§ Ms BuckTo ask the Secretary of State for Social Security how many households currently in receipt of the child care tax credit component of the working families tax credit will gain from the amendment of housing benefit regulations introducing a disregard of the child care component; what will be the average gain; and what is the total cost. [116076]
§ Angela EagleWe made changes in Housing Benefit and Council Tax Benefit to take account of the introduction of the working families tax credit in October 1999. These changes included an increase in the amount deducted from earnings for child care costs. The effect of this change is minimal.
This summer, subject to parliamentary approval and consultation with the Social Security Advisory Committee and the Local Authority Associations, we will be introducing a further amendment in Housing Benefit and Council Tax Benefit to increase the help available for child care. This amendment will allow child care costs to be deducted from working families tax credit or disabled persons tax credit in addition to earnings where those earnings are less than their eligible child care costs.
Estimate of the number of gainers, average gain and the total cost of the effect of proposed changes to Housing Benefit/Council Tax Benefit summer 2000 £ Housing Benefit Council Tax Benefit Total Cost (£ million per annum) 1 1 2 Gainers 1,000 1,000 n/a Average gain (£ per week) 18 16 n/a Notes:
- 1. Based on data taken from 1998 HBMIS datasets.
- 2. Costs are quoted in millions and are rounded to the nearest million.
- 3. Gainers are rounded to the nearest 1,000. Gainers cannot be added together because some people will benefit in both Housing Benefit and Council Tax Benefit.
- 4. Average gains are rounded to the nearest pound.