HC Deb 14 February 1997 vol 290 cc340-1W
Mr. Alan Howarth

To 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 Mitchell

The information is set out in the table.

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.

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