§ Sir Archy KirkwoodTo ask the Secretary of State for Work and Pensions if he will estimate the cost of abolishing the overlapping benefits rule for the payment of carers' allowance.[134645]
§ Maria EagleThe overlapping benefit rules are a fundamental feature of the social security system. They prevent the payment at the same time of two or more benefits intended for the same purpose.
142WThe estimated gross cost of abolishing these rules for the payment of carers' allowance would be around £330 million a year1. After adjusting for offsets in income-related benefits2 the estimated net cost would be about £195 million a year. These figures do not take account of the behavioural effect of carers presently not claiming carer's allowance who would be induced to do so by a change in the rules.
1Gross costs are calculated from data taken from a 100 per cent extract of CA claims on the CA computer system for May 2003. They allow for cases where an underlying entitlement exists but records are not currently held on the system.
2 Offsets are calculated from a 5 per cent. extract of claims on the Income Support computer system in 2003 and a per cent. extract of the Housing Benefit/Council Tax Benefit claims of May 2001.