To ask the Secretary of State for Work and Pensions what estimate he has made of the change in the level of expenditure on council tax benefit if the average level of council tax (a) rose by £100 and (b) fell by £100; and if he will make a statement. [97021]
An increase of £100 a year in the average level of council tax would result in an estimated annual increase of up to £600 million in council tax benefit expenditure. This figure includes the cost of increased payments to people already receiving council tax benefit as well as people who would become eligible for the benefit because of the council tax increase. An equivalent decrease would reduce expenditure by an estimated £500 million a year.Note:Figures are rounded to the nearest £l50 million.Source:
Figures are derived from the Department's policy simulation model, and are based on the 2000–01 Family Resources Survey, uprated to 2003–04 prices, benefit rates and caseloads and earnings levels.