§ Mr. David NicholsonTo ask the Secretary of State for Social Security what measures he is taking to investigate(a) the uptake of family credit by the self-employed, 197W (b) the administration of the family credit scheme so far as self-employed claimants are involved and (c) the use of cash flow on the method of determining earnings.
§ Mr. JackThere are around 47,000 families on family credit where the main earner is self-employed. Nearly 45 per cent. of them receive family credit of £50 or more a week. To improve further the service to self-employed customers, and to respond to the representations made by them and on their behalf, the Department has commissioned a research study into family credit for the self-employed from the social policy research unit at the university of York. The study is looking not only at the administration of the scheme and the method of determining earnings, but at a wide range of other matters including the nature of low income self-employment; incentives to work and job creation; eligibility and factors affecting take-up of family credit; and standards of living. The full report of the study is not due until 1993, but we hope to receive information on the assessment and administration elements before the end of this year.