To ask the Secretary of State for Social Security what would be the cost in a full year of abolishing the capital rule and deemed income and basing benefit on actual income only for (a) housing benefit, (b) community charge benefit, (c) family credit and (d) age premium for retirement pensioners.
The cost in a full year of abolishing capital limits and tariff income for the income-related benefits and basing benefit on actual income from capital is estimated to be:
1990–91 prices £ million | |
a. Housing benefit | 60 |
b. Community charge benefit | 70 |
c. Family credit | 2 |
d. Income support | 60 |
Source: Modelled using data drawn from the 1985, 1986 and 1987 family expenditure surveys. Estimates of capital holdings are uncertain because they are imputed from reported income from investment and savings. The estimated costs quoted assume particular interest rate levels and patterns of capital asset holdings.
To ask the Secretary of State for Social Security what would be the cost in a full year of abolishing the capital rule and deemed income and basing benefit on 10 per cent. of annual income only for (a) housing benefit, (b) community charge benefit, (c) family credit and. (d) age premium for retirement pensioners.
The expenditure effect in a full year of abolishing capital limits and tariff income for the income-related benefits and basing benefit assessment on an assumed interest on savings of 10 per cent. is estimated to be:
1990–91 prices | |
£ million | |
(a) Housing benefit | 110 |
(b) Community charge benefit | 220 |
(c) Family credit | 12 |
(d) Income support | 15 |
1 Million saving. | |
2 Million cost. |
Source: Modelled using data drawn from the 1985, 1986 and 1987 family expenditure surveys. Estimates of capital holdings are uncertain because they are imputed from reported income from investment and savings.