Council Tax Benefits

To ask the Secretary of State for Work and Pensions if he will estimate the expenditure required from the public purse to alter personal allowances for council tax benefit to provide that households where no individual is eligible to pay income tax receive full council tax benefit (a) regardless of the amount of capital held and (b) while maintaining the current capital limits; and if he will estimate the number of households which would pay a reduced rate of or no council tax as a result of such a change. (268899)

The following table shows estimates of the cost and number of council tax benefit (CTB) beneficiaries of (a) awarding full CTB where no individual is paying income tax, and regardless of any capital held and (b) awarding full CTB where no individual is paying income tax and capital held is within the current capital limits.

*Full council tax benefit where no one in the household pays income tax*
Full CTB where no one pays income tax, depending on capital	Number of beneficiaries	Cost in annually managed expenditure (£ million per year)
No capital limit
Working age	450,000	200
Pensioners	510,000	270
Total	950,000	470

Capital under £16,000
Working age	350,000	80
Pensioners	460,000	200
Total	800,000	290
Notes: 1. All figures are for Great Britain. 2. Beneficiaries are rounded to the nearest 10,000 and costs are rounded to the nearest £10 million. These estimates include customers who gain and those who become entitlement to the benefit. 3. Each beneficiary represents a benefit unit, which can be a single claimant or a couple. 4. The impact is estimated using the Department’s Policy Simulation Model for 2008-09, using data from the 2006-07 Family Resources Survey up-rated to 2008-09 prices, benefit rates and earnings levels, and is calibrated to latest published forecasts and policies. 5. Results are subject to sampling and reporting errors and estimation assumptions, and are therefore indicative only. No behavioural changes are assumed.

To ask the Secretary of State for Work and Pensions if he will estimate the expenditure required from the public purse to (a) raise to £50,000 and (b) abolish the upper capital limit for council tax benefit; and if he will estimate the number of households which would pay a reduced rate of or no council tax as a result of such a change. (268900)

The information is in the following table:

*Increasing and abolishing the upper capital limit in council tax benefit*
Increase in upper capital limit	Number of beneficiaries	Cost in annually managed expenditure (£ million per year)
£50,000	130,000	70
No limit	150,000	80
Notes: 1. All figures are for Great Britain. 2. Beneficiaries are rounded to the nearest 10,000 and costs are rounded to the nearest £10 million. These estimates include customers who gain and those who become entitled to the benefit. 3. Each beneficiary represents a benefit unit, which can be a single claimant or a couple. 4. The impact is estimated using the Department's Policy Simulation Model for 2008-09, using data from the 2006-07 Family Resources Survey up-rated to 2008-09 prices, benefit rates and earnings levels, and is calibrated to latest published forecasts and policies. 5. Results are subject to sampling and reporting errors and estimation assumptions, and are therefore indicative only. No behavioural changes are assumed.

Volume 491: debated on Monday 20 April 2009