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Earnings Disregard

Volume 268: debated on Wednesday 20 December 1995

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To ask the Secretary of State for Social Security if he will estimate the cost of increasing the earning disregard for income support claimants by (i)£5, (ii)£10 and (iii) £15 a week. [7183]

The information is set out in the table:

Increase in disregard £Cost £ million
535
1065
15100

  • 1. Modelled on the 1991, 1992 and 1993 Family Expenditure Surveys and the 1994 Quarterly Statistical Enquiry uprated to 1995–96 prices, benefits and earnings levels.
  • 2. Costs include the increased costs of Housing Benefit and Council Tax Benefit due to increased entitlement to these benefits.
  • 3. It has been assumed that both the head and the spouse of a couple each gain by the increases in the earnings disregards.
  • 4. It has been assumed that no behavioural changes take place.