HC Deb 17 February 1995 vol 254 cc872-4W
Sir Ralph Howell

To ask the Secretary of State for Social Security what is the net gain for a person who is on income support and has worked at £3.20 per hour for(a) eight hours and (b) 16 hours, showing calculations in each case.

Mr. Roger Evans

Information for a single person is shown in the table.

As part of our plans to make work pay, we aim to pilot new help similar to family credit, but aimed at couples and single people without children. This in-work benefit will be tested in eight pilot locations over a three-year period from October 1996. A consultation document in April will provide more information on the scheme and the proposed pilot locations. If the pilot shows that a national scheme would be effective, the gain from work would increase for childless people with low or modest earnings.

Gain from work at £3.20 per hour
Hours worked Pay Income Support Rent Housing Benefit Council Tax Council Tax Benefit Total Net Income Net Income after payment of rent and council tax when in work Net Income after payment of rent and council tax when not in work Net gain from work
8 25.50 25.10 30.91 30.91 6.60 6.60 88.21 50.70 45.70 5.00
16 51.20 — 30.91 30.59 6.60 6.50 88.29 50.78 45.70 5.08

Notes:

1. The person is assumed to be single, aged 25 or over, living in local authority accommodation and liable for average council tax and local authority rent.

2. The person is assumed to take-up full entitlement to income support, housing benefit and council tax benefit.

3. Tax and national insurance contributions are not payable at the earnings levels shown.

Mr. Bradley

To ask the Secretary of State for Social Security what is the number of non-employed youth trainees who currently receive a top-up on their allowance and who are(a) liable for income tax, (b) liable for national insurance and (c) credited with national insurance contributions.

Mr. Roger Evans

Non-employed young people participating in youth training are eligible for an income support top-up if their allowance is less than benefit levels. The youth training allowance does not attract income tax or national insurance deductions; neither does income support paid to someone who is not required to register for work.

For retirement pension and widows' benefits purpose, all young people are automatically awarded class 3 national insurance credits in the tax year in which they attain their 16th birthday, and the two succeeding tax years.

Mr. Bradley

To ask the Secretary of State for Social Security, if Irish nationals are eligible to receive income support during the child benefit extension period; and what are the eligibility requirements.

Mr. Roger Evans

Income support may be claimed by unemployed young people aged 16 or 17 during the child benefit extension period if they have good reason for living away from the family home and they are registered for employment/youth training.

Unemployed Irish nationals aged 16 or 17 who are forced to live independently, with no established entitlement to child benefit in Great Britain, can claim income support under the severe hardship provision if there is no other means of support and providing they are registered for work/youth training.

Mr. Bradley

To ask the Secretary of State for Social Security if he will give for the last five years for which figures are available the number of claims for severe hardship payments which have been(a) successful and (b) unsuccessful following review of an unsuccessful claim.

Mr. Roger Evans

The information is not available.

Mr. Bradley

To ask the Secretary of State for Social Security how many YT trainees living away from home receive an income support top-up.

Mr. Roger Evans

The information is not readily available and could be obtained only at disproportionate cost.