§ Mr. Jim Cunningham
To ask the Secretary of State for Social Security (1) what interdepartmental arrangements he has made to ensure that the moneys paid to pensioners and families as compensation for VAT 707W increases are not eroded by being taken into account when other benefits are calculated; and if he will make a statement on how the Government are protecting them against the erosion of their benefits;
(2) how much money the Government have saved as a result of taking into account the allowance for VAT when other benefits are calculated.
§ Mr. Roger Evans
In April 1994, income-related benefits were increased to provide help with VAT on domestic fuel. In April 1995, they will be increased again. Claimants with other benefits that are taken into account in assessing entitlement to an income-related benefit therefore still receive help with the levy. The total package involves expenditure of £2.5 billion over three years.