HC Deb 29 January 1996 vol 270 cc583-5W
Mr. Chris Smith

To ask the Secretary of State for Social Security (1) what is his estimate of the effect on revenues in(a) 1996–97 and (b) 1997–98 of the proposal to limit housing benefit for single people under 25 years to the average cost of local shared accommodation; [8506]

(2) what is his estimate of the effect on revenues in (a) 1996–97 and (b) 1997–98 of the freeze in (a) lone parent premium and (b) one parent benefit in April 1996; [8518]

(3) what estimate he has made of the effect on revenues in (a) 1996–97 and (b) 1997–98 of the real increase in April 1996 in non-dependant deductions for housing costs; how many people he estimates will be affected in each of these years; and if he will make a statement setting out the reasons for the increase; [8504]

(4) what estimate he has made of the effect on revenues in (a) 1996–97 and (b) 1997–98 of the change in the family credit rules from July 1996 regarding awards when the youngest child has left school; [8520]

(5) what is his estimate of the effect on revenues in (a) 1996–97 and (b) 1997–98 of the proposal to double the minimum payment of child maintenance under the Child Support Act from April 1996; [8507]

(6) what estimate he has made of the effect on revenues in (a) 1996–97 and (b) 1997–98 of the proposal to pay housing benefit in arrears rather than in advance; [8509]

(7) how the estimate given in his uprating statement on 29 November of £500 million in benefit savings in 1996–97 and over £1 billion savings in 1998 was calculated, itemising savings for each measure he is introducing. [8517]

Mr. Burt

Reductions in expenditure from measures announced by my right hon. Friend the Secretary of State. in the social security statement on 29 November,Official Report, column 1212–15 are set out in the table.

Overall figures differ from those underlying the statement following the announcement on benefits for asylum seekers on 11 January and other revisions to estimates in some areas. A number of measures are subject to the outcome of consultation and the passage of legislation. The number of cases affected by the changes to non-dependant deduction rates is, in 1996–97, 55,000 on income support, 390,000 on housing benefit and 475,000 on council tax benefit, and, in 1997–98, 55,000 on income support, 390,000 on housing benefit and 485,000 on council tax benefit.

£million, rounded to the nearest £5 million
Measure 1996–97 1997–98 1998–99
Asylum seekers and persons from abroad -145 -295 -290
Additional anti-fraud measures -120 -235 -300
Housing Benefit—changes for under 25s -15 -65 -70
Housing Benefit—effect of above RPI increase in non-dependent deductions -30 -35 -35
Housing Benefit—change in payment arrangements -105 -120 -75
One Parent Benefit—no cash increase in April 1996 -5 -5 -5
Lone Parent Premium—no cash increase in April 1996 -10 -10 -10
Child Support—increase in minimum maintenance -10 -10 -15
Disability Living Allowance— improving quality and level of information to decision-makers -20 -95 -165
Disability Living Allowance— mobility component for hospital in-patients -30 -40 -45
Industrial Injuries Benefit— changes to reduced earnings allowance -25 -35 -35

£million, rounded to the nearest £5 million
Measure 1996–97 1997–98 1998–99
Family Credit—change in rules
where youngest child has left
school -5 -10 -10
Total -520 -955 -1,055

1. Numbers affected are rounded to the nearest 5,000.

2. Figures cannot be aggregated due to overlapping benefit entitlement.

3. Some of the numbers affected (about 5,000 for each benefit in each year) will be gainers from the changes to income thresholds.