HC Deb 10 November 1988 vol 140 cc291-2W
Mr. Madden

To ask the Secretary of State for Social Security what is the criterion for eligibility to apply for family credit by using fast application procedures which were available for those starting work on low incomes when applying for family income supplement.

Mr. Peter Lloyd

As with family income supplement, the special procedures for claims made by people starting work after being unemployed and on benefit to enable them to be dealt with more speedily apply only to claims referred by claimant advisers in the Department of Employment. For other claims a help desk facility has been provided at the family credit unit for local social security offices to raise any cases where a claimant is in difficulties pending an award of family credit, so as to prompt urgent action.

Mr. Michael

To ask the Secretary of State for Social Security what calculation he made in reaching the conclusion that a person earning £9,300 per annum, with two children aged between 12 and 14 years could qualify for family credit; and what assumptions he made before undertaking his calculations.

Mr. Peter Lloyd

The highest gross earnings at which such a family could qualify for family credit is £9,297.60 per annum, or £178.80 a week, at the proposed rates from April 1989. The calculation is as follows:

£
Maximum family credit is:—
Adult credit 33.60
Child credit 12.90
Child credit 12.90
59.40
Maximum credit 59.40
Less 58.89
Family credit payable 3 0.50
Gross earnings 178.80
Deductions tax1 23.76
national insurance contributions2 16.10
Net 138.94
1 Assumes tax allowances increased in line with inflation.
2 At the levels proposed for April 1989, as announced.
3 50p is the minimum amount of family credit payable.

The amount to be taken into account against the maximum credit is 70 per cent, of the excess over the family credit 'threshold' of 54.80 = 138.94–54.80 x 70 per cent. = £58.898.

Mr. Hinchliffe

To ask the Secretary of State for Social Security how many claimants currently in receipt of family credit were previously in receipt of family income supplement.

Mr. Peter Lloyd

This information will not be available until early in the new year.

Mr. Hinchliffe

To ask the Secretary of State for Social Security what is the current total of family credit cases being handled by his Department; and what percentage of the total eligible to claim this represents.

Mr. Peter Lloyd

At the end of October, 248,000 families were receiving family credit, and 57,500 claims were awaiting determination. A precise estimate of the number of families eligible for family credit, and therefore what percentage is represented by those already in receipt, cannot be made until information from the 1988 family expenditure survey is available.