Transitional Protection (Hansard, 17 March 1989)

§ Mr. Corbyn
To ask the Secretary of State for Social Security if he will give details of how claimants' benefits will be affected by the £2 a week reduction in housing benefit transitional protection in April; which groups will have their payments reduced; and in what circumstances the reduction will not apply.

§ Mr. Peter Lloyd
It has been made clear from the outset that housing benefit transitional payments would be reduced as increases in other benefits make them less necessary. The flat rate deduction of £2 in April 1989 will apply to the majority of recipients, but will ensure that the majority of them gain in cash terms from the uprating. There will be special arrangements to protect the small number of people dependent on social security benefits who would otherwise see a cash loss.

§ Mr. Corbyn
To ask the Secretary of State for Social Security how much of the predicted income support increases from October of £95 million in 1989–90 and £195 million in 1990–91 will be offset by savings in expenditure on income support transitional protection.

§ Mr. Peter Lloyd
I regret that the information is not available. Transitional protection will not be affected when the increases are introduced in October.

§ Mr. Corbyn
To ask the Secretary of State for Social Security how much of the allocated funds for transitional protection will be spent in the current year, based on the number of claims received, the proportion of successful claims and the average award; and if he will give an indication of the expected expenditure on the scheme in 1990 on this basis.

§ Mr. Peter Lloyd
Of the 445,885 applications for housing benefit transitional payments received at 13 March 185,726 (45.6 per cent. of those assessed) have been successful, 219,314 refused and the average award is currently £3.91 a week. The majority of cases outstanding are because of inquiry forms not having been returned from local authorities. In view of the recent decision to defer the closing date for applications until 30 June 1989 and the number of applications still being received, it is not yet possible to estimate the expenditure in 1988–89 or 1989–90.