HC Deb 23 March 1990 vol 169 cc785-8W
Mr. Meacher

To ask the Secretary of State for Social Security how much will be deducted each week from income support, family credit, housing benefit and community charge benefit claimants with capital of £3,000 and at each £250 band up to the capital limit for the benefit as a result of his Department's assumptions as to the income derived from each level of capital.

Mrs. Gillian Shephard

We do not make particular assumptions on the level of income from capital but a notional income—that is, a tariff income—is calculated on capital above a certain level. However, no tariff income is calculated on the first £3,000. Any actual income earned by savings is fully disregarded.

The table shows the tariff income on capital over £3,000 up to the upper limit of £6,000 in income support and family credit (increasing to £8,000 from 9 April 1990) and to £8,000 in housing benefit and community charge benefit (increasing to £16,000 from 1 April 1990).

In income support the amount of tariff income is wholly deductible from a person's entitlement. However, it is not possible to state how much of any tariff income will be deducted from family credit, housing benefit or community charge benefit since this depends on the amount of other income available, the circumstances of each individual case including, where appropriate, the amount of eligible rent or community charge and the effect of the tapers. These tapers are applied to any income above the appropriate applicable amount and the resulting figure is offset against the maximum benefit payable. In family credit the taper is 70 per cent., in housing benefit it is 65 per cent. and in community charge benefit it is 15 per cent.

Claimant/partner Tariff income (weekly)
(£) (£)
3,000.01 – 3,250.00 1
3,250.01 – 3,500.00 2
3,500.01 – 3,750.00 3
3,750.01 – 4,000.00 4
4,000.01 – 4,250.00 5
4,250.01 – 4,500.00 6
4,500.01 – 4,750.00 7
4,750.01 – 5,000.00 8
5,000.01 – 5,250.00 9
5,250.01 – 5,500.00 10
5,500.01 – 5,750.00 11
5,750.01 – 6,000.00 12
6,000.01 – 6,250.00 13
6,250.01 – 6,500.00 14
6,500.01 – 6,750.00 15
6,750.00 – 7,000.00 16
7,000.01 – 7,250.00 17
7,250.01 – 7,500.00 18
7,500.01 – 7,750.00 19
7,750.01 – 8,000.00 20
8,000.01 – 8,250.00 21
8,250.01 – 8,500.00 22
8,500.01 – 8,750.00 23
8,750.01 – 9,000.00 24
9,000.01 – 9,250.00 25
9,250.01 – 9,500.00 26
9,500.01 – 9,750.00 27
9,750.01 – 10,000.00 28
10,000.01 – 10,250.00 29
10,250.01 – 10,500.00 30
10,500.01 – 10,750.00 31
10,750.01 – 11,000.00 32
11,000.01– 11,250.00 33
11,250.01 – 11,500.00 34
11,500.01 – 11,750.00 35
11,750.01 – 12,000.00 36
12,000.01 – 12,250.00 37
12,250.01 – 12,500.00 38
12,500.01 – 12,750.00 39
12,750.01 – 13,000.00 40
13,000.01 – 13,250.00 41
13,250.01 – 13,500.00 42
13,500.01 – 13,750.00 43
13,750.01 – 14,000.00 44

Claimant/partner Tariff income (weekly)
(£) (£)
14,000.01 – 14,250.00 45
14,250.01 – 14,500.00 46
14,500.01 – 14,750.00 47
14,750.01 – 15,000.00 48
15,000.01 – 15,250.00 49
15,250.01 – 15,500.00 50
15,500.01 – 15,750.00 51
15,750.01 – 16,000.00 52

Mr. Meacher

To ask the Secretary of State for Social Security if he will give for each of(a) income support, (b) family credit, (c) housing benefit and (d) community charge benefit (i) the additional number of people who will come into entitlement and (ii) the number of existing claimants who will receive additional benefit as a result of the increased capital limits; and if he will give the net cost for each benefit.

Mrs. Gillian Shephard

No existing recipients of income support or family credit will receive additional benefit although a negligible number of existing housing benefit or community charge benefit recipients may gain.

The estimated figures for new beneficiaries are set out in the table:

Individuals (thousands) Benefit units (thousands) Cost (£ million)
Income support 30 25 30
Housing benefit 75 50 55
Community charge benefit 195 130 35
The number of family credit gainers is small

Note:

The above figures include some people gaining more than one benefit. Taking account of the number of couples, the total number of individual gainers is estimated at around a quarter of a million.

Mr. Meacher

To ask the Secretary of State for Social Security if, with regard to the announcement on 20 March about the increase in the capital limit for housing benefit and community charge benefit to £16,000 as of April 1990, he will state(a) what safeguards will be provided for claimants whose benefit does not immediately reflect the new capital limits, (b) what is his estimate of the increased cost to local authorities, (c) what additional resources are to be given to local authorities to help them (i) administer the change swiftly and (ii) cover the additional administrative costs, and (d) by what date he expects everyone to have received their full benefit, reflecting the new capital levels.

Mrs. Gillian Shephard

The information is as follows:

(a) Claims that are made before 27 May will be able to be backdated to 1 April. Benefit is awarded from the date the claim is made. Any delay in assessment does not therefore lead to loss of benefit;

(b) and (c) The Department is discussing with the local authority associations the administrative implications of these changes, and a decision on the amount of additional subsidy support to be provided to local authorities to meet their administrative costs will be made as soon as possible;

(d) Local authorities are responsible for ensuring that benefit, once claimed, is awarded within a reasonable time.