Incapacity Benefit: Disposable Income

Work and Pensions written question – answered on 21st June 2007.

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Photo of John Hemming John Hemming Member, Procedure Committee, Member, Regulatory Reform Committee 21st June 2007

To ask the Secretary of State for Work and Pensions what the median net disposable income of households receiving incapacity benefit was (a) before and (b) after housing costs were taken into account in the latest period for which figures are available.

Photo of Anne McGuire Anne McGuire The Parliamentary Under-Secretary of State for Work and Pensions 21st June 2007

Latest available data show that the median net (disposable) weekly income of households receiving incapacity benefit is 302 before housing costs and 260 after housing costs.

Notes

1. The source of the information provided is the Family Resources Survey (FRS), United Kingdom 2005-06. The Survey is a nationally representative sample of approximately 28,000 households.

2. Data for 2005-06 were collected between April 2005 and March 2006.

3. The estimates are based on sample counts that have been adjusted for non-response using multi-purpose grossing factors which align the FRS to Government Office Region populations by age and gender. Estimates are subject to sampling error and remaining non-response error.

4. Incapacity benefit receipt is under-reported on the FRS. However, there is no other reliable source for this information at a household level.

5. Figures for the median net weekly income are rounded to the nearest pound.

6. Net (disposable) weekly income includes income from all sources for all adults and children in the household, less income tax and national insurance contributions (for adults).

7. Housing costs include household rent for rented accommodation or mortgage interest for those buying their home with a mortgage, plus water and sewerage charges (including council tax water charge in Scotland), plus premiums paid on structural insurance, plus charges for owner occupiers (ground rent, service charges etc.).

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