HC Deb 14 June 1990 vol 174 cc331-2W
Mr. Latham

To ask the Secretary of State for Social Security what would be the cost to public funds in the current financial year, and with retrospective effect to 6 April of(a) raising from £3,000 to £6,000 the savings disregarded for community charge rebate, while leaving the £16,000 figure unchanged and (b) assuming that each £500 of savings produces £1 a week of income.

Mrs. Gillian Shephard

[holding answer 23 May 1990]: The estimated benefit cost of increasing, for community charge benefit, the lower capital limit from £3,000 to £6,000 and changing the tariff rate to £1 of every £500 over £6,000, allowing for retrospection to 6 April 1990, would be £100 million in 1990–91. (Source: Modelled using data drawn from the 1985–86–87 family expenditure survey).

Mr. Latham

To ask the Secretary of State for Social Security what would be the cost to public funds in the current financial year and with retrospective effect to 6 April, of entitling all non-employed spouses of persons who are paying income tax only at the standard rate to a community charge rebate of 80 per cent.

Mrs. Gillian Shephard

[holding answer 23 May 1990]: I regret that it is not possible to make an estimate of this. Any estimate of the total benefit cost requires such a wide range of assumptions, for example, the allocation of community charge benefit children's allowances to the employed spouse, and the allocation of savings between the partners, as to make any estimate both arbitrary and uncertain.