged 3. Rentpayer 63.85 65.07 +1.22
8. Single man, sick, new claim, rented accommodation 31.40 32.80 +1.40
Net income from all sources
9. Sick man paying a mortgage, non-working wife, two children aged 3, claiming eight months 78.26 95.93 +17.67
10. Unemployed man, non-working wife, three children aged 3, 11 and 12. LA accommodation 102.98 104.02 +1.04
11. Single man aged 28, sick 7 months, additional requirements for laundry and diet, owner-occupier 38.60 43.85 +5.25
12. Single man, living alone, rented accommodation, attendence allowance and additional requirements for heating and diet, disabled over a year 70.30 90.27 +19.97
13. Unemployed man, wife sick, receiving a severe disability allowance with additional requirements for heating and laundry 59.20 67.12 +7.92
14. Pensioner aged 82, rented accommodation 41.30 43.17 +1.87
15. Pensioner aged 82, wife aged 77, owner-occupier 65.25 65.54 +0.29

Notes:

  1. 1. Hypothetical April 1988 supplementary benefit rates, pre-reform housing benefit rates and housing costs assumptions as in "Impact of the Reformed Structure of Income Related Benefits", October 1987.
  2. 2. Based on average local authority rates by family and tenure type. Water service payments are varied directly with local authority rates. All illustrations are based on local authority tenants except where owner-occupiers or non-householders are specified for the illustrations.