Hansard

Housing Benefit

Volume 454: debated on Wednesday 6 December 2006

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Mr. Laws

To ask the Secretary of State for Work and Pensions what estimate he has made of the cost of cutting the withdrawal rate of housing benefit from 65 per cent. to (a) 60, (b) 55, (c) 50, (d) 45 and (e) 40 per cent.; and if he will make a statement. (101279)

Mr. Plaskitt

The information is in the table.

Estimated cost of cutting the withdrawal rate of housing benefit

Changing the housing benefit withdrawal rate from 65 per cent. to:

Estimated annual cost in annually managed expenditure (£ million)

60 per cent.

100

55 per cent.

220

50 per cent.

360

45 per cent.

530

40 per cent.

740

Notes:

1. Figures are rounded to the nearest £10 million or 10,000 beneficiaries and are for Great Britain.

2. The impact is estimated using the Department’s Policy Simulation Model for 2006-07, using data from the 2004-05 Family Resources Survey up-rated to 2006-07 prices, benefit rates and earnings levels, and is calibrated to latest published forecasts and policies.

3. Results are subject to sampling and reporting errors and estimation assumptions, and are therefore indicative only. No behavioural changes are assumed.