§ Mr. Simon HughesTo ask the Secretary of State for Social Security what estimate he has made of the extra cost to his Department if a national disregard of war pensions were applied by each local authority in England for the purpose of(a) council tax and (b) housing benefit. [4297]
§ Mr. Roger EvansAny increase in the mandatory disregards of war pensions in the income-related benefits would apply across all of Great Britain.
It is broadly estimated that the additional cost of a total disregard of all war pensions is (a) £15 million for council tax benefit; and (b) £45 million for housing benefit.1
Any increase in these mandatory disregards would also have to apply in the calculation of the other income-related benefits, notably income support. It is estimated that a total disregard of all war pensions for income support purposes would cost around a further £35 million in additional benefit expenditure.
Thus, when these costs are added to the £25 million cost of the present mandatory disregards, it can be seen that, for all the income-related benefits, the estimated overall cost of a mandatory total disregard would be in the region of £120 million. This would be in addition to the estimated £1.4 billion expenditure on war pensions for 1996–97.
Notes:
1 Estimates are based upon data given in Local Authority subsidy returns for 1994–95; the May 1994 Income Support Quarterly Statistical Enquiry; and the 1991, 1992 and 1993 Family Expenditure Surveys.The estimates have been uprated to 1996–97 levels.In compiling these estimates, expenditure has been rounded, where appropriate, to the nearest £5 million.Estimates are broad order estimates only, due to a lack of comprehensive data.