HC Deb 13 May 2004 vol 421 c545W
John Robertson

To ask the Secretary of State for Work and Pensions if he will estimate the cost to the Exchequer of abolishing the overlapping benefit rule in respect of carers' allowance for(a) women over 60 years and (b) men and women over 65 years. [171344]

Maria Eagle

The gross cost of exempting all pensioners over 65 in receipt of carers' allowance from the overlapping benefits rule would be around £200 million. After adjusting for offsets in income-related benefits the cost would be around £130 million1. Exempting women only, aged 60 and over, would cost £155 million (£100 million after adjustments), although our commitment to the European directive on equal treatment would of course prevent us from introducing such a measure.

These costs do not take account of the introduction of pension credit where carers' allowance is taken fully into account but an additional amount may be awarded in respect of the caring.

Neither do the figures take 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 rules were amended as suggested.

1Estimates use benefit rates for 2003–04 and are based on a 100 per cent. extract of claims for carers' allowance taken from the carers' allowance computer system for May 2003, a 5 per cent. extract from claims recorded on the income support computer system in 2003 and a 1 per cent. extract of housing benefit/council tax benefit claims of May 2001.