§ Mr. Alan HowarthTo ask the Secretary of State for Social Security what is his estimate of the cost of raising the earnings disregard to £25 for each individual adult in a benefit unit claiming(a) income support, (b) housing benefit and (c) council tax benefit, for 1997–98 and 1998–99; and what is his estimate of (i) the cost and (ii) the numbers gaining for each benefit. [15430]
§ Mr. Andrew MitchellThe information is set out in the table.
341W
Benefit Cost/savings (£ million) Gainers/losers 1997–98 1998–99 1997–98 1998–99 Income support -60 -60 +135,000 +135,000 Housing benefit -115 -115 +205,000 +205,000 Council tax benefit -45 -45 +260,000 +255,000
Benefit Cost/savings(£million) Gainers/losers 1997–98 1998–99 1997–98 1998–99 Family credit +25 +30 -5,000 -10,000 Total -195 -190 — — Source:
May 1995 Income Support Quarterly Statistical Enquiry and 1994–95 Family Resources survey.
Notes:
1. Costs are rounded to the nearest £5 million and gainers/losers to the nearest 5,000.
2. A negative figure denotes costs or gainers, and a positive figure indicates savings or losers.
3. All disregards were increased simultaneously. Increased Housing Benefit/Council Tax Benefit costs arising from new entitlement to Income Support are included in the Housing Benefit/Council Tax Benefit costs and gainers respectively.
4. Benefit units entitled to either Family Credit or Income Support are assumed to claim the benefit which gives them a higher net income. Hence some families leave Family Credit to claim Income Support.
5. This is a deadweight estimate. There is insufficient information on which to estimate a behavioural response.
6. Income Based Jobseeker's Allowance cases are excluded from the estimate of Income Support.