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Council Tax Benefits

Volume 493: debated on Wednesday 3 June 2009

To ask the Secretary of State for Work and Pensions pursuant to the answer of 20 April 2009, Official Report, column 107W, on council tax benefits, if he will estimate the cost to the public purse of altering personal allowances for council tax benefit to provide for households where no individual earns more than £10,000 per annum, including personal tax allowance, to receive full council tax benefit, regardless of the amount of capital held; and if he will make an estimate of the number of households which would pay a reduced rate or no council tax as a result of such a change. (276552)

[holding answer 20 May 2009]: The following table shows the estimated cost and number of council tax benefit (CTB) beneficiaries if full CTB was awarded to all households where no individual earns more than £10,000 per annum, regardless of the amount of capital held.

Full CTB if no individual earns more than £10,000

Number of beneficiaries

Cost in annually managed expenditure (£ million per year)




Working age







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.