§ Mr. Duncan SmithTo ask the Secretary of State for Social Security what is the annual estimated saving arising from the operation of the habitual residence test from its introduction to date. [74748]
§ Angela Eagle[holding answer 4 March 1999]: The best estimate of savings arising from the operation of the habitual residence test in the financial year 1997–98 is approximately £18 million. (This is an approximation since, by definition, we do not know the benefit entitlement of a person who fails the test).
Notes:
1. Savings for Income Support (IS), Housing Benefit (HB), Council Tax Benefit (CTB) and income-based Jobseeker's Allowance (JSA(IB)).
2. Based on 18,197 cases failing the habitual residence test over the period April 1997-March 1998. Source Management Information Statistics.
3. Assumes that failing applicants are single with no dependants, and therefore entitled to the basic personal allowance in IS/JSA(IB) for someone aged 25 or over.
4. Assumes that in the absence of the test cases would be eligible for 13 weeks benefit.
5. Assumes average HB and CTB for a single person in receipt of IS, living in the deregulated private sector.
6. Assumes that 44 per cent. of those denied IS/JSA(IB) under the test would also have received HB, and 40 per cent. CTB.