Severe Disablement Allowance (Hansard, 15 November 1989)

§ Mr. Onslow
To ask the Secretary of State for Social Security what estimate he has made of the number of United Kingdom residents who have been refused payment of the severe disablement allowance on the grounds that they have lived abroad for 10 of the previous 20 years; and what account is taken of whether while abroad, they were treated for tax and national insurance purposes as though they were domiciled in the United Kingdom.

§ Mr. Nicholas Scott
We estimate that about 1,000 people are unable to qualify for severe disablement allowance, in any year, because they have not been resident in Great Britain for 10 of the preceding 20 years. Those who have paid the required national insurance contributions may be able to qualify for sickness benefit or invalidity benefit and will not therefore be claiming severe disablement allowance.

Number of families eligible for family credit Percentage of all families with children Number of families receiving family credit Percentages of all families with children

April 1988 ¹500,000 employees (self employed not available) 7.4 ²253,000
employees
3.75

employees (self employed not available) ²277,000
including self employed
4.10

April 1989 Not known until 1989 FES data become available — 286,000³ 4.23

April 1990 (projected) Not known until 1990 FES data become available — Up to date projection⁴ not available —

¹ From Family Expenditure Survey (FES) data for April to December 1988.

² Average for April to December 1988.

³ As at end of April 1989.

⁴ Latest actual caseload figure 320,000 for July 1989 (4.73 per cent, of all families).

A further advertising campaign started in the week commencing 6 November.

§ Sir Ian Gilmour
To ask the Secretary of State for Social Security how the family credit ceilings are arrived at; and what criteria are used to establish(a) need and (b) the need for uprating.

§ Mrs. Gillian Shephard
Under the Social Security Act 1986 entitlement to family credit is determined by reference to the maximum family credit in the particular case, which is made up of age-related child credits for each child and an adult credit which is the same for both lone parents and two parent families, and to the family credit applicable amount or threshold. If the family's income to be taken into account is no more than the threshold then the maximum family credit for that family is payable in full. If the income is more than the threshold then 70 per cent. of the excess is deducted from the maximum family credit and the amount remaining, if 50p or more, is payable.
The family credit ceiling represented by the highest amount of net earnings and other relevant income a family can have and still qualify for family credit is therefore the level of such earnings and income which, on the above basis, produces an entitlement of 50p per week.

	Number of families eligible for family credit	Percentage of all families with children	Number of families receiving family credit	Percentages of all families with children
April 1988	¹500,000 employees (self employed not available)	7.4	²253,000 employees	3.75
	employees (self employed not available)		²277,000 including self employed	4.10
April 1989	Not known until 1989 FES data become available	—	286,000³	4.23
April 1990 (projected)	Not known until 1990 FES data become available	—	Up to date projection⁴ not available	—
¹ From Family Expenditure Survey (FES) data for April to December 1988.
² Average for April to December 1988.
³ As at end of April 1989.
⁴ Latest actual caseload figure 320,000 for July 1989 (4.73 per cent, of all families).