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Written Statements

Volume 454: debated on Monday 11 December 2006

Written MinisterialStatements

Monday 11 December 2006

Cabinet Office

Departmental Simplification Plans

The Government will today publish Simplification Plans for 18 Departments and Government agencies. The Health and Safety Executive published its plan in October, taking the total number of plans published this autumn to 19.

The plans set out more than 500 initiatives which, when delivered, will result in a reduction in administrative burdens and policy costs for the UK economy as a whole. The plans commit departments to cutting administrative burdens for business, voluntary and charitable organisations by at least 25 per cent. by 2010, with estimated savings of £2 billion already identified in the plans.

This ground-breaking initiative marks the start of a rolling programme of simplification. These plans will make individual departments accountable for the burdens they impose. Departments will update plans annually in order to ensure on-going year-on-year reductions in the burdens they impose.

Alongside the package of simplification plans, the Government will also commit to several important supporting measures. These include an upgrading of the web portal through which simplification ideas can be submitted, a campaign to identify regulations which conflict or overlap, and benefits of the flow of regulation, and annual updates on progress against the simplification agenda.

Copies of all 19 Simplification Plans, and relevant supporting documents, have been placed in the Library for the reference of Members and are available in the Vote Office.

Defence

Royal Navy and Royal Marine Personnel

Recent media reports have alleged, incorrectly, that Royal Navy and Royal Marine personnel have had a cut in their allowances. I wish to advise the House of the current situation.

Due to an inaccurate Royal Navy Information Campaign, up to 4,260 Royal Navy and Royal Marine personnel were led to believe that on transition to Joint Personnel Administration on 1 November 2006 they would receive higher rates of Longer Separation Allowance than they were entitled to. Personnel wrongly assumed that their unpaid qualifying service for Longer Service at Sea Bonus would count towards their new rate of separation allowance from 1 November. This was identified by the Royal Navy in October 2006 and has been carefully considered by the Services and Ministers. It was agreed that the decisions taken in 2003 to target better Service allowances were correct, and that it was imperative that Royal Navy and Royal Marine personnel were treated fairly in comparison to their Army and Royal Air Force colleagues once they were eligible for the new allowances package. Therefore, on 1 November the Second Sea Lord wrote to all Royal Navy and Royal Marine Commanding Officers advising them that this oversight was regrettable, but did not justify a change in policy. Commanding Officers were asked to remind all of their personnel that none would see a cut in their separation allowances as a result of this decision and that the new allowances package was aimed directly at benefiting most those personnel who experience frequent periods of separation.

The new allowances package, for which all Royal Navy and Royal Marine personnel currently serving in Afghanistan are eligible, benefits all three Services. Under this new policy, personnel are entitled to Longer Separation Allowance that has 14 levels of payment, many higher than previously existed when there was only three levels of separation allowance.

The House has already noted that in order to recognise further the work of our Armed Services, we have introduced the new Operational Allowance of some £2,240 for a six month tour of duty and this is alongside a much improved Operational Welfare Package. In addition to these positive changes, I also announced on 3 December that the Initial Qualifying Period of 100 days for separation allowance will be abolished from 1 April 2007. This is all positive action taken by Her Majesty's Government to appreciate even more the excellent work of our Armed Services.

Health

Autumn Performance Report

The Department of Health's 2006 autumn performance report (Cm. 6985) has today been laid before Parliament. Copies have been placed in the Library. It shows the progress my Department has made towards achieving its public service agreement targets.

The document shows that there have been further improvements in access to services. Patients can now expect to wait no more than three months for an outpatient appointment and six months for an inpatient appointment. By the end of 2008 patients will wait no more than 18 weeks from general practitioner referral to start of treatment.

We are also providing care to those most in need. We are supporting more older people to live in their own homes, improving the care of those with long term conditions, providing better mental health services for children and adolescents and treating increased numbers of those with drug problems.

We are also improving health. Death rates from heart disease among people under 75 have fallen by 36 per cent. since the baseline of 1995-97; deaths from cancer have fallen by 16 per cent. over the same period. These are significant achievements.

These are just some of the successes of the NHS over the past year. These improvements have been made in a demanding year through the hard work, skills and passion of hundreds of thousands of staff, and new and better ways of delivering services.

The Department has also today published ‘The NHS in England: the operating framework 2007-08’. Copies have been placed in the Library.

The document is designed to help local NHS staff shape services around the needs of their local communities. It explains why there is a need to continue embedding reform in 2007/08, signalling a farther shift towards building a self-improving system driven by local priorities.

Employment, Social Policy, Health and Consumer Affairs Council

The Employment, Social Policy, Health and Consumer Affairs Council met on 30 November to 1 December. The health issues were taken on 30 November, where my right hon. Friend the Minister of State for health services represented the United Kingdom. Items on the main agenda were the amended proposal for a decision of the European Parliament and of the Council establishing a second programme of community action in the field of health (2007-2013); health in all policies; the EU strategy to reduce alcohol related harm; international health regulations; and the work of the Commission's high level group on health services and medical care.

Political agreement was reached on the amended proposal for a decision of the European Parliament and of the Council establishing a second programme of community action in the field of health (2007-2013).

Council conclusions were adopted on health in all policies. These focus on the importance of addressing the health impact of policies developed by other sectors.

Council conclusions were also adopted on the EU strategy to reduce alcohol related harm. This was followed by a policy debate on the strategy. The UK joined widespread support for the approach it outlines, and described how the Government, industry and stakeholders are working together in the UK, including through the social responsibility standards on the production and sale of alcohol.

There was a lunchtime discussion on the international health regulations (IHR), where Ministers supported a note prepared by the presidency on the Commission's recent communication on the Community's role in the implementation of the IHR. The note underlined the need for further discussion and clarification before agreement to a Community role. Ministers also supported a further note produced by the presidency, underlining the importance of the non-legislative collaboration between EU health systems taken forward by the Commission's high level group on health services and medical care.

Under any other business, the Council heard a progress report from the presidency on the proposal for a regulation of the European Parliament and of the Council on advanced therapy medicinal products and amending Directive 2001/83/EC and Regulation (EC) No 726/2004. This will continue to be taken forward by the Council Pharmaceutical Working Group during the German presidency.

On the eve of the Council, the Commissioner for Health and Consumer Protection, Markos Kyprianou, hosted an initial exchange of views with health Ministers (which my right hon. Friend attended) on the communication from the Commission regarding Community action on health services.

Home Department

Control Order Powers

Section 14(1) of the Prevention of Terrorism Act 2005 (the 2005 Act) requires me to report to Parliament as soon as reasonably practicable after the end of every relevant three-month period on the exercise of the control order powers during that period.

On 18 October I asked Lord Carlile to consider whether any improvements could be made to the quarterly report. I am today placing a copy of Lord Carlile's report on this matter, together with a copy of this statement (being my formal response to his recommendations), in the Library of the House. It will also be available on the Home Office web site at:

http://www.homeoffice.gov.uk/securitv/terrorism-and-the-law/prevention-of-terrorism/?version=1

Lord Carlile makes a number of sensible recommendations to increase the information that can be safely placed in the public domain through the quarterly written ministerial statement. I am happy to accept them, with the caveat that we need to avoid publishing any information that could lead to the identification of an individual who is subject to an anonymity order.

The format of this and future quarterly reports has been revised in the light of Lord Carlile's review so as to include some additional information. The level of information provided will, however, always be subject to slight variations based on the operational advice of the police.

Control orders continue to be an essential tool to protect the public from terrorism, particularly where it is not possible to prosecute individuals for terrorist-related activity and, in the case of foreign nationals, where they cannot be removed from the UK.

During the period 11 September to 10 December 2006, one order was made and, on 21 November 2006, served on a British citizen with the permission of the court under section 3(l)(a) of the 2005 Act.

Three further orders were made but have not yet been served, two of which were in respect of British citizens. Orders may be made but not served because they were made on a contingency basis, and the individual has been either charged and remanded in custody, or convicted and sentenced to prison, or deported. Alternatively, there may be police operational reasons for not serving an order.

Two control orders already in force at the beginning of this reporting period were revoked and new orders made and, on 12 September 2006, served in their place.

This followed a review of the obligations in these control orders as a result of the Court of Appeal's judgement of 1 August in the case of Secretary of State for the Home Department v JJ. KK, GG, HH, NN and LL [2006] EWCA Civ 1141.

No control orders have expired since the last report.

In total, therefore, there are 16 control orders currently in force, seven of which are in respect of British citizens. Eight of the individuals live in the Metropolitan police area; the rest fall within other police force areas.

Fifteen modifications of control order obligations were made, and four requests to modify a control order obligation were refused during the period. A right of appeal exists in section 10(3) of the 2005 Act against a decision by the Secretary of State not to modify an obligation contained in a control order. This has not yet been exercised in respect of these refusals.

Control order obligations are tailored to the individual concerned, and are based on the risk he or she poses. Each control order is kept under review to ensure their continuance and obligations remain necessary and proportionate. Specifically, as Lord Carlile recommended in his February 2006 report on the operation of the control order system, the Home Office has established a review group, with representation from law enforcement and intelligence agencies, to keep the obligations in every control order under regular (quarterly), formal and audited review.

Breaches of control orders could arise from any obligation, and could include arriving home after commencement of curfew period or breaking geographical boundary restrictions on movement. During this period, two individuals were charged with breach of control order obligations. Both were charged with failure to comply with a daily reporting requirement; one was also charged with failure to notify the Home Office of a change of residence.

As Parliament will be aware, one individual subject to a control order has absconded. Another individual absconded after a control order was made (i.e. signed) against that individual, but before the order had been served. This order is therefore not in operation. Finding these individuals is an operational matter for the police, and investigations are ongoing. Anonymity orders are in place for both individuals. The anonymity order is imposed by the court and can only be lifted by the court. For operational reasons, the Government are not currently seeking to overturn the anonymity orders.

On Thursday 26 October a hearing took place in the administrative court to consider overturning the anonymity orders in place for the individuals who absconded. On police advice the Home Office resisted this application and the judge upheld the anonymity orders for the two individuals.

One control order review started on 23 November in the High Court and final written submissions are being served. These proceedings are pursuant to section 3(10) of the Prevention of Terrorism Act 2005. We await the outcome.

Work and Pensions

Benefit Uprating

The proposed rates of benefit for 2007 are set out in the following table. The annual uprating of benefits will take place for state pension and most other benefits in the first full week of the tax year. In 2007, this will be the week beginning 9 April. My right hon. Friend the Secretary of State for Northern Ireland proposes to introduce similar changes for Northern Ireland.

Benefit Uprating

(Weekly rates unless otherwise shown) 

Rates - 2006 

Rates - 2007 

Attendance Allowance

higher rate

62.25

64.50

lower rate

41.65

43.15

Carer's Allowance

46.95

48.65

Council Tax Benefit

Personal allowances

Single

18 to 24

45.50

46.85

25 or over

57.45

59.15

lone parent - 18 or over

57.45

59.15

couple - one or both over 18

90.10

92.80

dependent children

from birth to September following

16th birthday

45.58

47.45

from September following 16th birthday to

day before 20th birthday

45.58

47.45

pensioner (from October 2003)

single / lone parent - 60 – 64

114.05

119.05

couple - one or both 60 – 64

174.05

181.70

single / lone parent - 65 and over

131.95

138.10

couple - one or both 65 and over

197.65

207.00

Premiums

Family

16.25

16.43

family (lone parent rate)

22.20

22.20

child under 1

10.50

10.50

pensioner

single

56.60

59.90

couple

83.95

88.90

pensioner (enhanced)

single

56.60

59.90

couple

83.95

88.90

pensioner (higher)

single

56.60

59.90

couple

83.95

88.90

disability

single

24.50

25.25

couple

34.95

36.00

enhanced disability premium single rate

11.95

12.30

disabled child rate

18.13

18.76

couple rate

17.25

17.75

severe disability

single

46.75

48.45

couple (lower rate)

46.75

48.45

couple (higher rate)

93.50

96.90

disabled child

45.08

46.69

carer

26.35

27.15

Non-dependant deductions

aged 18 or over and in remunerative work

gross income: £353 or more

6.95

6.95

gross income: £283 - £352.99

5.80

5.80

gross income: £164 - £282.99

4.60

4.60

gross income less than £164

2.30

2.30

others, aged 18 or over

2.30

2.30

Alternative maximum Council Tax Benefit

second adult on IS, JSA(IB) or Pension Credit

25% of Council Tax

25% of Council Tax

first adult(s) student(s)

100% of Council Tax

second adult’s gross income:

under £162

15% of Council Tax

15% of Council Tax

£162 to £209.99

7.5% of Council Tax

7.5% of Council Tax

Capital

upper limit

16,000.00

16,000.00

amount disregarded

6,000.00

6,000.00

upper limit (claimant/partner 60 or over)

16,000.00

16,000.00

upper limit (PC guarantee) from October 2003

No limit

No limit

amount disregarded (claimant/partner 60 or over)

6,000.00

6,000.00

child disregard

3.000.00

3,000.00

upper limit of RC/NH

16,000.00

16,000.00

amount disregarded of RC/NH

10,000.00

10,000.00

Tariff income

£1 for every complete £250 or part

thereof between amount of capital

disregarded and capital upper limit

Tariff income (claimant/partner 60 or over) from October 2003

£1 for every £500 or part thereof between

amount of capital disregard and capital

upper limit

Earnings disregards

where disability premium awarded

20.00

20.00

various specified employments

20.00

20.00

lone parent

25.00

25.00

where the claimant has a partner

10.00

10.00

single claimant

5.00

5.00

where carer premium awarded

20.00

20.00

childcare charges

175.00

175.00

childcare charges (2 or more children)

300.00

300.00

Other income disregards

maintenance disregard

15.00

15.00

war disablement pension and war

widow’s pension

10.00

10.00

Armed Forces Compensation Scheme

10.00

10.00

student loan

10.00

10.00

student’s covenanted income

5.00

5.00

income from boarders:

disregard the fixed amount (£20) plus

50% of the balance of the charge

20.00

20.00

additional earnings disregard

14.90

15.45

Expenses for subtenants

furnished or unfurnished

4.00

4.00

where heating is included, additional

11.95

15.45

Dependency Increases

Adult Dependency Increases

For spouse or person looking after children, with:

State Pension on own insurance,

50.50

52.30

long term incapacity benefit, unemployability supplement

46.95

48.65

severe disablement allowance

28.25

29.25

carers allowance

28.05

29.05

short-term incapacity benefit if beneficiary over

state pension age

45.15

46.80

maternity allowance/short-term incapacity benefit

36.60

37.90

Child Dependency Increases, with:

State pension, widowed mothers allowance, widowed parents allowance,

short-term incapacity benefit at the higher rate and

long term incapacity benefit carers allowance,

severe disability allowance, higher rate industrial death

benefit, unemployability supplement and

11.35

11.35

short-term incapacity benefit if beneficiary

over pension age

NB - The Overlapping Benefits Regulations provide for the rate

of child dependency increases

to be adjusted where the increase

is payable for the eldest eligible child for whom

Child benefit is also payable. The weekly rate of the increase

is reduced by the differential (less £3.65 from April 2004)

between the rate of Child Benefit payable for the oldest eligible child

and that payable for a subsequent child.

Disability Living Allowance

Care Component

Highest

62.25

64.50

Middle

41.65

43.15

Lowest

16.50

17.10

Mobility Component

Higher

43.45

45.00

Lower

16.50

17.10

Earnings Rules

Carers Allowance

84.00

87.00

Limit of earnings from councillor’s allowance

81.00

86.00

Permitted work earnings limit

81.00

86.00

Industrial injuries unemployability

4,212.00

4,472.00

supplement permitted earnings level

(annual amount)

Adult dependency increases with:

short-term incapacity benefit where claimant is

(a) under state pension age

36.60

37.90

(b) over state pension age

45.15

46.80

maternity allowance

36.60

37.90

state pension,

long-term incapacity benefit,

disablement allowance, unemployability supplement where dependant

(a) is living with claimant

57.45

59.15

(b) still qualifies for the tapered

45.09

45.09

earnings rule

state pension,

50.50

52.30

long-term incapacity benefit

and unemployability supplement where dependant not living with claimant

46.95

48.65

severe disablement allowance where

dependant not living with claimant

28.25

29.25

carers allowance

28.05

29.05

Child dependency increases

level at which CDIs are affected by

earnings of claimant’s spouse or partner

for first child

175.00

180.00

for each subsequent child

23.00

24.00

Housing Benefit

Personal allowances

Single

16 to 24

45.50

46.85

25 or over

57.45

59.15

lone parent

under 18

45.50

46.85

18 or over

57.45

59.15

couple

both under 18

68.65

70.70

one or both 18 or over

90.10

92.80

dependent children

from birth to September

following 16th birthday

45.58

47.45

from September following 16th birthday to

day before 20th birthday

45.58

47.45

pensioner (from October 2003)

single lone parent - 60 - 64

114.05

119.05

couple - one or both 60 - 64

174.05

181.70

single / lone parent - 65 and over

131.95

138.10

couple - one or both 65 and over

197.65

207.00

Premiums

family

16.25

16.43

family (lone parent rate)

22.20

22.20

child under 1

10.50

10.50

pensioner

single

56.60

59.90

couple

83.95

88.90

pensioner (enhanced)

single

56.60

59.90

couple

83.95

88.90

pensioner (higher)

single

56.60

59.90

couple

83.95

88.90

disability

single

24.50

25.25

couple

34.95

36.00

enhanced disability premium single rate

11.95

12.30

disabled child rate

18.13

18.76

couple rate

17.25

17.75

severe disability

single

46.75

48.45

couple (lower rate)

46.75

48.45

couple (higher rate)

93.50

96.90

disabled child

45.08

46.69

carer

26.35

27.15

Non-dependant deductions

rent rebates and allowances

aged 25 and over, in receipt of Income Support

or income based Job Seekers Allowance

aged 18 or over, not in remunerative work

- gross income less than £111

7.40

7.40

aged 18 or over and in remunerative work

- gross income: less than £111

7.40

7.40

- gross income: £111 to £163.99

17.00

17.00

- gross income: £164 to £212.99

23.35

23.35

- gross income: £213 to £282.99

38.20

38.20

- gross income: £283 to £352.99

43.50

43.50

- gross income: £353 and above

47.75

47.75

Service charges for fuel

heating

11.95

15.45

hot water

1.40

1.80

lighting

0.95

1.25

cooking

1.40

1.80

Amount ineligible for meals

three or more meals a day

single claimant

20.50

21.10

each person in family aged 16 or over

20.50

21.10

each child under 16

10.35

10.65

less than three meals a day

single claimant

13.65

14.05

each person in family aged 16 or over

13.65

14.05

each child under 16

6.85

7.05

breakfast only - claimant and each

member of family

2.50

2.60

Capital

upper limit

16,000.00

16,000.00

amount disregarded

6,000.00

6,000.00

upper limit (claimant/partner 60 or over)

16,000.00

16,000.00

upper limit (PC guarantee) from October 2003

No limit

No limit

amount disregarded (claimant/partner 60 or over)

6,000.00

6,000.00

child disregard

3,000.00

3,000.00

upper limit of RC/NH

16,000.00

16,000.00

amount disregarded of RC/NH

10,000.00

10,000.00

Tariff income

£1 for every complete £250 or part thereof between

amount disregarded and capital upper limit

Tariff income (claimant/partner 60 or over) from October 2003

£1 for every £500 or part thereof between

amount of capital disregard and capital

upper limit

Earnings disregards

where disability premium awarded

20.00

20.00

various specified employments

20.00

20.00

lone parent

25.00

25.00

where the claimant has a partner

10.00

10.00

single claimant

5.00

5.00

where carer premium awarded

20.00

20.00

childcare charges

175.00

175.00

childcare charges (2 or more children)

300.00

300.00

Other income disregards

maintenance disregard

15.00

15.00

war disablement pension and war

widow’s pension

10.00

10.00

Armed Forces Compensation Scheme

10.00

10.00

student loan

10.00

10.00

student’s covenanted income

5.00

5.00

income from boarders:

disregard the fixed amount (£20) plus

50% of the balance of the charge

20.00

20.00

additional earnings disregard

14.90

15.45

Expenses for subtenants

furnished or unfurnished

4.00

4.00

where heating is included, additional

11.95

15.45

Maximum rates for recovery of overpayments

ordinary overpayments

8.70

9.00

where claimant convicted of fraud

11.60

12.00

Incapacity Benefit

Long-term Incapacity Benefit

78.50

81.35

Short-term Incapacity Benefit

(under state pension age)

lower rate

59.20

61.35

higher rate

70.05

72.55

Short-term Incapacity Benefit

(over state pension age)

lower rate

75.35

78.05

higher rate

78.50

81.35

Increase of Long-term Incapacity Benefit for age

higher rate

16.50

17.10

lower rate

8.25

8.55

Invalidity Allowance (Transitional)

higher rate

16.50

17.10

middle rate

10.60

11.00

lower rate

5.30

5.50

Income Support

Personal Allowances

single

under 18 - usual rate

34.60

35.65

under 18 - higher rate payable

in specific circumstances

45.50

46.85

18 to 24

45.50

46.85

25 or over

57.45

59.15

lone parent

under 18 - usual rate

34.60

35.65

under 18 - higher rate payable

in specific circumstances

45.50

46.85

18 or over

57.45

59.15

couple

both under 18

34.60

35.65

both under 18, one disabled

45.50

46.85

both under 18, with responsibility for a child

68.65

70.70

one under 18, one 18-24

45.50

46.85

one under 18, one 25+

57.45

59.15

both 18 or over

90.10

92.80

dependent children

birth to September following

16th birthday

45.58

47.45

from September following 16th birthday to

day before 20th birthday

45.58

47.45

Premiums

family

16.25

16.43

family (lone parent rate)

16.25

16.43

pensioner

couple

83.95

88.90

pensioner (enhanced)

couple

83.95

88.90

pensioner (higher)

couple

83.95

88.90

disability

single

24.50

25.25

couple

34.95

36.00

enhanced disability premium single rate

11.95

12.30

disabled child rate

18.13

18.76

couple rate

17.25

17.75

severe disability

single

46.75

48.45

couple (lower rate)

46.75

48.45

couple (higher rate)

93.50

96.90

disabled child

45.08

46.69

carer

26.35

27.15

Housing costs

deductions for non-dependants

aged 25 and over, in receipt of Income Support

aged 25 and over, in receipt of Income Support

or income based Job Seekers Allowance

aged 18 or over, not in work

7.40

7.40

aged 18 or over and in remunerative work

- gross income: less than £111

7.40

7.40

- gross income: £111 to £163.99

17.00

17.00

- gross income: £164 to £212.99

23.35

23.35

- gross income: £213 to £282.99

38.20

38.20

- gross income: £283 to £352.99

43.50

43.50

- gross income: £353 and above

47.75

47.75

Deduction for third party payments

arrears of housing, fuel and water costs

council tax etc

2.90

3.00

Child support maintenance deduction. contribution towards maintenance (CTM)

deductions for child maintenance (CTM) standard

5.80

6.00

deductions for child maintenance (CTM) lower

2.90

3.00

Arrears of Community Charge

court order against claimant

2.90

3.00

court order against couple

4.55

4.65

Third party deductions

19.60

20.45

personal expenses allowance

Third party deduction for fine or compensation order

standard rate

5.00

5.00

lower rate

2.90

3.00

Maximum rates for recovery of overpayments

ordinary overpayments

8.70

9.00

where claimant convicted of fraud

11.60

12.00

Relevant sum for strikers

31.00

32.00

Capital

upper limit

16,000.00

16,000.00

amount disregarded

6,000.00

6,000.00

upper limit (partner 60 or over)

16,000.00

16,000.00

amount disregarded (partner 60 or over)

6,000.00

6,000.00

child’s limit

3,000.00

3,000.00

upper limit (RC/NH)

16,000.00

16,000.00

amount disregarded (RC/NH)

10,000.00

10,000.00

Tariff income

£1 for every complete £250 or part

thereof between amount of capital

disregarded and capital upper limit

Disregards

standard earnings

5.00

5.00

couples earnings

10.00

10.00

higher earnings

20.00

20.00

war disablement pension and war

widow’s pension

10.00

10.00

Armed Forces Compensation Scheme

10.00

10.00

student loan

10.00

10.00

student’s covenanted income

5.00

5.00

income from boarders:

disregard the fixed amount (£20) plus

50% of the balance of the charge

20.00

20.00

Expenses for subtenants

furnished or unfurnished

4.00

4.00

where heating is included, additional

11.95

15.45

Industrial Death Benefit

Widow’s pension

higher rate

84.25

87.30

lower rate

25.28

26.19

Widower’s pension

84.25

87.30

Industrial Injuries Disablement Pension

18 and over, or under 18 with dependants

100%

127.10

131.70

90%

114.39

118.53

80%

101.68

105.36

70%

88.97

92.19

60%

76.26

79.02

50%

63.55

65.85

40%

50.84

52.68

30%

38.13

39.51

20%

25.42

26.34

Under 18

100%

77.90

80.70

90%

70.11

72.63

80%

62.32

64.56

70%

54.53

56.49

60%

46.74

48.42

50%

38.95

40.35

40%

31.16

32.28

30%

23.37

24.21

20%

15.58

16.14

Maximum life gratuity (lump sum)

8,450.00

8,750.00

Unemployability Supplement

78.50

81.35

plus where appropriate an increase

for early incapacity

higher rate

16.50

17.10

middle rate

10.60

11.00

lower rate

5.30

5.50

Maximum reduced earnings allowance

50.84

52.68

Maximum retirement allowance

12.71

13.17

Constant attendance allowance

exceptional rate

101.80

105.40

intermediate rate

76.35

79.05

normal maximum rate

50.90

52.70

part-time rate

25.45

26.35

Exceptionally severe disablement allowance

50.90

52.70

Jobseekers Allowance

Contribution based JSA – Personal rates

under 18

34.60

35.65

18 to 24

45.50

46.85

25 or over

57.45

59.15

Income-based JSA – personal allowances

under 18

34.60

35.65

18 to 24

45.50

46.85

25 or over

57.45

59.15

lone parent

under 18 - usual rate

34.60

35.65

under 18 - higher rate payable

in specific circumstances

45.50

46.85

18 or over

57.45

59.15

couple

both under 18

34.60

35.65

both under 18, one disabled

45.50

46.85

both under 18, with responsibility for a child

68.65

70.70

one under 18, one 18-24

45.50

46.85

one under 18, one 25 +

57.45

59.15

both 18 or over

90.10

92.80

dependent children

from birth to September

following 16th birthday

45.58

47.45

from Sept. following 16th birthday to

day before 20th birthday

45.58

47.45

Premiums

family

16.25

16.43

family (lone parent rate)

16.25

16.43

pensioner

single

56.60

59.90

couple

83.95

88.90

pensioner (enhanced)

couple

83.95

88.90

pensioner (higher)

single

56.60

59.90

couple

83.95

88.90

disability

single

24.50

25.25

couple

34.95

36.00

enhanced disability premium single rate

11.95

12.30

disabled child rate

18.13

18.76

couple rate

17.25

17.75

severe disability

single

46.75

48.45

couple (lower rate)

46.75

48.45

couple (higher rate)

93.50

96.90

disabled child

45.08

46.69

carer

26.35

27.15

Housing costs

deductions for non-dependants

aged 25 and over, in receipt of Income Support

or income based Job Seekers Allowance

aged 18 or over, not in remunerative work

7.40

7.40

aged 18 or over and in remunerative work

- gross income: less than £111

7.40

7.40

- gross income: £111 to £163.99

17.00

17.00

- gross income: £164 to £212.99

23.35

23.35

- gross income: £213 to £282.99

38.20

38.20

- gross income: £283 to £352.99

43.50

43.50

- gross income: £353 and above

47.75

47.75

Deduction for third party payments

Deductions from JSA (IB)

arrears of housing, fuel and water costs

council tax, etc

2.90

3.00

Child support maintenance deduction contribution towards maintenance (CTM)

deductions for child maintenance (CTM) standard

5.80

6.00

deductions for child maintenance (CTM) lower

2.90

3.00

Arrears of Community Charge

court order against claimant

2.90

3.00

court order against couple

4.55

4.65

Third party deductions

personal expenses allowance

19.60

20.45

Deductions from JSA (Cont.)

Arrears of Comm. Charge, Council Tax, fines and overpayment recovery

Age 16 – 17

11.53

11.88

Age 18 – 24

15.16

15.61

Age 25 +

19.15

19.71

Maximum deduction for arrears of Child Maintenance (CTM)

Age 16 – 17

11.53

11.88

Age 18 – 24

15.16

15.61

Age 25 +

19.15

19.71

Third party deduction for fine or compensation order

standard rate

5.00

5.00

lower rate

2.90

3.00

Maximum rates for recovery of overpayments in JSA(IB)

ordinary overpayments

8.70

9.00

where claimant convicted of fraud

11.60

12.00

Prescribed sum for strikers

31.00

32.00

Capital

upper limit

16,000.00

16,000.00

amount disregarded

6,000.00

6,000.00

Child’s limit

3,000.00

3,000.00

upper limit (RC/NH)

16,000.00

16,000.00

amount disregarded (RC/NH)

10,000.00

10,000.00

upper limit (partner 60 or over)

16,000.00

16,000.00

amount disregarded (partner 60 or over)

6,000.00

6,000.00

Tariff income

£1 for every complete £250 or part

thereof between amount of capital

disregarded and capital upper limit

Disregards

standard earnings

5.00

5.00

couples earnings

10.00

10.00

higher earnings

20.00

20.00

war disablement pension and war

widow’s pension

10.00

10.00

Armed Forces Compensation Scheme

10.00

10.00

student loan

10.00

10.00

student’s covenanted income

5.00

5.00

income from boarders:

disregard the fixed amount (£20) plus

50% of the balance of the charge

20.00

20.00

Expenses for subtenants

furnished or unfurnished

4.00

4.00

where heating is included, additional

11.95

15.45

Maternity Allowance

Standard rate

108.85

112.75

MA threshold

30.00

30.00

Pension Credit

Standard minimum guarantee

single

114.05

119.05

couple

174.05

181.70

Additional amount for severe disability

single

46.75

48.45

couple (one qualifies)

46.75

48.45

couple (both qualify)

93.50

96.90

Additional amount for carers

26.35

27.15

Savings credit

threshold - single

84.25

87.30

threshold - couple

134.75

139.60

maximum - single

17.88

19.05

maximum - couple

23.58

25.26

Capital

Amount disregard

6,000.00

6,000.00

Amount disregard - care homes

10,000.00

10,000.00

Deemed income

£1 for each complete £500 or part

thereof in excess of above amounts

Housing costs

Deduction for non-dependents

- aged 18 or over, in receipt of IS/JSA(IB) and over 25

7.40

7.40

- aged 18 or over and in work:

aged 18 or over and in remunerative work

- gross income: less than £111

7.40

7.40

- gross income: £111 to £163.99

17.00

17.00

- gross income: £164 to £212.99

23.35

23.35

- gross income: £213 to £282.99

38.20

38.20

- gross income: £283 to £352.99

43.50

43.50

- gross income: £353 and above

47.75

47.75

Amount for claimant and first spouse in

174.05

181.70

polygamous marriage

Additional amount for additional spouse

60.00

62.65

Disregards

Standard earnings

5.00

5.00

Couples earnings

10.00

10.00

Higher earnings

20.00

20.00

War disablement pension and

War widows pension

10.00

10.00

Armed Forces Compensation Scheme

10.00

10.00

Widowed Parent’s Allowance

10.00

10.00

Income from subtenants

20.00

20.00

Income from boarders

20.00

20.00

(disregard the fixed amount (£20) plus

50% of the balance of the charge)

Third Party Deductions

arrears of housing, fuel, water costs

2.90

3.00

council tax etc

Child support maintenance deduction contribution towards maintenance (CTM)

deductions for child maintenance (CTM) standard

5.80

6.00

deductions for child maintenance (CTM) lower

2.90

3.00

Arrears of Community Charge

court order against claimant

2.90

3.00

court order against couple

4.55

4.65

Maximum rates of recovery of overpayments

- ordinary overpayments

8.70

9.00

- where claimant convicted of fraud

11.60

12.00

Third party deductions

19.60

20.45

personal expenses allowance

Third party deduction for fine or compensation order

standard rate

5.00

5.00

lower rate

2.90

3.00

Pneumoconiosis, Byssinosis, and Miscellaneous Diseases Scheme

and The Workmen’s Compensation (Supplementation)

Total disablement allowance and major

incapacity allowance (maximum)

127.10

131.70

Partial disablement allowance

46.95

48.65

Unemployability supplement

78.50

81.35

plus where appropriate increases

for early incapacity

higher rate

16.50

17.10

middle rate

10.60

11.00

lower rate

5.30

5.50

Constant attendance allowance

exceptional rate

101.80

105.40

intermediate rate

76.35

79.05

normal maximum rate

50.90

52.70

part-time rate

25.45

26.35

Exceptionally severe disablement allowance

50.90

52.70

Lesser incapacity allowance

maximum rate of allowance

46.95

48.65

based on loss of earnings over

62.25

64.50

State Pension

Category A or B

84.25

87.30

Category B(lower) – husband’s insurance

50.50

52.30

Category C or D - non-contributory

50.50

52.30

Category C (lower) - non-contributory

30.20

31.30

Additional pension

Increase by:

3.6%

Increments to:-

Increase by:

Basic pension

3.6%

Additional pension

3.6%

Graduated Retirement Benefit (GRB)

3.6%

Inheritable lump sum

3.6%

Contracted-out Deduction from AP in respect of

Nil

pre-April 1988 contracted-out earnings

Contracted-out Deduction from AP in respect of

contracted-out earnings from April 1988 to 1997

3.0%

Graduated Retirement Benefit (unit)

0.1020

0.1057

Graduated Retirement Benefit (Inherited)

Increase by:

3.6%

Addition at age 80

0.25

0.25

Severe Disablement Allowance

Basic rate

47.45

49.15

Age-related addition (from December 90)

Higher rate

16.50

17.10

Middle rate

10.60

11.00

Lower rate

5.30

5.50

Statutory Adoption Pay

Earnings threshold

84.00

87.00

Standard Rate

108.85

112.75

Statutory Maternity Pay

Earnings threshold

84.00

87.00

Standard rate

108.85

112.75

Statutory Paternity Pay

Earnings threshold

84.00

87.00

Standard Rate

108.85

112.75

Statutory Sick Pay

Earnings threshold

84.00

87.00

Standard rate

70.05

72.55

Widow's Benefit

Widowed mother’s allowance

84.25

87.30

Widow’s pension

standard rate

84.25

87.30

age-related

age 54 (49)

78.35

81.19

53 (48)

72.46

75.08

52 (47)

66.56

68.97

51 (46)

60.66

62.86

50 (45)

54.76

56.75

49 (44)

48.87

50.63

48 (43)

42.97

44.52

47 (42)

37.07

38.41

46 (41)

31.17

32.30

45 (40)

25.28

26.19

Note: For deaths occurring before 11 April 1988

refer to age-points shown in brackets.

Bereavement Benefit

Bereavement payment (lump sum)

2,000.00

2,000.00

Widowed parent’s allowance

84.25

87.30

Bereavement Allowance

standard rate

84.25

87.30

age-related

age 54

78.35

81.19

53

72.46

75.08

52

66.56

68.97

51

60.66

62.86

50

54.76

56.75

49

48.87

50.63

48

42.97

44.52

47

37.07

38.41

46

31.17

32.30

45

25.28

26.19

Work and Pensions

Employment, Social Policy Health and Consumer Affairs Council

The Employment, Social Policy, Health and Consumer Affairs Council was held on 1 December in Brussels. My hon. Friend, the Minister for Pension Reform and the Minister with responsibility for employment relations and London, my hon. Friend the Member for Poplar and Canning Town (Jim Fitzpatrick) represented the UK. Health and consumer affairs issues were taken on 30 November.

There was a debate on the Commission's recently adopted Green Paper on Labour Law. Commissioner Valdimir Spidla said member states had to reform their labour markets further to adapt to the challenges and opportunities of globalisation. The increased use of new forms of flexible contract had many advantages for both employees and employers, but could also lead to more vulnerability for workers and segmentation of the labour market. All member states welcomed the debate and my hon. Friend the Member for Poplar and Canning Town, emphasised the importance of subsidiarity in this area; there was no one labour model which could be universally applied to all member states, and reforms had to be carried out by member states themselves, although the EU could have added value by encouraging best practice.

A number of member states took the opportunity to raise the working time directive amending certain aspects of the organisation of working time. My hon. Friend highlighted the UK's priorities of a solution for member states with problems caused by the European Court of Justice rulings on SiMAP and Jaeger and the retention of the individual opt out without unnecessary restrictions.

The Finnish presidency introduced its progress report on the proposal for a directive of the European Parliament and of the Council on improving the portability of supplementary pension rights. The latest text provided for the vesting and preservation but not transfer of mobile workers' pension rights. There were limited exemptions for unstable schemes or rescue funds, and the possibility of up to 10 years for implementation. The Commission accepted the need for compromise, but if transfers were to be excluded then preservation of rights should receive more attention. Any exemptions must be very tightly drawn and the transposition period could be shorter. My hon. Friend the Minister for Pensions Reform said the United Kingdom could support the aim of improving worker mobility. However, this should not be achieved at the expense of damaging or deterring supplementary pensions, or hampering pension reforms. It made sense to remove transfers from the ambit of the directive, given the widespread problems and a light touch would be needed in on the preservation of dormant rights. Some restrictions of the kind foreseen would be essential for good financial management, but the criteria for opt-outs should be strict.

The presidency announced that it had been agreed during the lunchtime discussion that Vilnius (Lithuania) would host the seat of the European Gender Institute.

The Commission presented its recent communication on demography and the Social Protection Committee's opinion on it.

The presidency confirmed that agreement had been reached with the European Parliament on the Daphne programme on violence against children, young people and women, The UK supported the ideas to tackle the social causes and impacts of human trafficking, which are in line with the Commission's priorities.

The Council reached agreement on a partial general approach on the pensions chapter of a new implementing regulation for social security co-ordination regulation 883/04. The UK maintained its parliamentary scrutiny reserve. A partial general approach was also agreed on a corresponding set of amendments to Annex XI of regulation 883/04.

The Council adopted conclusions on decent work; the Beijing platform for action; and men and gender equality. There was a short presentation and discussion of the Employment Committee opinion on higher productivity and more and better jobs. The Council also noted an Opinion from the Social Protection Committee on Social Services of General Interest.

Specifically, it sets out:

the health and service priorities for the year ahead;

the next steps in reform and why these are important; and

the financial objectives.

The document also stresses the need for primary care trusts need to work with local authorities to improve health and well-being, reduce inequalities and achieve a shift towards prevention.