ANNEX 1
The effect of frozen benefit rates
|
|
| 1996-97
£ |
1997-98
£ | 1998-99
£
|
|
Lone Parent Rate of Child Benefit | 6.30
| 6.05 | 5.65 |
Lone Parent Rate of Family Premium (Income Support)
| 5.20 | 4.95 | 4.70
|
Lone Parent Rate of Family Premium (Housing Benefit and Council Tax Benefit)
| 11.50 | 11.25 | 11.00
|
|
NB. These figures represent the difference between the amount paid to couples and the Lone Parent Rate for each type of payment. The level of Premium in Housing Benefit and Council Tax Benefit does not represent the actual amount paid, rather this represents a notional figure included as part of the benefit assessment.
| | | |
Maximum average notional losses
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|
| Loss of benefit | Numbers affected
|
| £ | 1998-99
| 1999-2000 | 2000-01 |
|
Lone Parent Rate of Child Benefit | 5.65
| 75,000 | 155,000 | 230,000
|
Lone Parent Rate of Family PremiumIncome Support
| 4.70 | 260,000 | 440,000
| 560,000 |
Lone Parent Rate of Family PremiumHousing Benefit and Council Tax Benefit
| 9.35 | 60,000 | 100,000
| 120,000 |
Lone Parent Rate of Family Premium (HB and CTB) and no Lone Parent Rate of Child Benefit
| 10.20 | |
| |
|
These figures are based on DSS estimates and show the effect
of losing the Lone Parent Rate of Child Benefit and the Lone Parent
Rate of Family Premium. Lone parents unaffected at the point of
change include those who were getting the Lone Parent Rate of
Family Premium in Housing Benefit and Council Tax Benefit before
6 April 1998 (150,000) and those who already get, or have protected
rights to the Lone Parent Rate of Child Benefit (965,000).
It is clear that lone parents starting paid work will be
the hardest hit losing up to £10.20 a week. Lone parents
moving off Income Support and into paid work will return to Income
Support at a level £4.70 below their previous entitlement.
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