§ Mr. TynanTo ask the Secretary of State for Work and Pensions what the cost would be of not offsetting carers' allowance against(a) the basic state pension and (b) other benefits. [178598]
§ Mr. PondThe gross cost of exempting all pensioners in receipt of Carer's Allowance from the overlapping benefits rule would be around £221 million. After adjusting for offsets in income-related benefits the cost would be around £145 million. The gross cost for non-pensioners would be around £109 million or around £50 million after adjustments for offsets.
Notes:1. Estimates use benefit rates for 2003–04 and are based on a 100 per cent. extract of Carer's Allowance claims on the Carer's Allowance computer system for May 2003, a 5 per cent. extract from the claims on the Income Support computer systems in 2003 and a 1 per cent. extract of the Housing Benefit/Council Tax benefit claims of May 2002.2. These costs do not take account of the introduction of Pension Credit where Carer's Allowance is taken fully into account but an additional amount, the carer's premium (currently £25.55 per week), may be awarded in respect of the caring.3. The figures take no account of the behavioural effect of carers who have not claimed a Carer's Allowance but who would be induced to do so if the overlapping benefits rule was abolished.