HC Deb 30 June 1998 vol 315 cc176-7W
Mr. Webb

To ask the Chancellor of the Exchequer what would be the cost to the Exchequer of introducing a flat rate mortgage interest credit of(a) £20 per week, (b) £30 per week and (c) £40 per week into the working families tax credit for people with mortgages. [46955]

Dawn Primarolo

[holding answer 22 June 1998]: The information requested is given in the table:

£ million
Mortgage interest credit Net cost
£20 680
£30 1,100
£40 1,580

Notes:

1. Figures include Council Tax Benefit savings of £10 million/£15 million/£15 million arising from the £20/£30/£40 mortgage interest credits respectively

2. Costs rounded to nearest £10 million

3. Figures for Great Britain, based on 1998–99 levels of earnings and benefit rates

4. Costings assume all measures from March 1998 Budget are in place (including those taking effect in 1999–2000)

Mr. Webb

To ask the Chancellor of the Exchequer what would be the gross cost to the Exchequer of introducing a flat rate housing credit of(a) –20 per week, (b) –30 per week and (c) –40 per week into the working families tax credit for people in rented accommodation; and what would be the cost net of savings in housing benefit if the corresponding amount was removed from the eligible rent of all housing benefit claimants. [46954]

£ million
Costs £20 rented housing credit £30 rented housing credit £40 rented housing credit
Gross WFTC costs 600 930 1,280
Costs net of HB/CTB 450 720 1,030
Costs net of HB/CTB: eligible rent reduced by amount of rented housing credit 330 610 93

Notes:

1. Costs rounded to nearest £10 million

2. Eligible rent has only been reduced for Housing benefit recipients on WFTC

3. Figures for Great Britain, based on 1998–99 levels of earnings and benefit rates

4. Costings assume all measures from March 1998 Budget are in place (including those taking effect in 1999–2000)