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State Second Pension
15. Mr. Peter Luff (Mid-Worcestershire): If he will make a statement on his proposals for a state second pension. [111846]
The Minister of State, Department of Social Security (Mr. Jeff Rooker): The state second pension will reform SERPS to give more help to those who need it most--low earners, carers and the long-term disabled. Those earning below £9,500 a year on this year's figures will be treated as if they had earned that amount. There will be considerable extra help for moderate earners. Anyone who works throughout their working life or has periods of caring or disability will retire on an income well above the level of the minimum income guarantee.
Mr. Luff: The Minister says that anyone who works throughout his entire working life will retire on an income above the level of the minimum income guarantee. How long will it take someone who earns less than
£9,500 a year--the new figure that the Minister announced today--to obtain enough credits to attain that income?
Mr. Rooker: The system will assume that anyone who earns less than £9,500 is earning that sum. Much of the gain for low earners derives from that; they will obtain a low-earners boost. As long as they earn more than the lower earnings level of the national insurance system, which is around £3,500, it will be assumed that they earn £9,500. Two million carers, 2 million people with long-term disability, and between 10 and 14 million low and moderate earners will gain.
We are considering a pension, so the accruals will take time to build up. However, on the state second pension, people who work throughout their lives will retire on an income that is above the minimum income guarantee. As I said earlier, people will be treated as individuals. Income support and the minimum income guarantee are means- tested on the basis of couples' incomes. As everyone knows, income support and minimum income guarantee levels for a couple are not twice those for a single person.
Housing Benefit
16. Mr. Desmond Swayne (New Forest, West): What plans he has to implement fundamental reform of housing benefit. [111847]
The Parliamentary Under-Secretary of State for Social Security (Angela Eagle): We intend to publish a Green Paper on housing policy later this year. It will consider housing as a whole, including the role of housing benefit.
Mr. Swayne: When implementing the working families tax credit, what lessons did the Government try to learn from housing benefit? What is the threshold number of claimants of the working families tax credit at which the Government will cease to congratulate themselves on the success of the benefit and start to panic?
Angela Eagle: The live case load for the working families tax credit, mixed with the remnants of family credit, is 1 million. We continue to accept claims; 1.5 million families will therefore ultimately be better off.
Mr. John Wilkinson (Ruislip-Northwood): How will the taxpayer be reassured by the hon. Lady's answer? A Green Paper later in the year on the general subject of housing and a letter-writing campaign by the Secretary of State about housing benefit fraud are hardly adequate measures when there were only 700 successful prosecutions for housing benefit fraud last year. That is underlined by the fact that the National Audit Office found that 25 per cent. of the councils that it visited were in on the act.
Angela Eagle: We have done a great deal to improve the administration of housing benefit. For example, we have introduced remote access terminals, which allow local authorities to examine Benefits Agency information; we are introducing the electronic transfer of data, which will mean that 20 million fewer paper notifications of benefit changes are made--they will be made
electronically instead; and we have changed the weekly benefit saving system for anti-fraud purposes. The latter will reward local authorities that undertake prevention and prosecution.
What did the Conservative party do? They landed us with the fragmented, complex system in the first place.
18. Sir Sydney Chapman (Chipping Barnet):
If he will make a statement on progress in tackling fraud in the social security system, with particular reference to housing benefit. [111849]
The Parliamentary Under-Secretary of State for Social Security (Angela Eagle):
We have already demonstrated our tough stance on tackling housing benefit fraud through a more direct interventionist approach with local authorities than the previous Government ever envisaged.
We have targeted the benefit fraud inspectorate inspection regime where it will have most effect and made a substantial financial investment to get local authorities to operate tighter controls over the benefit system through rigorous checks on evidence and identity.
Sir Sydney Chapman:
How can the Minister say that, when more than a third of all councils have never prosecuted any benefit fraudster, and when councils in 57 local authorities have refused to name councillors or council officials who have committed fraud? I respect and welcome the Secretary of State's belated announcement that he will get in touch with councils; but will the Minister assure us that measures will be backdated at the very least and that those councillors or council officials who have committed fraud will be prosecuted?
Angela Eagle:
I can say what I said because it is true. Since we came to power we have been doing what the Conservatives should have done years ago.
19. Mr. Alan W. Williams (East Carmarthen and Dinefwr):
What is his Department's estimate of the percentage of people who are entitled to disability living allowance but do not claim it. [111850]
The Parliamentary Under-Secretary of State for Social Security (Mr. Hugh Bayley):
Estimates based on the 1996-97 family resources survey suggested that take-up of disability living allowance by those entitled to it ranged from 30 to 70 per cent., depending on the component. Since then, the number of people receiving DLA has continued to grow and we are also taking steps to improve take-up through increased public confidence in decisions on entitlement.
Mr. Williams:
Is it not disappointing that only about half those entitled are claiming DLA? Should not the Government consider introducing a publicity campaign, as they are for the minimum income guarantee for pensioners, to help these mainly elderly people to claim attendance allowance and the mobility and care components?
Mr. Bayley:
We want to ensure that all those entitled to benefit receive that to which they are entitled, and credit is due to the Government for increasing the number of people who receive DLA. In the past year, we increased expenditure by £363 million, having identified an additional 62,000 people who were entitled to DLA but not receiving it. They now do.
Miss Ann Widdecombe (Maidstone and The Weald):
On a point of order, Madam Speaker. As the upholder of the privileges of the House, are you concerned that the Government are increasingly unable to distinguish between the House and the "Today" programme? Dawn was accompanied by another announcement of a massive Government U-turn--it concerned their decision not to take over responsibility for asylum seekers and their dispersal from 1 April--that has serious implications for local councils. I wonder whether I have misjudged them. Have they asked you whether they can make a statement on this important issue?
Madam Speaker:
I listen to the "Today" programme, but as far as I am aware the Government are not seeking to make a statement on such an issue today. I made it my business to read the Order Paper and I believe that a number of questions tabled for written answer may give a good deal of information about the subject that the right hon. Lady has raised.
Mr. Simon Hughes (Southwark, North and Bermondsey):
Further to that point of order, Madam Speaker.
Madam Speaker:
Order. I take no further points of order once I have given a ruling.
Mr. Gary Streeter (South-West Devon):
On a point of order, Madam Speaker. You will have heard the Secretary of State for International Development say in the House on Monday last week that money was not the issue in relation to aid for Mozambique. On Wednesday she said that co-operation between her Department and the Ministry of Defence was good. In view of the revelations
3.31 pm
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