§ Mr. TimmsTo ask the Secretary of State for the Environment what assessment he has made in calculating the standard spending assessment of the extra costs placed upon local authorities by the implementation of the habitual residence test; and how much he estimates local authorities will save in housing benefit and council tax benefits as a result of the test.
§ Mr. Robert B. JonesThe local government finance settlement takes account of all new burdens on local authorities, together with other service pressures and the potential for increased efficiency and other savings as well as, more broadly, what the country can afford. 349W Housing benefit and council tax benefit savings resulting from the implementation of the habitual residence test are estimated to be about £4 million in a full year. These benefit savings accrue mainly to the Department of Social Security; there will be a small reduction in that part of the cost of benefit which falls on local authorities and this was taken into account in the settlement for 1994–95.