§ My right hon. Friend the Secretary of State for Social Security also plans a significant reform of the current regime for invalidity benefit. For those who are disabled and incapable of work, invalidity benefit is important and necessary. But the astonishing growth in the numbers receiving the benefit in recent years indicates that it is now being claimed by many people who are not genuine invalids.
§ The Government have decided to make a number of changes to the benefit, which will refocus it for the future on those who are genuinely incapable of work. My right hon. Friend proposes to introduce a new benefit—incapacity benefit—to replace sickness and invalidity benefit. The new benefit will involve a tighter and more objective medical test.
§ The Government have always made clear their intention to bring the tax treatment of invalidity benefit into line with that of the retirement pension and most other 929 income-replacing benefits. Now that the necessary administrative arrangements can be made, I propose from April 1995 to bring its replacement, the new incapacity benefit, into tax.