§ Mr. MartlewTo ask the Secretary of State for Social Security if he will estimate the effect on public revenues in 1996–97 and 1997–98 of increasing the earnings disregard under income support for all claimants to at least(a) £10, (b) £15, (c) £25 and (d) £50 based on the assumption that (1) the disregard applies equally to individuals and the joint earnings of couples and (2) each partner in a couple is allowed the full disregard. [18104]
§ Mr. Roger Evans[holding answer 29 February 1996]: The information is set out in the tables. 762W
Table 1:1996–97 £ million Change in disregards Assumption 1 Assumption 2 At least £10 20 20 At least £15 40 40 At least £25 110 110 At least £50 240 240
Table 2:1997–98 £ million Change in disregards Assumption 1 Assumption 2 At least 10 10 10 At least 15 30 30 At least 25 100 100 At least 50 230 230 1. Estimates are modelled on the 1991–92–93 Family Expenditure Surveys and the 1994 Annual Statistical Enquiry, uprated to 1996–97 and 1997–98 levels of prices, earnings and benefit rates. Costs are rounded to the nearest £10 million.
2. Estimates are lower in 1997–98 than in 1996–97, as they take into account the change to the couples disregard for income support and jobseeker's allowance that is to be introduced in October 1996.
3. Costs include the increased cost of housing benefit and council tax benefit due to increased entitlement to these benefits.
4. The costs are shown as the same under both assumptions because of the small number of claims where both the claimant and partner work part time.
5. Behavioural changes, which would be considerable with the higher disregards have been ignored.