HC Deb 23 March 2000 vol 346 cc661-2W
Mr. O'Hara

To ask the Secretary of State for Social Security if he will estimate the(a) gross and (b) net cost, after taking account of increased taxation receipts and means-tested benefits savings, of raising (i) the Minimum Income Guarantee and (ii) Income Support for people aged 60 years and over to £90 per week for single pensioners and £135 for pensioner couples; and how many more pensioners would be eligible for Income Support at these levels. [115742]

Mr. Rooker

The Minimum Income Guarantee is payable through Income Support to people aged 60 and over. Means-tested benefits are calculated net of tax and do not affect tax revenue. The information is in the tables.

An estimate of the effects on caseload and expenditure of an increase

of £90 a week for single pensioners and £135 a week for couples in

the Minimum Income guarantee levels, and the consequential

increases to Housing Benefit and Council Tax Benefit
Floaters-on Gainers Total
Caseload (Thousand)
Income Support 123 1,433 1,557
Housing Benefit 22 709 731
Council Tax Benefit 33 1,004 1,037
Expenditure (£ million)
Income Support 40 460 500
Housing Benefit 5 175 180
Council Tax Benefit 1— 80 80
1 Denotes negligible expenditure of less than £2.5 million
A modelled estimate of the numbers of people eligible for Income Support following the change
Thousand
Newly entitled pensioners
Income Support 220
Housing Benefit 45
Council Tax Benefit 115

Notes:

1. Caseloads are rounded to the nearest 1,000, and expenditure to the nearest £5 million.

2. Costs net of means-tested benefits have been calculated using the Policy Simulation Model based on the 1997–98 Family Resources Survey uprated to 2000–01, and calibrated to November 1999 PBR forecasts.

3. Floaters-on are by number of claims rather than total numbers of people affected, but an indication rounded to the nearest 5,000 has been given of how many pensioners would become entitled, based on the 1997–98 FRS survey.

4. Caseload figures exclude Residential Care and Nursing Home cases.

5. Totals may differ due to rounding.