Select Committee on Deregulation and Regulatory Reform Eighth Report


ANNEX B

Minimum Income Guarantee

Examples (2001 - 2002 rates)

1.    Single pensioner aged 68
on RP and MIG caring for
brother. Claims ICA.
Existing rules:
  
Disallowed ICA
MIG level£92.15
Less RP£72.50
MIG received£19.65
  
Total Income£92.15
  
Proposed rules
  
Underlying entitlement to ICA
MIG level£116.55 (£92.15 plus CP £24.40)
Less RP £72.50
MIG received £44.05
  
Total Income£116.55
  
OutcomeIncrease of £24.40 under new rules
  
  
2. (i) Single pensioner aged
68 on RP and MIG,
caring for disabled brother.
Entitled to but not
receiving ICA because of
overlapping benefit.
  
Existing rules:
  
MIG Level£116.55 (£92.15 plus CP £24.40)
Less RP £72.50
MIG received £44.05
  
Total Income£116.55
  
Proposed rules:
  
As above.
  
(ii)Disabled person dies,
CP is removed,
underlying entitlement remains.
  
Existing rules:
  
MIG level £92.15
Less RP £72.50
MIG received £19.65
  
Total Income £92.15
  
Proposed rules:
  
As above.
  
Outcome Income same before and after proposed changes. CP removed.
  
3. (i)Single carer aged 68 no RP. On ICA and MIG
  
MIG Level £116.55 (£92.15 plus CP £24.40)
Less ICA £41.75
MIG received £74.80
  
Total Income£116.55
  
OutcomeIncome same under existing and proposed rules
  
(ii)Disabled person dies. ICA continues.
  
Existing Rules
  
MIG Level£116.55 (£92.15 plus CP £24.40)
Less ICA £41.75
MIG received £74.80
  
Total Income£116.55
  
Proposed Rules
  
MIG Level £92.15
No other income
MIG received £92.15
  
Total Income £92.15
  
OutcomeIncome reduced by £24.40 under new rules

8 February 2002


 
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Prepared 15 March 2002