HC Deb 20 December 1994 vol 251 cc1027-8W
Mr. Hall

To ask the Secretary of State for Social Security (1) how much compensation married pensioners will receive for the introduction of VAT on fuel in(a) 1994–95 and (b) 1995–96;

(2) how much compensation the single pensioner will receive for the introduction of VAT on fuel in (a) 199495 and (b) 1995–96;

(3) how much compensation disabled people will receive for the introduction of VAT on fuel in (a) 199495 and (b) 1995–96.

Mr. Arbuthnot

Using the 1990–91–92 family expenditure surveys, uprated to 1994–95 and 1995–96 prices and benefit levels, the estimated average amounts of compensation for the introduction of VAT on fuel are contained in the following table.

Social Security benefits for people in employment
Benefit Number of cases1(£000s) Average weekly amount (£) Total weekly expenditure (£ million) Implied annual expenditure (£ millions)5
Family Credit2 489 43.34 21 1,101
Income Support3 192 61.51 12 615
Housing Benefit4 390 29.60 12 600
Council Tax Benefit4 453 5.35 2 126
1 Figures have been rounded to the nearest thousand.
Sources:
2 Family Credit Enquiry May 1993. The figures shown cover all awards. Some recipients may not have been in employment at the time of enquiry.
3 Income Support Statistics Annual Enquiry May 1993.
Expenditure is for cases where the claimant and/or partner is in part-time work, including the self-employed.
4 Housing Benefit Management Information Statistics Annual 1 per cent. Enquiry May 1993. Expenditure is for cases where the claimant and/or partner has declared full-time or part-time earnings.
5 Implied Annual Expenditure is derived by multiplying the weekly expenditure by 52. Multiplication of the figures shown in the table will not correspond due to rounding.

Client group Average weekly amount of help in 1994–95 Average weekly amount of help in 1995–96
Single pensioner 50 pence 75 pence
Couple pensioner1 75 pence £1.15
All disabled2 65 pence £1.00
1 Couple where the head of the couple is over pension age.
2 Average compensation for all single disabled people, and all couples where at least one person in the couple is disabled.

Note:

1. Average amounts of help are higher than the amounts contained in standard rate retirement pension, because some pensioners receive other benefits, and some receive RP at a higher rate.

Sir Andrew Bowden

To ask the Secretary of State for Social Security what the compensation for VAT on fuel at 8 per cent. is worth to pensioners following the decision not to proceed to VAT on fuel at 17.5 per cent. from April 1995 at 1 April(a) 1994 in weekly and annual terms, (b) 1995 in weekly and annual terms and (c) 1996 in weekly and annual terms.

Mr. Arbuthnot

Using the 1990–91–92 family expenditure surveys, uprated to 1994–95 and 1995–96 prices and benefit levels, estimated help for VAT on fuel for all pensioners is given in the table. The amounts of help in 1996–97 are likely to be similar to the amounts estimated for 1995–96.

Average weekly help 1994–95 Average annual help 1994–95 Average weekly help 1995–96 Average annual help 1995–96
All pensioners1 60 pence £31 90 pence £47
1 Includes all single people over pension age, and all couples where the head of the couple is over pension age.

Notes:

1. Average weekly help rounded to nearest 5p, annual help rounded to nearest £1.

2. These figures are calculated at benefit unit level.

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