§ Ms HodgeTo ask the Secretary of State for Social Security, (1) what is his estimate of the projected annual cost of the child care allowance for 1995–96 at current levels of take-up;
(2) what are the latest figures for take-up of the child care allowance; and what percentage of those eligible for child care allowance he estimates this constitutes.
§ Mr. Roger EvansIt is not possible to be precise about percentage take-up levels or costs so early in the life of the new child care allowance. It will take some time for the new help to take full effect. Existing family credit recipients can claim the child care help only when their 26-week award which was current at the end of September 1994 expires, while many potential beneficiaries need to find work of 16 hours or more and to make appropriate child care arrangements.
By 31 January 1995, the latest date for which figures are available, 10,500 families had been awarded higher family credit as a result of the new help with child care charges. This figure will increase as claims made but not decided by that date are awarded. No information is yet available about the number of housing benefit and council tax benefit recipients. In the long term, we expect that, in total, around 150,000 families will benefit from the new help at an annual benefit cost of around £60 million.
Source: Five per cent. sample of family credit awards made between 1 October 1994 and 31 January 1995.