HC Deb 29 June 1998 vol 315 cc117-8W
Mr. Cousins

To ask the Secretary of State for Social Security if the earnings disregards limits for means-tested benefits will be revised to take account of the announcement of minimum wage rates. [47732]

Mr. Keith Bradley

I refer the hon. Friend to my written answer to the right hon. Member for Wokingham (Mr. Redwood) on 25 June 1998,Official Report, column 620.

Mr. Cousins

To ask the Secretary of State for Social Security if she will express the present earnings disregards limits for each means-tested benefit in terms of permitted hours of work under the proposed minimum wage rates. [47733]

Mr. Keith Bradley

Earnings disregards rules achieve a balance: encouraging those people who wish to work to do some part-time work without creating a disincentive to take up full-time work, or increasing their dependency on benefit. The information requested is set out in the tables.

National minimum wage—basic rate
Income Support and Jobseeker's Allowance (Income-based) Housing Benefit and Council Tax Benefit
Amount of disregard £ Equivalent number of hours work Amount of disregard £ Equivalent number of hours work
Single—all ages1 5 1.38 5 1.38
Couple3 10 2.77 10 2.77
Lone parent 15 4.16 25 6.94
With Disability or carer premium 15 4.16 15 4.16
Special Occupations2 15 4.16 n/a n/a

Note:

Earnings disregards expressed in terms of hours of work at £3.60 per hour

National minimum wage—youth rate
Income Support and Jobseeker's Allowance (Income-based) Housing Benefit and Council Tax Benefit
Amount of disregard (£) Equivalent number of hours work Amount of disregard (£) Equivalent number of hours work
Single—all ages1 5 1.66 5 1.66
Couple3 10 3.33 10 3.33
Lone parent 15 5 25 8.33
With Disability or carer premium 15 5 15 5
Special Occupations2 15 5 n/a n/a

Note:

Earnings disregards expressed in terms of hours of work at £3 per hour

National minimum wage—development rate
Income Support and Jobseeker's Allowance (Income-based) Housing Benefit and Council Tax Benefit
Amount of disregard (£) Equivalent number of hours work Amount of disregard (£) Equivalent number of hours work
Single—all ages1 5 1.56 5 1.56
Couple3 10 3.12 10 3.12
Lone parent 15 4.68 25 7.81
With Disability or carer premium 15 4.68 15 4.68
Special Occupations2 15 4.68 n/a n/a
1Earnings disregard for a single person on Income Support/Jobseeker's Allowance (Income-Based) is as stated unless they are engaged in a special occupation
2 Special occupations are Auxiliary Coastguards, part-time members of the fire brigade maintained under current legislation, part-time manning or launching a lifeboat, members of the territorial or reserve forces
3 For Income Support and Jobseeker's Allowance (Income-Based) a £15 disregard will be applied to couples if any of the other conditions apply regarding qualification for a £15 disregard i.e. if the claimant/partner is disabled or a carer

Note:

Earnings disregards expressed in terms of hours of work at £3.20 per hour