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Dept of Social Security

Answer

Mr. Webb: To ask the Secretary of State for Social Security (1) if he will estimate the cost of removing the top two bands of housing benefit non-dependant deductions and capping the maximum non-dependant deduction to 50 per cent. of the rent due; [125292] (2) how many claimants are subject to each level of housing benefit non-dependant deductions; [125289] (3) if he will estimate the cost of not imposing housing benefit non-dependant deductions where this would leave non-dependants with an income below income support level; [125293] (4) if he will estimate the cost of abolishing housing benefit non-dependant deductions; [125290] (5) if he will estimate the cost of capping the maximum housing benefit non-dependant deduction to 50 per cent. of the rent due. [125291] Angela Eagle: The cost of removing the top two bands of Housing Benefit non-dependent deductions and capping the maximum non-dependant deduction to 50 per cent. of the rent due is estimated to be £40 million a year{1}. At May 1998, the latest date for which information is available, the numbers of claimants subject to each level of Housing Benefit non-dependant deductions{2 }are in the table. Housing Benefit (HB)--Non-dependant deductions--May 1998 _________________________________________________________________________________________________. Non-dependants deduction level Number of HB recipients to whom deduction applies £7 125,000 £16 21,000 £22 19,000 £36 12,000 £41 7,000 £45 15,000 _________________________________________________________________________________________________. Note: All estimates were obtained using the Policy Simulation Model, which uses as base data the Family Resources Survey for 1997-98. Estimates are uprated to 2000-01 prices and benefits levels and are consistent with Departmental forecasts of the number of non- dependants in 2000-01. These forecasts are themselves based on extrapolations of Housing Benefit administrative data. The cost of not imposing Housing Benefit non- dependant deductions were this would leave non dependants with an income below Income Support level is estimated to be £30 million a year. The cost of abolishing Housing Benefit non-dependant deductions is estimated to be £230 million a year.The cost of capping the maximum Housing Benefit non-dependant deduction to 50 per cent. of the rent due is estimated to be £35 million a year{1}. {1 }Costed on basis that no deduction on behalf of any individual exceeds 50 per cent. of rent, rather than having a 50 per cent. cap on the total deduction for each household. Source: {2 }Some HB recipients may be subject to more than one non-dependant deduction Housing Benefit Management Information System, annual 1 per cent. sample inquiries, taken on the second Thursday of May 1998.

Secondary information

Type

Written question

Reference

351 c607-8W; 125292;125289;125293;125290;125291

Session

1999-00

Subjects

Costs Deductions Housing benefit Recipients Social security benefits

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk