Select Committee on Social Security First Report


ANNEX 1

The effect of frozen benefit rates

1996-97
£
1997-98
£
1998-99
£

Lone Parent Rate of Child Benefit6.30 6.055.65
Lone Parent Rate of Family Premium (Income Support) 5.204.954.70
Lone Parent Rate of Family Premium (Housing Benefit and Council Tax Benefit) 11.5011.2511.00

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

Loss of benefitNumbers affected
£1998-99 1999-20002000-01

Lone Parent Rate of Child Benefit5.65 75,000155,000230,000
Lone Parent Rate of Family Premium—Income Support 4.70260,000440,000 560,000
Lone Parent Rate of Family Premium—Housing Benefit and Council Tax Benefit 9.3560,000100,000 120,000
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.



 
previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries

© Parliamentary copyright 1998
Prepared 2 December 1998