§ Mr. FlynnTo ask the Secretary of State for Social Security what proportion of average earnings the £175 weekly pension estimated to result from the plan he announced on 5 March will represent. [19556]
§ Mr. HealdThe figure of £175 a week in today's prices is projected to represent 26 per cent. of average earnings in 2040, assuming 1.5 per cent. real earnings growth up to that year.
Capital limits Benefit Value at April 1997(£) Value when introduced(£) Date introduce(£) April 1997 rate if increase based on earnings(£) April 1997 rate if increase based on prices(£) Income support 3,000 3,000 April 1988 5,111.65 4,421.40 8,000 6,000 10,223.35 8,842.75 110,000 3,000 5,111.65 4,421.40 116,000 6,000 10,223.35 8,842.75 Jobseeker's allowance 3,000 3,000 October 1996 3,126.00 3,078.00 8,000 8,000 8,336.00 8,208.00 Family credit 23,000 3,000 April 1988 5,111.65 4,421.40 8,000 6,000 10,223.35 8,842.75 Housing benefit 3,000 3,000 April 1988 5,111.65 4,421.40 16,000 6,000 10,223.35 8,842.75 Council tax benefit 3,000 3,000 April 1993 3,452.40 3,346.85 16,000 16,000 18,412.60 17,849.80 Disability working allowance 3,000 3,000 April 1992 3,621.05 3,464.00 16,000 16,000 19,314.90 18,474.50 Social fund funeral payments 500 500 April 1987 918.40 760.50 1,000 1,000 April 1990 1,426.30 1,338.05 Community care/budgeting loans 500 500 April 1988 851.90 736.85 1,000 1,000 April 1990 1,426.30 1,338.05 Notes:
1 The £10,000 and £16,000 capital limits for people living permanently in a residential care or nursing homes also apply in jobseeker's allowance and to certain people entitled to housing benefit and council tax benefit. The increase in the value of these limits, introduced in April 1996, have been valued for income support only.
2 Earnings top-up, an in-work benefit being piloted in eight areas from October 1996 for three years, has not been included in the table. The capital limits for earnings top-up are set at the same levels as those for family credit.
1. Figures have been rounded to the nearest 5 p. at each uprating.
Sources:
1. The earnings calculations have been carried out using the average earnings (whole economy) index as supplied by the Office of National Statistics.
2. The prices calculations have been carried out using the retail prices index, all items, less rent, local taxes and mortgage interest payments all benefits.
94W
Earnings limits—income related benefits Benefit Value a April 1997 £ Value when introduced £ Date introduced April 1997 rate if increase based on earnings £ April 1997 rate if increase based on prices £ Income support (earnings disregard) 5 5 April 1988 8.50 7.35 110 15 8.50 7.35 15 15 25.60 22.05 Jobseeker's allowance (earnings disregard) 5 5 October 1996 5.20 5.15 10 10 10.40 10.25 15 15 15.65 15.40 Housing benefit (earnings disregard) 5 5 April 1988 8.50 7.35 10 10 17.10 14.75 15 15 25.60 22.05 25 25 25.60 25.05 Council tax benefit (earnings disregard) 5 5 April 1993 5.75 5.60 10 10 11.50 11.20 15 15 17.25 16.80 25 25 28.75 27.85