HC Deb 01 February 1993 vol 218 cc22-3W
Mr. Cousins

To ask the Secretary of State for Social Security what was the size of the earnings disregards for claimants of income support in each year since 1988; and if he will express the value of the earnings disregard against changes(a) in prices and (b) in earnings over the period.

Mr. Burt

New, increased, earnings disregards were brought in with the introduction of income support in April 1988. The standard disregard is £5 and a higher, £15, disregard applies to certain groups of people—lone parents, long-term sick and disabled people, members of a couple who are both aged under 60 and have been in receipt of income support for two years and, from April 1993, carers.

The table shows what the earnings disregards would have been if they had risen in line with changes in earnings and prices each year.

Value of disregards against changes in:
Earnings Prices
£ £ £ £
1988 5.00 15.00 5.00 15.00
1989 5.00 16.45 5.40 16.20
1990 6.00 18.00 5.90 17.75

Value of disregards against changes in:
Earnings Prices
£ £ £ £
1991 6.50 19.55 6.30 18.85
1992 6.90 20.75 6.55 19.65

Source: The abstract of statistics general index of retail prices (all items) and average gross earnings new series index (whole economy) seasonally unadjusted.

Note: Figures rounded to nearest 5p.

Mr. Cousins

To ask the Secretary of State for Social Security if he will estimate how many claimants of income support have taken advantage of earnings disregards to supplement their income in each year since 1988.

Mr. Burt

The information requested is in the table.

1988 1989 1990 1991
Cases where claimant has earnings 121,000 130,000 124,000 117,000
Cases where partner has earnings 34,000 32,000 31,000 48,000

Source: Income support annual statistical enquries May 1988 to May 1991.

Note: All figures rounded to nearest thousand.

Mr. Cousins

To ask the Secretary of State for Social Security if he will review the operation or level of the earnings disregard for claimants of income support.

Mr. Burt

The earnings disregards are kept under review. From April 1993, carers will be entitled to the higher £15, disregard. We have no other plans at present to change the operations or level of the earnings disregards.