HC Deb 12 July 1999 vol 335 cc62-3W
Mr. Chisholm

To ask the Secretary of State for Social Security what estimate he has made of the cost of increasing the earnings disregard on income support to(a) £20 and (b) £ 25 per week. [90753]

Mr. Timms

The cost of an earnings disregard for all benefit units on Income Support (IS) of the requested levels is shown in the table:

Earnings disregard for IS benefit units Cost (£ million)
£20 20
£25 35

Notes:

1. Estimates based on February 1999 Income Support Statistics Quarterly Enquiry and the Policy Simulation Model.

2. Estimates exclude movements between Working Families Tax Credit (WFTC) and IS, and behavioural effects.

3. Estimates assume no change to the earnings disregards in Housing Benefit (HB) and Council Tax Benefit (CTB).

4. Estimates are rounded to the nearest £5m.