HC Deb 06 May 1999 vol 330 cc447-8W
Dr. Cable

To ask the Chancellor of the Exchequer what estimate he has made of the number of widows who will(a) lose bereavement tax credit in the 1999 –2000 budget and (b) be eligible for the new benefits which replace the tax credit.[79089]

Number of lone parents on benefit and the number of those receiving maintenance since November 1995
Lone parents on benefits (thousand) Those receiving maintenance (thousand) Percentage receiving maintenance Average weekly maintenance (£ per week)
November 1995 1,337 217 16 29.69
November 1996 1,338 232 17 30.62
November 1997 1,334 248 19 31.53
November 1998 1,326 269 20 31.62

Notes:

  1. 1. Figures derived using ASDI's 5 per cent. scans of the Income Support (IS), Family Credit (FC) and Child Support Agency (CSA) systems.
  2. 2. Lone parents on benefit comprises lone parents receiving IS or FC. For technical reasons it is not possible to add Incapacity Benefit data to the analysis, although it is thought that the additional lone parents this would identify is negligible
  3. 3. Lone parents receiving maintenance comprises:
  1. (a) CSA parents with care (PWCs) where the Non-Resident Parent (NRP) is paying child maintenance via the CSA collection service (ie is fully or partially compliant);
  2. (b) CSA PWCs where payment is direct between the NRP and the PWC; CSA PWCs where the NRP is making a contribution to maintenance from their IS and income-based JSA;
  3. (d) Non-CSA IS and FC lone parents recorded as being in receipt of maintenance. This will include lone parents receiving maintenance other than child maintenance.

Angela Eagle

I have been asked to reply.

The widows' bereavement allowance will not be abolished for existing claimants, but there will be no new claims to the allowance for deaths occurring after 5 April 2000.

As a result of the reforms of widows' benefits it is estimated that, in the first full year of implementation: around 40,000 widows and 20,000 widowers will be entitled to the Bereavement Payment; around 10,000 new widows and 20,000 widowers will be entitled to Widowed Parent's Allowance; and around 10,000 widows and 10,000 widowers will be entitled to Bereavement Allowance.

NoteFigures have been supplied by the Government Actuary's Department. They are rounded to the nearest 10,000 and are subject to a wide range of uncertainty.

Dr. Cable

To ask the Chancellor of the Exchequer what estimate he has made of the revenue implications in 1999 –2000 and 2000 –01 of the abolition of bereavement tax credit for widows and its replacement by benefits. [79090]

Angela Eagle

I have been asked to reply.

The Widows' Bereavement Allowance will not be abolished for existing claimants, but there will be no new claims to the allowance for deaths occurring after 5 April 2000. The revenue effect of this change is estimated to be a saving of £15 million in 2000 –01. The new bereavement benefits, which are unlikely to be implemented before April 2001, are estimated to cost around £140 million in the first year of implementation.