§ Mr. BurstowTo ask the Secretary of State for Health how much money has been allocated to local authorities in England for 2002–03 in relation to the transfer of responsibility for preserved rights cases from 8 April 2002; of that sum, how much relates(a) to the sum that is transferred from the Department for Work and Pensions relating to what would have been paid through income support and (b) to the costs of the shortfall between the preserved rights income support rates and existing care homes as stated in the draft guidance to local authorities regarding the abolition of preserved rights; on what basis the sum allocated to cover the shortfall referred to in (b) has been allocated between local authorities; and whether the basis for the sum allocated to cover the shortfall referred to in (b) reflects the variations in shortfall between local authorities. [17250]
§ Jacqui SmithLocal authorities in England will receive additional funding of £614 million in 2002–03 because of the transfer to them from 8 April next year of responsibility for people with preserved rights. Of this sum, £528 million is a transfer from the Department for Work and Pensions. It represents the difference between what the DWP estimate they would have spent on income support, attendance allowance and disability living allowance on preserved rights residents under the current arrangements and what they estimate will be spent on Income Support for such residents under the new system. The remaining £86 million is intended to meet the cost to authorities of carrying out care assessments and the estimated shortfall between preserved rights income support rates and the care home fees of the residents concerned. We shall announce as part of the Local Government Finance Settlement how we intend to allocate these resources between individual local authorities.