§ Mr. ThurnhamTo ask the Secretary of State for Social Security whether there have been any changes to the cash limits or running costs limits of his Department for 1989–90.
§ Mr. ScottSubject to parliamentary approval of the necessary supplementary estimates, the cash limit for class XV vote 6 (housing benefit administration) will be increased by £3,000,000 from £128,904,000 to £131,904,000. The revision provides for payments to local authorities towards the costs incurred in preparing to implement changes to the housing benefit scheme and the community charge rebate scheme which provides for new premiums for poorer pensioners, more generous rules for certain 16 and 17-year-old claimants and the inclusion of hostel dwellers in the housing benefit scheme.
The cash limit for class XV vote 7 (administration and miscellaneous services) will be increased by £13,770,000 from £1,581,348,000 to £1,595,118,000. The revision takes account of the abolition of the earnings rule and national insurance contribution changes announced by the Chancellor of the Exchequer in his Budget statement, namely £16,787,000, the ministerial decision to provide extra help to poorer pensioners, £7,800,000, an increase in the grant to the independent living fund who make payments to very severely disabled persons, £6,000,000, and a reassessment of requirements resulting from the division of the Departments of Social Security and of Health, £59,000. These additional requirements are partially offset by an increase in receipts of £16,876,000 to the vote. The balance of the increase apart from the £59,000 transferred from class XIV vote 3, will be charged to the Reserve and will not, therefore, add to the planned total of public expenditure. As a result the running cost limit of the Department of Social Security is increased by £24,646,000 from £1,711,885,000 to £1,736,531,000.