§ Earl Russellasked Her Majesty's Government:
What would be the cost of raising (a) social security benefits across the board by 1 per cent and (b) income support by 1 per cent, assuming no change in the numbers of people dependent on benefits. [HL403]
§ Baroness Hollis of HeighamThe estimated cost of increasing social security benefits across the board by 1 per cent for gainers only is estimated to be £850 million in 2000–01. The estimated cost of increasing income support by 1 per cent for gainers only is estimated to be £130 million in 2000–01.
Notes:
1. The figures shown for 2001 arise from the increase in 2000 (no additional change from normal uprating is assumed in 2001). All figures are based on the Treasury economic assumptions as at February 1999.
2. The figures exclude working families tax credit or disabled persons tax credit (family credit/disability working allowance), as these are now under the control of Inland Revenue.
3. Income support forecasts are attained from ASD4 forecasts.
4. All costs are for gainers only and exclude all floaters-on.
5. All costs are rounded to the nearest £5 million and are presented in cash terms.