§ Mr. WebbTo ask the Secretary of State for Work and Pensions if he will estimate the cost to the Exchequer of abolishing the overlapping benefits rule in respect of carers' allowance for(a) all carers and (b) carers aged under 75. [155891]
§ Maria Eagle[holding answer 25 February 2004]The gross cost of abolishing the overlapping benefits rule for carers allowance is estimated at about £330 million a year, or £195 million after allowing for reduced payments in the income-related benefitsl. Abolishing the rule only for those aged under 75 would be about £270 million or £160 million after offsetting adjustments. These figures do not take account of the behavioural effect of carers presently not claiming carers allowance who would be induced to do so by a change in the rules.
1Estimates use benefit rates for 2003–04 and are based on a 100 per cent. extract of carers 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 system in 2003 and a 1 per cent. extract of the housing benefit/council tax benefit claims of May 2002.