Benefits

HC Deb 26 June 1995 vol 262 cc457-8W

Mr. Frank Field

To ask the Secretary of State for Social Security if he will list for each change the impact on the numbers claiming benefit now and in 2000–01 as a consequence of(a) the new incapacity benefit, (b) the £40 per week child care effect on family credit for single parents, (c) the back-to-work bonus for single parents, (d) the Child Support Agency, (e) limiting housing benefit to the average for each category of property in each area and (f) the changed rules for claiming income support for mortgage interest payments; and if he will also list for each change the saving to public expenditure. [27222]

Mr. Hague

The medium-term projections of benefit expenditure did not involve explicit calculations of benefit case loads. Reliable estimates of the case load effects of the policy measures listed in 2000–01 could be provided only at disproportionate cost.

The effects of the policy measures on benefit expenditure in 2000–01 are estimated as follows:

1. (a) Incapacity benefit: Saving £2.3 billion
2. (b) Child care effect on family credit: adding £60 million
3. (c) Back to work bonus for lone parents: adding £10 million
4. (d) Child Support Agency: saving £0.6 billion
5. (e) Housing benefit limits: saving £190 million
6. (f) Changed rules for income support mortgage interest: saving £150 million

All these figures are the estimated costs and savings in the year 2000–01 in 1994–95 prices—rounded to the nearest £10 million. They represent the best estimate available of the effect of the policy measures, but detailed forecasts over that time span are subject to a wide margin of error. In particular, there may be behavioral effects from the policy measures not allowed for in the forecasts.

Mr. Callaghan

To ask the Secretary of State for Social Security what plans he has to review the benefit entitlement of 16 to 18-year-olds. [30971]

Mr. Roger Evans

We will be issuing expanded guidance to Benefits Agency offices in respect of claims under the severe hardship provision. Our concern is to ensure that decisions taken with the authority of the Secretary of State are made taking account of all the available evidence.

Mr. Battle

To ask the Secretary of State for Social Security what would be the cost of reducing(a) housing benefit taper by 15 per cent. to 50 per cent., (b) family credit taper by 20 per cent. to 50 per cent., (c) council tax taper by 15 per cent. to 50 per cent. and (d) all benefit tapers to 50 per cent. [30380]

Mr. Evans

The information requested is set out in the table. The council tax benefit taper is currently set at 20 per cent. Separate estimates have therefore been provided assuming a reduction of council tax benefit taper of 15 per cent. to 5 per cent. and an increase to 50 per cent.

	Estimated cost (+)/saving(-) £ million per annum
Housing Benefit taper at 50 per cent.	+585
Family Credit taper at 50 per cent.	+555
Council Tax Benefit taper at 50 per cent.	-330
Council Tax Benefit taper at 5 per cent.	+965
All Tapers at 50 per cent.	+805

1. Estimates are based on 1990–91 to 1992 family expenditure surveys uprated to 1995–96 prices and benefit levels.

2. Figures are rounded to the nearest £5 million.