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Tax Credit

Volume 463: debated on Monday 1 October 2007

To ask the Secretary of State for Work and Pensions pursuant to the answer of 17 May 2007, Official Report, column 895W, on tax credit, how many (a) individuals and (b) households were beneficiaries of (i) both means-tested assistance and tax credits, (ii) means-tested assistance or tax credits, (iii) means-tested assistance and or tax credits, (iv) tax credits and (v) means-tested assistance in (A) 1979, (B) 1992, (C) 1997 and (D) 2007. (155094)

[holding answer 10 September 2007]: The information is not available in the format requested.

Because of the changes to income-related benefits since 1979, and the different types of data and methods of collection employed over the years, it is not possible to provide directly comparable figures for each of the years sought.

The information provided in the previous reply of 17 May 2007, Official Report, column 895W, was derived from the Family Resources Survey (FRS). FRS information is not available for 1979 and 1992. Tax credits were introduced in 1999 and replaced family credit. The available information for family credit in 1997-98 and tax credits in 2005-06—the most recent year for which information is available—is in the following tables.

Households and individuals in Great Britain who are in receipt of various combinations of income-related benefits and family credit, 1997-98

Individuals

Households

Both income-related benefits and Family Credit

310,000

320,000

Income-related benefits or Family Credit

6,360,000

6,130,000

Income-related benefits and/or Family Credit

6,670,000

6,450,000

Family Credit

580,000

580,000

Income-related benefits

6,390,000

6,180,000

Households and individuals in Great Britain who are in receipt of various combinations of income-related benefits and tax credits, 2005-06

Individuals

Households

Both income-related benefits and tax credits

790,000

850,000

Income-related benefits or tax credits

8,420,000

8,030,000

Income-related benefits and/or tax credits

9,210,000

8,880,000

Tax credits

4,180,000

4,170,000

Income-related benefits

5,820,000

5,560,000

Notes:

1. The Family Resources Survey is a nationally representative sample of approximately 26,000 households in 2005-06 and 23,000 households in 1997-98.

2. Data are shown for Great Britain only for both 1997-98 and 2005-06. (Northern Ireland joined the survey in 2002-03, so UK data is not available for 1997-98.)

3. Data for 2005-06 were collected between April 2005 and March 2006; 1997-98 were collected between April 1997 and March 1998.

4. The estimates are based on sample counts that have been adjusted for non-response using multi-purpose grossing factors which align the FRS to Government office region populations by age and sex. Estimates are subject to sampling error and remaining non-response error.

5. Tax credit and income-related benefits receipt is under-reported on the FRS. This will mean that the FRS estimates are likely to be under-estimates. However, there is no other reliable source for this information at a household level.

6. Figures for the number of households and persons have been rounded to the nearest 10,000.

7. Individuals and households in receipt of either tax credit, working tax credit or child tax credit have been counted.

8. There are more households than persons because different individuals within the household might receive the benefits and tax credits.

9. ‘Income-related benefits’ includes income support, income-based jobseeker’s allowance, council tax benefit, housing benefit, and for 2005-06 only, pension credit.

Source:

Family Resources Surveys 1997-98 and 2005-06.

Information on the number of claimants of the various income-related benefits for each of the four years is available from DWP Information. However, similar figures are not available for households. Supplementary benefit was the only income-related benefit available in 1979. Income support replaced supplementary benefit in 1988. Income-based jobseeker’s allowance replaced income support for the unemployed in 1996. Pension credit replaced income support, and expanded the availability of income-related benefits, for pensioners in 2003. Housing benefit, in its current form, was introduced in 1988. Community charge benefit was introduced in 1990 and was replaced by council tax benefit in 1993.

The available information is in the following table

Claimants of income-related benefits in Great Britain

SB

IS

JSA (IB)

HB/CCB

HB/CTB

PC

1979

2,855,000

1

1

1

1

1

1992

1

5,088,000

1

3,080,000

1

1

May 1997

1

3,977,100

1,219,000

1

2,330,000

1

February 2007

1

2,134,170

707,700

1

1

2,730,940

1 Figures are not available.

Notes:

1. ‘SB’ is supplementary benefit; ‘IS’ is income support; ‘JSA (IB)’ is income-based jobseeker’s allowance; ‘HB’ is housing benefit; ‘CCB’ is community charge benefit; ‘CTB’ is council tax benefit; and ‘PC’ is pension credit.

2. Overlaps between benefits have been removed.

3. Due to the estimation procedure used to remove the overlaps between housing benefit and council tax benefit, HB/CTB figures have been rounded to the nearest 10,000.

4. JSA 5 per cent. figures have been uprated using 5 per cent. proportions against 100 per cent. totals of WPLS data.

5. HB data excludes any extended payment cases.

6. CTB data excludes second adult rebate cases.

7. Some income-based JSA claimants may also have entitlement to benefit via the contributory route.

Source:

Information Directorate, 5 per cent. and 1 per cent. samples; 100 per cent. Work and Pensions Longitudinal Study; Housing Benefit and Council Tax Benefit Management Information System, Annual 1 per cent. sample.

HMRC’s snapshot publication estimates the number of out of work claimants who receive either child tax credit or the equivalent through benefits. It shows that as at April 2007, there were 1,398,000 out of work families with children of which 927,000 received child tax credit and the remaining 471,000 received the equivalent in benefits. The full HMRC publication is available online at:

http://www.hmrc.gov.uk/stats/personal-tax-credits/ctc-wtc-snapshot-apr07.pdf