Mitigating benefit losses
McCarthy asks the Minister to strengthen relief for families facing substantial losses under the Directive. Hussey says 20,000 of 170,000 affected households will lose, but the Government’s alleviating measures and the cost of the reforms limit what more it can do.
I accept that some families will lose as a result. Approximately 20,000 families will be affected by the implementation of the Directive. Of that 20,000, some 8,000 are going to do extremely badly. In view of the fact that we have had a considerable period of time to reflect on the damaging aspects of this to the family income would the Minister consider improving the alleviating factors which, when the Bill was passing through this House we on this side of the House regarded as grossly inadequate to cater for the loss? Many families will lose £40 to £50 a week when the Directive is fully implemented.
Comment on this
The number of people who will benefit from the equal treatment provisions is enormous. The cost already is £16.8 million. There are 170,000 households affected, with only 20,000 suffering some drop. We have designed alleviating measures which I detailed earlier on and which have gone reasonably far. In view of the enormous cost, the fact we have taken alleviating measures and that the vast majority of people affected will be affected on the right side, the Government have gone as far as they can go.